NCUA Board to Consider Final 'Second Chance' Initiative Plan This Month
At the Nov. 21 board meeting, the NCUA will also receive a quarterly update on the Share Insurance Fund.
The NCUA board on Nov. 21 will consider a final plan to allow people who committed minor criminal offenses to work at credit unions without receiving a waiver from the board.
While the details of the final plan will not be released until the meeting, under the proposed plan, credit unions would no longer be required to submit applications to the agency to employ people who have bounced checks for a moderate amount or have been convicted of “small dollar simple theft, false identification, simple drug possession, and isolated minor offenses committed by covered persons as young adults.”
Credit union trade groups generally supported the proposal. CUNA officials said it would decrease the regulatory burden that credit unions face, while continuing to mitigate the risks for financial institutions.
NAFCU officials endorsed the initiative, while expressing concerns about the fidelity bond implications of the plan and whether the waiver process could compromise sensitive credit union information.
On Nov. 21, the board also will receive a quarterly update on the Share Insurance Fund and will consider a proposed rule on appraisals.
On Nov. 20, the NCUA will hold a briefing on its 2020-2021 budget plan.