At its meeting on November 19, the NCUA Board will consider a proposed rule that would allow credit unions to capitalize interest on consumer mortgage loan modifications. The board will also hear reports on the status of the Share Insurance Fund, the agency’s diversity assessments, and the agency’s proposed 2020 budget.
The NCUA announced its proposed operating budget for 2021. They will hold a hearing on the plan December 2, comments are due by December 11 and the board will vote on the plan at its December meeting.
Rodney Hood, in testimony before the House Financial Services Committee, said that the Share Insurance Fund is healthy and defended the purchases of banks by credit unions.
During his testimony before the Senate Banking Committee, National Credit Union Administration Chairman Rodney Hood said the Share Insurance Fund remains strong and that the Central Liquidity Facility changes that are set to expire at the end of the year need to be extended. He said the CLF needs the increased borrowing authority to continue dealing with the economic problems arising from the pandemic.
Due to federal programs, credit unions and banks have experienced major changes to their balance sheets, which may push them across regulatory thresholds. Sen. Crapo wants regulators, including the NCUA, to use their discretion to minimize the impact of this problem.
The National Credit Union Administration could take steps to restore its equity ratio that do not include charging credit unions additional fees, according to the National Association of Federally-Insured Credit Union’s Vice President of Research and Chief Economist Curt Long.
The NCUA’s equity ratio at the end of June was 1.22% and the NCUA will be required to implement a formal restoration plan when it hits 1.20%. Learn what transpired at the NCUA September board meeting.
The National Credit Union Administration’s Chairman Rodney Hood and Board Member Todd Harper addressed participants at the National Association of Federally-Insured Credit Union’s virtual Congressional Caucus. Hood talked about his attempts to exempt credit unions from the Current Expected Credit Losses Standard and Harper discussed the NCUA’s approach to the pandemic.
The Inspector General for the National Credit Union Administration found that the Share Insurance Fund is at risk because the NCUA does not have the power to supervise third-party vendors and Credit Union Service Organizations. The fix, according to the Inspector General, is that Congress pass legislation giving those supervisory powers to the NCUA.
Credit unions that recently became members of the NCUA Central Liquidity Facility have substantially increased the facility’s borrowing capacity, National Credit Union Administration officials said Monday.