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Removing Barriers Blog

NCUA Holds September Board Meeting
Posted September 17, 2015 by CUNA Advocacy

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 Unions

The Board 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 call reports.

Request to Expand Community Charter, Charlotte Metro Federal Credit Union

The NCUA 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. 

We thank 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 Stabilization Fund

Rendell L. 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 report.