FOR IMMEDIATE RELEASE
Feb. 16, 2016
VIDEO URGES COMMENTS ON OVERHEAD TRANSFER RATE
At stake: whether NCUA should have ‘carte blanche’ in use of CU dollars
ARLINGTON, Va. -- The importance of commenting on the overhead transfer rate (OTR) methodology is driven home in a new video by NASCUS President and CEO Lucy Ito, urging state regulators and credit unions to file their comments by April 26, the end of the comment period.
In the short piece (about two minutes), 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. 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.’”
The NASCUS leader indicates that 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 says.
NCUA should not have carte blanche in spending credit union system dollars, Ito says, adding “this is our chance to tell them so.”
Patrick Keefe, Vice President, Communications, email@example.com or (703) 528-5974