Links in “NCUA”

NCUA has awarded 204 grants to 174 low-income credit unions for a total expenditure of $1,051,850.  NCUA had received 331 requests for grants this year for everything from funds for training to new products and services to fund application requests to the U.S. Department of the Treasury for approval to become a Community Development Financial Institution. [8/4/14]

NCUA staff members say the credit unions should not anticipate any future assessments as a result of the corporate credit union failures. However, the agency said that it’s too early to talk about any refunds to credit unions. [8/1/14]

Reactions have been mixed to a new bill that would increase the minimum asset level that triggers direct CFPB supervision over credit unions with assets from $10 billion to $50 billion. The outspoken CEO of the $28 billion State Employees Credit Union, Jim Blaine, prefers being under CFPB versus NCUA. Bill Cheney, former CUNA CEO and now CEO of the $10 billion SchoolsFirst FCU supports the bill, but noted the change would leave only Navy Federal Credit Union under CFPB supervision. Cheney recommends that direct supervision by the CFPB be eliminated for all credit unions. [8/1/14]

At yesterday’s meeting the NCUA Board approved a proposed rule that would the eliminate the 5% fixed asset cap on existing assets for federal credit unions. Going forward federal credit unions would be permitted to exceed the 5% cap provided they have implemented a fixed asset management program. [8/1/14]

The NCUA's Thursday Board meeting resulted in the unanimous approval of three items: 1) a proposed rule regarding fixed assets, 2) a reduction of NCUA's 2014 budget by $1.1 million, and 3) an expansion of the community charter of Call Federal Credit Union. [8/1/14]

The video that includes an in-depth discussion with NCUA Chief Economist John Worth highlights the improving labor market, falling unemployment rates, and the positive effect this is having on loan demand and delinquency rates. Mr. Worth also discusses how these changes may affect a credit union’s balance sheet and the interest rate environment. [7/31/14]

Several years ago, NCUA took over and settled a suit filed by seven credit unions that claimed that Western Corporate Credit Union (Wescorp) and its senior management had been negligent and breached their fiduciary duty when they engaged in risky investment practices. Now the NCUA has been ensnared in a case brought by the US government against Standard and Poor’s that claims the ratings agency deliberately manipulated risk ratings on mortgage-backed securities. The government’s case cites Wescorp and three other failed corporates and has subpoenaed documents from the NCUA to support its case. To date, NCUA has refused to comply. [7/31/14]

Lest you feel too happy about the improving economy, the NCUA provides a reason to worry... higher interest rates. [7/31/14]

NCUA Director of Insurance and Examinations Larry Fazio has sent copies of the FinCEN Guidance on Marijuana-Related Businesses to states where the sale of marijuana is legal. CUNA states that more definitive guidance from NCUA would be preferred to what the trade association sees as over-reaching due diligence guidelines provided by FinCEN. [7/29/14]

An interactive online resource developed by the California and Nevada Leagues is being taken national by CUNA allows CUNA-affiliated credit unions to write and immediately submit comment letters directly to NCUA and other regulatory agencies as well as having access to comment letters submitted by other credit unions and their leagues. PowerComment users will also be able to view the proposed rules and communicate with and pose questions to other credit unions and leagues regarding proposed rules. [7/25/14]