ALEXANDRIA, Va. (9/19/14)--A light agenda greeted new National Credit Union Administration board member J. Mark McWatters Thusday for his first monthly board meeting.
The meeting consisted of a report on the Temporary Corporate Credit Union Corporate Stabilization Fund, during which NCUA again stated there will be no assessment this year and future assessments are also highly unlikely, some technical amendments and the approval of a community charter expansion.
The Corporate Stabilization Fund currently stands at $51.2 million, a $91.6 million improvement from the $40.4 million deficit at the end of the first quarter. This is the first positive balance for the fund.
Mary Ann Woodson, chief financial officer of the NCUA, said the improvements to the fund are due primarily legacy assets from the agency's Guaranteed Notes Program, as well as recent corporate credit union litigation settlements.
New NCUA board member J. Mark McWatters listens to a presentation from NCUA Associate General Counsel Frank Kressman at the board's monthly meeting Thursday. (CUNA Photo)
"Based on information we have at this time, the fund remains stable and is acting consistent with our expectations," Woodson said.
NCUA Chair Debbie Matz added that rebate possibilities cannot be addressed until final accounting on the fund is done, which would likely be in 2020 or 2021.
The board unanimously approved technical amendments to parts 701, 706 and 790 of the agency's rules and regulations.
The changes are:
- A repeal of the NCUA's rulemaking authority governing unfair or deceptive acts or practices, located in 12 CFR part 706, due to the Dodd-Frank Act;
- An amendment to part 790 of the agency's rules and regulations, which conforms them to the NCUA's current central and field office structures; and
- Amending the agency's payday alternative loans regulation to replace the terms "short-term, small amount loans" and "STS loans" with the terms "payday alternative loans" and "PAL loans."
Frank Kressman, associate general counsel for the NCUA, said because the rule is "non-substantive and technical," it is exempt from the notice and comment period provisions in the Administrative Procedures Act.
The rules will be considered final once they are published in the
The meeting also included approval of expansion of the community charter for First Service FCU, Groveport, Ohio, with $136 million in assets. The expansion will allow it to serve people who live, work, worship or regularly conduct business in Delaware, Fairfield, Franklin, Licking, Madison, Morrow, Pickaway and Union counties.
"Approval of this expansion would provide access to credit union services to an additional 115,000 people residing in 189 census tracts in underserved areas," said Leilani Stamper, NCUA consumer access analyst. "Members will benefit from the credit union's no monthly service fee checking account program, short-term loans, shared secured Visa and financial literacy and education programs."
First Service FCU was first chartered by the NCUA in 1956 as Lockbourne FCU, to serve Lockbourne Air Force Base. It converted to a community charter in 1984 to serve a portion of Columbus, Groveport, Canal, Winchester, Pickerington and Rickenbacker Industrial Park. In 1999, its charter was expanded to serve Franklin County, Ohio.
The NCUA also announced Thursday that the board unanimously voted to name Rick Metsger board vice chair. Mestger was first nominated for the NCUA board in May 2013, and his term will expire in August 2017.
Use the resource link below to access the board documents from Thursday's meeting.