NCUA's proposed rule limiting CU membership to a single corporate is already drawing active industry response with more time being sought in line with surveys being taken by CUNA and NAFCU.
CUNA said Tuesday it is seeking CU input on various aspects of the proposed rules put forward at NCUA's November meeting and wants the credit union remarks by Jan. 14 in light of NCUA extending public comment period through Jan. 28.
The NCUA proposal, CUNA said, "would limit a natural person credit union to membership in only one corporate at a time to reduce 'rate shopping' among the corporates. Do you support such an approach? Do you agree with NCUA that 'rate shopping' is negative, in the sense that it led to excessive risk-taking by the corporates?"
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Moreover, CUNA asked, "can you suggest an alternative approach to address the risky behavior of some corporates?"
The NCUA rules, CUNA said, would also require corporate CUSOs to provide the corporate's auditor, directors, and NCUA complete access to corporate's books deemed pertinent by the agency. "Do you support this proposed provision?" CUNA asked. "Why or why not?"
NAFCU said it too has invited input from its members on the proposed regulations through a regulatory alert. "We have extended our comment period to Dec. 27 in light of NCUA's extension," a spokeswoman said.
"While we are still formulating our response, we are closely looking at all aspects of corporate governance as well as the proposal to limit natural person credit union membership in one corporate. Despite the grandfathering in the proposal on membership, NAFCU has concerns that this could hamstring credit union choice."
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