Final ‘Second chance’ statement on prohibitions, proposal on residential real estate appraisals, on agenda for credit union agency’s board

The federal credit union regulator will consider a final, new policy regarding statutory prohibitions of individuals from financial institution service – called the agency’s “second chance” proposal – and a proposal on residential real estate appraisals at its meeting next week in Alexandria, Va.

The National Credit Union Administration (NCUA) on Thursday released its agenda for the meeting of the agency’s board in one week, set for Nov. 21 at 10 a.m.

As proposed in July, the new interpretive ruling and policy statement (IRPS) would update the agency’s interpretive ruling which implements section 205(d) of the Federal Credit Act by reducing the scope and number of offenses that would require an individual to apply to the agency board for permission to work (and participate in the affairs) of a federally insured credit union. Those persons have typically been convicted of a criminal offense involving dishonesty or breach of trust, or who have entered into a pretrial diversion or similar program in connection with a prosecution for such offense.

According to NCUA, the proposal is especially aimed at individuals prohibited for offenses they may have committed as youths.

In July, when the proposal was issued, NCUA Board Chairman Rodney Hood said he was personally committed to more initiatives such as the “second chance” proposal and said to “expect more coming from this agency to work with second-chance individuals.”

In other action, the board will propose a rule under part 722 (real estate appraisals) of its regulations to address appraisals for residential real estate-related transactions. According to the Unified Agenda of Federal Regulations (maintained by the White House Office of Management and Budget), the proposed rule would increase the threshold level below which appraisals would not be required for residential real estate-related transactions.

In October, a final rule from the agency went into effect on non-residential real estate appraisals. That rule (among other things) raised to $1 million the threshold for commercial real estate transactions subject to required appraisals from state-certified appraisers.

Board Agenda for the November 21, 2019 Meeting