Credit union trade groups are voicing their support for newlyintroduced legislation that would require the NCUA to provide adetailed analysis of how funds in the Share Insurance Fund areused.

H.R. 5869 is co-sponsored by Reps. Mick Mulvaney (R-S.C.) andDenny Heck (D-Wash.). It would require any overhead transfer ofagency expenses to the insurance fund to be legitimate,substantiated, insurance-related costs.

The OTR determines what percentage of the NCUA's operatingbudget will be drawn from the National Credit Union Share InsuranceFund and used to cover expenses related to federal share insurance.In August 2015, the NCUA announced it would publish and seekcomment on its OTR methodology for the first time in January2016.

CUNA said the NCUA has taken steps to open up the OTR process.

“We appreciate that your legislation goes several steps further,by requiring that [the] NCUA publish a detailed analysis of how itsexpenses are assigned between prudential activities andinsurance-related activities, and the extent to which thoseexpenses are paid from the fees collected pursuant to Section 105,or from the Fund,” CUNA wrote in a letter to the legislators.

NASCUS also endorsed the legislation.

“At NASCUS, our goal for years has been to give the credit unionsystem the opportunity to evaluate and respond to [the] NCUA'sallocation of expenses – and this measure, once enacted, will besignificant in helping us reach that goal,” NASCUS President/CEOLucy Ito said.