Letter thanks co-sponsors of OTR transparency bill
Sept. 14, 2016 -- As Congress gets ready to wind down before the election, NASCUS has reached out to the two co-sponsors of legislation that would increase the transparency of the overhead transfer rate (OTR) of funds from the National Credit Union Share Insurance Fund to the NCUA budget to thank them and support their efforts.
In a letter to Reps. Mick Mulvaney (R-S.C.) and Denny Heck (D-Wash.), NASCUS President and CEO Lucy Ito expressed the association’s thanks and support for their bill, H.R. 5896. “Thank you for your leadership in demanding accountability and transparency from the National Credit Union Administration (NCUA) with regard to the allocation of its expenses,” Ito wrote.
As introduced, the measure would require the NCUA to submit a report, along with its annual budget, that: provides a detailed analysis of how the agency’s expenses are assigned; specifies whether expenses are paid from the National Credit Union Share Insurance Fund (NCUSIF) or from federal credit union operating fees; and requires the agency to provide a rationale for any expenses paid from the NCUSIF. In addition, the bill requires the agency make the report available to the public.
“This request for transparency as it relates to NCUA’s apportionment of expenses, particularly with regard to the Overhead Transfer Rate (OTR) methodology, is of immense importance to NASCUS and its members,” Ito wrote. She noted that NASCUS has been a staunch advocate of taking a closer look at the agency’s methodology.
“Your legislation encourages accountability by requiring the agency to provide insight into how they are determining which expenses are appropriately drawn from the NCUSIF, which has been a point of contention for many years,” Ito wrote. “Additionally, it will require the agency to provide details of their methodology and rationale to the stakeholders that are directly impacted. We are also hopeful, that Congress will determine that it is appropriate to require NCUA to submit its OTR methodology to the notice and comment process.”
The Mulvaney-Heck bill was introduced in July. Meanwhile, legislation that mirrors their measure is contained in the Financial CHOICE Act (HR 5983), which was voted out of the House Financial Services Committee this week (Sept. 13), and sent to the full House for consideration.