Links in “NCUA”

NCUA has submitted a request to the Office of Management and Budget for approval to gather information from credit unions regarding a host of credit union activities, including: CUSO lending and investment authority, federal credit union reimbursement policies, supervisory committee audit and verification requirements, and the circumstances and conditions under which members can inspect and copy board minutes, credit union books and records. [9/27]

NCUA webinar yesterday encouraged credit unions to consider member business lending as a means to increase loan and fee income. Staff reported that the average MBL is for $128,000 and the average delinquency rate is currently 1.76%. The staff emphasized the need for careful underwriting and encouraged microlending. [9/26]

In its continuing effort to recover losses from U.S Central and other corporate credit unions, NCUA announced it is suing 13 international banks for antitrust activities. NCUA contends that the banks’ manipulation of the Libor rate caused millions in losses to the credit union industry. [9/24]

Citing the failure of five credit unions due to investments in flawed mortgage-backed securities, NCUA files suit against Morgan Stanley, Barclays, Goldman Sachs, Wachovia and Ally (then RFS), JP Morgan/Bear Stearns, Credit Suisse, Royal Bank of Scotland and UBS. NCUA has led the charge in recoveries against securities firm. In other related news, NCUA sues various firms for LIBOR manipulation. See http://www.ncua.gov/News/Pages/NW20130923Libor.aspx. [9/24]

NCUA’s revisions to its loan participation rule take effect today. In its Letter to Credit Unions No. 13-CU-07, the agency provides a summary of the changes and highlights that qualifying credit unions may be eligible for waivers from some of the new provisions. Examiners will be provided with additional guidance about the waiver process as well. [9/23]

NCUA Chair Debbie Matz announced that the agency is working on a proposed rule to requires that credit unions with more than $10 billion in assets undergo stress tests to determine whether they have sufficient capital to withstand certain economic shocks. The Federal Reserve Board will develop the “shocks” to be used for testing purposes. [9/19]

NCUA has activated its disaster relief policy for Colorado credit unions that have been affected by flooding, enabling them to 1) make prudent emergency loans with special terms and reduced documentation; 2) reschedule routine examinations; and 3) obtain NCUA guaranteed lines of credit from the share insurance fund. CUs may also assist affected credit unions in a variety of ways, such as providing access to ATM networks or by offering check cashing services. [9/16]

NCUA announced that it has developed a series of training videos for Supervisory Committee Members from small and low income-designated credit unions.  The six-part series is available through the NCUA website. [9/16]

Yet another reminder for all FIs to review their disaster recovery plans [9/16]

The revised Fixed Asset Rule approved yesterday by the NCUA Board is intended to streamline the existing rule. The new rule contains an additional 1% of shares and retained earnings buffer over any approved waiver amount in an attempt to eliminate the need to file multiple waiver requests. The Board also approved a proposed rule concerning charitable donation accounts. [9/13]