Credit Union Regulatory Guidance Including: NCUA, CFPB, FDIC, OCC, FFIEC

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Hello, this is Samantha Shares. Happy new Year!

This episode covers N C U A Board’s Approval of a  Non-Registered Investment Fund Pilot Program

The following is an audio version of that press release.    This podcast is educational and is not legal advice.  We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and Forty years of National Credit Union  Administration experience.  We assist our clients with N C U A so they save time and money.  If you are worried about a recent, upcoming or in process N C U A examination, reach out to learn how they can assist at Mark Treichel DOT COM.  Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with N C U A.

And now the press release.

NCUA Board Approves Non-Registered Investment Fund Pilot Program

On December 30th The National Credit Union Administration Board approved, by notation vote, an investment pilot program authorized under section 703 point 19 C of the N C U A’s regulations.

The N C U A will permit up to 30 complex federal credit unions to engage in investment activities prohibited under part 703 but permitted by the Federal Credit Union Act. Note A credit union is considered "complex" if its total assets exceed a specific threshold set by the N C U A. As of today,the threshold is 500 million dollars or more in total assets. A L M First Financial Advisors, LLC., a Securities and Exchange Commission registered investment advisor, requested the investment pilot program.

The requested pilot program would allow complex federal credit unions to invest in a series of non-registered investment funds comprised of consumer loans, as follows:

The pilot fund would be comprised of permissible consumer loans for federally insured credit unions with maturities of less than 10 years and overnight investments.

Federal credit unions must be complex and have a capital adequacy classification of well capitalized to invest in the fund and are limited to an aggregate investment of 50 percent of net worth as defined in part 702 of N C U A’s regulations.

The pilot program is subject to the A L M First Loan Fund Investment Pilot Program Requirements and Conditions, which are available on the N C U A website.

Under part 703 of the N C U A’s regulations, federal credit unions are authorized to invest in funds that are registered with the S E C or regulated by the Office of the Comptroller of the Currency, provided the underlying assets purchased by the fund are permissible under N C U A rules for federal credit unions.

This concludes the press release 

If your Credit union could use assistance with your exam, reach out to Mark Treichel on LinkedIn, or at mark Treichel dot com.  This is Samantha Shares and we Thank you for listening.

Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!

We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.

Hire us and gain:

• Peace of mind during your exam process

• Insider knowledge of NCUA procedures and expectations

• Strategies to address potential issues before they become problems

• Continuous access to our extensive subject matter expertise

With our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.

Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

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NCUA approved their budget for 2025 and 2025 at the December Board meeting.  This is a recording of that item.

Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!

We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.

Hire us and gain:

• Peace of mind during your exam process

• Insider knowledge of NCUA procedures and expectations

• Strategies to address potential issues before they become problems

• Continuous access to our extensive subject matter expertise

With our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.

Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.com

https://www.linkedin.com/in/mark-treichel/

https://www.linkedin.com/in/mark-treichel/

https://www.marktreichel.com/

Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!

We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.

Hire us and gain:

• Peace of mind during your exam process

• Insider knowledge of NCUA procedures and expectations

• Strategies to address potential issues before they become problems

• Continuous access to our extensive subject matter expertise

With our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.

Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.com

https://www.linkedin.com/in/mark-treichel/

A link to the action:

https://files.consumerfinance.gov/f/documents/cfpb_Zelle-Complaint_2024-12.pdf

Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!

We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.

Hire us and gain:

• Peace of mind during your exam process

• Insider knowledge of NCUA procedures and expectations

• Strategies to address potential issues before they become problems

• Continuous access to our extensive subject matter expertise

With our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.

Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.com

https://www.linkedin.com/in/mark-treichel/

Reach Out to learn how we assist our clients with NCUA so they  save time and money.

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https://ncua.gov/regulation-supervision/letters-credit-unions-other-guidance/consumer-harm-stemming-certain-overdraft-and-non-sufficient-funds-fee-practices

https://www.marktreichel.com/

Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!

We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.

Hire us and gain:

• Peace of mind during your exam process

• Insider knowledge of NCUA procedures and expectations

• Strategies to address potential issues before they become problems

• Continuous access to our extensive subject matter expertise

With our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.

Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.com

https://www.linkedin.com/in/mark-treichel/

Reach out to learn how we assist our clients with NCUA so they save time and money.

Set up a free call here:

https://calendly.com/cuexamsolutions/talk-to-mark-about-any-exam-topic

Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!

We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.

Hire us and gain:

• Peace of mind during your exam process

• Insider knowledge of NCUA procedures and expectations

• Strategies to address potential issues before they become problems

• Continuous access to our extensive subject matter expertise

With our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.

Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.com

https://www.linkedin.com/in/mark-treichel/

www.marktreichel.com

https://www.linkedin.com/in/mark-treichel/

This episodes is an audio version of the FDIC's training for board members on corporate governance.

Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!

We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.

Hire us and gain:

• Peace of mind during your exam process

• Insider knowledge of NCUA procedures and expectations

• Strategies to address potential issues before they become problems

• Continuous access to our extensive subject matter expertise

With our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.

Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.com

https://www.linkedin.com/in/mark-treichel/

NCUA Simplifies Share Insurance Rules for Trust Accounts

Key Points:

- NCUA is merging revocable and irrevocable trust categories into a single "trust accounts" category for share insurance purposes

- New calculation method: Insured up to $250,000 x number of beneficiaries (max 5), capped at $1.25 million per grantor per credit union 

- Changes take effect December 1, 2026 to allow time for credit unions and members to prepare

- Expands coverage for mortgage servicing accounts to include servicer advances

- Provides more flexibility in recordkeeping requirements for determining insurance coverage

- Aims to simplify rules, facilitate faster insurance payouts, and align with recent FDIC changes

- Most members' coverage expected to remain the same, but some with complex trusts may see changes

The episode reviews the new rules in detail and provides examples of how coverage will be calculated under the changes. Credit unions should familiarize themselves with the new trust account rules before they take effect in 2026.

Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!

We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.

Hire us and gain:

• Peace of mind during your exam process

• Insider knowledge of NCUA procedures and expectations

• Strategies to address potential issues before they become problems

• Continuous access to our extensive subject matter expertise

With our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.

Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.com

https://www.linkedin.com/in/mark-treichel/

# NCUA Chairman's Congressional Testimony: State of Credit Unions in 2024

## Episode Overview
A deep dive into NCUA Chairman Todd M. Harper's testimony before the House Financial Services Committee, covering the current state of the credit union system, key challenges, and regulatory initiatives.

## Key Points

### Credit Union System Performance
- Total assets nearly $2.3 trillion
- Total outstanding loans exceed $1.6 trillion
- Net worth ratio: 10.84%
- Return on average assets: 0.69%
- Warning signs: rising delinquency rates, declining capital levels

### Major Concerns
- One in five credit unions rated as troubled (CAMELS 3, 4, or 5)
- Number of troubled complex credit unions tripled in Q2 2024
- Commercial real estate showing stress due to hybrid work environments
- Rising consumer financial stress affecting loan performance

### Cybersecurity Initiatives
- Deployed updated Information Security Examination procedures
- Received 1,000+ reportable cyber incidents since September 2023
- 70% of cyber incidents related to credit union vendors
- Expanded partnerships with CISA and FBI

### Consumer Protection Efforts
- Focus areas: overdraft programs, fair lending, auto lending
- Eight credit unions referred to DOJ for discrimination in 2024
- First-ever race-based redlining settlement against a credit union
- New requirements for large credit unions to disclose overdraft fees

### Minority Depository Institutions (MDIs)
- 490 MDI credit unions serving 6.6+ million members
- Combined assets over $90 billion
- 39 MDIs received nearly $1.4 million in technical assistance grants
- Average asset size: $183 million

### Legislative Requests
1. Restore third-party vendor oversight authority
2. Reform Central Liquidity Facility
3. Provide more flexibility in Share Insurance Fund management
4. Increase Community Development Revolving Loan Fund to $10 million

## Hurricane Response
- Detailed response to Hurricanes Helene and Milton (Sept/Oct 2024)
- Provided emergency grants and loans to affected credit unions
- Extended regulatory filing deadlines
- Supported cash needs during telecommunications outages

## Notable Statistics
- Share Insurance Fund equity ratio: 1.28%
- Share Insurance Fund net income: $154.3 million
- Insured shares and deposits: $1.76 trillion
- Uninsured shares and deposits: $169.4 billion

## Contact Information
For more information: [ncua.gov](https://ncua.gov)

## Additional Resources
- NCUA's Financial Technology and Digital Asset webpage
- Credit Union Diversity Self-Assessment tool
- Automated Cybersecurity Evaluation Toolbox (ACET)

*Show notes based on testimony delivered November 20, 2024*

Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!

We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.

Hire us and gain:

• Peace of mind during your exam process

• Insider knowledge of NCUA procedures and expectations

• Strategies to address potential issues before they become problems

• Continuous access to our extensive subject matter expertise

With our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.

Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

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Hello, this is Samantha Shares. This episode covers N C U A’s Authority to Assess Civil Money Penalties as outlined in its Enforcement Manual. 

The following is an audio version of manual.    This podcast is educational and is not legal advice.  We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and Forty years of National Credit Union  Administration experience.  We assist our clients with N C U A so they save time and money.  If you are worried about a recent, upcoming or in process N C U A examination, reach out to learn how they can assist at Mark Treichel DOT COM.  Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with N C U A.

And now civil money penalties.

1.     What are civil money penalties?

The FCU Act section206(k), 12 U.S.C. section1786(k), contains N.C.U.A.'s authority to issue civil money penalties; N.C.U.A. Rules and Regulations. Section 747, Subpart A, contains the rules and regulations governing civil money penalty administrative hearings. The N.C.U.A.

Board may assess civil money penalties against either a credit union or an institution­ affiliated party (see definition of institution-affiliated party above). The FCU Act specifies three tiers of civil money penalties, as follows:

►     First tier. Any credit union or institution-affiliated party that violates a law or regulation, a final order of the N.C.U.A. Board, a published agreement with the Board (such as a published Letter of Understanding and Agreement), or a condition imposed in a published writing by the Board in connection with the granting of any application (such as the Insurance Agreement), may receive a penalty of not more than 5,000 dollars  for each day of the violation. First tier penalties may apply to credit unions that, even after warnings, repeatedly submit late or substantially inaccurate call reports.

►     Second tier. If the credit union or institution-affiliated party commits a first tier violation, and exhibits reckless conduct or a breach of fiduciary duty, and the violation, practice or breach is part of a pattern of misconduct, or causes more than a minimal loss to the credit union, or results in a monetary gain or other benefit to the institution-affiliated party, then the N.C.U.A. Board may assess a civil money penalty of not more than 25,000 dollars per day for each day of the violation.

►     Third tier. Any credit union or institution-affiliated party that knowingly commits the first tier violations, knowingly engages in unsafe or unsound practices, knowingly breaches any fiduciary duty, or knowingly or recklessly causes a substantial loss to the credit union or a substantial monetary gain or other benefit to a party because of the violation, breach, or practice, may receive assessment of a civil money penalty of not more than $1,000,000 per

day for each day of the violation, or in the case of a credit union, 1 percent of assets, whichever is less.

2.    How are civil money penalties assessed?

The normal administrative procedure for a civil money penalty action is as follows:

1.    The regional director notifies the party of his or her intent to recommend to the N.C.U.A. Board the issuance of a civil money penalty, requesting a written response from the party.

2.    The N.C.U.A. Board issues a Notice of Assessment, setting forth a statement of the law and facts on which it bases the assessment.

3.    The assessed party has 90 days to make payment, but may request a hearing within 20 days.

4.    An administrative law judge will hold a formal hearing if requested.

5.    After the administrative hearing, the administrative law judge submits a recommended decision to the N.C.U.A. Board.

6.    The N.C.U.A. Board issues its final order.

7.    An institution-affiliated party or credit union may appeal to the U.S. Court of Appeals within 20 days of receipt of the final order.

This concludes the N.C.U.A. civil money penalty authorities and policies.

If your Credit union could use assistance with your exam, reach out to Mark Treichel on LinkedIn, or at mark Treichel dot com.  This is Samantha Shares and we Thank you for listening.

Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!

We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.

Hire us and gain:

• Peace of mind during your exam process

• Insider knowledge of NCUA procedures and expectations

• Strategies to address potential issues before they become problems

• Continuous access to our extensive subject matter expertise

With our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.

Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.