Removing Barriers Blog

NCUA Board Meeting Recap - August 2
Posted August 02, 2018 by CUNA Advocacy

The NCUA Board met today for its July meeting (postponed from last week). The Board issued a proposal to delay the effective date of the agency’s risk-based capital rule by one year (from January 1, 2019, to January 1, 2020). The proposal would also raise the asset threshold for a complex credit union from $100 million to $500 million. This action would exempt an additional 1,026 credit unions (90% of industry) from the RBC rule (with 531 subject to the net worth requirements under RBC system). The proposal would also eliminate two indicators of a complex credit union: internet banking, and investments with maturities greater than five years (over 1% of assets). Several additional indicators have been revised in the proposal, including an exclusion for first-lien mortgages with interest-only loans, clarified participation loans must be sold, substitute commercial loans for MBL, and narrowed real estate loans to mortgages sold. The Board presentation noted that credit unions are well-capitalized currently. The proposed RBC rule will be subject to a 30 day comment period. Chairman McWatters noted that any comments should be specifically tailored to the proposal itself, as pertains to the delay and the criteria for complexity. 

The Board finalized the rule regarding government procurement suspension and debarment procedures, in accordance with federal government policies, without substantive changes from the proposed rule.  

The Board also proposed a rule on loan maturity limits, including seeking whether the agency should provide longer maturity limits for 1-4 multifamily housing loans, and clarifying that GAAP maturity dates are calculated from the new date of origination.