NCUA Board continues 18% usury cap; NCUSIF remains strong

The NCUA Board on Thursday voted to maintain federal credit unions’ current usury cap ceiling at 18 percent – as urged by NAFCU – and heard a quarterly report on the National Credit Union Share Insurance Fund that showed the fund remained in good standing through the end of 2016.

“We appreciate the leadership shown by NCUA Board Chairman J. Mark McWatters and Board Member Rick Metsger in making the prudent decision to maintain the current 18 percent usury ceiling, and we thank them for heeding our concerns on this critical issue,” said NAFCU President and CEO Dan Berger. “We also appreciate their recognition of the need for greater flexibility in this area.”

Thursday’s open board meeting was the first led by McWatters in his capacity as acting chairman.

In January, NAFCU urged the agency board to maintain the current 18 percent usury ceiling beyond March 10, the end of the 18-month period covered by the board’s last action on the cap. NAFCU President and CEO Dan Berger warned that allowing a drop back to 15 percent would be “detrimental to the safety and soundness of credit unions.”

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