Credit Union National Association (CUNA) has reinforced its strongest support for the National Credit Union Administration's (NCUA) delay of the Credit Union Service Organization (CUSO) and loan participation proposals, and appreciate that these items are not on the July 24, 2012 Board Meeting agenda. CUNA will continue advocating that the agency abandon these proposals. A number of important issues are on the agenda, and they are communicating their concerns to the agency on several of them.
The agency will consider the Temporary Corporate Credit Union Stabilization Fund assessment for this year. NCUA already announced that the Stabilization Fund assessment for 2012 will be in the range of 8-11 basis points of insured shares, and we are urging that the assessment be at the lower end of the range.
NCUA will also consider its budget at mid-year. Last July, the agency was able to adjust its 2011 budget downward by about $2 million. Consistent with credit unions' serious concerns about the agency's costs and staff position additions over the last three years, and a continued steady decline in the number of troubled credit unions as the nation recovers from the financial crisis, we are urging the agency to take significant steps to reduce the budget for the remainder of this year as well as for 2013.
The agency will review the statutory usury ceiling for federal credit unions and CUNA strongly supports maintaining the ceiling at 18%.
Finally, the agency will review a new proposal on liquidity and CUNA is urging the agency to consider whether a new proposal on liquidity is really necessary for credit unions at this time. CUNA will provide a summary of the Board's decisions meeting shortly after the meeting concludes.