National Association of Federal Credit Unions (NAFCU) President and CEO Dan Berger issued the following statement on the National Credit Union Administration (NCUA) Board’s vote on the occupancy rule and the agency’s briefing on the Temporary Corporate Credit Union Stabilization Fund, a move directly sought by NAFCU. The association wrote NCUA pressing for full transparency on TCCUSF and urged the agency to create a plan for the dissolution of the fund and to expedite refunds to credit unions.
“NAFCU and our members appreciate NCUA Board Chairman Rick Metsger’s and NCUA Board Member J. Mark McWatters’ leadership granting credit unions much-needed regulatory relief and heeding our recommendations regarding the occupancy rule,” said Berger. “NAFCU has steadfastly advocated for the agency to grant credit unions increased flexibility by lifting the needlessly restrictive occupancy requirements.”
The final occupancy rule includes NAFCU’s suggestion to modify the existing definition of “partially occupy” so any federal credit union, or a combination of the federal credit union and a credit union service organization in which it owns a controlling interest, can meet the rule’s requirements if it uses at least 50 percent of the premises within six years of purchasing it.
The final rule also would amend the excess capacity provision in the NCUA’s incidental powers rule; the revision would specify that federal credit unions may lease or sell excess capacity in their facilities as long as the federal credit union has a reasonable expectation that it will eventually fully use the excess capacity.
“Additionally, we appreciate that the agency today held a briefing on its disposition strategy for the NCUA Guaranteed Note legacy assets in relation to the Temporary Corporate Credit Union Stabilization Fund. We have specifically urged NCUA to adopt greater transparency of information and dialogue of ideas on this ever-evolving issue of substantial interest to credit unions. NAFCU recommends the agency continue to investigate and evaluate their options in future board briefings,” said Berger. “We will also continue working with the agency going forward as all stakeholders should be focused on making credit unions whole as soon as practical.”
NAFCU and its board of directors have repeatedly asked the NCUA to make refunds to credit unions from the TCCUSF. Credit unions can get a summary overview of the stabilization fund in a frequently asked questions document produced by NAFCU’s regulatory compliance team.