NCUA's proposed rule on Compensation in Connection With Loans to Members and Lines of Credit to Members.
About this episode
The episode discusses NCUA's proposed rule to modernize compensation regulations for credit union employees related to loans to members.
www.marktreichel.com https://www.linkedin.com/in/mark-treichel/ NCUA Proposes to Modernize Rules on Loan-Related Compensation The NCUA Board has issued a proposed rule that would update a regulation last revised more than 30 years ago — the rules governing how credit union employees and officials can be compensated in connection with loans to members. What NCUA is proposing: Adding a new regulatory definition of "overall financial performance" to Section 701.21(c)(8) Expressly allowing incentive and bonus payments tied to lending metrics, as long as they are based on the credit union's overall financial performance Explicitly extending this flexibility to senior management employees, not just rank-and-file staff Defining "overall financial performance" as a quantifiable metric or set of metrics set by the board of directors, which may include lending-related goals such as aggregate loan growth or loan performance measures like delinquency or loss rates Why the change is happening: Credit unions have reported confusion about whether loan-related metrics can factor into "overall financial performance" NCUA regions have applied the current rule inconsistently The existing framework…
More episodes of Credit Union Regulatory Guidance Including: NCUA, CFPB, FDIC, OCC, FFIEC
- Interagency Guidance on Lending to Individuals Not Legally Authorized to Work in the United States
- NCUA Chairman Kyle S. Hauptman's Testimony Before the House Financial Services Committee.
- FDIC 2026 Risk Report
- Proposed Rule on Training for New Board Members
Explore listener stats, chart rankings, contacts and more on the Credit Union Regulatory Guidance Including: NCUA, CFPB, FDIC, OCC, FFIEC podcast page.