NCUA finalizes corporate CU rule, proposes changes to derivatives rule, more
The NCUA Board Thursday approved a final rule updating its corporate credit union rules and a proposed rule to amend the agency’s derivatives rule in subpart B to part 703 of its regulations. Of note, the board voted to remove the fourth item – a request for information on the agency’s supervisory guidance and communication improvements – from the meeting agenda.
In light of National Cybersecurity Awareness Month, the board was briefed on coronavirus-related cyber-attacks, including phishing, ransomware, and other means, that seek to exploit inadequacies in cyber hygiene policies and procedures. The board went on to reiterate its strong support for legislative authority to allow the NCUA to examine third-party vendors following pandemic recovery.
NAFCU has historically opposed granting the NCUA third-party vendor authority.
Final rule, corporate credit unions
The board approved the NAFCU-supported final rule updating its corporate credit union rules to permit a corporate credit union to make a minimal investment in a CUSO without the CUSO being classified as a corporate CUSO. In addition, the rule expands the categories of senior staff that may serve on a corporate credit union board and amends the requirements for a corporate credit union’s enterprise risk management expert.
NAFCU submitted a comment letter to the agency earlier this year following the board's proposal at its February meeting and offered support for the agency’s effort to provide greater flexibility and ease regulatory burden.
Proposed rule, derivatives
On derivatives, the board approved a proposed rule to adopt a more principles-based approach to provide credit unions with more flexibility to manage their interest rate risk through the use and purchase of derivatives. In addition, the proposal would:
- eliminate the preapproval process for federal credit unions (FCUs) that are complex and have a CAMEL rating of 1 or 2;
- eliminate the specific product permissibility; and
- eliminate the regulatory limits on the amount of derivatives an FCU may purchase.
In 2014, the NCUA Board issued a final rule to allow federal credit unions the ability to apply to use derivatives in an effort to reduce interest rate risk.
NAFCU will continue to stay in close contact with the NCUA and continue to provide industry updates to credit unions via NAFCU Today; the board will next meet Nov. 19.
Add to Calendar 2021-01-14 14:00:00 2021-01-14 14:00:00 HMDA Fundamentals & Advanced Topics for Accurate Reporting Learn essential HMDA points that will aide both beginners and experienced HMDA personnel in quickly and accurately determining the reportability of transactions and the correct completion of specific HMDA fields. It is easy to get lost in the nuances of the Home Mortgage Disclosure Act. This webinar will cut through the haze and share crucial information for a strong HMDA program, including where to locate the guidance. Topics Covered Revised mandatory reporting and partial exemption thresholds. Defining an application for HMDA. Covered and excluded dwellings including mixed use properties. Excluded transactions including all about temporary financing. Conditional versus final approvals. Special rules for early decisions with missing information. Key Takeaways Helpful hints for a full understanding of requirements and accurate decision making. Where to locate the various types of guidance available. Tips for establishing a solid HMDA program to enhance accuracy and ease testing and scrubbing. Purchase Now$295 Members | $395 Nonmembers (Additional $50 for CD)One registration gives your entire credit union access to the on-demand recording until January 14, 2022.Already registered? Go to the Online Training Center to view live. Who Should Attend? NAFCU Certified Risk Managers (NCRMs) NAFCU Certified Compliance Officers (NCCOs) Compliance Titles Risk Titles Education Credits NCRMs will receive 1.5 CEUs for participating in this webinar. NCCOs 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: Helpful hints for a full understanding of requirements and accurate decision making. Where to locate the various types of guidance available. Tips for establishing a solid HMDA program to enhance accuracy and ease testing and scrubbing. 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: Regulatory Ethics – 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, NCCO, CPE
Credit Unions, Education, Risk Management, Growth & Retention, Current Affairs
Get daily updates.
Subscribe to NAFCU today.