NCUA Board Finalizes Appraisal Rule; Proposes “Second Chances IRPS”

Thursday, The National Credit Union Administration Board held its seventh open meeting of 2019 at the agency’s headquarters today and approved three items:

  • A final rule amending the agency’s regulation requiring real estate appraisals for certain transactions to provide greater clarity and a measure of regulatory relief.
  • A proposed interpretive rule and policy statement (IRPS) that would expand career opportunities for individuals convicted of certain minor offenses.
  • A final rule updating the agency’s fidelity bond requirements for corporate and natural-person credit unions.

The Chief Financial Officer also briefed the Board on the agency’s revised 2019 budget estimates, which currently project redistributing $5.3 million to agency priorities.

Proposed IRPS – Guidance Regarding Prohibitions Imposed by FCU Act § 205(d)

The Board issued a proposed Interpretive Ruling and Policy Statement, referred to as the “Second Chances IRPS.” The proposed IRPS would update and revise the existing IRPS (IRPS 08-1) regarding statutory prohibitions imposed by § 205(d) of the FCU Act, which prohibits, except with prior NCUA Board approval, any person who has been convicted of any criminal offense involving dishonesty or breach of trust, or who has entered into a pretrial diversion or similar program in connection with a prosecution for such offense, from participating in the affairs of an insured credit union.

Final Rule – Real Estate Appraisals [Part 722]

The Board adopted a long-awaited final rule requiring real estate appraisals for certain transactions. The final rule does not adopt a proposed change that would have replaced the current § 722.3(a)(5) exemption for certain existing extensions of credit with an exemption based on whether a transaction is not considered a “new loan” under GAAP. CUNA explicitly opposed this proposed change in CUNA's letter to the agency.

Final Rule – Fidelity Bonds [Parts 704, 713]

The Board adopted a final rule on fidelity bonds under Part 704 for corporate credit unions and Part 713 for natural person credit unions.

2019 Mid-Session Budget

The Board approved its 2019 mid-session budget. Specifically, it agreed to reprogramming the following amounts:

For details and a list of comment deadline dates, click here for CUNA’s summary.