Week ahead: All eyes on NCUA
Both chambers of Congress are in session this week, but the National Credit Union Administration is consuming most of the credit union spotlight.
The NCUA board will host its October meeting on Thursday, and the agency is expected to issue a final rule on public and nonmember shares.
NCUA approved the proposed rule during its May board meeting, and it was put out for comment. The rule would allow federal credit unions to accept nonmember deposits for up to 50% of the institution’s unimpaired capital and surplus while also eliminating the current waiver-request process.
Under the current regulation, CUs may access funds of up to 20% of their share balance or $3 million, whichever is greater.
"This was a proposal that [the Credit Union National Association] supported back in July. We feel that it will provide credit unions with greater ability to accept public and non-member shares," said Luke Martone, CUNA’s senior director of advocacy and counsel.
However, CUNA didn't agree with all of the proposed changes, such as the elimination of the $3 million alternative limit.
Also on NCUA’s docket is rulemaking around field of membership, though the specifics on that remain unclear at this time. The credit union regulator will close out its October meeting with a cybersecurity briefing.
The credit union regulator also may be on the brink of receiving authority from Congress on third-party vendor oversight, something the industry’s trade groups have fought hard. NCUA has been requesting this authority since the late 1990s, and last week lawmakers put out discussion draft legislation that would amend the Bank Service Company Act to give the regulator oversight of vendors for the purpose of cybersecurity.
The Credit Union Advisory Council of the Consumer Financial Protection Bureau will meet this Wednesday and Thursday to discuss the Home Mortgage Disclosure Act, debt collection and other matters.
The Senate Banking Committee is holding two hearings this week. The first one on Tuesday will focus on oversight of the consolidated audit trail, which stems from a ruling from the Securities and Exchange Commission that allows regulators to track U.S. market activity. A hearing on Thursday will explore data privacy rights.
On Tuesday morning, the House Financial Services Committee will examine affordable housing under the Trump Administration. The committee will also hold a hearing on Tuesday afternoon on minority depository institutions. On Wednesday, the committee will examine Facebook and its influence on financial services.