(Aug. 20, 2021) A proposal by NCUA to create the new “complex credit union leverage ratio (CCULR)” framework — the credit union equivalent of the community bank leverage ratio (CBLR) — is out for public comment until Oct. 15, according to a notice published in the Federal Register this week. Issued for comment during the July 22 NCUA Board meeting, the proposed rule would make a simplified measure of capital adequacy available to federally insured credit unions defined as “complex” – meaning those with more than $500 million in assets … The spread of the Delta variant of the coronavirus and stagnant vaccination rates pose “downside risks” to the economic outlook, according to members of the Fed’s rate-setting Federal Open Market Committee, as expressed in the minutes of the meeting from July 27-28. The minutes were released this week. Committee members also noted economic uncertainty remains high and that supply disruptions and labor shortages might last for longer than anticipated … NCUA is scheduling a Sept. 8 webinar on its modernized examination tools. The session, which gets underway at 2 p.m. ET and runs for an hour, will focus on the new modern examination platforms and systems, including the agency’s Modern Examination & Risk Identification Tool, (MERIT), as well as associated programs: the Data Exchange Application (DEXA), NCUA Connect, and the Admin Portal. The agency said registration is now open.
LINKS:
Capital Adequacy: The Complex Credit Union Leverage Ratio; Risk-Based Capital
Minutes of the Federal Open Market Committee, July 27-28, 2021
Register Now for NCUA’s Modernized Examination Tools Webinar on Sept. 8
(Aug. 13, 2021) Just a reminder that state credit union examiners from around the country can participate in Monday’s (Aug. 16) Kentucky Examiner School, developed to help examiners build skill sets and enhance their knowledge around a core area of topics. The program starts 9 a.m. and runs until 4 p.m., ET; cost is $200 for NASCUS member examiners. See link below for registration information … Credit card account limits declined overall during the COVID pandemic – the largest declines being for high-credit-score borrowers – though a spike in account closures early in the pandemic began a decline after May 2020 that continued through at least May 2021, the CFPB said this week. According to the bureau, credit limits for prime and near prime borrowers broke with their previous upward trend and largely flattened out beginning in March 2020; they began to grow more quickly beginning in February 2021. At the other end of the credit spectrum, the bureau reported, credit card limits for subprime and deep subprime borrowers changed little during the pandemic.
LINKS:
Agenda, registration, KY Examiner School Virtual Event
Credit card limits are rising for most groups after stagnating during the pandemic
(July 30, 2021) Slightly more Americans were not concerned about qualifying for a mortgage during the application process in 2019 (compared to the year before) before the COVID-19 pandemic began, according to updated mortgage loan-level data published this week by the CFPB and the Federal Home Financing Administration (FHFA).
In a joint release, the agencies said the data is aimed at providing insights into borrowers’ experiences in obtaining resident home loans. The data is collected, the agencies said, through quarterly surveys sent to borrowers who had recently obtained mortgages.
This latest data was collected before the financial impact of the coronavirus crisis became apparent in 2020, when economic conditions changed abruptly, and the process for applying for mortgages largely shifted to on-line. Thursday’s release adds two additional years of new mortgage data through 2019, the agencies aid.
Regarding the data point about concern among borrowers qualifying for a mortgage loan, those borrowers not concerned about qualifying during the application process increased somewhat from 2018 to 2019 (from 48% to 51% for home purchase mortgages and 57% to 66% for refinances).
Other points revealed by the data, the agencies said, included:
- The percent of survey respondents who applied directly through a credit union or bank decreased from 2018 to 2019 (from 54% to 49% for home purchase mortgages and 67% to 61% for refinances).
- The percent of survey respondents who reported applying for a mortgage through a mortgage broker increased from 2018 to 2019 (from 42% to 46% for home purchase mortgages and from 30% to 38% for refinances).
- The percent of survey respondents who reported a paperless online mortgage process being important in choosing the mortgage lender/broker remained relatively high and unchanged from 2018 to 2019 (40% for home purchase mortgages and 44% for refinances).
LINK:
CFPB and FHFA Release Updated Data from the National Survey of Mortgage Originations for Public Use
(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.
LINKS:
FinCEN advisory (FIN-2021-A001)
Federal Reserve updates FedNowSM Service launch to 2023
(Jan. 8, 2021) Small Business Administration (SBA) and Treasury Department officials will provide an overview of the new Paycheck Protection Program (PPP) features associated with the recently passed Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act during a webinar Monday (Jan. 11), at 2 p.m. ET. Registration is now open; see the link below. The presentation — co-sponsored by NCUA and the federal banking agencies — is open to all SBA lenders who participated in the SBA PPP lending program … Credit unions and banks should be alert to COVID-19 vaccine-related scams and cyberattacks, FinCEN said last week. That includes fraud, ransomware attacks, or similar types of criminal activity related to COVID-19 vaccines and their distribution, Treasury’s financial crimes unit said. The agency also provided specific instructions for filing SARs regarding suspected fraud related to COVID-19 vaccines and their distribution.
Registration for SBA/Treasury Jan. 11 (2 p.m. ET) PPP webinar
FinCEN Asks Financial Institutions to Stay Alert to COVID-19 Vaccine-Related Scams and Cyberattacks