Trades Ask NCUA—Again—To Extend RBC Comment Period

WASHINGTON—NAFCU and CUNA—once again—are asking NCUA to extend the comment period on the proposed risk-based capital rule another 90 days.

NCUA turned down the trade groups’ initial request for a 90-day extension, which was made in late February via a joint letter from NAFCU President and CEO Dan Berger and CUNA President and CEO Bill Cheney. The current deadline for comments to be submitted to the agency is May 28.

In the new joint letter to the NCUA board dated April 17, Berger and Cheney recognized NCUA’s refusal in March to grant an extension, noting, “We simply do not believe that the comment period provides sufficient time for a number of credit unions to analyze the proposal’s impact on their individual operations and prepare their responses. . . .Given the health of the credit union system, we do not see the need to rush this rule and believe more time for comments will also benefit the agency through the production of well-reasoned letters.”

In their initial letter, CUNA and NAFCU asked for the extension due to the scope of the rule and its potential impact on credit unions. This rule is the "most significant proposed rulemaking that credit unions will face this year and likely for years to come," they wrote at the time.

In a March 5 letter to CUNA and NAFCU, NCUA chairman Debbie Matz informed the trade associations that the comment period would not be extended, stating that credit unions effectively will have a total of 120 days to comment because the proposal's publication was delayed in the Federal Register. The comment period begins from the date of publication.

Carrie Hunt, NAFCU SVP of government affairs and general counsel, said she hopes NCUA will deliver a different decision this time, adding that if the agency is “serious” about creating a rule that is “fair and reasonable” there is no reason not to give credit unions more time to comment.

“We are coming close to the end of the comment period and it is clear that the NCUA has given credit unions insufficient time to comment,” said Hunt.

CUNA Deputy General Counsel Mary Dunn said credit unions are telling CUNA they need more time. 

"This is such an important issue, we thought it would be good to bring our request to the entire board, Dunn said. "Our members are telling us they need more time as a number are just now sorting through the proposal's requirements and its impact on their operations.”

NCUA’s proposal would affect credit unions with $50 million or more in assets. NAFCU estimates these institutions would have to hold another $6.7 billion in reserves to maintain their current capital cushion, while CUNA sets the figure at $7.3 billion.