Removing Barriers Blog

CUNA Submits Response to NCUA Budget Briefing
Posted October 27, 2017 by CUNA Advocacy

As a follow-up to the testimony presented by CUNA economist Mike Schenk at NCUA’s Budget Hearing on October 18, CUNA CEO Jim Nussle sent a letter to NCUA, applauding the agency’s effort to functionally administer its safety and soundness regulation with efficient cost allocations. Nussle specifically praised the agency for addressing key suggestions offered during the prior year budget hearing with regard to reducing operating expenses as the agency moves forward with technological improvements and investments in systems designed to maximize NCUA staff resources.  

NCUA’s regional office reorganization, and consolidation from five to two regions, is a direct and intentional step forward, which will significantly reduce office leasing costs, as the agency continues to modernize the examination process through improved technological capabilities.   

CUNA maintains concern over the calculation of the Overhead Transfer Rate (OTR), with CUNA advocating for a reasonable distribution model that would remain relatively stable. CUNA continues to advocate for a dramatic reduction in, if not outright elimination of, the Asset Management Assistance Center (AMAC).  

Nussle praised the agency’s budget proposal as a positive roadmap going forward, with the hope that “NCUA will continue to focus on innovation and modernization, more material reductions in the budget, and slowing the growth rate of expenditures.” CUNA appreciated the opportunity to provide direct input on the budget process.