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Underserved budget among NCUA agenda items today
ALEXANDRIA, Va. (11/20/08)—The National Credit Union Administration (NCUA) is scheduled to address a broad array of agenda items at today’s open meeting, including the agency's 2009-2010 operating budget, issues regarding its examination program, and its underserved areas policy. At its annual budget briefing last month, NCUA projected a 15% budget increase to $182.9 million and an additional 85 staffers to accommodate program modifications the NCUA said were "necessary to address the current turbulent economic environment." The agency also said the overhead transfer rate is projected to be 55% and the operating fee is expected to increase 10% to oblige increased expenditures. The most significant NCUA program changes noted at the briefing would add additional staff, implement a 12-month examination cycle, develop a national examiner team to conduct high-risk exams, and centralize credit union chartering in 2009. The NCUA also proposed to allot a $300,000 expenditure over two years for the 75th Anniversary of the Federal Credit Union Act, an expense questioned by the Credit Union National Associtation in a recent comment letter to the agency. In fact, CUNA urged that the NCUA approach its entire budget with a sense of austerity, particularly in light of the troubling economic climate facing the nation and its credit unions currently. Also on today’s agenda, the NCUA is scheduled to vote on proposed revisions to the current federal regulatory process for approving multiple group credit unions' applications to serve underserved areas. CUNA does not support the plan and has questioned its very basis of the NCUA plan. "While we appreciate efforts to clarify and update rules, we are not aware of problems with the current process that indicate that the (field of membership) FOM Manual provisions on underserved applications are not clear and which would justify a broad new regulation on underserved areas and the application process," CUNA said in an August comment letter. Other agenda items include:
* A final rule addressing Part 702 of NCUA's Rules and Regulations, Prompt Corrective Action, expectd to be an amended definition of post-merger net worth; * A final rule addressing Parts 701 and 705, Low Income Definition; and * The quarterly insurance fund report.
To see the agenda, use the resource link below.
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