Op-ed notes consistent messages in OTR letters
May 20, 2016 – Comment Letters on the overhead transfer rate (OTR) methodology show two consistent messages – that change is needed, and that thanks to NCUA are in order, NASCUS President and CEO Lucy Ito writes in an op-ed appearing in Credit Union Times.
Ito notes that the “healthy number” of comment letters filed (about 40) on the OTR methodology show a consistent message from the credit unions, trade groups and other stakeholders that change is in order. “With little or no exception, these letters urge the agency to make changes to the current system – and ensure a fair allocation of costs to both state and federally chartered credit unions,” Ito writes.
Using examples from the letters by various groups and individuals, Ito makes the case that there is a consistent opinion among stakeholders about the issue. “They illustrate widespread concern about the OTR across nearly all of the comments filed. The sentiment they express – almost uniformly – is prodigious: The current system cannot be sustained.”
The NASCUS leader also points out that the letters consistently praise NCUA for bringing the issue up for comment. “The second consistent message contained in nearly every comment letter we saw (including ours): Sincere thanks and gratitude to the NCUA board for bringing up this issue for public comment. This was a big step for the agency, especially in terms of transparency -- and it is appreciated.”
Ito urged the NCUA board to take into account the many concerns and points outlined in the comment letters about the OTR methodology. “Further, like many in the credit union system, we hope that this issue may be settled, once and for all, to the satisfaction of both state and federal credit unions, state regulators and the NCUA – and that the NCUA board takes action, soon.”