CUNA Pushing for Extension of Corporate Rule Comment Period
Saying that the proposed changes to the rules on corporate credit unions are "significant and deserve thorough consideration by the credit union system,'' CUNA President/CEO Bill Cheney is asking the NCUA to extend the comment period by 60 days.
The comment period is currently scheduled to end on Dec. 30.
Cheney wrote NCUA Chairman Debbie Matz that the extension would be "reasonable given the importance of the matters the agency is contemplating as well as numerous other regulatory issues facing credit unions.''
NAFCU Senior Counsel and Director of Regulatory Affairs Carrie Hunt said her group doesn't see the need to have a longer comment period.
"We don't want anything to slow the progress of the changes on corporate rules. Although it's a short period, we are going to make the deadline. The proposed rules have been known since September,'' she told Credit Union Times.
The rule proposes limiting natural person credit unions to joining one corporate, sets up a system-wide risk mitigation committee and requires each corporate to form a risk management committee .
It would also allow corporates to assess annual membership fees and increase the amount of retained earnings and would mandate that the corporate prepare an annual management report that assesses how well it is in compliance with NCUA regulations and an assessment of its internal auditing and control structure.
The rule would also request that corporate credit union members that are not federally insured make a voluntary payment to the Temporary Corporate Credit Union Stabilization Fund. If the organization doesn't make a payment, the corporate must call a meeting to determine if it should be expelled from the corporate.