Ito: OTR is no comfortable conversation
OCT. 21, 2015 -- Discussions about the overhead transfer rate between state regulators and the NCUA are not the most comfortable of conversations, NASCUS President and CEO Lucy Ito told the association’s annual Summit meeting – “but we need to be comfortable with discomfort,” she added.
Ito was addressing the attendees at the Wednesday session of NASCUS 2015 State System Summit in New Orleans, which includes credit union regulators, system leaders and credit union executives from across the nation.
She noted that a “healthy debate” is vital about the OTR (the rate at which funds are transferred from the National Credit Union Share Insurance Fund (NCUSIF) to the NCUA to cover “insurance-related costs”). She also acknowledged and thanked NCUA Board Chairman Debbie Matz for announcing that, in January, the board wouldvote on subjecting the OTR to notice and public comment (via the Federal Register).
In other comments, Ito said:
- Modernization of NCUA’s field of membership rules (now under consideration by the agency) is applauded by NASCUS, calling it a good thing for the credit union system and consumers, and adding that NCUA’s actions “could be a wake-up call for some states” in modernizing their own FOM rules. She also pointed out that the 13 federal to state charter conversions in 2014-15 (compared to three state to federal conversions in the same period) are symptoms of a need to review federal FOM rules.
- Supplemental capital, which could be the subject of a proposed NCUA rule in the coming months, is something NASCUS looks forward to discussing with the agency;
- The dual chartering system is vital to the future of the credit union system. “The dual chartering system is working if states and NCUA differ in their views, charters are thriving, and those charters are being treated equitably by the NCUSIF,” she said.