Additionally, the board voted to publish and seek comments on the OTR and operating fee methodologies. Matz called the work on the OTR a "difficult and thankless job" for the agency, because it is "never possible to satisfy all stakeholders."

Matz said the methodology should indicate that the OTR is "not some arbitrary number that the NCUA board or staff picks at random every year." 

"It's a cost-accounting formula, driven by a methodology that has been in place since 2003, under then-Chairman Dennis Dollar," she said. "The calculations are based purely on mathematical factors. There are no subjective judgments and no political decisions that go into it."

The OTR methodology comment period will extend to 90 days to allow for all comments to be considered.

Board member J. Mark McWatters told CU Times in an email that he would have preferred the NCUA submit the OTR as a rule under the Administrative Procedures Act, adding, "I am pleased that the agency has committed to closely 'shadowing' the APA by, among other matters, responding in writing in the Federal Register to comments and subjecting the final OTR to a vote by the NCUA board."

McWatters added that the "derivation of the OTR is not a 'cost accounting' determination as posited by the NCUA."

"Instead, the OTR methodology is grounded in legal and policy determinations made by Congress, the NCUA board and the NCUA staff," he wrote. "Congress may mandate that specific NCUA regulations fall under Title 1 or Title 2. If Congress is silent, the NCUA board will make that determination based upon legal and policy considerations."

He continued, "These determinations are hugely significant to the calculation of the OTR and are reflected in the 'mapping' – that is, the allocation of the NCUA examination costs between regulatory and insurance functions – that begins on page 72 of the proposed non-rule rule. Examining every credit union with assets of more than $250 million every year and not relying upon SSA regulatory examinations for NCUA insurance examination purposes will certainly influence the OTR as will the shifting of NCUA staff to state charters as the number of federal charters continues to decline. The allocation of examiner work load – determinations largely made by the NCUA staff – between regulatory and insurance functions flows through and materially impacts the OTR calculation."

NAFCU Executive Vice President and General Counsel Carrie Hunt said in a statement, "NAFCU welcomes an opportunity to provide credit union input on the methodology for the OTR calculation."

Calling the move an unprecedented opportunity, NASCUS President/CEO Lucy Ito said in a prepared statement, "It's about time. For years, state regulators and credit unions have sought the chance to weigh in on the overhead transfer rate to address the inequities of the current system."

Ito urged state regulators and state credit unions to file their own comments about the OTR and "address a system in imbalance."

The board also voted to open a 60-day comment period on the agency's 2017-2021 strategic plan. Matz said the plan will allow the agency to remain "flexible and forward-looking," and that releasing the plan for comment is part of the NCUA's "ongoing commitment to transparency."

Matz also said that the NCUA is "not locked into an annual exam cycle every year."

"(The) NCUA may consider moving back to an 18-month exam cycle for credit unions that pose less risk to the Share Insurance Fund," she said.