The NCUA board on Friday agreed to solicit comment on changes to the methodology used to calculate the Overhead Transfer Rate—an issue that often has divided the credit union community.
In publishing the changes, the board proposes to simplify the methodology used to calculate the OTR—a formula that determines what percentage of the NCUA's operating budget will be drawn from the National Credit Union Share Insurance Fund and used to cover expenses related to federal share insurance.
The issue has been particularly divisive, with federally insured, state chartered credit unions saying that the calculation of the OTR is unfair to their institutions and that the OTR should be published in the Federal Register, with comments about it solicited from the credit union community.
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