Press
NAFCU Statement on NCUA Board Action on Proposed IOLTA Rule and Final Associational Common-Bond Rule
WASHINGTON, D.C. (April 30, 2015) — National Association of Federal Credit Unions (NAFCU) Director of Regulatory Affairs Alicia Nealon issued the following statement regarding the National Credit Union Administration (NCUA) Board’s April meeting, which included, among other things, the issuance of a proposed rule on extending share insurance coverage to escrow accounts such as Interest on Lawyer Trust Accounts (IOLTAs), realtor accounts and prepaid funeral accounts, which would conform the agency’s share insurance rules with the NAFCU-supported Credit Union Share Insurance Fund Parity Act.
“NAFCU is pleased to see NCUA propose amendments that will bring its share insurance regulations into conformity with the NAFCU-supported Credit Union Share Insurance Fund Parity Act. While we will be carefully reviewing other accounts that may qualify for coverage, NAFCU and our members strongly support the proposed coverage of IOLTAs, realtor escrow accounts and prepaid funeral accounts, and we appreciate the agency’s request for additional suggestions.”
The board, voting 2-1, also issued a final rule amending its procedures for adding associational groups to federal credit unions’ field of membership. NAFCU supports this effort toward regulatory relief but has ongoing concerns about the rule’s threshold-determination requirement.
The final rule adds 12 groups to the types automatically deemed suitable for inclusion in FCU membership fields. However, it also contains a threshold-determination requirement that serves as a test to determine whether the groups being added were created primarily for the purpose of expanding credit union membership.
“While NAFCU appreciates NCUA’s efforts to streamline certain requirements for amending a federal credit union’s field of membership, we have continued concerns about the incorporation of a threshold-determination requirement,” said Nealon. NAFCU is reviewing the rule and will provide an overview of its impact in a Final Regulation for member credit unions.
The board also issued a proposed rule on corporate credit union aggregate lending which NAFCU supports.
The National Association of Federal Credit Unions is the only national trade association that exclusively represents the interests of federally chartered credit unions before the federal government and the public.