NCUA Board Holds April Meeting

Thursday 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.”

This was also the first for new Board member Harper, marking the first three-member meeting since 2016. In his opening remarks, Chairman Hood commented on several areas he intends to focus on, including enhancing the credit union charter, enhancing cybersecurity efforts, and reducing regulatory burden. Chairman Hood also acknowledged that April is National Financial Capability Month and that credit unions have a special role in this area.

The meeting’s only agenda item was an advanced notice of proposed rule-making on Compensation in Connection with Loans to Members (Part 701.21). The ANPR stems from a recommendation in the agency’s Regulatory Reform Agenda, which focuses on areas of NCUA’s rules that can be eliminated, consolidated, or revised to reduce unnecessary burden.

The ANPR seeks comments on ways to improve the agency’s regulations limiting credit union officials and employees compensation in connection with loans to members and lines of credit to members. According to the agency, these regulations have generated confusion and are likely outdated, burdensome, and at odds with industry standards. The Board is particularly interested in obtaining commenter feedback on “how it can provide flexibility with respect to senior executive compensation plans that incorporate lending as part of a broad and balanced set of organizational goals and performance measures.” NCUA will accept comments for 60 days following publication of the ANPR in the Federal Register

Click here for the press release.