Comments Mostly Support NCUA’s Risk-Based Net Worth Rule

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.

After Two-Month Hiatus, Credit Union Trade PACs Resume Political Giving

The Credit Union National Association and the National Association of Federally-Insured Credit Unions stopped making campaign contributions after the insurrection at the U.S. Capitol, but will now resume them. CUNA was the 12th largest contributor to the 147 Senators and Representatives who objected to the counting of the electoral votes for Joe Biden, according to the Center for Responsive Politics.

NCUA Board Facing Potentially Contentious Issues

The agenda for the January board meeting of the National Credit Union Administration has been released. On the agenda is a rule on Risk-Based Net Worth, an Advance Notice of Proposed Rulemaking on the simplification of Risk-Based Capital Requirements, a proposed rule on CUSOs, a notice of proposed rulemaking on the CAMELS rating system and the agency’s annual performance plan.

CFPB Task Force: Allow All Credit Unions to Serve Underserved Areas

A controversial Consumer Financial Protection Bureau task force on consumer financial law released its final report the day before a hearing about its makeup was to be held in a federal court in Massachusetts. Credit unions will like its recommendation that all credit unions be allowed to serve underserved areas. Consumer groups will object to many of the other recommendations and it is unlikely the Biden Administration will accept them.

Kyle Hauptman Sworn In as NCUA Board Member

Kyle Hauptman was sworn in Monday as a member of the National Credit Union Administration board.

Hauptman, a Republican, was sworn in by Chairman Rodney Hood; his term ends on August 2, 2025. Hauptman’s taking office will ensure that Republicans will continue to control the majority on the board even after President-elect Joe Biden takes office, and as expected, appoints Democrat Todd Harper as chairman.

Charges of ‘Midnight Rulemaking’ Made at NCUA as Hood Faces End of Chairmanship

Sources speculate that National Credit Union Administration Chairman Rodney Hood is attempting to push through last minute policies before the new administration removes him from his leadership. In two unusual moves, the December board meeting will be over a two-day period and the January board meeting has been moved forward so that it is done before Biden is sworn into office. The December agenda is packed.