Links in “NCUA”

In a recent Letter to Credit Unions (15-CU-01), NCUA announced that its top three areas of supervisory focus for this year will be cyber security, interest rate risk, and Bank Secrecy Act compliance. The letter also notes that there will be increased focus in the lending area to ensure compliance with new mortgage rules, as well as increased scrutiny in the areas of indirect lending and subprime lending. [1/7/15]

In light of the recent data breach caused by an NCUA examiner’s loss of a credit union’s thumb drive, Chairman Matz announced that the agency is considering a proposed rule that would require credit unions to encrypt data provided to examiners. In addition, Matz stated that informing the public sooner about this low-level breach could have encouraged criminal activity. [1/7/15]

NCUA has issued prohibition orders against six former credit union employees. Three of the six were from OTS FCU in Honolulu, which was described by the FBI as a “den of thieves.” Losses at the $12 million credit union exceeded $400,000. [1/5/15]

The NCUA issued six prohibition orders in December with three of the six orders for employees at the same credit union. [1/5/15]

The rules concerning the different types of fields of membership are complex and the decisions regarding FOM conversions can have long-term strategic effects. NCUA has issued a new video, “Strive to Thrive,” in an effort to make federal credit unions more aware of their options for membership expansion and the factors they should consider when evaluating  this issue. [12/30/14]

NCUA Inspector General James Hagen has launched an investigation into the data breach related to an NCUA examiner losing Palm Springs FCU's flash drive containing sensitive member information. Hagen announced that he will also be investigating the agency’s decision to keep the incident from the public and the source of the leak to the media. [12/30/14]

NCUA has provided federally-insured credit unions with a copy of the guidance it recently sent to its examiners and field staff. The guidance addresses the due diligence measures that are expected from credit unions that have accounts owned by money services businesses. [12/29/14]

The spirit of the holidays hasn’t stopped NCUA from filing another federal lawsuit in its continuing effort to recover losses from the failed corporate credit unions. This time they have Wells Fargo Bank National Association in their crosshairs for failing to fulfill its fiduciary duties as trustee for 27 residential mortgage backed securities trusts. [12/24/14]

The NCUA has released its latest video regarding the economic outlook for 2015. The video notes the consensus of economic forecasters for 2015, projects that the economy will continue to grow, and projects that labor markets will continue to improve—all of which translates to continued solid loan growth, good loan quality, and moderate increases in deposits for credit unions. The video focuses on interest rate risk as a key concern for 2015. [12/24/14]

The NCUA released an accounting of its regulatory modernization initiative results. This document covers the improved rules, streamlined processes, and clarified legal opinions made from 2011 through 2014. These actions were intended to modernize and improve the agency. [12/23/14]