NCUA Board Issues Revised Proposed Rules on Executive Compensation, Partial Occupancy; Also, Freed Named to Succeed Whitehead as Region V Director

NCUA Selects Freed as Region V Director

The National Credit Union Administration, last week,  selected Cherie Freed as the next Regional Director of the agency’s Region V office in Tempe, Arizona.

Freed will be replacing current Regional Director Elizabeth Whitehead, who will retire in May. Region V covers Alaska, Arizona, California, Guam, Hawaii, Idaho, Nevada, Oregon, Utah and Washington.

“Credit unions and their members will be well-served by Cherie Freed, a long-time veteran of NCUA who brings 29 years of experience to her new position,” NCUA Board Chairman Debbie Matz said. “She has consistently carried out her duties with excellence, and she has a wealth of experience at many levels of the agency.

“I also want to thank Liz Whitehead for 28 years of dedicated service to NCUA and the credit union system,” Matz said. “She’s been an enthusiastic and capable leader in our Region V office, and we wish her all the best in her future endeavors.”

Freed joined NCUA in 1987 as a credit union examiner, following two years in the private sector. Before her selection as Regional Director, she served as the associate regional director for operations in Region V. Her career at NCUA has included serving as the agency’s acting deputy executive director, Region V director of supervision, a loss risk analysis officer, a corporate credit union examiner and a problem case officer.

“Cherie’s experience as the Associate Regional Director of Region V provides continuity in leadership” said John Trull, Northwest Credit Union Association AVP of Regulatory Advocacy. “Not only has she been responsive and detail-oriented over these past five years, Cheri’s actions are also data-driven.”

Freed holds a bachelor’s degree in accounting from Northwest Missouri State University. She is a graduate of NCUA’s Management Development Program has been cited for numerous awards for her leadership skills during her career with the agency.

NCUA Board Issues Revised Proposed Rules on Executive Compensation, Partial Occupancy

The National Credit Union Administration (NCUA) board held its quarterly meeting last week, the final of Chairwoman Debbie Matz’s tenure. Among the agenda items was a revised proposed rule on incentive-based compensation. NCUA became the first federal financial regulator to issue such a judgement, voting unanimously.

The proposed rule would establish a three-tiered system for all covered financial institutions, including credit unions, with total assets of $1 billion or more. They will be divided into three categories:

  • Level 1, $250 billion or more in assets;
  • Level 2, $50 billion to $250 billion in assets; and
  • Level 3, $1 billion to $50 billion.

A summary of the applicability of the incentive-based compensation proposed rule to federally insured credit unions is available online here. Comments on the proposed rule, available online here, must be received by July 22.

The board also issued a proposed rule on partial occupancy, (Parts 701 and 721) also unanimously approved, which would provide regulatory relief by eliminating the requirement in the occupancy rule that federal credit unions must plan for and eventually reach full occupancy of acquired premises.

“This proposal is an excellent example of how NCUA carefully listens and, where prudent, responds to stakeholders seeking regulatory relief,” NCUA Board Chairman Debbie Matz said in a statement. “This proposed rule would remove an outdated regulatory requirement, cut unnecessary paperwork, and empower credit union boards to make their own business decisions.”

The proposed rule retains the current regulatory timeframes for the partial occupancy of premises, but it modifies the definition of “partially occupy” to mean occupation and use, on a full-time basis, of at least 50 percent of a premises by a federal credit union or by a combination of the credit union and a credit union service organization in which the credit union has a controlling interest.

Comments on the proposed rule, available online here, must be received within 60 days of publication in the Federal Register.

For full coverage of the meeting, click here for the NCUA Board Action Bulletin.

Questions about this story? Contact Eric Horvath: 503.350.2222, ehorvath@nwcua.org.

Posted in Federal, NCUA.