At the January National Credit Union Administration board meeting, board member Todd Harper frequently found himself in the minority. Among other items, the board considered a proposed rule to change the definition of Complex Credit Union, a proposed rule that would expand permitted activities of Credit Union Service Organizations, and an advance notice of proposed rulemaking to make changes to the NCUA Risk-Based Capital.
The National Credit Union Administration will begin accepting applications on Jan. 24 for federally insured, low-income credit unions that want to use the agency’s streamlined qualification process to be certified as Community Development Financial Institutions.
Interested in what credit unions can expect from Washington in 2021? Here are some predictions.
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.
Former National Credit Union Administration board members and credit union lobbyists speculate on the legislative changes that will occur now that the Democrats will control the Senate.
The National Association of Federally-Insured Credit Unions and the Credit Union National Association have endorsed the National Credit Union Administration’s proposal to codify a 2018 policy statement making it clear that supervisory guidance does not carry the force of law.
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.
Congress and federal regulators should protect the credit union tax exemption, while ensuring that the institutions have the same opportunities to serve consumers as banks and other financial companies, NAFCU officials said, as they released their 2021 advocacy agenda. “Credit unions have worked tirelessly to help Americans overcome adversity and hardship amid the coronavirus pandemic,” said NAFCU President/CEO B. Dan Berger. “For both new and returning members of Congress, it is vital they understand the good work not-for-profit credit unions have done and will continue to do to lift American families and communities up during these uncertain times.” Berger sent
The coronavirus economic impact payment may cause credit unions regulatory issues, credit union trade groups warned. The increase in credit union balance sheets may trigger new regulatory requirements. The Credit Union National Association wants a rule that will allow credit unions to use an earlier date for asset data.
J. Owen Cole, the National Credit Union Administration’s associate director in the Policy and Markets Division in the Office of Examination and Insurance, has announced he will retire at the end of the month.