THIS WEEK: NCUA holds second October open meeting; FDIC advisory panels meet; comments due on CARD Act rules, FCU op fees, more

The board of the federal credit union regulator is poised to hold its second October open meeting – a rare occurrence – this week, which also features two banking agency advisory panel sessions and three public comment deadlines – one attached to a proposal that could affect the calculation of federal credit unions’ 2021 operating fees.

Tuesday

  • Public input on two separate, but related, reviews of rules implementing the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) is due to the Consumer Financial Protection Bureau (CFPB). One of the reviews focuses on the economic impact of the CARD Act rules on small entities. In the other, the bureau is conducting a review of the consumer credit card market itself (within the limits of its existing resources available for reporting purposes) and aspects of the market such as credit card agreement terms, practices of card issuers, effectiveness of disclosures, and others.
  • Also Tuesday, the Federal Deposit Insurance Corp.’s (FDIC) Minority Depository Institutions (MDI) Subcommittee to the Advisory Committee on Community Banking meets virtually from 1 – 3 p.m. ET. A public session will feature subcommittee members’ insights into key challenges and opportunities facing their communities and financial institutions; and a report on a new partnership between Bay Bank, a Native American MDI in Green Bay, Wis., with the Menominee Tribe in Keshena, Wis. In closed session, the panel will learn about the FDIC’s MDI and community development financial institution (CDFI) bank locator; and hear an update on the FDIC’s efforts to establish a framework to channel financial commitments from private industry to FDIC-insured MDIs and CDFIs.

Wednesday

  • The FDIC Advisory Committee on Community Banking will hold an open meeting, viewable via webcast only, for a discussion of local banking conditions, updates on proposed supervisory appeals process changes, the agency’s ongoing tech sprint on financial reporting, a potential voluntary certification program to promote the use of new technologies, a report from its MDI subcommittee, a supervision update, and an update from the agency’s division on insurance and research. FDIC Chairman Jelena McWilliams will give opening and closing remarks. The meeting is scheduled from 1 p.m. to about 5:45 p.m.
  • The National Credit Union Administration (NCUA) Board will hold its second open meeting this month, this one for the purpose of considering a proposed rule to “codify” into regulation a statement that supervisory guidance issued by federal regulators does not have the force of law. The open meeting, scheduled for 2 p.m., will be streamed live, followed by a closed meeting to follow on two personnel matters.

Friday

  • Comments are due on an NCUA proposal to exclude from the total assets upon which federal credit union operating fees are based any loan an FCU reports under the Small Business Administration’s Paycheck Protection Program (PPP) or similar future programs approved for exclusion by the NCUA Board; delete from the current regulation references to the Credit Union System Investment Program and the Credit Union Homeowners Affordability Relief Program, both of which no longer exist; and amend the period used for the calculation of an FCU’s total assets.
  • Friday is also the deadline for input to the NCUA regarding the methodologies used to determine the overhead transfer rate (OTR) – the portion of the agency budget that will be funded from the National Credit Union Share Insurance Fund (NCUSIF) – and FCU operating fees, with final action regarding operating fees targeted before 2021 fees are assessed. No changes in OTR methodology are being proposed currently, but the agency board welcomes input and specifically invites comments on the four principles used in the methodology to calculate the OTR. Comments on operating fees are sought on how the agency apportions FCUs’ operating fees. The board proposes to clarify the treatment of capital project budgets when calculating the fees; clarify the treatment of miscellaneous revenues when calculating the fees; and modify the approach for calculating the annual inflationary adjustments to the thresholds for the operating fee rate tiers. The board also solicits comment on several questions to gather information on potential future enhancements to the methodology.