5-member NCUA Board, detail for OTR, also in Hensarling’s CHOICE bill

June 16, 2016 -- Increasing the size of the NCUA Board from three to five members, and requiring the agency annually to accompany its budget with a report detailing the overhead transfer rate, are two of the additional details in the broad outline for replacing the Dodd-Frank Act released by House Financial Services Committee Chairman Jeb Hensarling (R-Texas) Thursday.

The proposal dubbed the “Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs” or CHOICE Act was announced by Hensarling last week, who said he hopes to introduce the bill later this month. The proposal also an 18-month exam cycle for certain credit unions, would subject all federal financial regulatory agencies to bi-partisan commissions, and place the agencies in the appropriations process “so that Congress can exercise proper oversight.”

NASCUS has long advocated for increasing the size of the NCUA Board from three to five members. NASCUS also advocates that at least one seat on the NCUA Board should be designated for a candidate who has served as a state credit union supervisor.

“Increasing the size of the board from three to five members would enhance the board’s deliberative process, expand its collective expertise, and improve the efficient administration of NCUA business,” said NASCUS President and CEO Lucy Ito. “And designating one of those seats for a candidate with state credit union supervisory experience would streamline supervisory coordination between state and federal regulators, minimize redundancies and overall strengthen the dual-chartering system.”

Ito said NASCUS would urge the Financial Services Committee chairman to include the state supervisor provision in the proposal.

The provision calling for a report detailing the OTR is contained in a bill offered by Rep. Mick Mulvaney, R-S.C. The proposal calls on the NCUA Board to provide a rational for any amounts it proposes to use from the NCUSIF, including detailing the overhead transfer rate.