ABA Requesting Extension to Comment Period on NCUA CUSO Proposal

Melane Conyers-Ausbrooks
Secretary of the Board
National Credit Union Administration
1775 Duke Street
Alexandria, VA 22314-3428

Ladies and Gentlemen:

The American Bankers Association (ABA) hereby requests a 60-day extension of the current comment period for the proposal of the National Credit Union Administration (NCUA) that would amend NCUA’s credit union service organization (CUSO) regulation (Proposal). A 60-day extension would allow interested parties a total of 90 days to comment on the Proposal, in place of the 30-day period set by NCUA. Consequently, comments would be due on May 28, 2021 rather than on the current deadline, March 29, 2021.

The Proposal is comprehensive and represents a significant expansion of CUSO lending activities. In preparing a written response, ABA as well as all interested parties need adequate time to read, understand, analyze, and evaluate the Proposal and the nature and extent of its impact and the risks imposed upon consumers, communities, and the financial services industry. Furthermore, the NCUA Board Chairman has publicly opposed the Proposal, stating that it “creates real reputational risk for the entire credit union system.” Consequently, a 30-day comment period appears unnecessarily rushed. Allowing additional time to comment will help ensure that NCUA is provided with a more thorough and informed analysis of the Proposal’s impact as well as the opportunity to consider additional legal, regulatory, and other issues that may not have been factored into the Proposal.

If NCUA is committed to a full and fair vetting of the Proposal, then the public, as stated in Executive Order No. 13579, must “have a meaningful opportunity to participate in rulemaking.” Federal administrative policy consistently has sought to provide adequate time for the public to consider agency proposed rulemakings. Executive Order No. 13563, in particular, states “each agency shall afford the public a meaningful opportunity to comment through the Internet on any proposed regulation, with a comment period that should generally be at least 60 days.”

These directives are intended to apply to independent regulatory agencies such as the NCUA. Indeed, Chairman Harper has underscored the need. Regarding another recent proposal, Chairman Harper noted that he does “not support a 30-day comment period for this or any of the other proposals” that have been recently proposed with these short comment periods, because “[t]he legal and public policy issues . . . are too important, and fairness dictates that the agency afford stakeholders ample time to provide their views. That is even more true while we are in the midst of a global pandemic.”

Given the potential consequences if the Proposal were enacted, as well as the NCUA Board Chairman’s declared disapproval, it is our hope and expectation that NCUA will follow a measured, inclusive, and deliberative rulemaking process. Allowing for a 90-day comment period would be consistent with this regulatory and central policy objective.

Thank you for your consideration of this request. If you have any questions or require any additional information, please do not hesitate to contact the undersigned at 202-663-5479.

Sincerely,
Timothy E. Keehan
Vice President & Senior Counsel