Recent NCUA News & Updates

Agencies Issue Exemption Order to Customer Identification Program Requirements

The Federal Deposit Insurance Corporation, the Office of Comptroller of the Currency, and the National Credit Union Administration (collectively, “agencies”), with the concurrence of the Financial Crimes Enforcement Network, today issued an order granting an exemption from a requirement of the Customer Identification Program (CIP) Rule implementing Section 326 of the USA PATRIOT Act. The CIP Rule requires a bank or credit union to obtain taxpayer identification number (TIN) information from its customer before opening an account, and the exemption permits a bank or credit union to use an alternative collection method to obtain TIN information from a third-party rather than from the customer.

The order applies to accounts at all entities supervised by the agencies. Since the CIP Rule was issued initially in 2003, there has been a significant evolution in the ways consumers access financial services, along with a rise in reported customer reluctance to provide their full TIN due, in part, to data breaches and identity theft concerns. Accordingly, this exemption provides flexibility to those entities supervised by the agencies that must comply with the CIP Rule. The exemption does not change the underlying requirement for banks and credit unions to have risk-based CIP procedures that enable them to form a reasonable belief they know the true identity of each customer.

This exemption is optional, and entities are not required to use an alternative collection method to obtain a customer’s TIN information.

Simplified CECL Tool Updated for June 2025

The National Credit Union Administration today released the June 2025 update of its Simplified CECL Tool. The update provides the latest life-of-loan—or Weighted Average Remaining Maturity—factors.

For credit unions currently using the Simplified CECL Tool, the June 2025 release facilitates calculating the credit loss expense on loans and lease for the period ending June 30, 2025.

The Simplified CECL Tool was developed primarily for small and non-complex credit unions as an option for estimating the allowance for credit losses on loans and leases. Credit unions with assets of less than $10 million may also consider using the Simplified CECL Tool, as it could provide a more accurate measure of credit losses and serve as an additional tool for loan portfolio management.

To get the latest version, please visit The Simplified CECL Tool page and click on “Download the Latest Simplified CECL Tool.” To ease your use of the Simplified CECL Tool, please review Frequently Asked Questions, the User Guide, and the Model Development Documentlocated on The Simplified CECL Tool page.

The NCUA updates the Simplified CECL Tool quarterly to enable credit unions to use the Tool when closing their books and submitting their quarterly NCUA Call Report.

For more information on CECL, please visit our CECL Resources page.

NASCUS Summary of the May 2025 NCUA Board Meeting

The May 2025 meeting of the National Credit Union Administration (NCUA) Board was held with Chair Kyle Hauptman as the sole board member. The session included two primary briefings: a financial overview of the National Credit Union Share Insurance Fund (NCUSIF) and an update on the agency’s Voluntary Separation Program (VSP). Additional operational adjustments and strategic planning initiatives were also discussed.

NCUSIF Financial Overview & Performance
The financial performance of the NCUSIF for the first quarter of 2025 reflected steady improvement. The fund reported a net income of $1.2 million, marking an increase from the previous quarter. Total assets stood at $23 billion, while reserves reached $242 million, a $5 million rise compared to Q4 2024. The equity ratio as of Q4 was 1.30% and is projected to decline slightly to 1.26% by June 30, 2025, largely due to continued growth in insured shares.
No credit union failures were recorded in the first quarter. CAMELS code 3 credit unions decreased from 715 to 679, with associated assets falling by $16.1 billion to $172.6 billion. CAMELS code 4 and 5 institutions saw a modest decline from 135 to 129 credit unions, though their total assets increased by $1.8 billion to $20.3 billion. Notably, 90% of insured shares remain within CAMELS 1 and 2 rated credit unions.

Click here to read the entire summary (login required)

Hauptman Announces Changes to NCUA’s Overdraft/NSF Fee Collection

March 3, 2025 – To help ensure credit unions can continue to support the needs of Americans struggling with inflation, the National Credit Union Administration will no longer publish overdraft and non-sufficient fund fee income for individual credit unions, Chairman Kyle S. Hauptman announced today. The NCUA will collect the data during supervisory examinations.

“There is a well-intentioned movement aimed at protecting consumers from excessive fees, which is something we all support,” Chairman Hauptman said. “However, we must also consider the unintended consequences of such policies. In this instance, the previous data collection policy incentivized credit unions to avoid serving the needs of low-income and underserved communities. These fees can be the best option in a bad situation, saving money and protecting individuals’ credit scores. Overdraft also protects people from much higher costs imposed by their local governments.”

Chairman Hauptman discussed this policy change during a fireside chat with Jim Nussle, President & CEO of America’s Credit Unions at the 2025 Governmental Affairs Conference.

Under the previous data collection policy, the NCUA required federally insured credit unions with more than $1 billion in assets to disclose, separately, income from overdraft and non-sufficient funds fees. This data was available to the public on an individual basis and in the aggregate. Under the new policy, which goes into effect with the March 31, 2025, Call Report cycle, the NCUA will collect overdraft and NSF fee data as part of the examination process. The agency will continue to publish overdraft and NSF fee income data in the aggregate once updates to its examination system are complete.

“Our regulatory framework should protect consumers from predatory practices without depriving them of the financial tools they need to navigate their lives,” Chairman Hauptman said. “The appropriateness of overdrafts and NSF fees charged is a matter between a credit union and its member-owners who ultimately determine how their credit union is run.”

Chairman Hauptman also discussed what he calls “true financial inclusion,” which means removing barriers to de novo credit unions and removing the ‘pain points’ that have led to fewer small credit unions.

“The NCUA must ensure our regulatory burden is not a factor in a credit union’s decision to merge away,” he said. “Once those credit unions are gone, rarely does anyone come to fill their place. Relieving the regulatory burden on credit unions, especially the small and newly formed ones posing relatively low risk to the Share Insurance Fund, is vital to keeping these credit unions thriving now and in the future.”

Kyle S. Hauptman Designated as NCUA Board Chairman, Announces Priorities

Jan. 22, 2025 – President Trump has This is an external link to a website belonging to another federal agency, private organization, or commercial entity.designated National Credit Union Administration Vice Chairman Kyle S. Hauptman as the thirteenth Chairman of the NCUA Board.

“I am deeply honored that President Trump has asked me to serve as Chairman of NCUA,” Chairman Hauptman said. “I look forward to leading the agency’s dedicated professionals and working with my Board colleagues to create a regulatory structure that promotes growth, opportunity, and innovation within the credit union system.

“My priorities as Chairman include:

Re-examining the current NCUA budgeting process.
Convening groups of NCUA employees to identify achievable internal efficiencies to reduce unnecessary frictions in the agency’s operations.
Promoting the appropriate use of artificial intelligence (AI) as a tool for NCUA employees. One goal is enhancing productivity, but it’s also true that regulators who use technologies are more apt to understand why the regulated use them.
Focusing on true financial inclusion, which means removing barriers to de novo credit unions and removing the ‘pain points’ that have led to fewer and fewer small credit unions. NCUA should be mindful that the only people who think compliance is easy are those that don’t have to do it.
Codifying our procedures to protect Americans from regulation-by-enforcement. For example, no enforcement action should ever set – even clarify – policy. In America and other free societies, the sequence is: set speed limits, then give speeding tickets (no one has any obligation to be aware of someone else’s ticket).
Making clear that credit unions and their members are best positioned to assess their communities’ climate risks.
Re-assessing NCUA policies that may, even inadvertently, dissuade credit unions from serving low-income areas. This includes language around overdraft policies, particularly for credit unions located in states with especially punitive government late fees/penalties.
Right-sizing credit unions’ obligations where possible under the Bank Secrecy Act, including NCUA’s regulations surrounding Suspicious Activity Reports.”