The NCUA plans to withdraw a request to extend its program for the monthly collection of financial performance and executive compensation data for large Region 3 federally insured credit unions.
The NCUA had planned to request that the program, which began in 2009, be extended and had filed a notice in the Federal Register last week seeking comments on the proposal. Data-collection programs must be approved by the Office of Management and Budget.
Under the program, the agency collected monthly financial data and monthly executive and board compensation data from Region 3 federally insured credit unions with at least $1 billion in assets.
There are five regions. Region 3 comprises Alabama, Florida, Georgia, Indiana, Kentucky, Mississippi, North Carolina, Ohio, South Carolina, Tennessee, Puerto Rico and the U.S. Virgin Islands.
Officials of CUNA and NAFCU said the agency indicated that they were making the change as a response to requests from the Obama administration to reduce reporting requirements when possible.
NCUA Public Affairs Specialist John Zimmerman said the agency changed its mind because the Dodd-Frank financial overhaul bill mandates the collection of such data annually and the agency didn't need to collect it every month. He added that the agency hadn't heard any complaints from credit unions in Region 3 that that the data-collection requirement was burdensome.
The NCUA began the program following the collapse of Eastern Financial Florida CU. The credit union had lost $149.2 million in its last two years of operation before the NCUA merged it into Space Coast CU in June 2009, at a loss of approximately $40 million to the NCUSIF.
The NCUA's Office of Inspector General blamed the collapse on extensive investments in collateralized debt obligations, unrealistic growth patterns that went unchecked and the failure of state and federal examiners to realize the risk of certain practices.
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