PRESS RELEASE

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.

OTR video with Lucy ItoIn 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.”

LUCY ITO VIDEO URGING COMMENTS ON OTR METHODOLOGY

 

Information Contact:
Patrick Keefe, Vice President, Communications, pkeefe@nascus.org or (703) 528-5974

The National Association of State Credit Union Supervisors (NASCUS) is the primary resource and voice of the state governmental agencies that charter, regulate and examine the nation’s state-chartered credit unions. NASCUS membership is made up of state-chartered credit unions, state regulators and other supporters of the state credit union system. NASCUS is the only organization dedicated to the defense and promotion of the state credit union charter and the autonomy of state credit union regulatory agencies.