The National Credit Union Administration announced Wednesday that it is chartering the Maun Federal Credit Union in Kendall Park, N.J. to serve a local Islamic community.
It may seem as if Todd Harper just joined the National Credit Union Administration board, but actually his term expired last month.
Harper, who now may be removed at any time by President Biden, said through a spokesperson that he intends to stay in his position as long as the president wants him to serve. So far Biden has given no indication that he wants to remove Harper, sources familiar with board operations said.
In a letter to Senate Banking Committee ranking Republican Pat Toomey of Pennsylvania, National Credit Union Administration Chairman Todd Harper had suggestions about changing when the agency can assess premiums on credit unions, increasing the NCUA’s Share Insurance fund ceiling, and changing the assessment basis. Harper is concerned about how the law may force the agency to charge premiums during poor economic times, not at times when credit unions might find it easier to pay.
The National Credit Union Administration board did not issue its regularly scheduled update of the equity ratio at this month’s board meeting. Instead, according to Chairman Todd Harper, they will continue to analyze the equity ratio and will review the first quarter Call Reports. This is just one of the issues addressed at the NCUA April board meeting.
The National Credit Union Administration approved an interim final rule by notation. The rule is designed to assist credit unions facing the sudden enforcement of prompt corrective action regulations due to an influx of deposits from the additional Economic Impact Payments. The rule was listed on the April agenda, but the board decided there was an immediate need for the rule.
Low-income credit unions will be able to submit grant applications for the National Credit Union Administration’s Community Development Revolving Loan Fund between May 3 and June 26, the agency announced last week.
There is a lot of disagreement about whether a proposed rule that would expand the types of activities that Credit Union Service Organizations can engage in, including originating any type of loan that a federal credit union may originate, will be beneficial or disastrous to various credit unions. The National Credit Union Administration has extended the comment period for another 30 days.
National Credit Union Administration Chairman Todd Harper thinks the proposed rule is “half-baked” but credit union trade groups are endorsing a proposal to increase the threshold for credit unions to be defined as “complex.” The proposed rule states that any risk-based net worth requirement would only apply if a credit union has more than $500 million in assets at a quarter’s end. The definition impacts the effect of the Risk-Based Capital Rule that goes into effect on Jan. 1, 2022.
Due to the rapid and unexpected balance sheet growth at credit unions that occurred as a result of the pandemic stimulus payments, the National Credit Union Administration board approved an interim final rule that will allow large credit unions to use asset data from the end of March 2020 to determine if they are subject to stress testing and capital planning. The rule will be in effect during 2021 and 2022.
In a letter to National Credit Union Administration Chairman Todd Harper, Sen. Pat Toomey, the ranking Republican on the Senate Banking Committee, said that the Modern Examination and Risk Identification Tool (MERIT) should be used for examinations as soon as possible, even if the training for it is done virtually.