Removing Barriers Blog

Summary of NCUA Final Rule on Appeals Procedures
Posted October 20, 2017 by CUNA Advocacy

On October 19, the NCUA Board unanimously approved a final rule (Part 746, Subpart B) relating to existing appeals procedures. The rule, designed to increase efficiency and consistency across the agency, streamlines appeal procedures applicable to agency regulations with embedded appeals processes—replacing existing provisions.  The new procedures apply to cases where decisions handed down from a regional director or program office director is appealable to the NCUA Board.  The rule will become effective on January 1, 2018. 

Appealable actions under this rule may include decisions relating to member loans and lines of credit, loan participations, purchase/sale/pledge of existing obligations, payments on shares by public units and nonmembers, low-income status designations, chartering and field of membership, and mergers, among others.  

The scope of appealable actions subject to the new procedures excludes formal enforcement actions, creditor claims in liquidation, material supervisory determinations under the Supervisory Review Committee, prompt corrective action challenges, and appeals delegated by rule to an office or agent below the Board for final, binding agency action.  

Timeline & Process 

Upon adverse decision on a claim, a petitioner may file a request for reconsideration from the relevant program office within 30 days. Such request for reconsideration may include new and material evidence. The subsequent program office then has 30 days in which to issue a decision. Upon further denial, petitioners may appeal to the NCUA Board. An appeal to the Board must be filed within 60 calendar days from the determination subject to appeal. In the case of a request from a troubled or newly-formed credit union, however, a 15-day appeal process deadline would apply.  

An initial appeal request will be met with a preliminary, independent review by the Special Counsel to the General Counsel, who will be tasked with both a procedural examination of the timeliness of the appeal, and whether the issues and concerns raised remain applicable, before engaging in a substantive, de novo review of the program office files.  

A request for an oral hearing may be submitted concurrently with the initial appeal via separate, written request. An oral hearing request must show good cause and explain why a written appeal is inadequate. An oral hearing may be granted based on approval by at least one Board Member within 20 days of receipt; absent noticed approval, requests are deemed denied. The NCUA Chairman may, under sole discretion, permit a tele- or video-conference, in lieu of an in-person oral argument at NCUA HQ. Petitioner may designate two representatives to present oral arguments, unless otherwise authorized by the Chairman. Stenography transcripts will be made available at cost.