NCUA Asks Congress to Reject RBC Amendment
NCUA Board Chairman Debbie Matz asked the House Financial Services committee to reject any amendments related to the proposed risk-based capital rule during the full committee markup on Tuesday.
Rep. Blaine Luetkemeyer (R-Mo.) sponsored an amendment to the Community Bank Mortgage Servicing Asset Capital Requirements Study Act of 2014, which would have included the NCUA among the federal agencies required to conduct a study of appropriate capital requirements for mortgage servicing assets.
“Now that the comment period has ended and (the) NCUA has completed three nationwide Listening Sessions to discuss the proposal with credit union officials, I wanted to update you about what we have learned and summarize some of the key changes we will make to the rule as we move forward,” said Matz in a letter to House Financial Services Committee Chairman Jeb Hensarling (R-Texas) and Ranking Member Maxine Waters (D-Calif.) on Monday.
“I also request that the House Financial Services Committee refrain from considering amendments at tomorrow’s markup related to NCUA’s risk-based capital proposed rule, because this rulemaking is essential to protecting the safety and soundness of federally insured credit unions,” she added.
The amendment, which was not approved by the committee on Tuesday, could have delayed any action from the NCUA Board on the proposal.
"H.R. 4042 wasn’t amended to include NCUA, but Chairman Hensarling and Rep. Blaine Luetkemeyer (R-Mo.) committed to working to ensure credit union parity in the bill before it sees action on the House floor," CUNA Media Relations Manager Vicki Christner said.
Matz told Hensarling and Waters in her letter that the NCUA Board fully understands it has to re-examine the risk weights in the proposal.
“Accordingly, NCUA staff are now reviewing the assumptions underlying key risk weights, and the NCUA Board will make changes as appropriate in the final rule. In fact, I have already publicly identified five candidates for revised risk weights,” Matz said.
“They include investments, mortgages, member business loans, credit union service organizations and corporates. The final rule will make appropriate changes in each of these areas to ensure that credit unions continue to make safe investments and provide sound loans to homeowners, small businesses, family farms and consumers,” she also said.
Matz also told the committee leadership the rule's implementation period would be reasonably extended beyond the proposed 18-month timeframe.