ALEXANDRIA, Va. (1/11/13)--In addition to Thursday's small credit union and troubled condition definition actions, the National Credit Union Administration (NCUA) released its 2013 performance plan and addressed three other items.
The performance plan identified two new agency priority goals for 2013:
- Monitoring and controlling risk in consumer credit unions, and reducing losses to the National Credit Union Share Insurance Fund; and
- Dedicating resources to staff and train the new Office of National Examination and Supervision that will examine and supervise the largest consumer credit unions in 2014.
The agency also maintained the same four strategic goals it set in 2012: ensuring a safe, sound and healthy credit union system; promoting credit union access to all eligible persons; developing further a regulatory environment that is transparent and effective, with clearly articulated and easily understood regulations; and cultivating an environment that fosters a diverse, well-trained and motivated staff.
Credit Union National Association (CUNA) Deputy General Counsel Mary Dunn said CUNA will continue to press the NCUA on these goals, "particularly compliance with the goal of a transparent and effective regulatory environment."
Other items approved by the NCUA on Thursday include:
- A final rule that extends the time qualified credit unions have to accept a low-income credit union (LICU) designation offered by the NCUA from 30 days to 90 days, and makes minor technical amendments to NCUA's insurance regulation to reflect current agency practices; and
- A final rule that makes technical amendments to NCUA regulations regarding share insurance on various kinds of Treasury accounts.
The LICU deadline extension will give credit unions more time to respond to NCUA LICU eligibility notifications. The agency in August informed 1,003 federal credit unions of their LICU designation eligibility. NCUA Chairman Debbie Matz noted that more than 800 credit unions have accepted the designation. However, she said some asked for more time to "evaluate the benefits of having the designation, determine if the designation would be consistent with their strategic plans, and obtain approval from their boards."
The technical amendments will increase the standard maximum share insurance amount for various kinds of Treasury accounts to $250,000. The previous insurance cap was $100,000. The increase is mandated by the Dodd-Frank Wall Street Reform Act.
NCUA staff also briefed Matz and board member Michael Fryzel on the status of an interagency final rule that will amend Regulation Z to require appraisals for "higher-priced" mortgage loans. The final rule is expected to be released by Jan. 21, 2013, and NCUA staff said the effective date would likely be one year after the rule is issued.