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ALEXANDRIA, Va. (March 25, 2021) – Federally insured credit unions can get valuable information on Bank Secrecy Act and anti-money laundering compliance during a National Credit Union Administration webinar scheduled for April 14.

Online registration for the webinar, “Bank Secrecy Act Update,” is now open (opens new window). The webinar is scheduled to begin at 2 p.m. Eastern and run for approximately 60 minutes. Participants will be able to log into the webinar and view it on their computers or mobile devices using the registration link. They should allow pop-ups from this website.

Staff from the NCUA’s Office of Examination and Insurance will be joined by Cathryn Martin, BSA compliance officer at Tower Federal Credit Union in Laurel, Maryland, to cover topics that include:

• Updates on recently issued BSA statements,
• Actions for managing high-risk accounts, and
• Highlights of the Anti-Money Laundering Act of 2020.

Participants can submit questions anytime during the presentation or in advance by emailing [email protected]. The email’s subject line should read, “BSA Update.” Please email technical questions about accessing the webinar to [email protected]. This webinar will be closed captioned and archived online approximately three weeks following the live event.

ALEXANDRIA, Va. (March 23, 2021) – Although the COVID-19 pandemic continues to pose challenges for the country and the credit union system, the economic outlook has recently improved, National Credit Union Administration Chairman Todd M. Harper said yesterday during the Maine Credit Union League’s Town Hall Meeting.

“The recently enacted $1.9 trillion American Rescue Plan Act will help shore up household finances and is expected to give the economy a substantial boost,” Chairman Harper said. “The return of warmer weather and rising number of Americans who have been vaccinated should also spur increased economic activity and job creation in the months ahead.”

Harper’s remarks are available on the NCUA’s website.

Even with these improvements, Harper cautioned that it would take time for the economy to fully recover, and credit unions “face a prolonged period of very low interest rates.” He added, “In the year ahead, your credit union’s ability to manage interest-rate risk will play a crucial role in financial performance.”

Consider the Reputational Risks before Garnishing Stimulus Payments

Harper also discussed the practice by some financial institutions, including credit unions, to garnish economic stimulus payments, calling this a very important subject.

“As we saw with stimulus payments last year, some credit unions decided to garnish these funds instead of stepping up and working with their members. Credit unions that do this again should consider the reputational issues that will come from these practices,” Harper said.

Harper referred to credit unions as financial first responders who should protect member’s relief payments from collection, garnishment, and the right of offset, and he urged them to demonstrate the cooperative philosophy at the heart of the credit union movement. Failing to accommodate members’ needs during tough economic times will sacrifice a credit union’s long-term financial viability and create negative publicity for the entire credit union system, Harper said.

“All credit unions should heed the lyrics of Bill Withers who sang, ‘Lean on me, when you’re not strong, and I’ll be your friend. I’ll help you carry on,’” Harper said. “Credit unions that follow this wise, timeless advice will serve their members, themselves, the credit union system, and our economy well in the long term.”

Chairman Harper’s remarks also included a discussion of the credit union industry, the NCUA’s response to COVID-19, consumer financial protection, and economic equity and justice.

The NCUA COVID-19 Resource Center includes answers to frequently asked questions on economic impact payment and stimulus checks. It includes FAQs for federally insured credit unions and FAQs for credit union members.

Board Action Bulletin

ALEXANDRIA, Va. (March 18, 2021) – Through a live audio webcast, the National Credit Union Administration Board held its third open meeting of 2021 and unanimously approved two items:

• A temporary interim final rule permitting federally insured credit unions to use asset data as of March 31, 2020, to determine the applicability of certain regulatory asset thresholds during calendar years 2021 and 2022.
• An interim final rule making conforming changes to the agency’s regulations on the Central Liquidity Facility because of the Consolidated Appropriations Act, 2021.

The NCUA Board also received a briefing on the financial performance of the NCUA Guaranteed Notes (NGN) and the asset management estates that comprise the agency’s Corporate System Resolution Program. Approximately 2000 credit unions will receive a distribution.

Corporate Capital Holders for Three Corporates to Receive Distribution in April

The President of the NCUA’s Asset Management and Assistance Center and staff from the agency’s NGN Division briefed the NCUA Board (opens new window) on the financial performance of the NGN program and the asset management estates of five corporate credit unions that failed in 2009 and 2010 during the financial crisis.

During the briefing, the AMAC President stated that the performance of the asset management estates means that the liquidating agent for U.S. Central Federal Credit Union, Members United Corporate Federal Credit Union, and Southwest Corporate Federal Credit Union will be able to distribute $368 million to member capital account holders in April.

“The success of the NCUA Guaranteed Notes program is a testament to the leadership shown by previous NCUA Chairmen and Board members, who supported this program and our recovery efforts over the years, even when it seemed the chances were remote for the Corporate System Resolution Program to end with any distributions to capital holders,” Chairman Harper said. “This success is also a testament to the efforts of the NCUA staff over the last decade. Their wise actions, careful management, and perseverance gave the NCUA the ability to manage and reduce potential losses to the system.”

The U.S. Central, Members United, and Southwest asset management estates collectively have about 2,600-member capital account holders, mostly credit unions, with a total claim of $2.5 billion. After accounting for mergers, purchases and acquisitions, and liquidations, about 2000 active credit unions will receive a distribution. This will be the second distribution to the member capital holders of Southwest, the first occurring in July 2020.

The NCUA plans to send letters to distribution recipients notifying them of their amount and other payment details. The distribution will be made to credit unions generally through an electronic funds transfer. The payout is planned for April. The NCUA will work with each non-credit union recipient to ensure timely receipt of the payout.

Additional information on the distribution is available on the NCUA’s website.

Interim Final Rule Provides Measures of Relief from Certain Regulatory Thresholds

The NCUA Board approved a temporary interim final rule (opens new window) that permits federally insured credit unions to use asset data as of March 31, 2020, to determine applicability of capital planning and stress testing requirements under the NCUA’s regulations. This data will also determine regional or national supervision of federally insured credit unions.

Throughout 2020, federally insured credit unions experienced unprecedented balance sheet growth, due to increased personal savings rates, declining loan demand, and economic stimulus because of the COVID-19 pandemic. Many credit unions have or will exceed asset thresholds subjecting them to additional regulatory requirements or supervision by the Office of National Examinations and Supervision.

Complying with these new regulatory standards may impose additional compliance costs for credit unions that otherwise may not have become subject to these requirements at this time. This interim final rule gives affected credits unions time to prepare for additional regulatory standards.

Said Chairman Harper, “While the rule before us today affects large credit unions, we recognize that the latest stimulus payments resulting from the American Rescue Plan will soon lead to further increases in the assets and shares of smaller credit unions. The NCUA Board, therefore, will soon consider a tailored, targeted and temporary rule, similar to last year’s regulatory action, to exempt credit unions from certain prompt corrective action requirements.”

The interim final rule becomes effective upon publication in the Federal Register. There is a 60-day comment period.

Enhancements to the Central Liquidity Facility Extended to December 31, 2021

The Board approved an interim final rule (opens new window) that updates the NCUA’s regulations to conform with the statutory changes made by the Consolidated Appropriations Act, 2021, signed into law on December 27, 2020.

“The temporary changes and increased flexibilities provided by Congress to the NCUA’s CLF are very useful, but we should pursue permanent reforms,” Chairman Harper said. “As such, I will continue to urge Congress to make the CLF provisions, first incorporated into the CARES Act, permanent. Permanence would provide regulatory certainty during the current crisis and bolster the credit union system’s ability to respond to future emergencies.”

Specifically, the Consolidated Appropriations Act extended several enhancements to the NCUA’s Central Liquidity Facility, first enacted by the Coronavirus Aid, Relief, and Economic Security Act. This rule amends the NCUA’s CLF regulation to reflect these extensions. This rule also extends the withdrawal from CLF membership provisions that the Board included in its April 2020 interim final rule.

The interim final rule becomes effective upon publication in the Federal Register. There is a 60-day comment period.

The NCUA tweets all open Board meetings live. Follow @TheNCUA (opens new window) on Twitter, and access Board Action Memorandums and NCUA rule changes at www.ncua.gov. The NCUA also live streams, archives and posts videos of open Board meetings online.

ALEXANDRIA, Va. (March 16, 2021) – The National Credit Union Administration today released its 2020 Annual Report (opens new window), highlighting the agency’s activities, policy initiatives, and accomplishments for the past year.

“Truly unprecedented, the COVID-19 pandemic and its economic and financial disruptions affected all aspects of daily life in 2020,” NCUA Chairman Todd M. Harper said. “Yet during the pandemic, federally insured credit unions generally remained on a sound financial footing and provided needed assistance to members, businesses, and communities. The NCUA’s employees also worked tirelessly to develop creative solutions, protect consumers, support small, low-income and minority credit unions, and bolster the credit union system for what lies ahead.”

The 2020 Annual Report documents the NCUA’s performance in meeting its strategic goals and objectives as detailed in its strategic plan (opens new window) and annual performance plan (opens new window). The report contains the audited financial statements for the agency’s four funds, which earned unmodified or “clean” opinions for 2020. It also provides assurances of the agency’s compliance with federal financial management guidelines, regulations, and relevant laws.

During 2020, the NCUA Board’s and agency’s efforts focused on addressing the economic and financial disruptions resulting from the COVID-19 pandemic. These actions included:

• Protecting agency staff and contractors and the staff and members of credit unions by moving to a remote operations posture at the start of the pandemic;
• Strengthening the Central Liquidity Facility to serve as a liquidity backstop for the credit union system;
• Supporting low-income, small, and minority credit unions through the Community Development Revolving Loan Fund’s technical assistance grants and loans;
• Providing measures of regulatory relief to help credit unions adapt to operational changes resulting from social distancing measures; and
• Implementing statutory changes resulting from the passage of pandemic relief measures, such as the Coronavirus Aid, Relief, and Economic Security Act.

“We still have much work to do, especially to prepare the credit union system and the Share Insurance Fund to weather any economic fallout related to the COVID-19 pandemic and to support credit union members through tough times,” Chairman Harper said. “The NCUA must also do all that it can to advance economic equity and justice to and ensure all consumers — regardless of their financial provider of choice — have the same levels of protection and fair and equitable access to credit. This work will provide for a more equitable economic recovery and a better future for our country.”

WASHINGTON (March 11, 2021) – Five federal regulatory agencies today requested public comment on 24 proposed Interagency Questions and Answers Regarding Private Flood Insurance.

The proposal is intended to help lenders comply with the agencies’ joint rule promulgated in 2019 to implement the private flood insurance provisions of the Biggert-Waters Flood Insurance Reform Act of 2012.

The proposal incorporates new questions and answers in a number of areas including:

• Mandatory Acceptance,
• Discretionary Acceptance, and
• Private Flood Insurance General Compliance.

These Questions and Answers would supplement the 118 Interagency Questions and Answers Regarding Flood Insurance that the agencies proposed on July 6, 2020.

Comments will be accepted for 60 days after publication in the Federal Register.

Attachment: Questions and Answers Regarding Private Flood Insurance (PDF) (opens new window)

Agency	Contact	Phone
Federal Reserve Board	Susan Stawick	202.452.2955
FCA	Emily Yaghmour	703.883.4056
FDIC	Brian Sullivan	202.412.1436
NCUA	Ben Hardaway	703.518.6333
OCC	Bryan Hubbard	202.649.6870

ALEXANDRIA, Va. (March 12, 2021) – Federally insured credit unions experienced double-digit asset and share-and-deposit growth over the year ending in the fourth quarter of 2020, according to the latest Quarterly U.S. Map Review (opens new window) released today by the National Credit Union Administration.

Nationally, median asset growth over the four quarters of 2020 was 14.2 percent, compared to 2.8 percent during 2019. Median growth in shares and deposits during 2020 was 15.9 percent, compared to 2.6 percent during 2019. The median total delinquency rate among federally insured credit unions at the end of 2020 was 51 basis points, compared to 66 basis points at the end of 2019. Additionally, 83 percent of federally insured credit unions had positive net income in 2020, compared to 88 percent in 2019.

The NCUA’s Quarterly U.S. Map Review tracks performance indicators for federally insured credit unions in all 50 states and the District of Columbia and includes information on two important state-level economic indicators: the unemployment rate and home prices.

ALEXANDRIA, Va. (March 9, 2021) – The National Credit Union Administration and federally insured credit unions must do all they can to advance economic equity and justice, NCUA Chairman Todd M. Harper said today.

“Many minority-owned businesses and communities have been acutely affected by the suddenness and depth of the economic shock resulting from the lockdowns that were put in place to contain the spread of the virus,” Chairman Harper said. “By staying focused on diversity, equity, inclusion, and social justice, credit unions can help ease the financial impact of COVID-19 and systemic racism on communities of color. And the end result will be a more vibrant economic outcome for everyone in society.”

Harper was the keynote speaker at a Town Hall hosted by Inclusiv, an organization whose mission is to help low- and moderate-income people and communities achieve financial independence through credit unions. His full remarks are available on the NCUA’s website.

In addition to speaking on economic equity and justice, Harper addressed minority depository institution preservation and the Treasury Department’s Emergency Capital Investment Program (opens new window) (ECIP), which he encouraged eligible credit unions to utilize.

“The ECIP aligns with the mission of the credit union movement to expand access to affordable financial services free of discrimination to those of modest means,” Harper said. “I believe this important program has the potential to make a real difference in the lives of many Americans. I strongly encourage eligible credit unions to tap into the program to support the communities they serve.”

Congress created the ECIP as part of the Consolidated Appropriations Act, 2021, to help community-based financial institutions support consumers and local small businesses in low-income and underserved communities that have been disproportionately affected by the economic effects of the COVID-19 pandemic. A federally insured credit union must be certified as a Community Development Financial Institution or minority depository institution to participate in the program.

Diversity, equity, and inclusion are one of Harper’s four priorities as NCUA Chairman, along with capital and liquidity, consumer financial protection, and cybersecurity. “These priorities will guide NCUA decisions in addressing current economic and marketplace realities,” Harper said.

ALEXANDRIA, Va. (March 10, 2021) – The National Credit Union Administration is hosting a webinar on March 24 about potential areas of credit risk resulting from the COVID-19 pandemic.

“COVID-19 has had a significant impact on the economy, credit unions, and their members,” NCUA Chairman Todd M. Harper said, “Going forward, the top priority for the NCUA will be ensuring that credit union members, the credit union system and the Share Insurance Fund are prepared to weather any economic fallout related to the pandemic. I encourage credit unions to take advantage of our webinar to learn more about how they can minimize potential risks to their balance sheets.”

Online registration for the “Pandemic-Related Credit Risks for Credit Unions” webinar is now open (opens new window). The webinar is scheduled to begin at 2 p.m. Eastern and run approximately for 60 minutes. Topics that will be covered during the webinar include:

• Credit markets’ status;
• Current federal regulations;
• What NCUA examiners look for;
• Suggestions on reporting risk to a credit union’s management and board; and
• Advice for proactively managing credit risks.

Participants will be able to log into the webinar and view it on their computers or mobile devices using the registration link. They should allow pop-ups from this website. Participants also can submit questions anytime during the presentation or in advance by emailing [email protected]. The email’s subject line should read, “Pandemic-Related Credit Risks for Credit Unions.”

Please email technical questions about accessing the webinar to [email protected]. This webinar will be closed captioned and archived online approximately three weeks following the live event.

ALEXANDRIA, Va. (March 4, 2021) – Data on the financial performance of federally insured credit unions for the quarter ending December 31, 2020, are now available (opens new window) from the National Credit Union Administration.

The NCUA’s Quarterly Data Summary Reports include an overview of the quarterly Call Report data as well as tables showing the recent history of major credit union performance indicators.

The NCUA also makes extensive credit union system performance data available in the Credit Union Analysis section of NCUA.gov. The analysis section includes quarterly data summaries as well as detailed financial information, a graphics package illustrating financial trends in federally insured credit unions, and a spreadsheet listing all federally insured credit unions as of December 31, 2020, including key metrics.

ALEXANDRIA, Va. (March 2, 2021) – National Credit Union Administration Chairman Todd M. Harper announced today the appointment of Board Member Rodney E. Hood as the agency’s representative on the Board of Directors of NeighborWorks America, one of the nation’s leading affordable housing and community development organizations.

“Board Member Hood’s unwavering focus on financial inclusion and deep commitment to building strong communities make him an excellent choice to represent the NCUA in this important capacity,” Chairman Harper said. “Given his past work on the NeighborWorks America Board, I also know that he wholeheartedly believes in the mission of the organization and will work tirelessly to improve access to affordable and healthful housing in neighborhoods and communities throughout the United States.”

“NeighborWorks America plays a critical role to strengthen American communities through affordable housing initiatives,” Hood said. “With the impact of the COVID-19 pandemic, the mission of NeighborWorks America is as important now as it has ever been. Chairman Harper did an outstanding job representing the agency on the NeighborWorks America Board, and I am thankful that he selected me to fill the seat he previously held.”

The NeighborWorks America Board consists of representatives of financial regulatory agencies and the U.S. Department of Housing and Urban Development. Hood joins the following individuals currently serving on the NeighborWorks America Board:

• Chair Martin Gruenberg, Member of the Board of Directors of the Federal Deposit Insurance Corporation
• Vice Chair Michelle W. Bowman, Member of the Board of Governors of the Federal Reserve System
• Grovetta Gardineer, Senior Deputy Comptroller for Bank Supervision Policy, Office of the Comptroller of the Currency

Hood previously served on the NeighborWorks America Board during his first term on the NCUA Board.

For more than 40 years, NeighborWorks America has offered grant funding, peer-exchange, technical assistance, evaluation tools and access to training as the nation’s leading trainer of housing and community development professionals. Its network includes more than 240 members in every state, the District of Columbia and Puerto Rico. In the last five years, the organization has generated more than $40.2 billion in investment across the country. For more information, visit www.neighborworks.org (opens new window).