NCUA approves NAFCU-sought changes to PCA requirements
The NCUA Board during its meeting yesterday unanimously approved an interim final rule on prompt corrective action (PCA) to provide temporary regulatory capital relief to federally-insured credit unions (FICUs). Earlier this year, NAFCU urged the agency provide capital relief during the pandemic, including changes to PCA requirements.
“NAFCU supports the NCUA’s decision to adjust the prompt corrective action rules to account for current economic uncertainty and we thank NCUA Chairman Rodney Hood, and Board Members Todd Harper and J. Mark McWatters for voting in favor of the rule,” said NAFCU Director of Regulatory Affairs Ann Kossachev. “While the industry is safe and sound, it is imperative that credit unions have an environment where they can continue to focus their efforts on assisting members in financial need and managing their operations without grappling with administrative burdens.”
The interim final rule will temporarily:
- permit the board to issue an order to temporarily waive the earnings retention requirement for any federally-insured credit union that is classified as adequately capitalized; and
- permit federally-insured credit unions to submit simplified net worth restoration plans and attest that its reduction in capital has been caused by share growth resulting from a temporary condition due to the coronavirus pandemic.
These modifications will be in place until Dec. 31, 2020.
The board also introduced but did not approve an interim final rule on overdraft policy. Harper and McWatters raised concerns about the interim final rule and did not vote to approve.
NAFCU President and CEO Dan Berger has called on the NCUA to provide relief measures aimed to simplify the regulatory hurdles associated with limitations on carrying and charging off negative balances in a letter requesting additional regulatory relief due to the pandemic.
The association will continue to advocate for a change to the agency’s regulatory requirement for carrying and charging off negative balances.
In addition, the board proposed a rule on joint ownership share accounts that provides parity with changes made for banks by the FDIC in 2019. Under the rule, FICUs may use information in account records establishing co-ownership of the share account to satisfy the signature card requirement. The proposed rule will have a 30-day comment period.
The board was also briefed on the National Credit Union Share Insurance Fund (NCUSIF). NCUA staff reported that the equity ratio is currently at 1.35 percent and the normal operating level (NOL), as of December 2019, remains at 1.38 percent. The equity ratio will next be updated June 30.
The NCUSIF recorded a net income of $1.2 million for the first quarter of 2020. However, because the first quarter ended on March 31, there are no effects of the coronavirus pandemic reflected in this first quarter report.
The board will next meet June 25.
Add to Calendar 2020-08-13 14:00:00 2020-08-13 14:00:00 What Internal Auditors Have Learned from the Pandemic and What They Should Do Going Forward Just a few months ago, it would have been unfathomable that we would be living in a pandemic crisis today. The pandemic has impacted nearly every organization and every person. Sometimes as quickly as daily, risks change and new risks emerge. We have experienced changes in the market economy, supply of goods and services, serving members, practices to maintain safety and the health of employees and members, and challenges of working remotely. Join us for an hour of information sharing of what internal auditors have learned from the pandemic so far and how internal auditors can continue to add value and participate in decision making in this relatively uncertain, risk emerging time. Key Takeaways Understand how to communicate with management and the supervisory committee Identify emerging risks and participate in decision making Review risk topics currently impacting credit unions Learn how to reset and redefine internal audit efforts Resurge internal audit’s role as trusted business advisor Register NowRegistration is complimentary, but you must register to attend.One registration gives your entire credit union access to the on-demand recording until August 13, 2021.Already registered? Go to the Online Training Center to view live. Who Should Attend? NAFCU Certified Risk Managers (NCRMs) Chief Financial Officers (CFOs) Finance staff Risk staff Education Credits NCRMs will receive 1.5 CEUs for participating in this webinar. CPA credit information is below; recommended 1.5 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: Understand how to communicate with management and the supervisory committee. Identify emerging risks and participate in decision making. Review risk topics currently impacting credit unions. Learn how to reset and redefine internal audit efforts. Resurge internal audit’s role as trusted business advisor. Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.5 credits Recommended Field of Study: Finance - Technical National Association of Federal Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU email@example.com America/New_York public
Credits: NCRM, CPE
Consumer Lending , Consumer Lending
Add to Calendar 2020-08-10 14:00:00 2020-08-10 14:00:00 CDFI Certification: A Door to external resources to expand your credit union’s capacity to serve its community There currently are 312 credit unions certified as a Community Development Financial Institution (CDFI), with combined assets of almost $134 billion and serving more than 12 million predominantly low income and minority consumers across the nation. Many more credit unions are eligible as they operate in CDFI target markets and offer products and services relevant to those communities. Nearly 700 credit unions are in what we call the “CDFI zone” Are you one of them? This certification makes credit unions eligible to participate in and/or to receive financial assistance and technical assistance awards as well as to receive deposits from institutions participating in the Bank Enterprise Award Program. In addition, the certification provides access to a growing number of programs offered by other agencies, such as participation in the loan guarantee program offered by the Bureau of Indian Affairs. Certification also provides certain regulatory exemptions, such as NCUA’s MBL limit and CFPB’s Ability to Repay and QM requirements. The CDFI Fund is the single largest source of external resources for credit unions, providing since its inception, more than $370 million in technical and financial assistance grants to increase access to affordable lending options and responsible financial services for low and moderate income and financially underserved populations. Key Takeaways Discuss building blocks of community finance Identify tools available to credit union Review eligibility requirements Understand the process for achieving CDFI certification Learn how to leverage the benefits of this credential Register Now For On-Demand AccessRegistration is complimentary, but you must register to attend.One registration gives your entire credit union access to the on-demand recording until August 10, 2021.Already registered? Go to the Online Training Center to view live. Who Should Attend? Chief Executive Officer (CEO) Chief Lending Officer (CLO) Business Lending Staff Lending Staff Education Credits This webinar doesn't qualify for any continuing education credits recognized by NAFCU or NASBA. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU firstname.lastname@example.org America/New_York public
CDFI Certification: A Door to external resources to expand your credit union’s capacity to serve its community
Get daily updates.
Subscribe to NAFCU today.