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Here's what we heard at today's NCUA Board meeting:
The NCUA issued
a final IRPS and Final Rule on Regulatory Flexibility Act Asset Threshold, Aggregate
Lending Limit for Corporate Credit Unions and a Final Rule Implementing Statutory
Inflation of Civil Money Penalties. The
Board was also briefed on the Corporate Stabilization Fund and approved a
request to expand a community charter.
Final Rule – Final IRPS 15-1 and
Final Rule, Part 791.8(a), Regulatory
Flexibility Act Asset Threshold
The final rule updates NCUA’s definition of the
term “small entity” in the Regulatory Flexibility Act (RFA). The threshold is increased from less than $50
million to less than $100 million in assets.
The RFA requires federal agencies to determine and consider the impact
of proposed and final rules on small entities.
Also, access to services from NCUA’s Office of Small Credit Union
Initiates will not be available to credit unions with assets of less than $100
million. CUNA supported moving the
threshold to $100 million in a comment letter to NCUA.
Final Rule – Corporate Credit
approved a final rule amending the regulation governing corporate
credit unions (Corporates) to exclude Central Liquidity Facility-related bridge
loans (CLF-related bridge loans) from the aggregate unsecured lending cap to
one borrower. The final rule exempts CLF
related bridge loans from that cap on loans made by a Corporate to a natural person
credit union where the natural person credit union has been approved for a loan
by the CLF and is awaiting funding from the CLF. Additionally, this rule excludes CLF-related
bridge loans from the calculation of “net assets” and “net risk weighted
assets” for determining minimum capital requirements. The final rule will become effective 30 days
after publication in the Federal Register.
Final Rule – Implementing Statutory
Inflation of Civil Money Penalties
This final rule adjusts the civil monetary
penalties (CMP) within NCUA’s jurisdiction to account for inflation. The adjustment is required every four years
under the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended
by the Debt Collection Improvement Act of 1996.
NCUA notes that it has never assessed a CMP at the maximum level. During the meeting NCUA acknowledged several
of the categories had not been previously adjusted as required due to an
oversight. Further discussion at the
meeting noted the use of CMP by the NCUA to reduce the number of late filed
Request to Expand Community
Charter, Charlotte Metro Federal Credit Union
Board approved expanding Charlotte Metro Federal Credit Union’s
community charter to serve the Charlotte-Concord-Gastonia, NC-SC MSA defined as
seven counties in North Carolina (including Mecklenburg County) and three
counties in South Carolina. The MSA has a population of 2,380,314. Chairman Matz stated during the staff
presentation of this request that NCUA is updating procedures and will no
longer require Board approval for field of membership (FOM) requests. She said that this will remove two months
from the approval process. NCUA staff
will now be empowered to make these decision.
NCUA staff also briefed the Board on the agency’s FOM initiative.
the agency for streamlining the process for gaining agency approval for FOM
expansion requests. This is an important
first step in modernizing the FOM process.
CUNA’s Federal Credit Union Subcommittee along with CUNA staff will be
meeting with Chairman Matz, Vice Chairman Metzger and key agency staff on
September 30 to discuss CUNA’s FOM recommendations and to advocate for changes
to the agency’s FOM regulation.
Quarterly Report – Corporate
Jones, NCUA CFO reported the financial statistics as of June 30, 2015 for The
Corporate Credit Union Stabilization Fund noting net income of 236.5 million,
Total Assets of 2.894 billion, and Total Liabilities and net Position of 2.894
billion. Jones also commented that 14
cases are still pending after the recently announced settlement of $129.6
million settlement with the Royal Bank of Scotland. That settlement will be reported on the next
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