WASHINGTON—NAFCU said it is looking forward to commenting on NCUA’s overhead transfer rate (OTR) and operating fee methodologies.
By a 3-0 vote Thursday, the NCUA board approved publishing both methodologies in the Federal Register and opening up 90-day comment periods for each.
“NAFCU welcomes an opportunity to provide credit union input on the methodology for the OTR calculation,” said NAFCU Executive Vice President and General Counsel Carrie Hunt. “We look forward to working with NCUA to ensure that the most efficient and objective methodology is used.”
In November the NCUA board, by a 2-1 vote, approved an overhead transfer rate for 2016 of 73.1%, up from 2015’s 71.8%. NCUA’s Director of Examination and Insurance, Larry Fazio, said the primary driver of the increase in the 2016 OTR was an increase in the percentage of insured shares held by state-chartered credit unions (up 0.9% percentage points to 47.7%). Board Member Mark McWatters cast the dissenting vote.
The OTR is designed to cover the NCUA’s costs to examine and supervise the risk to the National Credit Union Share Insurance Fund. The operating fee covers the portion of operational costs for noninsurance-related aspects of operating the agency. NASCUS has continually shared its concerns about the amount of the OTR and how it is set.
Coverage of the NCUA board meeting can be found here.