WASHINGTON--America’s Credit Unions filed comments Friday in support of four separate proposals issued in the second round of the NCUA’s Deregulation Project. The NCUA has issued six rounds of proposals so far, with more to come.
The filed comments includes the following proposals and responses:
Eliminating the official advertising statement requirement and related references. (The proposal does not alter the requirement to display the official NCUA sign.)
- "America’s Credit Unions supports the proposed elimination of the official advertising statement requirement in section 740.5, as we believe it will provide flexibility while preserving the core safeguards that protect member awareness of federal share insurance. NCUA should closely monitor implementation to ensure that the change does not result in consumer confusion and should promptly revisit the regulation if it does," ACU said.
Removing the regulations related to approval and written policies on making loans to other credit unions.
- "America’s Credit Unions supports the proposal, as it will eliminate an unnecessary regulation. America’s Credit Unions members provided additional proactive suggestions to the NCUA, including:
- Allowing greater flexibility when an entity exceeds the limit, rather than requiring them to dispose of these investments at a loss; and
- Establishing a tiered due-diligence framework."
Amending the requirements for federally insured credit unions to report catastrophic acts to the NCUA.
- "America’s Credit Unions supports the three changes in the proposal, to: give federally insured credit unions more time to notify the agency; eliminate the specific list of items to be documented in a separate recordkeeping report; and simplify the reporting process."
Removing the segregated deposit and collateral requirements when a federally insured credit union acts as a surety and guarantor.
- "America’s Credit Unions supports removing the rigid 100/110% collateral thresholds for surety and guarantor activities, as the 2016 commercial lending framework already provides adequate risk management oversight. Comments also note the current prescriptive requirements discourage smaller credit unions from engaging in surety activities that could benefit members."
Comments on the third round of Deregulation Project proposals are due March 16.