Newsroom

The NCUA Board meets next week and is set to issue a request for comment on its operating fee schedule methodology, as well as proposed interpretative ruling and policy statement related to the Minority Depository Institution (MDI) Preservation Program. The board will also receive a briefing on new charter modernization.

The NCUA previously revised operating fees in 2020, which excluded any loan a federal credit union (FCU) reports under the paycheck protection program (PPP) or similar future programs from total assets. The rule also amended the period used for the calculation of an FCU's total assets to the average total assets reports on the FCU's previous four call reports, reducing the risk the NCUA under- or over-collects operating fees relative to the board-approved budget and providing more certainty for the forthcoming year. NAFCU generally supported the board's proposals and reiterated that the NCUA should operate in a fiscally prudent manner that reduces waste and ensures FCUs' operating fees are not excessive.

In January, the agency released the operating fees schedule for 2023, following its approval of a 7.5 percent operating budget increase for the year. NAFCU has a 2023 Federal Credit Union Operating Fee Calculator to help calculate what the NCUA’s final budget increase means for credit union bottom lines. 

On MDIs, the NCUA declared June as MDI Awareness Month. The agency highlighted the important role MDI credit unions play “in expanding access to safe, fair, and affordable financial products and services and supporting local development in under-resourced communities” and pledged to work toward strengthening their role in the financial services system.

Related to chartering, the NCUA recently held the first-of-its-kind hearing to consider Dade County Federal Credit Union’s request to expand its field of membership (FOM) using the narrative approach under the NCUA’s FOM II rule. NAFCU has called on the NCUA to pursue chartering and FOM reforms to support credit unions’ ability to serve all Americans in need of safe, secure, and reliable financial services.

In addition, NAFCU’s Share Insurance Fund (SIF) Committee met Thursday to review first quarter financials and discuss potential legislative efforts related to deposit insurance. The NCUA Board received a quarterly briefing on the SIF during its May meeting, and the agency last week released first quarter call report data that showed growth across the industry. Deposit insurance has been a hot topic in the wake of recent bank failures; NAFCU – as well as the NCUA – has advocated for deposit insurance parity between the FDIC and NCUA. NAFCU has cautioned against efforts that would allow the NCUA to raise the SIF’s normal operating level via statute or make it easier to assess premiums on credit unions.

The NCUA Board meeting will be livestreamed on the agency’s website starting at 10 a.m. Eastern Thursday. NAFCU will provide credit unions with insights afterward.