The National Credit Union Administration Board held its first open meeting of 2020 at the agency’s headquarters on Jan. 23. It was announced that Examination and Insurance Director Larry Fazio will serve as the agency’s new executive director, the highest senior career position at the NCUA. Fazio will assume his new duties on March 1.
Fazio succeeds Mark Treichel, who is retiring after more than 33 years of distinguished service at the NCUA, including the last seven as Executive Director. His retirement will become effective June 30 to allow for a smooth transition in leadership.
The NCUA also unanimously approved four items:
- A proposed rule to permit low-income-designated credit unions, complex credit unions, and newly chartered federal credit unions to issue subordinated debt.
- A proposed rule that provides greater clarity on the regulations governing transactions where a federally insured credit union proposes to assume liabilities from or merge with another institution that is not a credit union.
- The 2020 Annual Performance Plan, which outlines the strategies and initiatives the NCUA will use to achieve the performance measures and outcomes described in the 2018–2022 Strategic Plan.
- An extension of the current 18-percent interest ceiling on most federal credit union loans until September 2021.
Regarding the extension of the interest ceiling, the Federal Credit Union Act caps the interest rate on federal credit union loans at 15 percent; however, the NCUA Board has discretion to raise that limit for 18-month periods if interest-rate levels could threaten the safety and soundness of credit unions. The 18-percent cap applies to all federal credit union lending except originations made under NCUA’s payday alternative loan program, which are capped at 28 percent currently.