Newsroom
NCUA Board extends CLF enhancements, addresses asset thresholds for FICUs
The NCUA Board Thursday unanimously approved two interim final rules (IFR): One extending enhancements made to the Central Liquidity Facility (CLF) and one on asset thresholds pertaining to large credit unions. The board also received a board briefing on the NCUA Guaranteed Note (NGN) and Asset Management Estates (AME) programs.
During the meeting, the board recognized the one-year anniversary of the coronavirus pandemic and Chairman Todd Harper discussed his concerns with economic impact payments (EIPs) not being protected from garnishment, but, given the lack of guardrails provided in the American Rescue Plan Act, Harper urged credit unions to live up to their foundational principles and assist struggling members. NAFCU had called on Congress to pass standalone legislation to provide this protection and has shared with lawmakers and the CFPB how credit unions are working to get members their funds.
IFR: CLF enhancement extension
In a unanimous vote, the board approved the IFR extending CLF enhancements made by the Coronavirus Aid, Relief, and Economic Security (CARES) Act until Dec. 31, 2021, as provided by the Consolidated Appropriations Act of 2021 (CAA). In addition, the IFR extends and clarifies the provisions related to a member withdrawing CLF membership laid out in a previous IFR issued in 2020.
NAFCU voiced support for an extension of the CLF provisions beyond and will continue to advocate for permanent changes to the CLF to provide an important liquidity tool for credit unions.
IFR: Asset thresholds pertaining to large credit unions
In another unanimous vote, the board approved an IFR to provide relief to certain large federally-insured credit unions (FICUs), allowing for additional time to prepare for heightened regulatory and supervisory demands upon reaching $10 billion in assets as a result of unprecedented share growth.
The IFR permits FICUs to use asset data as of March 31, 2020, for the 2021 and 2022 calendar years to determine whether the institution is subject to capital planning and stress testing supervision from the NCUA’s Office of National Examinations and Supervisions (ONES).
NAFCU has previously advocated for this flexibility to provide relief for credit unions and parity with a similar rule from the federal banking regulators. As credit unions have seen a large influx of deposits over the past year resulting from coronavirus-related relief efforts and changes in members' financial habits, NAFCU has flagged concerns for credit unions approaching the $10 billion threshold, at which point the CFPB also has supervisory authorities.
Board briefing: NGN and AME programs
During the board briefing, it was revealed that, across the five AMEs, roughly half of the legacy assets have been liquidated. The final note in the NGN program will mature on June 12 at which time all of the legacy assets secured in the notes may be sold.
In addition, staff indicated that the liquidating agent will make an interim distribution to about 2,000 credit unions on April 30 out of three estates: U.S. Central, Members United, and Southwest. The NCUA stated it will provide updated FAQs regarding the distribution.
NAFCU supports a distribution for all credit unions who invested in the corporate credit unions following the financial crisis.
Stay tuned to NAFCU Today for the latest on the NCUA.
Share This
Related Resources
Add to Calendar 2024-04-25 14:00:00 2024-04-25 14:00:00 ChatGPT: What AI can do for you! ChatGPT has been created with one main objective – to predict the next word in a sentence, based on what's typically happened in the gigabytes of text data that it's been trained on. Did you ever hear of the saying, “People fear the unknown?” Artificial intelligence scares people, but it is the future, and you need to understand the tools and resources it offers. It’s also about saving time, that’s what technology and in this case, artificial intelligence can do for you. If you want to save time and have a better quality of life, this training is for you. Once you give ChatGPT a question or prompt, it passes through the AI model and the chatbot produces a response based on the information you've given and how that fits into its vast amount of training data. It's during this training that ChatGPT has learned what word, or sequence of words, typically follows the last one in a given context. During this webinar, ChatGPT: What AI can do for you, you’ll discover the background, purpose, usability, and the pros and cons. Don't miss this opportunity! Key Takeaways Learn the background of AI Understand the purpose of AI Identify the pros and cons Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 25, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCRMs Risk titles Education Credits NCRMs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
ChatGPT: What AI can do for you!
Credits: NCRM
Webinar
Add to Calendar 2024-04-25 14:00:00 2024-04-25 14:00:00 Unifying Two Different Executive Benefits Programs About the Webinar In part one we discussed how to retain key positions during a time of transition. In part two, we will look at how to combine executive benefits programs from two different organizations into a single high-performing program. Evaluating each program includes many different facets, from strategy and expense to performance and servicing. This session will provide important considerations, whether or not you have pending M&A activity. Key Takeaways: Is the plan design both retentive and efficient? Is the benefit expense properly mitigated? Does the legal agreement reflect the board’s intent? View On-Demand Web NAFCU digital@nafcu.org America/New_York public
Unifying Two Different Executive Benefits Programs
preferred partner
Gallagher
Webinar
Add to Calendar 2024-04-24 14:00:00 2024-04-24 14:00:00 Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage About The Webinar Join us to learn more about network lending, a cooperative model allowing credit unions to optimize liquidity and achieve loan growth. Discover how credit unions can participate in loan pools with other institutions, allowing them to diversify portfolios, access loans with potentially lower risk and higher yields, and expand lending capacity without necessarily needing a surge in deposits. Delve into how credit unions can pool their resources, set common underwriting and pricing standards, and collectively originate, buy, and sell loans to optimize liquidity management. Hear from your peers about best practices, case studies, and practical strategies to harness the full potential of network lending and how it's helped their credit unions. Don't miss this valuable opportunity to learn how to strengthen your credit union's position in today’s competitive environment. Key Takeaways: How network lending differs from traditional lending The benefits of participating in loan pools with other credit unions How credit unions can set common underwriting and pricing standards and collectively originate, buy and sell loans to optimize liquidity management Why network lending is critical to loan growth Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public
Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage
preferred partner
LendKey
Webinar
Add to Calendar 2024-04-23 14:00:00 2024-04-23 14:00:00 Monitoring the Latest Litigation Risks Credit unions’ operations pose litigation risks, with more of these cases being filed as class action lawsuits. In this Monitoring the Latest Litigation Risks for Credit Unions webinar, you’ll review some of the specific kinds of lawsuits impacting credit unions and what potential claims could be on the horizon. You’ll also examine some options for mitigating risks. Key Takeaways Review the current lawsuit trends. Understand the potential claims risks Explore options for mitigating risks. Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 23, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCRMs will recieve 1.0 CEUs for participating in this webinar NCCOs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Monitoring the Latest Litigation Risks
Credits: NCCO, NCRM
Webinar
Get daily updates.
Subscribe to NAFCU today.