NCUA budget provision left out of big spending bill
Dec. 16, 2015 -- Legislation that would require annual hearings for the NCUA budget (including the overhead transfer rate) did not make the final cut in the “omnibus” $1.1 trillion spending package agreed to by House and Senate negotiators early today. The revised spending bill is expected to be considered for a final vote by both chambers within the next week.
The NCUA budget legislation had been included in a package of financial institution regulation legislation (affecting both credit unions and small banks), which was a portion of a financial services appropriations bill. That appropriations bill ultimately became a part of the overall, big spending bill. Reportedly, there is broad support for the credit union and bank provisions.
However, as a deadline approached, House and Senate negotiators stripped the omnibus bill of many things not related to funding the government – including most provisions related to financial institutions – in order to assure passage.
Provisions related to financial institutions that remained in the final spending bill, however, included a requirement that NCUA report to Congress the appropriate capital requirements for mortgage servicing assets related to its risk-based capital rule (other federal banking regulators will report similarly for institutions using Basel which they supervise).