Sources say NCUA may issue for comment new OTR formula
The LSCU has learned that sources close to the NCUA speculate that today, the NCUA will issue for comment a new formula for the Overhead Transfer Rate. Chairman Mark McWatters has wanted more transparency on this and asked for input on possible changes. According to sources, the new proposed formula will be more friendly to state-chartered credit unions, and could result in close to a 10-percent reduction in the rate in future years. Details were not disclosed, but it is possible fewer NCUA activities will be considered insurance related. Our sources speculate this change will be seen as a victory for NASCUS and the state system generally.