ALEXANDRIA, Va. (5/6/13)--A proposal to allow federal credit unions to invest in simple derivatives, technical amendments to agency regulations, and a board briefing on a supplemental interagency proposed rule that covers appraisals for higher-priced mortgage loans are on the agenda of this morning's National Credit Union Administration open board meeting.
While details of the proposal will be released after 10 a.m. ET, it is anticipated that the board will consider authority for well-run credit unions with the necessary expertise to use simple derivatives to hedge against interest rate risk (IRR). NCUA Board Chairman Debbie Matz has said managing IRR is a key concern for the agency.
The Credit Union National Association strongly supports permitting credit unions to manage IRR through investments in simple derivatives and urged the agency to proceed with consideration of this authority.
Supervisory activities and an appeal under Section 701.14 and Part 747, Subpart J of NCUA regulations are on the closed agenda. The closed board meeting is scheduled to begin after the open meeting has ended.
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For the full NCUA agenda, use the resource link.