Links in “NCUA”

Originally CUNA opposed the bill that would have required NCUA to stop and reconsider the merits of its proposed risk-based capital rule, as the association didn’t believe that the bill had any chance of being adopted. Now CUNA is concerned that NCUA is not moving towards making the kinds of significant changes that had been hoped for and believes that more time and thought is necessary before a final bill is announced. [9/23/15]

Thursday’s decision by the NCUA Board to increase the asset limit for the definition of a small credit union from $50 million to $100 million came on the heels of a healthy debate regarding where the appropriate limit should lie. NCUA Board member Mark McWatters recommended that the limit be set at $550 million in keeping with the level set for banks. In the alternative, NCUA could adopt a 3-tier system where credit unions under $100 million could be exempted from certain regulations and credit unions with assets between $100 million to $550 million could be subject to a lighter version of the regulatory requirements. NCUA Chair Debbie Matz replied that the limit for credit unions must be based on an economic analysis and legal rationale specific to credit unions. [9/21/15]

Both CUNA and NAFCU are urging NCUA to make use of the FFIEC’s new cybersecurity assessment tool voluntary. While the FFIEC estimated that it should only take financial institutions about 80 hours to complete the assessment, both trades say the it will likely take credit unions hundreds of hours to complete the 55-page assessment. NCUA is expected to address the issue in a soon-to-be released Letter to Credit Unions. [9/21/15]

On Friday, the NCUA placed $12 million Bethex FCU into conservatorship. The credit union will continue operations under new management and new operational  procedures. On the same day, the New York State Department of Financial Services placed $178 million Montauk CU in conservatorship. As conservator, the NCUA will work with the credit union to address operational issues while the credit union continues to serve its members. [9/21/15]

At yesterday’s board meeting, NCUA directors unanimously approved a final rule that extends the definition of a “small credit union” under the Regulatory Flexibility Act from credit unions with assets up to $50 million to credit unions with assets up to $100 million. This action means that an additional 733 credit unions will be eligible for regulatory relief in the future and eligible for consulting and educational assistance from the Office of Small Credit Unions. The Board also approved three other final rules. [9/18/15]

NCUA Chair Debbie Matz stated that she will seek approval to streamline the process for federal credit unions to obtain approval for community charter expansion requests. Currently, federal credit unions serving communities with more than 1 million residents must obtain approval from the NCUA board. Matz wants to allow these credit unions to receive approval from the Office of Consumer Protection, which could shorten the process by about two months. Denials could be appealed to the Board. [9/18/15]

The NCUA has scored another victory in its ongoing war against the Wall Street firms and financial institutions that sold faulty mortgage-backed securities to corporate credit unions. The Royal Bank of Scotland has agreed to pay $129.6 million to settle claims for losses resulting from its sale of residential mortgage-backed securities to Members United and Southwest corporate credit unions. To date, the NCUA has obtained more than $1.9 billion in legal recoveries. [9/17/15]

The NCUA Board will be considering three final rules at today’s board meeting. The first is a rule that would allow corporate credit unions to more easily make bridge loans for interim funding to CLF borrowers. The second rule would implement  a statutory inflation to civil money penalties and the third rule would decrease the asset threshold used to define “small entity” under the Regulatory Flexibility Act from $100 million to $50 million. [9/17/15]

NCUA Vice Chair Rick Metsger is advocating a return to a two-year budget cycle for NCUA. Metsger says that the challenge of a one-year budget is that it doesn’t always provide visibility into the actual costs for staffing or for major projects that often involve multi-year development and costs. Metsger believes that a two-year cycle would provide for more transparency. [9/17/15]

The NCUA has promoted Ralph Monaco to the position of Chief Economist to fill the vacancy left by John Worth, who left the agency in August. Monaco had been serving a Senior Economist for the NCUA since 2011 and holds a doctorate degree in Economics from the University of Maryland. [9/16/15]