Links in “NCUA”

In light of recent CFPB actions against Santander, it might be a good time to review the NCUA's expectations for indirect lending relationships. [8/20/15]

In a legal opinion letter issued this week, NCUA has clarified that federally insured credit unions can purchase participation interests in indirect loans even if the participation interest is purchased from a lead lender that generated the loan through an indirect lending arrangement with the point of sale retailer rather than directly from the originating lender. [8/19/15]

In a letter to NCUA, NAFCU President/CEO Dan Berger is urging a return to the 18-month examination cycle. Berger notes that NCUA’s $6.39 million budget allocation for employee airfare and rental cars could be significantly reduced by extending the exam cycle without sacrificing safety and soundness. [8/19/15]

Northern Piedmont FCU ($18.3 million in assets) in Warrenton, VA will be the first to receive restitution payments from the Lynrocten FCU fraud case. The judge ruled that Northern Piedmont should receive all of the recovered funds to date instead of distributing the recovered funds on a pro rata basis as advocated by NCUA. [8/19/15]

If you weren’t able to attend the NCUA’s July town hall meeting you can now access an audio recording and transcript of the meeting from the NCUA’s website. The webinar addressed issues such as supplemental capital, fields of membership, cybersecurity and regulatory relief. [8/17/15]

The NCUA's efforts for transparency expand with the announced release of the video recording of the July 2015 open Board meeting. Key elements discussed at that meeting included regulatory relief efforts, operational budget reprogramming, and the performance of the NSUSIF. [8/14/15]

The NCUA says that it has posted over 20 documents concerning its OTR methodology on its website and that the documents it has refused to provide to NASCUS are internal memos between the General Counsel’s office and the Board. NCUA Board member Mark McWatters agrees with NASCUS that these documents should be made public and that the OTR process should be subject to public comment. [8/12/15]

According to NCUA, the methodology it uses to calculate the overhead transfer rate (OTR) is “attorney work product” and, therefore, is privileged, confidential and exempt from the Freedom of Information Act. At least, that’s what NCUA General Counsel Mike McKenna said to a request from NASCUS for all documents relative to the OTR. [8/11/15]

In a letter to a group of advocacy organizations, NCUA Chair Debbie Matz responded that the agency has no enforcement authority over CUSOs and other third parties that may be engaged in predatory lending. The advocacy groups had expressed concerns about loans issued through ITT Educational Services. However, Matz pointed out that all seven credit unions involved in this program had ended their relationship in 2012 following a warning from NCUA. [8/10/15]

NCUA issued four orders prohibiting individuals from participating in the affairs of any federal insured financial institutions. All four individuals have been convicted on crimes while working for a credit union. [7/31/2015]