"I was pleased when members of Congress offered similar encouragement to the agency during Chair Matz's recent testimony," McWatters told CU Times. "NASCUS has, correctly in my view, supported an APA review of the OTR for many years. Since the OTR methodology currently employed by the agency is less than fully transparent, I strongly recommend that the agency thoroughly describe the methodology in its proposed rule and allow the credit union community and public not less than 90 days to comment."

According to the media release, Matz offered a comment period of at least 30 days.

"Publishing these notices in January 2016 would provide ample time for interested parties to share their views before the NCUA Board considers a 2017 budget at an open meeting in November 2016," Matz said. "We also plan to publish a Federal Register notice in January 2016 with a multi-year draft NCUA Strategic Plan, which will drive the agency's budget process over several years." 

NASCUS publicly called out the NCUA after the agency's general counsel said the methodology and manner in which it calculates the overhead transfer rate was considered "attorney work product."

NASCUS President/CEO Lucy Ito had previously called on the NCUA to release all of its documents related to the OTR, as well as how it is determined. The NCUA replied with a letter from general counsel Mark McKenna, dated July 30, which called out Ito for publicly requesting a public evaluation of "differing legal conclusions about whether the OTR or its methodology are subject to the notice and comment requirements under the Administrative Procedure Act.""Specifically, you have called on (the) NCUA to release confidential privileged materials," the letter said. "In my opinion such a public debate about the technical legal issues surrounding this matter is not about transparency and will certainly not resolve the differences of opinion on the subject."

Monday's announcement received praise from CUNA, NAFCU and NASCUS.

"The additional transparency from the NCUA is welcomed," Elizabeth Eurgubian, CUNA's deputy chief advocacy officer, said. "We hope this ultimately leads to a process that ensures fairness to state and federal credit unions for the allocation of legitimate, substantiated 'insurance-related costs.' Ideally, we would like to see the NCUA issue a proposed OTR with request for comment, but this is a good first step."

NAFCU President/CEO Dan Berger said NAFCU has "long sought greater transparency from the agency on its budgeting processes."

"Over the last several weeks, we have seen the agency take several important steps toward greater transparency," Berger said. "Chairman Matz's announcement that the agency will seek public comment on OTR and the operating fee constitutes another step forward toward transparency. NAFCU and our members look forward to providing our input on these issues, as they are critical mechanisms of the agency's overall funding and budgeting process."

NASCUS President/CEO Lucy Ito called the news "a historic victory for the credit union system."

"We thank Chairman Matz for her announcement that (the) NCUA will seek formal public notice and comment on the OTR and the operating fee methodologies through the Federal Register," Ito said. "NASCUS has sought increased transparency regarding the overhead transfer rate and operating fee methodologies for more than 10 years, and this decision will provide state regulators and credit unions – both state and federal – with the opportunity to provide meaningful input. Stakeholders deserve the opportunity to voice their views about the allocation of resources by the agency via the OTR, and to have those views carefully considered by the agency. We recognize the additional work this creates for the agency and appreciate the Chairman's willingness to undertake the demands entailed by a formal rulemaking." 

Methodologies and other information about the overhead transfer rate and operating fees are already available to the public on the budget resource center section of the NCUA's website.