(July 30, 2021) Market participants now “have every tool they need to transition from LIBOR,” the vice chair of the Federal Reserve said this week, as a Fed-backed group developing an alternative to the widely used reference rate announced it had made a formal recommendation for the replacement, the Secured Overnight Financing Rate (SOFR). The recommendation came after a change in interdealer trading conventions that were adopted Monday (July 26), which outlined loan conventions and use cases for how best to use the SOFR. Federal Reserve Board Vice Chair for Supervision Randal Quarles also said that “all firms should be moving quickly to meet our supervisory guidance advising them to end new use of LIBOR this year.” LIBOR will no longer be used for new contracts beginning Jan. 1 and will be discontinued for existing contracts after June 30, 2023. Separately, the federal banking regulators Thursday jointly published FAQs concerning the regulatory capital treatment of capital instruments whose terms reference LIBOR … The Treasury Department and IRS Thursday announced that eligible employers can claim tax credits equal to the wages paid for providing paid time-off to employees to take a family or household member or certain other individuals to get vaccinated, or to care for a family or household member or certain other individuals recovering from the vaccination. Comparable tax credits are also available for self-employed individuals, the agencies said. In April, Treasury and the IRS announced eligible employers, such as businesses and tax-exempt organizations with fewer than 500 employees and certain governmental employers, could receive paid leave tax credits available under the American Rescue Plan Act of 2021 (ARP) for providing leave for each employee receiving the vaccine and for any time needed to recover from the vaccine.
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ARRC Formally Recommends Term SOFR
OCC — Libor Transition: Regulatory Capital Rule Frequently Asked Questions
To Enable More Vaccinations, Treasury Expands Paid Leave Tax Credit
(July 23, 2021) State credit union examiners from around the country are invited to participate in the Aug. 16 Kentucky Examiner School, developed to help them build skill sets and enhance their knowledge around a core area of topics. The all-day virtual program kicks off at 9 a.m. and runs until 4 p.m., ET; cost is $200 for NASCUS members, $300 for all others. Among the speakers are Mark DeBree, managing principal, and Aaron Martini, director ALM services, both of Catalyst Strategic Solutions; Rayleen Pirnie, NEACH; Glory LeDu, president, LeagueInfoSight LLC; Kevin Chiappetta, president, QuantyPhi; and Brian Knight, NASCUS executive vice president and general counsel.
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Agenda, registration, KY Examiner School Virtual Event
(July 2, 2021) NCUA’s final rule permitting federally insured credit unions (FICUs) to extend financing of interest in connection with loan workouts and modifications is set to take effect July 30, according to the notice published this week in the Federal Register. Adopted last week by the NCUA Board, the final rule also sets documentation requirements to help ensure that the addition of unpaid interest to the principal balance of a mortgage loan does not hinder the borrower’s ability to become current on the loan, the notice states, and makes technical changes … Meanwhile, a final rule permitting FICUs to phase in over three years the day-one adverse effects on net worth of the current-expected-credit-loss (CECL) accounting methodology is set to take effect Aug. 2, according to a notice in Thursday’s Federal Register … The list of jurisdictions with strategic money laundering, and financing of terrorism and weapons of mass destruction proliferation risks has been updated by FinCEN. Haiti, Malta, the Philippines, and South Sudan were added to the list; Ghana was removed, FinCEN said … Elissa McCarter LaBorde is the World Council of Credit Unions’ (WOCCU) new president and CEO, succeeding Brian Branch who announced his retirement earlier this year. LaBorde, according to WOCCU, has more than 20 years’ experience in leading organizations that deliver financial services to underserved communities world-wide … Have a terrific (and safe) Independence Day holiday!
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Capitalization of Interest in Connection With Loan Workouts and Modifications
(April 2, 2021) The Oregon Department of Consumer and Business Services has an opening for a mortgage banker/broker examiner (financial examiner 2). The closing date for the position is April 12. For more information, see the NASCUS State Job Announcements page (link below) … Mortgage lending data from 2020 is now available via the FFIEC’s Home Mortgage Disclosure Act (HMDA) platform, it was announced this week. The data, published by the exam council, come from about 4,400 HMDA modified loan application register (LAR) filers … A joint webinar of NCUA and the FDIC will be held April 27 (at 1 p.m.) on youth financial education, in celebration of April as National Financial Capability Month, the credit union and banking agencies announced this week. The 90-minute program will dive into the importance of financial account access and financial education for young people participating in employment programs.
LINKS:
NASCUS State Job Announcements
2020 HMDA Data on Mortgage Lending Now Available
Registration: Account Access and Financial Education for Youth Participating in Employment Programs
(Feb. 19, 2021) NCUA said registration is now open for a Tuesday (Feb. 23) webinar on the earned income tax credit and the volunteer income tax assistance (VITA) programs. The program, which gets underway at 2 p.m. ET (and runs for about 45 minutes), includes information on credit union call report data, earned income tax credit resources, and stakeholder partnerships. Both NCUA and the IRS (which is also participating) will discuss financial literacy efforts regarding the earned income tax credit and VITA, geared to low- and moderate-income families, and highlight the resources available to consumers. See the link below for registration information … Sultan Meghji, the founder of a financial technology firm Neocova which reportedly provides services to credit unions and banks, is the new – and first — chief innovation officer (CINO) for the FDIC, ending a search by the agency to fill the position that started in 2018, the agency said this week. In naming Meghji to the role, the agency said he would lead the agency’s drive to promote adoption of “innovative technologies across the financial services sector.” Neocova, according to the FDIC, is a St. Louis-based firm that focuses on cloud and artificial intelligence-based software for credit unions and community banks … The thoughts and hopes of the state system are with everyone and anyone affected by the grave weather conditions experienced across the country over the past week.
LINK:
Tax time resources for credit unions and consumers
(Feb. 5, 2021) New NCUA Board Chairman Harper met with state regulators this week during a regularly scheduled conference call of state regulators. During the hour-long “regulator to regulator” session, the new NCUA leader outlined his priorities for the agency in 2021 and responded to questions from the state supervisors … An advisory warning financial institutions of a proliferation of fraud schemes tied to health care or health insurance services bought and paid for amid the COVID-19 pandemic was issued this week by the Treasury’s Financial Crimes Enforcement Network (FinCEN). The agency said law enforcement and financial institutions have detected numerous instances of potential frauds to health care benefit programs, health insurance, and COVID-19 health care relief funds. The advisory also stated that frauds have also been seen related to COVID-19 relief funds for health care providers, such as those provided under the Paycheck Protection Program (PPP) and Health Care Enhancement Act (HCEA) … The Federal Reserve now says 2023 (rather than 2024) is the launch time for its planned FedNow instant payments system. The agency said the one-year, shortened timeframe is the result of “significant strides” made over the last several months toward program milestones. The Fed said it continues to take a phased approach to launching the service, with the initial launch set for two years from now to include core clearing and settlement functionality and key value-added features, such as a request-for-payment capability and tools to support participants in their handling of payment inquiries, reconcilements and certain exceptions … The Texas Credit Union Department has a job opening for a Director of Examination Support Activities (Director IV); see the State Job Announcements page on the NASCUS website for more information.
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FinCEN advisory (FIN-2021-A001)