November 15 , 2012
Statements from NASCUS President and CEO Mary Martha Fortney on NCUA 2013 Overhead Transfer Rate and 2013 Budget
Arlington, Va. – Today, the National Credit Union Administration (NCUA) Board addressed critical issues for the state credit union system, including the agency’s 2013 Overhead Transfer Rate (OTR) and its operating budget. The OTR decreased two basis points from 59.3 percent in 2012 to 59.1 percent for 2013.
NASCUS President and CEO Mary Martha Fortney made the following comments regarding the OTR and the NCUA’s budget.
“NASCUS is carefully reviewing the information made public by NCUA regarding the Overheard Transfer Rate today,” said NASCUS President and CEO Mary Martha Fortney. “NASCUS has never advocated for a specific number for the OTR. Rather, we have consistently stated that the NCUSIF should pay costs that are appropriately allocated under Title II of the Federal Credit Union Act and that NCUA’s Title I responsibilities should be funded by sources other than the Overhead Transfer.” She continued, "NASCUS is encouraged by NCUA’s announcement today that they will commission an independent review of what is defined as 'insurance related' in the determining the OTR going forward.
NASCUS will work with NCUA and encourage them to obtain an outside legal analysis as they work to identify more accurately insurance related activities to ensure that the OTR is fair and equitable to all parties. As this is an issue of critical interest and importance to state regulators, NASCUS looks forward to assisting the agency in all ways possible in its review and analysis of what is related to its insurance role versus what is related to its role as regulator of federal credit unions."
Fortney also remarked on the agency’s 2013 operating budget “As in past years, NASCUS offers no opinion on the NCUA’s overall budget. Just as with state agencies, we believe a regulator is uniquely positioned to understand its own budgetary needs to faithfully meet its safe and sound supervision obligation. NASCUS will, as always, continue to dialogue with the agency to ensure the state credit union system is appropriately represented in the administration of the NCUSIF.”
Jenny Champagne, VP Regulatory Development and Government Relations, email@example.com or (703) 528-5974