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Accounts Remain Protected by Share Insurance Fund; Member Services Uninterrupted

ALEXANDRIA, Va. (Jan. 5, 2021) – The National Credit Union Administration today placed C O Federal Credit Union in Charleston, South Carolina, into conservatorship.

Member deposits at C O Federal Credit Union remain protected by the National Credit Union Share Insurance Fund. Administered by the NCUA, the Share Insurance Fund insures individual accounts at C O Federal Credit Union up to $250,000, and a member’s interest in all joint accounts combined up to $250,000. The Share Insurance Fund also separately protects IRA and KEOGH retirement accounts up to $250,000. The Share Insurance Fund has the backing of the full faith and credit of the United States.

The NCUA placed C O Federal Credit Union into conservatorship because of unsafe and unsound practices at the credit union. While continuing normal member services, the NCUA will work to resolve issues affecting the credit union’s operations.

Member services will continue uninterrupted at the credit union’s main office at 117 Spring St., Suite C, Charleston, South Carolina. Members can continue to conduct normal financial transactions, deposit and access funds, and make loan payments. The office is open Monday, Tuesday, Thursday, and Friday from 10 a.m. to 5 p.m. Eastern.

Members with questions about C O Federal Credit Union’s operations may contact the credit union at 843-722-7656. Members with questions about the conservatorship may review the frequently asked questions posted on the NCUA’s website. Members with questions about their Share Insurance Fund coverage can find more information in the Share Insurance Coverage (opens new window) section of the NCUA’s MyCreditUnion.gov (opens new window) consumer website.

C O Federal Credit Union is a federally insured, federally chartered credit union with 785 members and assets of $4,488,256 according to the credit union’s most recent Call Report. C O Federal Credit Union serves members of The Citizen Committee of Charleston County, South Carolina, who live in Charleston County and members of the International Longshoreman’s Association — Local #1422 in Charleston; persons retired as pensioners or annuitants from these organizations; members of their immediate family or household; and organizations of such persons.

ALEXANDRIA, Va. (Jan. 4, 2021) – The National Credit Union Administration Board unanimously approved, by notation vote, a request for information (opens new window) seeking comments and information on the NCUA’s communication methods to promote efficiency and increase transparency.

“This request for information seeks public input on how the agency can streamline and improve its communications with our stakeholders. Outdated or duplicative regulatory and supervisory information adds to the overall regulatory burden of credit unions as they must devote time and resources to sorting through this information,” NCUA Chairman Rodney E. Hood said. “We recognize that the amount of information the NCUA provides to credit unions can create challenges and may impose unintended burdens. This request for information addresses this concern and continues my mission to ensure NCUA’s regulation of credit unions is effective, not excessive.”

Specifically, the request for information seeks public input on how the agency can maximize efficiency and minimize burdens associated with obtaining information on federal laws, regulations, policies, guidance, and other materials relevant to federally insured credit unions. It contains questions about the effectiveness of press releases, social media content, and the timing and frequency of agency communications. There are also questions related to improving the agency’s websites, online data resources, and the delivery and format of supervisory guidance.

Comments on this request for information (opens new window) will be accepted for 60 days after publication in the Federal Register.

ALEXANDRIA, Va. (Dec. 31, 2020) – The National Credit Union Administration issued two prohibition orders in December. These individuals are prohibited from participating in the affairs of any federally insured financial institution.

• Vanessa Anderson-Hollins, a former employee of Port of Houston Warehouse Federal Credit Union, Houston, Texas, agreed and consented to the issuance of a prohibition order and agreed to comply with all of its terms to settle and resolve the NCUA Board’s claims against her.
• Janine Wilson, a former employee of Preferred Credit Union, Grand Rapids, Michigan, agreed and consented to the issuance of a prohibition order and agreed to comply with all of its terms to settle and resolve the NCUA Board’s claims against her.

Prohibition and administrative orders are searchable by name, institution, city, state, and year at the NCUA’s Administrative Orders webpage. The webpage also provides links to the federal enforcement actions of federal banking agencies against other institutions or their affiliated parties.

You may view NCUA enforcement orders online or inspect them at the NCUA’s Office of General Counsel between 9 a.m. and 4 p.m. Eastern, Monday through Friday. You also may order copies by mail from the NCUA at 1775 Duke Street, Alexandria, Virginia 22314-3428.

ALEXANDRIA, Va. (Dec. 28, 2020) – The extension of several COVID-19 relief measures in the Consolidated Appropriations Act, 2021 will ensure that credit unions can support their member-owners during the next phase of the pandemic, National Credit Union Administration Chairman Rodney E. Hood said today.

“These vital extensions ensure the NCUA and federally insured credit unions are able to respond to the evolving nature of COVID-19, and they provide needed regulatory certainty to the industry,” Chairman Hood said. “I wish to thank Chairwoman Waters and Ranking Member McHenry, and Chairman Crapo and Ranking Member Brown for their leadership and support for these vital measures. I also thank my fellow Board members for their efforts in support of these critical provisions.”

The Consolidated Appropriations Act, 2021, which was signed into law by President Donald J. Trump on Dec. 27, extends several provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Paycheck Protection Program and Health Care Enhancement Act. These provisions include:

Measures that Ensure Continued Stability and Regulatory Relief

The act extends the CARES Act provisions that provided the Central Liquidity Facility with increased flexibility and borrowing authority to support the liquidity needs of the system and the Share Insurance Fund through Dec. 31, 2021.

Additionally, the act extends the regulatory relief measures related to troubled debt restructurings and it lengthens the exemption from complying with the Financial Accounting Standards Board’s current expected credit losses methodology until Jan. 1, 2022.

Measures that Support Community-Based Financial Institutions

The act provides $12 billion in COVID-19 relief funding for community development financial institutions that predominantly serve minority communities. Approximately a third of this $12 billion is set aside for smaller financial institutions with less than $2 billion in assets.

Additionally, the act provides the Community Development Financial Institutions Fund with $270 million in supplemental funding. The Community Development Revolving Loan Fund, which the NCUA administers, also received $1.5 million in funding for technical assistance grants and low-interest loans to support low-income credit unions.

Measures that Aid Credit Union Members and Businesses

The act also provides additional support for and extends the Paycheck Protection Program (PPP) through March 31, 2021. Approximately $284 billion is set aside for first and second round forgivable PPP loans. There is also a dedicated $15 billion set-aside for PPP lending through community-based financial institutions like CDFIs and minority depository institutions, along with other changes to the PPP program.

Additional information on the Consolidated Appropriations Act, 2021 is available online (opens new window).

ALEXANDRIA, Va. (Dec. 23, 2020) – The National Credit Union Administration Board unanimously approved, by notation vote, a notice of proposed rulemaking (opens new window) that would amend the agency’s Suspicious Activity Report (SAR) regulation.

The proposed regulation would permit the NCUA to issue, on a case-by-case basis, exemptions from SAR filing requirements to federally insured credit unions, when the exemption is consistent with safe and sound practices and can improve the effectiveness and efficiency of Bank Secrecy Act reporting. The proposed rule would also make it possible for the NCUA to grant exemptions, in conjunction with the Financial Crimes Enforcement Network, to federally insured credit unions that develop innovative solutions to meet Bank Secrecy Act requirements.

The NCUA expects these amendments will reduce regulatory burdens on federally insured credit unions and encourage technological innovation within the credit union system.

These proposed changes are part of a coordinated effort between the NCUA, FinCEN, and the federal banking agencies to improve the efficiency and effectiveness of Bank Secrecy Act compliance programs and facilitate greater innovation within the banking sector.

Comments on the proposed rule (opens new window) will be accepted for 30 days after publication in the Federal Register.

ALEXANDRIA, Va. (Dec. 21, 2020) – J. Owen Cole, Associate Director of the Policy and Markets Division in the NCUA’s Office of Examination and Insurance, announced his retirement effective at the end of December.

“Owen Cole has been a tremendous asset to the NCUA and his accomplishments have made an immeasurable impact on both the agency and our nation’s system of cooperative credit,” NCUA Chairman Rodney Hood said. “In each of the roles held by Owen, he unfailingly gave his best and personified hard work and dedication in support of the NCUA’s strategic goals.”

Cole served in various roles during his 27-year tenure at the NCUA, including Senior Investment Officer, Director of the Division of Risk Management, Associate Regional Director of Operations, Deputy Executive Director, and Acting Chief of Staff.

He also served as President of the NCUA Central Liquidity Facility, which addresses potential credit union system liquidity risks. “Owen’s leadership in this important position helped to ensure that credit unions can continue to meet their member’s needs despite the economic challenges associated with the ongoing COVID-19 pandemic as well as previous financial crises,” Hood said.

Prior to joining the NCUA, Cole enjoyed a 10-year commercial banking career at the Riggs National Bank, where he served as a Vice President in the bank’s Treasury Division.

ALEXANDRIA, Va. (Dec. 21, 2020) – National Credit Union Administration Vice Chairman Kyle S. Hauptman announced today the appointment of Sarah Canepa Bang as his Senior Advisor.

“I am thrilled to have Sarah in this critical role,” Vice Chairman Hauptman said. “Her experience managing credit union service organizations at the highest level, along with her knowledge of the credit union industry, regulations, and policy administration will be of immense value to me, the Board, and the NCUA.”

Bang has broad experience in the credit union industry that includes serving as Executive Vice President of Industry Relations, and as President, Chief Strategy Officer at CO-OP Financial Services. Previously, she was Chief Executive Officer at Financial Service Centers Cooperative, Inc. and Executive Vice President of Oregon Credit Union League and Affiliates.

Bang holds a bachelor of arts and a bachelor of science from University of Wisconsin, Madison.

ALEXANDRIA, Va. (Dec. 21, 2020) – Credit unions can learn more about the issue of human trafficking and how to spot the warning signs during a webinar hosted by the National Credit Union Administration on Thursday, January 7, at 2 p.m. Eastern.

This webinar is presented in partnership with the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (opens new window) unit and with involvement from The Knoble (opens new window), a non-profit organization of financial services professionals working to combat human trafficking, child exploitation, financial crime, and elder financial abuse.

The webinar will provide an overview of human trafficking and its impact on communities, law enforcement’s efforts to combat it, and potential red flags in credit unions. Attendees will also learn how to report concerns about human trafficking to the proper authorities.

Registration for this 90-minute webinar is open (opens new window) to all credit unions interested in learning more about the prevalence of human trafficking and detection methods from a credit union’s perspective. There is no charge for attending the webinar.

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 can submit questions in advance to [email protected] with the subject line “Human Trafficking.” Participants with technical questions about accessing the event can email [email protected].

The webinar will be closed captioned and archived on the NCUA’s public website and Learning Management Service (opens new window) approximately three weeks following the live event.

ALEXANDRIA, Va. (Dec. 18, 2020) – The National Credit Union Administration Board approved the designation of Board Member Kyle S. Hauptman as Vice Chairman of the NCUA, effective immediately, pursuant to the requirements of NCUA’s Rules and Regulations.

“I thank President Trump for this honor and the trust he has placed in me,” Vice Chairman Hauptman said. “As Vice Chairman of the NCUA, I look forward to working with credit unions, my fellow Board Members, and Congress on solutions that provide regulatory relief for the credit union community and expand the use of technology to reach underserved communities. 

“I am committed to the NCUA Board’s obligation to protect America’s $1.79 trillion credit union system, which is dedicated to serving those of modest means, and ensuring the safety and soundness of the National Credit Union Share Insurance Fund.”

President Donald J. Trump announced the nomination of Hauptman on June 15. The U.S. Senate Banking, Housing, and Urban Affairs Committee held its confirmation hearing on July 21, and the Senate approved his nomination on Dec. 2. Hauptman took the oath of office on Dec. 14. 

Before serving on the NCUA Board, Hauptman was Senator Tom Cotton’s (R-Arkansas) advisor on economic policy, as well as Staff Director of the Senate Banking Committee’s Subcommittee on Economic Policy. Before joining Senator Cotton’s office, Hauptman served on President Donald J. Trump’s transition team in 2016.

Previously, he held the position of Executive Director of the Main Street Growth Project and Senior Vice President at Jefferies & Co. He also worked at Lehman Brothers as a bond trader in New York City and their international offices in Tokyo and Sydney. Hauptman served as a voting member on the U.S. Securities and Exchange Commission Advisory Committee on Small and Emerging Companies from 2016–2017.

Board Action Bulletin

Approves Final Annual Operating Fee Assessment Rule

ALEXANDRIA, Va. (Dec. 18, 2020) – Through a live audio webcast, the National Credit Union Administration Board today held the second of two consecutive open meetings in December. At the meeting, the Board approved three items:

• Operating, capital, and National Credit Union Share Insurance Fund budgets for 2021 and 2022;
• A final rule on the annual operating fee assessment; and
• A final notice on the overhead transfer rate and the operating fee schedule methodologies.

Agency Budgets Approved for 2021, 2022

By a 2-1 vote, the NCUA Board approved the agency’s budgets for 2021 and 2022 (opens new window). Combined, the 2021 operating, capital, and National Credit Union Share Insurance Fund administrative budgets will be $341.4 million. The combined budgets for 2022 will be $343.5 million.

Budget	2021	2022
Operating budget	$314.6 million	$316.9 million
Capital budget	$18.8 million	$18.9 million
Share Insurance Fund budget	$8.0 million	$7.7 million

The budget supports a total of 1,192 full-time employees for 2021, and 1,187 full-time employees in 2022.

Annual Operating Fee Assessment Final Rule Approved

The Board unanimously approved a final rule (opens new window) that amends the NCUA’s regulation governing assessment of an annual operating fee to federal credit unions.

The final rule:

• Amends the current rule to exclude from total assets any loan a federal credit union reports under the Small Business Administration’s Paycheck Protection Program (PPP) or similar future programs approved for exclusion by the NCUA Board;
• Deletes from the current regulation references to the Credit Union System Investment Program and the Credit Union Homeowners Affordability Relief Program, both of which no longer exist;
• Amends the period used for the calculation of a federal credit union’s total assets; and
• Incorporates minor technical changes.

This final rule is effective 30 days after date of publication in the Federal Register.

Board Approves Issuing Final Notice on OTR and Operating Fee Schedule Methodologies

Staff from the NCUA’s Offices of Examination and Insurance and Chief Financial Officer briefed the Board on a final notice (opens new window) on the overhead transfer rate and the operating fee schedule methodologies.

Specifically, the offices sought approval to issue a final notice on these two matters:

• The existing principles-based overhead transfer rate methodology adopted in 2017; and
• Clarifications and changes to the agency’s methodology in determining how it apportions operating fees charged to federal credit unions.

The Board unanimously approved issuing the final notice.

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.