WASHINGTON-CUNA has made 17 recommendations to NCUA as part of the agencies 2012 Regulatory Review.
CUNA's 17 recommendations include:
1. Creation of an Advisory Council. Saying that many federal proposals and regulations seem to demonstrate CUs' views have not been fully considered, CUNA urged formation of an "NCUA advisory council" to provide input.
2. Steps to boost Member Business Loans. "We encourage the agency's creativity in this area and urge consideration of recommendations CUNA has developed to improve MBL programs without jeopardizing safety and soundness.
As part of that effort, CUNA called for removal of regulatory requirements for MBLs that are not mandated by the FCU act, including the requirement for the personal guarantee of the borrower(s), loan-to-value ratios, and more.
3. Amend policies on REOs. CUNA called on NCUA to relax its policy that a CU demonstrate that it is actively marketing an REO property for sale while it's being rented. "It is often more difficult to rent a property if the tenants are concerned the property is being marketed."
4. Loan Participations. In brief, CUNA stated that it "continues to hold the view that new rules in these areas are simply not needed."
5. Investment and Deposit Activities. CUNA said it continues to strongly favor "the ability of well-managed credit unions with appropriate expertise to engage in straightforward transactions but only for the purpose of hedging interest rate risks."
6. FCU Chartering, FOM Mods, and Charter Conversions. CUNA said it supports NCUA's review of the definition of "rural district," with an eye on making it more flexible; that NCUA should review rules related to whether a state-chartered CU converting to federal may continue accepting members from previously approved groups, even if such groups would not have been approved if the CU had been a federal all along; and that it has "concerns about the agency's treatment of underserved areas and the overly cumbersome requirements credit unions must follow to even apply for such an area."
7. Definition of Small CU. CUNA said while it believes the threshold should be $100 million in assets, it is urging NCUA to raise it to at least $50 million.
8. Mergers and Conversions. Regarding mergers that are involuntary, CUNA said a "concern remains that NCUA continues to be too selective in terms of designating a CU that could take over a problem credit union and that CUs that are more local to a troubled CU than the one NCUA chooses are overlooked or ignored." CUNA also raised concerns over the lack of updates related to various applications for mergers, expansions, etc.
9. FCU Bylaws. CUNA called on NCUA to "update and streamline the FCU Bylaws to ensure, among other things, that the bylaws afford as much flexibility to credit unions as is permitted under the FCU Act, and that they are as user-friendly to credit unions as possible."
10. Fees. CUNA is seeking additional flexibility regarding permissible fees related to short-term, small-dollar amount loans.
11. Prompt Corrective Action. CUNA said a committee will soon provide feedback on risk-based requirements and risk-based net worth standards under prompt corrective action.
12. Unfair or Deceptive Acts or Practices. Noting that NCUA, the Fed and the CFPB have issued rules implementing the requirements of the FTC Act, CUNA called on NCUA to work with the other regulators to decide which has authority.
13. Truth in Savings. Pointing to concerns over usage of "average percentage yield earned" in statement and account disclosures, CUNA urged NCUA to eliminate requirements for "subsequent disclosures for certificates to be provided to the member 30 days in advance, as we believe this is overly burdensome...and of little or no utility to the member."
14. Share, Share Draft and Share Certificate Accounts. Saying NCUA's current interpretation of the FCU Act as it relates to these accounts puts CUs at a disadvantage because banks can offer more favorable insurance coverage, CUNA urged NCUA to use its authority to classify IOLTAs as fiduciary accounts, as the FDIC does, which would then allow insurance coverage to be provided for each of the clients whose funds are included in the account.
15. Accuracy of Advertising and Notice of Insured Status. CUNA said regs related to the official advertising statement do not work well on a mobile device.
16. Low-Income Status. CUNA said it looks forward to working with NCUA to publicize the benefits of the LI designation.
17. NCUA's New Examiner Manual. CUNA called on NCUA to makes its new Supervision Policy Manual available to all credit unions.