NCUA Cancels Board Meeting; CFPB Rulemaking Without A Board; NCUA Report
Written by Steve Van Beek
Late last week, NCUA announced it was cancelling its February Board meeting. Â Given the pace of regulatory issues in January, this was a welcomed move by NCUA. Â This also got me thinking about the predicability of NCUA's issuance of regulations. Â NCUA issues their proposed or final regulations at a formal, monthly Board meeting. Â NCUA usually announces their Board agenda in advance which helps everyone involved be prepared.
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Flip to the CFPB - which does not have a Board - and we have a different dynamic. Â The CFPB has the ability to "drop" a proposed rule or a final rule without warning (such as the lengthy remittances rule). Â When credit union's are facing a mountain of compliance challenges, one of the last things they need as the fear that - at any moment - the mountain can have another regulation stacked on top.
The FDIC also holds public Board meetings that are recorded. Â Similar to NCUA's meetings, staff present proposed and final regulations and the Board inquires and there is a public vote. Â Â Â Â
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The February 2012 NCUA Report is available. Â This version includes a brief summary of NCUA's actions during its January Board meeting. Â Of particular importance is NCUA's recent proposal on loan workout policies and troubled-debt restructuring (TDR) reporting. Â
NCUA's existing policy on TDRs was inconsistent and resulted in many unintended consequeneces. Â NCUA has indicated their intent to "fast-track" this proposal - so I'd encourage you and your colleagues to review the proposal rule to hopefully prevent additional regulatory issues from cropping up in the future.
NAFCU Members. Â Our Regulatory Alert on Loan Workouts, Nonaccrual Policies and TDRs is available here (12-EA-04). Â Â Â