Trades report on response letter to NCUA OGC
AUG. 12, 2015 -- .Knowing an interesting story when the see it, the major credit union trade journals have reported on NASCUS' letter in response to the NCUA Office of General Counsel (OGC).
On Monday, NASCUS President and CEO Lucy Ito sent a letter to the agency’s general counsel stating NCUA should provide as soon as possible a “detailed explanation” justifying the agency's refusal to submit the overhead transfer rate (OTR) to notice and comment rulemaking.
Ito’s letter was in response to correspondence NCUA General Counsel Mike McKenna sent – by certified mail – to the NASCUS leader July 31. In that message, McKenna essentially rejected assertions by NASCUS that the OTR is a rule under the Administrative Procedure Act (APA). Also in the letter, McKenna declined to release a 2003 written opinion for the NCUA Board prepared by the agency’s office of general counsel of the applicability of the APA and its “notice and comment” requirements to the OTR.
CUToday.info, under a headline of "After ‘Rejection’ Of Earlier Request, NASCUS Demands ‘Detailed Explanation’ From NCUA,"reported that NASCUS told the agency that a formal rulemaking procedure for the OTR would give all system stakeholders the opportunity to evaluate the rate’s methodology before it is finalized, and would “give NCUA the opportunity to incorporate that feedback into an OTR that serves the system in an equitable manner.”
Credit Union Journal published a story headlined "NASCUS Calls for More Details on OTR," and noted that "the continuing conflict between state and federal regulators over the NCUA's overhead transfer rate (OTR) took yet another turn as the National Association of State Credit Union Supervisors (NASCUS) demanded a "detailed explanation" from the agency over its refusal to submit the OTR to public notice and comment rulemaking."
Credit Union Times, under a headline of "McWatters, NCUA Weigh In on OTR Transparency," reported that the agency told the publication that “in the near future, (the) NCUA will also issue and post on our website a legal opinion about the applicability of the Administrative Procedure Act’s notice and comment process to determining the OTR.”