The NCUA board on Thursday agreed to issue proposed rules that would standardize the appeals process that credit unions may use if they disagree with agency actions.
The proposed rules would replace provisions that are scattered throughout the regulations governing credit unions, according to Ross Kendall, the agency’s special counsel to the general counsel.
He said that in allowing certain appeals to the NCUA board, the agency would be at the forefront of financial regulators. He said, for instance, the FDIC requires certain appeals to use the judicial process, rather than the administrative review process.
The standardized appeals rules would not cover formal enforcement actions taken by the agency, but they do cover such issues as chartering and fields of membership, as well as so-called golden parachutes.
Board Acting Chairman J. Mark McWatters said that the issue is “near and dear to me,” adding that he believes the rules would provide greater clarity to credit unions.
And he urged stakeholders to comment on the proposed rules during the 60-day comment period, which would begin after the proposal is published in the Federal Register.
The board also approved the publication of proposed rules for appealing certain actions to the NCUA supervisory review committee. The rules are intended to enhance due process and would expand the number of matters that may be appealed to the committee, according to agency officials.
The proposal also would allow credit unions to have the agency’s Director of the Office of Examination and Insurance review agency actions before they go to the supervisory panel.
Board member Rick Metsger said both proposed rules would make agency appeals rules uniform and would increase the likelihood that appeals would stay out of the court system.
In a review of the Temporary Corporate Credit Union Stabilization Fund, agency CFO Rendell Jones said that the funds administrative costs are “on track” for staying within the agency’s budget. He said the fund’s income increased $3.8 million during the quarter ending March 31.
