Removing Barriers Blog

CUNA Comments on NCUA's Proposed Insurance Rule
Posted July 09, 2015 by Chandler Schuette

CUNA sent a letter to the NCUA today urging the agency to take a forward looking approach to modernizing insurance regulations. As you know, the 113th Congress passed H.R. 3468, the Credit Union Share Insurance Fund Parity Act; the proposed rule makes the necessary changes as required by the law. CUNA strongly supported the law last Congress, and in our letter, we urge the agency to be forward looking in their rule on the matter.  

CUNA wrote that NCUA should be innovative in their final rule, allowing credit unions to be competitive in the ever-changing marketplace where products and services are developed quickly and move to market even faster. CUNA suggested that the final rule allows NCUA broad authority to define membership account insurance and that the final rule should provide credit unions with parity to FDIC insured accounts as well as provide coverage to prepaid and payroll card accounts.   

The NCUA has already taken the opportunity in this proposed rule to recognize that funeral accounts and other accounts in escrow are insured, efforts for which CUNA expressed appreciation. We will continue to advise the agency to be as broad as possible in their interpretation of the authority given to them by H.R. 3468 and the Federal Credit Union Act, and we will urge them to write an insurance rule that provides credit unions with the greatest opportunity to serve their membership.