The National Credit Union Administration released its new Charter Application Guide and other resources today to assist people who want to bring federally insured financial services to their communities by starting a federal credit union.
“Along with increasing access to safe, fair, and affordable financial products and services for credit union members, there is a real need to make the process for starting a new credit union less daunting,” NCUA Chairman Todd M. Harper said. “Organizing a new credit union takes time, resources, and commitment. A clear, step-by-step roadmap for applying for a federal charter helps organizers lay a foundation for success.”
Harper added, “My thanks go out to the NCUA team members for their excellent work on the new charter guide, to Board Member Hood for getting the ball rolling through the ACCESS Initiative, and to Vice Chairman Hauptman for his steadfast focus on new charters.”
The new guide was developed as part of the NCUA’s Advancing Communities through Credit, Education, Stability, and Support, or ACCESS Initiative. Launched in 2020, this initiative fosters greater economic equity and justice through the modernization of regulations, policies, and programs that support financial inclusion within the NCUA and, more broadly, throughout the credit union system. A key component of ACCESS is supporting the development of new credit unions.
“I’m pleased that this guide is an excellent example of the NCUA truly ‘walking the talk’ when it comes to financial inclusion,” NCUA Vice Chairman Kyle S. Hauptman said. “The chartering process is also one of my top three priorities while serving on the Board. Thus, I’m especially gratified to see this modernized guide that focuses the NCUA on bringing true financial inclusion to communities that need it. If we force a community to jump through unnecessary hoops or make them wait even one day longer than needed, the NCUA isn’t living up to its own ideals. I’d also like to thank the staff for their ongoing commitment to improving the chartering process.”
“Today’s new chartering guide is a significant step, and I would like to thank Chairman Harper and NCUA staff for their leadership in moving this forward,” NCUA Board Member Rodney E. Hood said. “In the months ahead, I look forward to working with my Board colleagues to do even more to significantly streamline and simplify the process of chartering.”
Organizers Interested in Starting a New Federal Credit Union Should Register for Webinar
Groups interested in organizing new credit unions can learn more about the process and requirements by participating in a webinar on Wednesday, May 4, at 2 p.m. Eastern.
Online registration(opens new window) for “New Charter Applications,” is now open. Staff from the NCUA’s Office of Credit Union Resources and Expansion will explain the charter process and discuss the new guide and other resources. This webinar is available at no cost and will run approximately 60 minutes. Participants will be able to log into the webinar and view it on their computers or mobile devices using the registration link. They should allow pop-ups from this website.
Participants can submit questions anytime during the presentation or in advance by emailing [email protected]. The email’s subject line should read, “New Charter Applications.” Please email technical questions about accessing the webinar to [email protected]. This webinar will be closed captioned and archived online approximately three weeks following the live event.
April 14, 2022 –
Regulation is vitally important for the safety, soundness, and integrity of the financial system, and to ensure consumer protection and public confidence. Regulatory reform is perfectly consonant with those goals; I’ve always believed the regulatory system could and should be effective without being excessive.
That also means that regulations need to change with the times, responding to shifts in market conditions, public demand, technology, and so forth. So last August, when I spoke to the Payments, Banking, and Compliance Conference here in Washington and urged federal action to normalize banking services for cannabis-related businesses, I was speaking from that perspective — the perspective of common sense regulatory reform in response to a rapidly evolving market reality.
I emphasized that marijuana legalization is ultimately inevitable on the federal level, and as such, we need to clarify and harmonize federal banking laws and regulations as they pertain to the state-legal cannabis industry and marijuana-related businesses. I argued — and I believe I may have staked out the clearest position on this question of any federal financial regulator, to date — that the legal and regulatory infrastructure must evolve so this growing industry can take part in the mainstream financial services industry. I urged Congressional action, which needs to happen sooner, rather than later.
That was about eight months ago. I would love to be able to stand here and say that since that day, tremendous progress has been made on this pressing issue, and we’re well on our way to having a framework we can use to move forward.
Unfortunately, I don’t believe that’s the case. At least not yet.
“I emphasized that marijuana legalization is ultimately inevitable on the federal level, and as such, we need to clarify and harmonize federal banking laws and regulations as they pertain to the state-legal cannabis industry and marijuana-related businesses. I argued — and I believe I may have staked out the clearest position on this question of any federal financial regulator, to date — that the legal and regulatory infrastructure must evolve so this growing industry can take part in the mainstream financial services industry. I urged Congressional action, which needs to happen sooner, rather than later.”
I’ll admit I find that frustrating, and I imagine many of you share that frustration. However, I continue to be optimistic about the potential for cannabis banking reform, and we can point toward a number of reassuring signs.
Indicators of Progress
For example, in February, we saw the House of Representatives pass the Secure and Fair Enforcement (SAFE) Banking Act, which would go a long way toward normalizing banking activities for cannabis businesses. I don’t typically take positions on pending legislation, but the SAFE Banking Act seems like a good place to start in addressing this problem. Yes, we know the House has moved on this legislation previously and it hasn’t yet passed the Senate, but let’s be optimistic that further action may follow. Hope springs eternal, I always say.
I can also tell you that the community of federal executive branch regulators is taking this issue very seriously, as we want to be prepared to act when Congress does pass some form of legislation. I can tell you the NCUA has an internal working group focused on preparing for what we’ll need to do to respond when the time comes. So, know that regulators are working to prepare the ground for what comes next, even if those efforts are not entirely visible right now.
Moreover, we’re seeing various state initiatives to address the banking and tax status of cannabis businesses. For instance, just last month lawmakers in New York introduced legislation to reform the state tax code to allow cannabis enterprises to deduct business expenses. Meanwhile, lawmakers in Pennsylvania and Washington are also working on related issues, and I’m sure there are others. I’m not entirely satisfied that the most constructive action seems to be happening at the state level. We need a federal solution, rather than a patchwork of state reforms. But in the absence of Congressional action, I’m pleased that these state officials are working to address this issue, and I commend them for their leadership and foresight.
And we need that federal solution because the situation, as it stands, is untenable. Here we have a rising industry that is growing and will only continue to grow. And yet the basic commercial banking infrastructure needed to provide financial services to this rapidly growing industry is virtually non-existent.
Just a few weeks ago, the Treasury Department’s Financial Crimes Enforcement Network, or FinCEN, published their Marijuana Banking Update(opens new window). This report shows that as of September of last year, we had 553 banks and 202 credit unions providing services to marijuana-related businesses, in accordance with FinCEN’s 2014 guidelines. As you all are aware, those guidelines provide the only legitimate way, at least right now, for cannabis businesses to secure depository accounts with financial institutions.
Now, the good news is that the number of financial institutions working with MRBs has, in fact, grown, if slowly. But let’s put those numbers in context. My agency, the NCUA, regulates and insures the nation’s credit unions, which includes almost 5,000 institutions. Yet, only 202 of those are providing services to one of the fastest-growing industries in the nation.
“And we need that federal solution because the situation, as it stands, is untenable. Here we have a rising industry that is growing and will only continue to grow. And yet the basic commercial banking infrastructure needed to provide financial services to this rapidly growing industry is virtually non-existent.”
I am not satisfied with that, nor should you be. That’s why I’m pleased that you all are hosting this event here in Washington today, because what we need is ongoing communication between industry leaders, regulators, and other stakeholders to keep the momentum going.
Credit Unions and the Cannabis Industry
In the meantime, the NCUA is trying to offer as much helpful guidance as possible to the federally insured credit unions we oversee. We make it clear to credit unions, in particular state chartered credit unions in states where marijuana is legal, are welcome to serve cannabis- and marijuana-related businesses provided that they do their due diligence, observe all relevant “Know Your Customer” and Bank Secrecy Act requirements, and adhere to the FinCEN guidance.
I also understand our team has compiled a compendium of all the state laws related to cannabis and marijuana enterprises so that NCUA examiners can quickly refer to relevant state requirements in their dealings with credit unions. So, we’re trying to offer as much clarity and direction as we can, while we await definitive action from Congress.
I’ll note that the NCUA does have some solid background on issues related to cannabis banking, given the work we did in 2019 to normalize banking services for hemp-related businesses. At the time I was serving as the Chairman of the NCUA Board, and one of the first regulatory reforms I undertook was to push for interim regulatory guidance on providing financial services to hemp-related businesses. Many credit union industry leaders were focused on this issue, and we knew we needed to take action.
Our approach was not overly prescriptive or heavy-handed. We simply sought to provide credit unions the ability to test the waters and to determine how best to serve this burgeoning industry until we had definitive regulatory guidance from the USDA, which finally took effect last year. I’m proud of the fact that we were able to take a leading role in setting standards and clarifying a forward direction, at least for the credit union industry. I hope we can continue to provide that leadership, but again, definitive legislative action from Congress on cannabis banking reform is sorely needed.
And let’s be clear: normalizing financial services is only one piece of the puzzle. There are a variety of other issues that will need to be addressed either by Congress or by executive branch regulators. There are going to be regulatory challenges related to the FDA; the agricultural and environmental implications; the law enforcement and criminal justice side; and questions of equity to ensure that the industry is inclusive and all communities are benefiting in a fair and just fashion. Most of these issues are outside my area of expertise and control, and I hope the Emerging Markets Coalition is working with regulators and policymakers in these areas as well to address these challenges.
Frankly, I’m glad that I’m only working on the financial angle because that’s probably the easiest piece of this equation to address. From the financial side, we’re basically talking about handling deposits, clearing electronic transactions, and setting up mechanisms for credit. We have the tools in place to do all of that right now.
I recognize that makes it sound over-simplified. But I want to make it clear that our goal here is eminently achievable. There’s a quote I like from the late General Colin Powell, who said that leaders need to be simplifiers, people who are able to “cut through argument, debate and doubt to offer a solution everybody can understand.” Well, in this case, I think we all understand the problem pretty clearly, as well as the solution. As a regulator, I’ll do all I can, but we need a concerted push, which is why I appreciate the work that the Emerging Market Coalition is doing to drive this issue.
Conclusion
One additional reassuring sign is that I now regularly hear about this issue from financial industry leaders. Whereas even a few years ago, many of them might have been a little diffident or uncertain about cannabis banking, they now raise the question all the time: “What are you all doing in Washington about banking for marijuana businesses?” And I always tell them, “Look, I’m already on your side here! Go talk to your Congressional delegation. We need their help.”
As Prepared for Delivery on April 7, 2022
The on-going conflict in Ukraine has raised concerns about potential cyberattacks in the U.S., including those against the financial services sector. All credit unions and vendors, regardless of size, are potential targets for cyberattacks, like social engineering and phishing attacks, and must remain vigilant. Credit unions should report any cyber incidents to the NCUA, your local FBI field office or the Internet Crime Complaint Center, and the Cybersecurity and Infrastructure Security Agency (CISA).
Phishing is a technique that uses email or malicious websites to solicit personal information or to get victims to download malicious software by posing as a trustworthy entity. Another variant of phishing, known as smishing, uses SMS or other text messaging applications to get victims to click on malicious links to achieve similar goals to email phishing. NCUA’s Risk Alert outlines common indicators to watch out for along with tips to avoid being a victim of phishing.
The NCUA encourages credit unions to review CISA’s Shields-Up website, which provides information about cybersecurity threats, including several resources and mitigation strategies. The NCUA recently created the Automated Cybersecurity Evaluation Toolbox or ACET, a free tool for federally insured credit unions to use when evaluating their levels of cybersecurity preparedness. The ACET is a downloadable, standalone app developed to be a holistic cybersecurity resource for credit unions.
Additional cybersecurity resources are also available at www.ncua.gov/cybersecurity.
Read the Risk Alert in its entirety here
March 3, 2022 — The week-long Credit Union National Association’s Governmental Affairs Conference (CUNA GAC) is an event of learning, networking, and collaboration. This combination of partnership and cooperation couldn’t be more evident as the NASCUS Joint Leadership team of state regulators, credit union leaders, and staff met with industry partners this week.
On the schedule this week, the NASCUS Regulator Board of Directors, Credit Union Advisory Council, and staff gathered in separate discussions with NCUA Chairman Todd Harper and NCUA Vice Chairman Kyle Hauptman to share priorities and consult on supervisory issues as well as emerging risks related to the credit union system.
“While NASCUS is in regular communication with our members, our peers, and system stakeholders, it is nice to meet in-person with our partners and colleagues,” commented NASCUS President and CEO Brian Knight.
Additionally, NASCUS held a series of efficacious meetings with various industry partners throughout the week, including the CUNA Mutual Group, NACUSO, NAFCU, and AACUL.
Topics covered include:
- Changes to the Community Development Financial Institution (CDFI) process
- Issues related to the inclusion of climate risk in enterprise risk management
- Field of membership reform and Innerstate Branching
- The need for coordination in the development of regulation and supervision pertaining to digital assets
- CUSO advancements in FinTech
- The cybersecurity threat landscape, and more
NASCUS also discussed the uncertain future of ODP/NSF programs and fees and complications related to policy issues.
NASCUS is dedicated to working with all industry partners to ensure a safe and sound credit union system. Events such as the CUNA GAC are essential, as they provide a stage for learning, extensive issue remediation, and collaboration.
LTCU: (22-CU-04) Equal Credit Opportunity Act Nondiscrimination Requirements
February 2022
The Equal Credit Opportunity Act (ECOA) promotes the availability of credit to all creditworthy applicants without regard to race, color, religion, national origin, sex, marital status, or age (provided the applicant has the capacity to contract); to the fact that all or part of the applicant’s income derives from a public assistance program; or to the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act. ECOA prohibits creditor practices that discriminate on the basis of any of these factors. The National Credit Union Administration (NCUA) supervises for compliance with and enforces ECOA with respect to federal credit unions that have $10 billion or less in total assets. Additionally, ECOA requires the NCUA to refer certain violations to the U.S. Department of Justice (DOJ).
ECOA prohibits discrimination in any aspect of a credit transaction. It applies to any extension of credit, including extensions of credit to small businesses, corporations, partnerships, and trusts.
Disparate treatment occurs when a lender treats a credit applicant or prospective applicant differently based on one of the prohibited bases defined in ECOA. The existence of illegal disparate treatment may be established either by statements, policies, or guidelines revealing that a lender explicitly considered prohibited factors, or by differences in treatment that are not fully explained by legitimate nondiscriminatory factors. It does not require showing that the treatment was motivated by prejudice or a conscious intention to discriminate against a person beyond the difference in treatment itself.
The LTCU notes five fair lending risk areas that credit unions should be aware of:
Applicant Marital Status: Except as otherwise permitted or required by law, a creditor must evaluate married and unmarried applicants using the same standards. However, A creditor may consider an applicant’s or joint applicant’s marital status to determine the creditor’s rights and remedies applicable to a particular extension of credit.
Applicant Age: Except as permitted, a creditor cannot take into account an applicant’s age, provided the applicant has the capacity to enter into a binding contract. Credit unions using automated underwriting systems should ensure the system’s settings comply with ECOA’s requirements and do not result in age discrimination.
Income Consideration: Creditors may not discount or exclude from consideration the income of an applicant or the spouse of an applicant because of a prohibited basis or because the income is derived from part-time employment or is an annuity, pension, or other retirement benefit. However, a creditor may consider the amount and probable continuance of any income in evaluating an applicant’s creditworthiness.
Redlining: “Redlining,” as defined by DOJ, is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. Credit unions, especially those with fields of membership defined by, or partially defined by, geography, such as community charters and underserved areas, must ensure they provide equal access to credit in the areas defined by their fields of membership.
Indirect Lending: Credit unions with indirect lending programs use various methods to compensate automobile dealers for loan transactions, including the use of discretionary markups – which allow dealers to establish their own compensation by increasing the interest rate above the credit union “buy rate” on a discretionary basis, within an established limit. Discretionary markups allow a dealer to affect the cost of financing on an individual and discretionary basis. For this reason, the use of discretionary markups presents fair lending risks not usually associated with flat fee or flat percentage compensation structures. Credit unions that permit discretionary markups should ensure their fair lending compliance management systems are sufficiently robust to enable the credit union to measure and address prohibited basis pricing disparities.
For more information on managing compliance risks, see NCUA Letter to Credit Unions, 17-CU-02, Risk-Focused Examinations and Compliance Risk. For information on fair lending risk factors, including compliance program risk factors and overt indicators of discrimination, see the Interagency Fair Lending Examination Procedures.
The full statement with a breakdown of all applicable details can be read here.
LTCU: (22-CU-03) Special Purpose Credit Programs
February 2022
NCUA’s LTCU outlines the interagency statement reminding creditors of the ability under the Equal Credit Opportunity Act (ECOA) and Regulation B to establish special purpose credit programs (SPCPs) to meet the credit needs of economically or socially disadvantaged consumers and commercial enterprises. The SPCPs create a narrow exception to the ECOA prohibition against discriminating against an applicant on a prohibited basis and Regulation B’s prohibition against considering “race, color, religion, national origin, or sex … in any aspect of a credit transaction.”
The statement explains that ECOA and Regulation B permit creditors to extend special purpose credit offered pursuant to:
- Any credit assistance program expressly authorized by federal or state law for the benefit of an economically disadvantaged class of persons;
- Any credit assistance program offered by a not-for-profit organization for the benefit of its members or an economically disadvantaged class of persons; or
- Any special purpose credit program offered by a for-profit organization, or in which such an organization participates to meet special social needs, if it meets certain standards prescribed in regulations by the Consumer Financial Protection Bureau (CFPB).
Credit unions, as not-for-profit organizations, fall under the second category, although some programs that credit unions participate in may also fall under the first.
For more on SPCPs, see the CFPB website: https://www.consumerfinance.gov/rules-policy/regulations/1002/8/.
The full statement can be read here.
NCUA’s Funds Receive Clean Audit Opinions
February 15, 2022 – The National Credit Union Administration’s four funds again earned unmodified, or “clean,” audit opinions for 2021, according to audited financial statements released today by the agency’s Office of the Inspector General.
The complete 2021 financial statement audits are available on NCUA.gov.
The financial statements, audited by the independent auditor KPMG LLP, cover the National Credit Union Share Insurance Fund, the agency’s Operating Fund, the Central Liquidity Facility, and the Community Development Revolving Loan Fund.
View the entire press release
Inspector General Urges NCUA to Review Some of Its Hiring Practices
Courtesy of CU Today
February 13, 2022 – NCUA should review some of its hiring practices for compliance while also doing a better job of ensuring job applicants’ qualifications are verified prior to candidates being brought in for interviews, according to a new report by the agency’s Office of Inspector General (OIG).
The OIG’s new report, which it said was “self-initiated,” focused on the period from January 2019-December 2020 and said it found the agency’s hiring practices were largely in accordance with requirements from the Office of Personnel Management, other federal requirements and the agency itself, but there are issues around how efficient the system is for identifying high-quality candidates.
According to the OIG, when it comes to hiring practices, the NCUA has not been in full compliance with requirements for timely notice to candidates on the status of their applications, and not all case files included “sufficient records to allow reconstruction of each merit promotion action from the request for personnel action to final selection (or non-selection) documents.”
Some ‘Missteps’
When it comes to verifying the qualifications of applicants, meanwhile, the OIG said in its review of the process for hiring an agency general counsel it found some “missteps” that led to an 18-month timespan to fill the position as a result. In addition, the OIG report states that it further found that in a process that began in June 2019, the agency did not validate the qualifications of General Counsel candidates a recruiting firm had referred to the agency before the Executive Resources Board and the NCUA board conducted interviews of the candidates.
“As a result, NCUA’s executive leadership interviewed a candidate who did not qualify …,” the OIG report states, specifically saying the issue occurred because human resources personnel did not request SF-50 documentation from the candidates early in the hiring process.
Read more about this topic here.
(Feb. 4, 2022) A reminder that federally insured credit unions must comply with rules governing disclosure in mortgage loans, particularly those meeting four criteria, is outlined by NCUA in a “regulatory alert” issued this week.
In its regulatory alert 22-RA-01 (Home Mortgage Disclosure Act Data Collection Requirements for Calendar Year 2022), NCUA said credit unions making the home loans, and meeting the four criteria, must comply with the CFPB’s Regulation C, which implements the Home Mortgage Disclosure Act (HMDA).
The agency stated that the rule requires credit unions (and other financial institutions) to collect HMDA data associated with mortgage loan applications processed during 2022 if the credit union:
- Has total assets of more than $50 million as of Dec. 31, 2021;
- Had a home or branch office in a Metropolitan Statistical Area on Dec. 31, 2021;
- Created at least one home purchase loan (other than temporary financing such as a construction loan) or refinanced a home purchase loan, secured by a first lien on a one-to-four unit dwelling during 2021; and
- Originated at least 100 covered closed-end mortgage loans in each of the two preceding calendar years (2020 and 2021) or at least 200 covered open-end lines of credit in each of the two preceding calendar years (2020 and 2021).
LINK:
(Feb. 4, 2022) FDIC Board Chairman Jelena McWilliams is scheduled to step down today (Friday, Feb. 4), following through on the announcement she made late last month.
In her resignation letter submitted to the White House on New Year’s Eve, McWilliams gave no indication why she was resigning, three-and-a-half years into her five-year term (she was nominated by President Donald Trump [R] in December 2017 and confirmed by the Senate in late May 2018).
Since then, the White House has been silent about who will succeed McWilliams, either as a permanent chairman of the agency’s board or as an acting chairman to take over after she leaves today. The only member of the agency’s board who was appointed (and confirmed by the Senate) specifically to serve on the panel is Board Member (and former chairman) Martin Gruenberg, a Democratic appointee. He is serving in a “holdover” capacity since his term expired in December 2018. Unless he resigns, he may remain on the board until a successor is confirmed by the Senate.
Meanwhile, McWilliams received a note of acknowledgement from her regulatory colleagues at NCUA with a joint statement signed by all three board members.
NCUA Chairman Todd M. Harper said he had “seen firsthand the expert knowledge, considerable skill, and strategic insights she provides in issues and making decisions.” Vice Chairman Kyle Hauptman said McWilliams is “an inspiring example of the American dream, an immigrant from a statist regime who then achieved here at the highest levels.” Board Member Hood said she “played a pivotal role in creating an effective regulatory environment for the U.S. banking system.”
LINK:
NCUA’s Harper, Hauptman, and Hood Commend Chairman McWilliams for Her Service to the FDIC
(Jan. 28, 2022) Four new positions are being filled by the MA Division of Banks, the agency said this week. The MA openings include those for consumer protection examiner I (depository institutions); depository institution supervision manager; regional field manager of risk management examinations; and information technology examiner I. For details on each of the positions, see the link below … Reduction of “junk fees” charged by banks and financial companies is the aim of an initiative announced this week by CFPB. The bureau said its research has found areas where back-end fees (such as “resort fees” and “service fees”) obscure the “true cost” of a product and undermine a competitive market. Two examples the agency provided include more than $14 billion in “punitive” late fees charged by major credit card companies in 2019 and more than $15 billion in overdraft and non-sufficient funds (NSF) fees charged that same year. The agency announced a request for public comment for input that would help shape the agency’s rulemaking and “guidance agenda,” including future enforcement priorities … Diane Ellis, director of the division of insurance and research for the FDIC will leave the agency on May 31, the agency said this week, completing a 34-year career at the agency. She has served as director since 2013, when she was appointed to oversee the economic, banking, and policy research program and management of the agency’s Deposit Insurance Fund (DIF), the FDIC said … Effective Monday, Anthony Cappetta is the new president of the NCUA Central Liquidity Fund (CLF), the lender for credit unions that have unusual or unexpected liquidity shortfalls. Cappetta, a 30-year U.S. Army veteran, was named CLF vice president in 2019. He joined the agency in 2014 as director of the NCUA Guaranteed Notes division in the agency’s Office of Examination and Insurance. Before joining NCUA, the agency said, he served in leadership roles at several hedge funds and banks.
LINKS:
NASCUS Career/Job Postings webpage
Consumer Financial Protection Bureau Launches Initiative to Save Americans Billions in Junk Fees
FDIC Announces Retirement of Diane Ellis, Director of the Division of Insurance and Research
Anthony Cappetta Appointed President of the Central Liquidity Facility
(Jan. 28, 2022) Changes to the first quarter call report for federally insured credit unions will be highlighted during a 90-minute webinar set for Feb. 10 by NCUA, the agency announced this week.
More specifically, the webinar on the agency’s call report Form 5300 will include a look at new schedules for risk-based capital (RBC) and the Complex Credit Union Leverage Ratio (CCULR), both of which took effect at year’s start, the agency said.
Registration is open for the event. It is scheduled to begin at 2 p.m. and run for an hour and a half. Participants may submit questions during the presentation, or in advance (by emailing the questions to [email protected], with a email’s subject line of “Call Report Changes.” Technical questions about accessing the webinar should be sent to [email protected].
LINK:
NCUA Call Report Changes Webinar
(Jan. 21, 2022) Federal credit union (FCU) operating fees will decrease by an average of 23.7% in 2022, NCUA told the FCUs in a letter Thursday (letter to FCUs 22-FCU-01). About half of the 2022 operating fee reduction results from the NCUA Board applying a $15 million credit to amounts that would otherwise be due to support the approved 2022 operating and capital budgets, which came from previously collected operating fees that were unspent at year-end 2021, NCUA said. The remainder of the fee reduction, the agency said, came from budget surplus, growth in credit union assets – and “a slight increase to the share of the Operating Budget funded from the Share Insurance Fund through the Overhead Transfer Rate (OTR) methodology.” … NCUA and the federal banking agencies were all dinged in a congressional watchdog’s report on privacy protection for not fully implementing key practices. The report from the Governmental Accountability Office (GAO) notes that the agencies, among other things, have not maintained a full “personally identifiable information” (PII) inventory for all agency-owned applications. The agencies also did not document steps taken to minimize the collection and use of PII, the report asserts … A 2019 CFPB taskforce, ostensibly focusing on federal consumer financial law, did not comply with federal “sunshine” law requirements and the report of the group, issued about a year ago, will say so under a settlement announced late last week by the agency. Under that settlement, all taskforce records that would have been made public if the CFPB had complied with FACA’s requirements will be released publicly March 22. The records will also be made publicly available on the CFPB’s website, the agency said.
LINKS:
NCUA Letter 22-FCU-01: Operating Fee Schedule Adjusted for 2022
CFPB Announces Settlement Regarding the 2019 Taskforce on Federal Consumer Financial Law