ARLINGTON, Va.—NAFCU sees it as a positive step that NCUA is seeking comment on its methodologies for calculating both the overhead transfer rate (OTR) and the federal credit union operating fee.
Monday NCUA Chairman Debbie Matz announced that the agency intends to call for an NCUA board vote in January to publish both methodologies as public notices in the Federal Register, NAFCU.
“NAFCU and our members have long sought greater transparency from the agency on its budgeting processes,” said President and CEO Dan Berger. “Over the last several weeks, we have seen the agency take several important steps toward greater transparency. Chairman Matz’s announcement that the agency will seek public comment on OTR and the operating fee constitutes another step forward towards transparency. NAFCU and our members look forward to providing our input on these issues, as they are critical mechanisms of the agency’s overall funding and budgeting process.”
Meanwhile, NASCUS CEO Lucy Ito issued a statement saying, "We thank Chairman Matz for her announcement that NCUA will seek formal public notice and comment on the OTR and the operating fee methodologies through the Federal Register. This is a historic victory for the credit union system. NASCUS has sought increased transparency regarding the overhead transfer rate (OTR) and operating fee methodologies for more than ten years, and this decision will provide state regulators and credit unions – both state and federal – with the opportunity to provide meaningful input. Stakeholders deserve the opportunity to voice their views about the allocation of resources by the agency via the OTR, and to have those views carefully considered by the agency. We recognize the additional work this creates for the agency and appreciate the Chairman’s willingness to undertake the demands entailed by a formal rule-making.”