Notice2024-31250

Revision of Agency Information Collection of a Previously Approved Collection; Request for Comments

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
December 30, 2024

Issuing agencies

National Credit Union Administration

Abstract

As required by the Paperwork Reduction Act of 1995, the National Credit Union Administration (NCUA) is submitting the following revision of currently approved collection to the Office of Management and Budget (OMB) for renewal. The revisions are proposed to take effect with the March 31, 2025, report date.

Full Text

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<title>Federal Register, Volume 89 Issue 249 (Monday, December 30, 2024)</title>
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[Federal Register Volume 89, Number 249 (Monday, December 30, 2024)]
[Notices]
[Pages 106605-106606]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-31250]


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NATIONAL CREDIT UNION ADMINISTRATION


Revision of Agency Information Collection of a Previously 
Approved Collection; Request for Comments

AGENCY: National Credit Union Administration (NCUA).

ACTION: Notice of submission to the Office of Management and Budget.

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SUMMARY: As required by the Paperwork Reduction Act of 1995, the 
National Credit Union Administration (NCUA) is submitting the following 
revision of currently approved collection to the Office of Management 
and Budget (OMB) for renewal. The revisions are proposed to take effect 
with the March 31, 2025, report date.

DATES: Written comments should be received on or before January 29, 
2025 to be assured consideration.

ADDRESSES: You may submit written comments on the information 
collection by any of the following methods identified by the OMB 
Control Number 3133-0004 or by Document Number (Please send comments by 
one method only):
    Federal Register Portal: <a href="https://www.federalregister.gov">https://www.federalregister.gov</a> Find this 
information collection by searching for ``National Credit Union 
Administration'', then selecting ``Past 90 days'', and scrolling 
through the list of documents.
    <a href="http://Regulations.gov">Regulations.gov</a>: <a href="https://www.regulations.gov/search?filter=ncua">https://www.regulations.gov/search?filter=ncua</a> 
Find this information collection by scrolling through the search 
results and looking for Call Report Form 2025-Q1.
    Rulemakings and Proposals for Comment: <a href="https://ncua.gov/regulation-supervision/rulemakings-proposals-comment">https://ncua.gov/regulation-supervision/rulemakings-proposals-comment</a> NCUA will post a link to the 
regulations.gov web page where you can submit a comment by selecting 
Comment.
    Mail: 1775 Duke Street, Suite 5067, Alexandria, Virginia 22314.
    Fax: 703-519-8161.
    Email: <a href="/cdn-cgi/l/email-protection#c595978486aaa8a8a0abb1b6858b869084eba2aab3"><span class="__cf_email__" data-cfemail="a0f0f2e1e3cfcdcdc5ced4d3e0eee3f5e18ec7cfd6">[email&#160;protected]</span></a>.

FOR FURTHER INFORMATION CONTACT: Copies of the submission may be 
obtained by contacting Dacia Rogers at (703) 518-6547, emailing 
<a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="7d2d2f3c3e1210101813090e3d131e081c531a120b">[email&#160;protected]</a>, or viewing the entire information collection 
request at <a href="http://www.reginfo.gov">www.reginfo.gov</a>. Enhanced content is also available from the 
Notice on the Federal Register website. (<a href="http://www.federalregister.gov">www.federalregister.gov</a>). In 
addition, copies of the NCUA Form 5300, Call Report Form and 
Instructions can be obtained at the NCUA's website (<a href="https://ncua.gov/regulation-supervision/regulatory-reporting/cuonline">https://ncua.gov/regulation-supervision/regulatory-reporting/cuonline</a>).

SUPPLEMENTARY INFORMATION: 
    OMB Number: 3133-0004.
    Title: NCUA Call Report.
    Type of Review: Revision of a currently approved collection.
    Abstract: Sections 106 and 202 of the Federal Credit Union Act 
require federally insured credit unions to submit financial reports to 
the NCUA. Section 741.5 of the NCUA regulations describes the method 
federally insured credit unions must use to submit this information to 
NCUA. Specifically, credit unions use NCUA Form 5300, Call Report to 
file quarterly financial and statistical data through NCUA's online 
portal, CUOnline. This financial and statistical information is 
essential to NCUA's supervision of federal credit unions and the data 
gathered through the Form 5300, Call Report facilitates NCUA's 
monitoring of other credit unions with share accounts insured by the 
National Credit Union Share Insurance Fund (Share Insurance Fund).

Form 5300 Credit Union Call Report--Proposed Changes and Comments 
Received

    In the September 16, 2024, notice, the NCUA proposed revisions to 
the Form 5300, Call Report including revisions to Schedule A, Section 
4; Schedule C, Section 4; Schedule D, Section 2; and Schedule D, 
Section 3.\1\ The comment period for the September 2024 notice ended on 
November 15, 2024. The NCUA received 20 comment letters, 2 of which did 
not apply to the actual information collection.
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    \1\ 89 FR 75590 (September 16, 2024).
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Schedule A, Section 4

    The NCUA proposed two additional accounts for credit unions to 
report the year-to-date number and amount of loans granted to credit 
union officials and senior executive staff. Four commenters objected to 
reporting the year-to-date number and amount of loans granted to credit 
union officials and senior executive staff because the information is 
included in the Items Needed List for an examination. These commenters 
did not see the benefit of providing this information quarterly. After 
considering these comments, the NCUA will not proceed with the proposed 
changes.
    The NCUA proposed to remove two accounts for credit unions to 
report information related to Purchased Credit Impaired Loans. No 
comments were received related to removing these accounts.

Schedule C, Section 4

    The NCUA proposed to remove three accounts where credit unions 
previously reported information related to FRB Paycheck Protection 
Program Lending Facility loans. No comments were received related to 
removing these accounts.
    The NCUA also proposed to add an account for credit unions to 
report assets pledged to secure deposits, other funding arrangements, 
and other counterparty requirements. No comments were received related 
to adding this account.

Schedule D, Section 2

    The NCUA proposed adding or changing accounts on Schedule D, 
Section 2 as noted in the September 16, 2024, Federal Register Notice. 
One commenter objected to adding the accounts related to non-member 
term deposits because this information is already reported in the same 
section. Reporting these deposits in Items 15 and 16 assists the NCUA 
in monitoring compliance with NCUA regulations Sec.  701.32(b). The 
NCUA will proceed with the proposed change.

Schedule D, Section 3

    The NCUA proposed adding three accounts for credit unions to report 
the maturity distribution of total uninsured shares and deposits. Ten 
commenters indicated that the instructions needed more detail to enable 
credit unions to determine how to report the maturity distribution. The 
NCUA revised the proposed instructions for Schedule D, Section 3. The 
proposed instruction changes indicate credit unions should assume the 
longest maturity term shares are insured first.

[[Page 106606]]

    One commenter was concerned that the reporting of the maturity 
distribution of uninsured shares contradicted NCUA regulations Sec.  
745.200(c), which states that insurance coverage will be prorated among 
the member's interest in all accounts. The maturity distribution 
information reported on the Form 5300, Call Report will not be used to 
determine share insurance coverage and will be used to monitor 
uninsured share behavior. Shares will be evaluated by NCUA to determine 
insurance coverage only when a credit union fails.
    One commenter stated the reason NCUA provided for adding these 
accounts was not sufficient. Regulators and industry analysts cite 
uninsured deposit runoff as a contributing factor in postmortem 
assessments of the 2023 banking failures. Uninsured deposits are not as 
important to the funding mix for credit unions as they are for banks; 
however, the amount of uninsured shares has been increasing in the 
credit union system. Trends in uninsured depositor behavior can signal 
emerging risks to credit union system stability and the share insurance 
fund.
    The NCUA already collects total uninsured deposit information on 
the Form 5300, Call Report. The maturity distribution will enable a 
more complete assessment of depositor behavior at the system and 
individual institution levels.
    Four commenters were also concerned that the core processor would 
not be able to implement these changes in time to accurately report for 
the March 2025 quarter. While the NCUA continues to believe the 
information obtained will be useful for evaluating depositor behavior 
and the movement between uninsured non-maturity shares and share 
certificates, the need for additional time to develop adequate 
reporting systems is understandable. To provide time for credit unions 
to work with their core processors, the NCUA will not require credit 
unions to report the maturity distribution of uninsured shares in March 
2025.

Other Comments Received

    The NCUA also received comments related to the added burden on 
credit unions, the requirement to add negative share accounts to loans, 
and a Community Development Financial Institution (CDFI) designator.

Burden

    Seven commenters were concerned with the increase in burden. Before 
the NCUA proposes adding items to the Form 5300, Call Report, it weighs 
the burden on credit unions against the benefit of the information. The 
NCUA feels the modest increase in burden is justified to protect the 
Share Insurance Fund and facilitate offsite development of an 
examination scope. While the NCUA understands these concerns, the 
agency does not expect these revisions will result in a material 
increase in reporting burden.

Negative Shares Added to Loans

    One commenter wanted to eliminate the requirement to add negative 
shares to unsecured loans and to shares. The NCUA cannot eliminate this 
requirement because it is a requirement of generally accepted 
accounting principles.

Community Development Financial Institution Designator

    One commenter suggested that the NCUA add a designator for credit 
unions to self-report as a CDFI. CDFI is a designation given by the 
CDFI Fund to financial institutions that provide financial services in 
low-income communities and to people who lack access to financing. The 
NCUA does not give CDFI designations, therefore the agency does not 
maintain a database of CDFI credit unions. Interested parties may 
obtain a list of CDFI credit unions at the CDFI Fund website--(<a href="https://www.cdfifund.gov/programs-training/certification/cdfi">https://www.cdfifund.gov/programs-training/certification/cdfi</a>).
    The NCUA will consider adding a checkbox for credit unions to 
voluntarily disclose their CDFI designation on a future Form 4501A, 
Profile. If the NCUA adds a CDFI designator, the Form 4501A, Profile 
would be the appropriate form because the designation, once reported, 
would not need to be changed every quarter.
    Affected Public: Private Sector: Not-for-profit institutions.
    Estimated Number of Respondents: 4,499.
    Estimated Number of Responses per Respondent: 4.
    Estimated Total Annual Responses: 17,996.
    Estimated Hours per Response: 4.
    Estimated Total Annual Burden Hours: 71,984.
    Reason for Change: Burden decreased due to a decrease in the number 
of respondents.
    Request for Comments: Comments submitted in response to this notice 
will be summarized and included in the request for Office of Management 
and Budget approval. All comments will become a matter of public 
record. The public is invited to submit comments concerning: (a) 
whether the collection of information is necessary for the proper 
performance of the function of the agency, including whether the 
information will have practical utility; (b) the accuracy of the 
agency's estimate of the burden of the collection of information, 
including the validity of the methodology and assumptions used; (c) 
ways to enhance the quality, utility, and clarity of the information to 
be collected; and (d) ways to minimize the burden of the collection of 
the information on the respondents, including the use of automated 
collection techniques or other forms of information technology.

    By the National Credit Union Administration Board.
Melane Conyers-Ausbrooks,
Secretary of the Board.
[FR Doc. 2024-31250 Filed 12-27-24; 8:45 am]
BILLING CODE 7535-01-P


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Indexed from Federal Register on December 30, 2024.

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