ARLINGTON, Va. – To emphasize the need to comment on the methodology NCUA uses to determine the overhead transfer rate (OTR), NASCUS has created a new video that emphasizes its position that state-chartered CUs are being overcharged.
In the video, NASCUS CEO Lucy Ito urges state regulators and credit unions to file their comments by April 26, the end of the comment period.
During the two-minute video Ito says that at stake is whether NCUA should have carte blanche in the use of credit union dollars contributed to the Share Insurance Fund.
“At NASCUS, we don’t think that the agency should have carte blanche,” Ito says. “Yet using the current method for determining the OTR, the agency assigns any costs it chooses to the insurance fund, calling the costs ‘insurance related.’”
Ito says both state and federally chartered credit unions have an interest in the future of the OTR methodology. “Increasing the OTR – which NCUA has done each year since 2013 – decreases the likelihood that federally insured credit unions of either charter will receive a rebate from the insurance fund,” she said.
The video can be found here.