NCUA board approves proposed rules and FCU loan interest rate ceiling

Last week at a meeting of the NCUA Board of Directors, the members voted 2-1 in favor of two proposed rules: one on incentive-based compensation and another a revised proposal on succession planning.

The incentive-based compensation rule addresses requirements laid out in the Dodd-Frank Wall Street Reform and Consumer Protection Act. It was originally proposed by the board in 2016.

Per the NCUA’s press release: “The rule was adopted by the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, and the Office of the Comptroller of the Currency on May 6. The Board of Governors of the Federal Reserve System and the U.S. Securities and Exchange Commission have not approved the joint rulemaking yet. Once the notice of proposed rulemaking is adopted by all six agencies, it will be published in the Federal Register with a comment period of 60 days following publication. Until then, each agency acting on the proposed rule will make it available on their respective websites and accept comments.”

In a statement from NCUA Chairman Todd Harper, he said: “In just three days, we will mark the fourteenth anniversary of the enactment into law of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This rulemaking effort is about providing transparency and accountability. This regulatory effort will better focus the leaders of financial firms on the long-term health of the company instead of just their short-term personal gain. That’s good for the credit union system, and it’s good for our financial markets.”

 

continue reading »