Trades Trash NCUA's Late 5300 Filing Fee
Credit union trade organizations criticized the penalties the NCUA will impose against federally insured credit unions that fail to meet filing deadlines for call reports.
NCUA Chairman Debbie Matz said the regulator is implementing the fines to deter late filing.
“Such late filing impacts NCUA’s ability to conduct effective off-site supervision and delays the release of quarterly industry data to the general public,” Matz wrote in a letter to credit unions on Wednesday. “It is also a drain on NCUA resources, as field examiners are required to follow-up with tardy FICUs.”
NAFCU called the penalties of up to $1 million per day passed the April 25 deadline extreme.
“NAFCU supports timely filings. However, on their face, the maximum penalties NCUA is permitted to assess seem extreme,” said NAFCU Director of Regulatory Affairs Michael J. Coleman.
“NAFCU will be seeking additional feedback from our members on issues they may be having with filing and if changes are needed, urges the NCUA to continue to look at other avenues, such as changes to the instructions to the call report, in lieu of penalties. Credit unions continue to face significant regulatory burden,” he added.
Mary Dunn, CUNA senior vice president and deputy general counsel, said the penalties are unnecessary.
“We do not agree these penalties are necessary. Education and awareness of reporting requirements should be the keys to addressing problems not punitive charges borne ultimately by the members,” Dunn said.
Paul Gentile, president/CEO of the Massachusetts Credit Union League, New Hampshire Credit Union League and Credit Union Association of Rhode Island, told Credit Union Times that the NCUA should not threaten to enforce penalties.
"NCUA's online Call Report filing system is still new. With any new technology-driven system, there are always bugs and issues. Rather than threaten fees, NCUA should be focused on working with credit unions to ensure the system is working properly and that credit unions are prepared,” said Gentile.
“NCUA has tremendous human resources that they can use in educating credit unions on the new system. NCUA should also carefully consider circumstances when deciding on fines and ensure there is consistency on how they levy fines if they are going to do so,” he added.