Board Action Bulletin
ALEXANDRIA, Va. (April 18, 2019) – The National Credit Union Administration Board held its fourth open meeting of 2019 at the agency’s headquarters today and unanimously approved one item:
- An advance notice of proposed rulemaking requesting public comment on modernizing the NCUA’s regulation on compensation related to loans and lines of credit to members.
Today marked the inaugural meeting for Board Chairman Rodney E. Hood, who was sworn in as the agency’s 11th Board chairman on April 8.
“I am looking forward to building on the NCUA’s recent efforts on regulatory reform, transparency, and helping credit unions grow while always making safety and soundness a priority,” Hood said. “To that end, I want to thank Board Member McWatters for his service as chairman and for his significant accomplishments leading this agency through a period of major transition.”
Board Analyzing Regulation on Compensation Related to Loans
The Board approved an advance notice of proposed rulemaking (opens new window) to seek public comment on possible changes to its regulation (opens new window) governing compensation in connection with lending.
The Board is considering modernizing the regulation as part of the agency’s regulatory reform agenda.
NCUA’s regulation covers direct or indirect commissions, fees, or other compensation by credit union officials, employees, or their family members in connection with loans made by the credit union.
The NCUA is particularly interested in the following areas:
- Providing greater flexibility on compensation plans associated with lending while controlling related risks;
- Determining loan metrics, such as loan volume, as part of compensation plans; and
- Defining the structure and understanding industry standards for such plans.
Comments must be received within 60 days after publication in the Federal Register.
The NCUA tweets all open Board meetings live. Follow @TheNCUA (opens new window) on Twitter, and access Board Action Memorandums and NCUA rule changes at www.ncua.gov. The NCUA also live streams, archives and posts videos of open Board meetings online.