Mar. 31: NCUA News This Week

The NCUA to Host Share Insurance Webinar on April 13
Date: Apr 13, 2023
Time: 2:00 PM

Share insurance is fundamental to the credit union system, and it’s a complex topic. To help credit unions better understand share insurance, the National Credit Union Administration has scheduled a webinar for Thursday, April 13, to discuss how member accounts are covered.

Registration for this webinar is now open. The webinar is scheduled to begin at 2 p.m. Eastern and run approximately 60 minutes. It will be close captioned, and there is no charge. Participants will be able to log in and view the webinar on their computers or mobile devices using the registration link. They should allow pop-ups from this website.

NCUA staff from the Office of Credit Union Resources and Expansion will discuss topics including:

  • Types of accounts covered by share insurance;
  • What happens to share insurance coverage when credit unions merge;
  • What happens to insurance of accounts if a member passes away; and
  • General information about trusts.
NCUA Regulatory Alert (23-RA-02): Home Mortgage Disclosure Act Data Collection Requirements for Calendar Year 2023

If your credit union makes residential mortgage loans and meets all four criteria outlined below, you must comply with the Consumer Financial Protection Bureau’s (CFPB) Regulation C, which implements the Home Mortgage Disclosure Act (HMDA).

Regulation C requires you to collect HMDA data associated with mortgage loan applications processed during 2023 if:

  1. Your credit union’s total assets as of December 31, 2022, exceeded $54 million;
  2. Your credit union had a home or branch office in a Metropolitan Statistical Area on December 31, 2022;
  3. Your credit union originated 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 2022; and
  4. Your credit union originated at least 25 covered closed-end mortgage loans in each of the two preceding calendar years (2021 and 2022) or at least 200 covered open-end lines of credit in each of the two preceding calendar years (2021 and 2022).

If your credit union meets all four criteria, you must collect HMDA data during calendar year 2023 and submit the data to the CFPB no later than March 1, 2024.

Read the Regulatory Alert

On December 15, the NCUA Board held its final meeting of 2023. The Board was briefed on the Share Insurance Fund’s (SIF) Normal Operating Level, which will remain at 1.33%. The NOL was lowered to 1.33% from 1.38% at the end of 2021. The Board discussed inflation and the current rate environment during the briefing along with the potential impact these factors may have on the SIF in the coming months and years.

The Board was also presented with the proposed 2023-2024 NCUA Budget for a vote. The funding levels in the total 2023 draft budget would be reduced by $6.7 million. The original draft was posted to the NCUA website on September 29, 2022, with an identical version published in the Federal Register on October 5, 2022. The Board voted unanimously to approve the budget. Toward the end of the budget discussion, Chairman Harper inquired as to the impacts of the Financial Transparency Act on the NCUA Budget should NDAA pass. It was noted that should this pass, implementation would be a multi-year effort that NCUA would need to assess.

Finally, the Board unanimously approved a Proposed Rule, NCUA Parts 701 and 714, Financial Innovation – Loan Participation, Eligible Obligations, and Notes of Liquidating Credit Unions. The proposed rule would amend NCUA’s rules and regulations regarding the purchase of loan participations and the purchase, sale, and pledge of eligible obligations and other loans, including notes of liquidating credit unions. The proposed rule is also intended to clarify the NCUA’s current regulations while providing additional flexibility for federally insured credit unions to use advanced technologies and opportunities offered by FinTechs. The NCUA Board praised the proposed rule as a means to keep the NCUA relevant in this space and allow credit unions greater opportunities.