Board Actions Oct. 27, 2011
NCUA BOARD CUTS RED TAPE, ENHANCES ACCESS
FOR COMMUNITY DEVELOPMENT LOANS
The NCUA Board convened its eleventh open meeting of 2011
at the agency’s headquarters Oct. 27 and unanimously
approved a final rule to cut red tape and enhance credit union
access to the Community Development Revolving Loan Fund.
The Board also received updates on the performance of the
National Credit Union Share Insurance Fund (NCUSIF) and
the Temporary Corporate Credit Union Stabilization Fund
(Stabilization Fund). The NCUSIF equity ratio at the end of
September stood at 1.31 percent, remaining steady from
August. The Stabilization Fund’s net position increased $2
billion during September.
Board Streamlines Community Development
Loan Process
In an effort to encourage more low-income credit unions to
apply for below-market-rate loans from NCUA, the Board
issued a final rule (Part 705) that will lessen regulatory
burdens, eliminate outdated procedures, and advance
transparency with respect to loans and technical assistance
from the Community Development Revolving Loan Fund.
Overall, the rule greatly streamlines operating requirements
and improves the fund’s administrative flexibility.
Specific examples of the beneficial changes to Part 705 include:
; Application simplified: no community needs plan required;
; Maximum amount of a single loan increased to exceed
$300,000 in certain circumstances;
; No mandatory matching requirement;
; Potential for lower interest rate;
; Clear regulation: more details were added to Notice of
Funding Opportunity rather than to the regulation;
; New option to fund credit unions’ urgent needs; and
; Flexible repayment of loan principal.
The final rule is essentially the same as the proposed rule
issued in May, with minor modifications based on comment
letters. NCUA anticipates the rule will result in increased loan
demand due to reduced burdens on participating credit
CONTINUED ON PAGE 9
RULEMAKING CALENDAR
TITLE
REFERENCE
STAGE
LAST BOARD
ACTION
EFFECTIVE OR
COMPLIANCE* DATE
COMMENTS
Community Development 701
Revolving Loan Fund Access 705
For Credit Unions 741
Loans in Areas Having Special
Flood Hazards; Interagency
Questions and Answers 760
Regarding Flood Insurance
Net Worth & Equity Ratio
Corporate Credit Unions
Credit Union Service
Organizations
Remittance Transfers 701
Sample Income Data to Meet 701
the Low-Income Definition
Accuracy of Advertising & 740
Notice of Insured Status
Corporate Credit Unions
Final Rule
Oct. 27, 2011
Dec. 2, 2011
700, et al
704
Notice and
request
for comment
Final Rule
Proposed Rule
Oct. 3, 2011
Oct. 3, 2011
Oct. 31, 2011
Due:
Dec. 1, 2011
7 received
712 & 741
Proposed Rule
July 21, 2011
290 received
Interim Final
Final Rule
July 21, 2011
July 27, 2011
July 25, 2011
1 received
Final Rule
May 19, 2011
704
§704.2 & 704.15
§ 704.21
Final Rule
April 21, 2011
June 27, 2011
Jan. 1, 2012*
May 31, 2011
Jan. 1, 2012
April 29, 2013
