ALEXANDRIA, Va.—The NCUA board during its open meeting this week is expected to issue an advanced notice of proposed rulemaking related to compensation in connection with loans to members.
The meeting will mark the first for Rodney Hood as chair and Todd Harper as a board member.
Compensation in connection with loans to members is an issue addressed on the NCUA's regulatory reform agenda as a Tier 1 priority. The agency's Regulatory Reform Task Force recommended in its reports that the NCUA modify Section 701.21(c)(8) in order to "provide flexibility with respect to senior executive compensation plans that incorporate lending as part of a broad and balanced set of organizational goals and performance measures," NAFCU noted.
“The section as currently written generally precludes credit union officials from receiving compensation related to specific loan volume. NAFCU expects any rulemaking to put the NCUA's regulations in line with some of the current common practices in the market that are more broad strategic goals and not crafted in a way to create perverse incentives or bad behaviors,” NAFCU said.
The meeting is scheduled to begin at 10 a.m. ET, CUToday.info will provide complete coverage. NCUA also announced that the board's May meeting will be rescheduled for May 23.