NCUA Board Member Mark McWatters participates in his first monthly board meeting.
ALEXANDRIA, Va. — The NCUA Board finalized technical amendments Sept. 18 at Mark McWatters' first meeting, and approved a federal credit union's request to expand its community charter.
McWatters, along with Chairman Debbie Matz and Vice Chairman Rick Metsger, voted in favor of the technical amendments related to parts 701, 706 and 790 of NCUA rules and regulations.
The Dodd-Frank Act repealed the NCUA's rulemaking authority regarding unfair or deceptive practices.
"As a result, the board is now repealing NCUA's regulations governing unfair or deceptive acts or practices. The board is also making a number of technical amendments to other NCUA regulations to conform them to the agency's current central and field office structures," the board action memorandum read.
The board also amended the NCUA's payday alternative loans regulation by replacing short-term, small amount loans and STS loans references with payday alternative loans and PAL loans.
"This updated terminology will be more readily understood by the credit union industry and more accurately reflects the nature and purpose of payday alternative loans," according to the memorandum.
Frank Kressman, associate general counsel, called the final rule a housekeeping matter.
"I read your memo. I don't see anything material here," McWatters said before moving the board to approve the final rule.
Following the staff's presentation on the request from the $136 million First Service Federal Credit Union in Groveport, Ohio, to expand its community charter, McWatters asked if the agency plans to follow up with the institution to ensure it is serving people of modest means.
"What if they don't do what they say they're going to do?" McWatters asked.
The staff said the NCUA would take some sort of administrative action if the credit union does not comply with its plan.
NCUA Chief Financial Officer Mary Ann Woodson presented the Corporate Stabilization Fund Quarterly Report at the meeting. She reported net income of $91.6 million in the quarter ending June 30 and $193.4 million year-to-date through June 30. She also said there will be no assessments in 2014.
McWatters asked about the potential impact of interest rates going up a few hundred basis points. Woodson said interest rate risk is one of the factors the agency takes into consideration.
"The fund remains stable. It's acting consistent with our expectations," Woodson said.
An NCUA source told CU Times the board would vote to confirm Metsger's controversial vice chairman appointment at the closed meeting that followed the open meeting.
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