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Service and Security are Fundamental Responsibilities, Hood Said

ALEXANDRIA, Va. (Oct. 17, 2019) – The 71^st annual International Credit Union Day is a reminder of the responsibilities of serving and protecting members, National Credit Union Administration Chairman Rodney E. Hood said today.

“This is a day when we mark our progress and plan for the future,” Hood said. “Credit unions, founded on the principle of ‘people helping people,’ strive to provide affordable financial services. The NCUA works to give credit unions the necessary flexibility to do their jobs, within the bounds of safety and soundness. And both the agency and the institutions we regulate must remain mindful of the importance of protecting members by providing financial literacy tools and by maintaining a strong defense against cyber threats.”

International Credit Union Day (opens new window) celebrates the spirit and the accomplishments of the global credit union movement.

“The cooperative credit system relies on the trust of our members, and by earning that trust every day, we help them build more secure financial futures for themselves and their families,” Hood said.

Four federal financial regulatory agencies today requested comment on a proposed Interagency Policy Statement on Allowances for Credit Losses. This proposed policy statement is intended to promote consistency in the interpretation and application of the Financial Accounting Standards Board’s (FASB) credit losses accounting standard, which introduces the current expected credit losses (CECL) methodology.

The proposed interagency policy statement describes the measurement of expected credit losses using the CECL methodology and updates concepts and practices detailed in existing supervisory guidance that remain applicable. CECL is effective for most public financial institutions beginning in 2020, and the FASB recently decided to defer the effective date of CECL for all other institutions to 2023. The proposed interagency policy statement would be effective at the time of each institution’s adoption of the credit losses accounting standard.

The agencies also are requesting comment on the proposed Interagency Guidance on Credit Risk Review Systems. The guidance presents principles for establishing a system of independent, ongoing credit risk review in accordance with safety and soundness standards.

The proposals were issued by the Federal Reserve Board, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency. Comments on each proposal will be accepted for 60 days after publication in the Federal Register.

Attachments:
Proposed Interagency Policy Statement on Allowances for Credit Losses (opens new window)
Proposed Interagency Guidance on Credit Risk Review Systems (opens new window)

ALEXANDRIA, Va. (Oct. 11, 2019) – National Credit Union Administration Chairman Rodney E. Hood today welcomed the Consumer Financial Protection Bureau’s final rule providing regulatory relief to smaller financial institutions under the Home Mortgage Disclosure Act.

“This is positive news for small credit unions,” Hood said. “Regulators need to stay mindful of the reporting burdens we place on smaller institutions, and we should always work to tailor rules appropriately. This will allow small credit unions to focus resources on serving their member-owners, not burdensome government regulations.”

The Bureau’s final rule (opens new window) extends until Jan. 1, 2022, the current temporary coverage threshold of 500 open-ended lines of credit. Financial institutions that originate fewer than 500 open-end lines of credit in 2020 and 2021 will not need to collect and report data on those.

NCUA Chairman Hood Marks Six Months at Agency’s Helm

ALEXANDRIA, Va. (Oct. 8, 2019) – National Credit Union Administration Chairman Rodney E. Hood today released a six-month progress report on his efforts since he took office.

“We are laying a strong foundation for the future of the credit union system,” Hood said. “I also believe it is important that credit union stakeholders can track NCUA’s progress.”

The progress report summarizes the NCUA’s recent initiatives that continue the agency’s regulatory reform agenda, as well as collaboration efforts and stakeholder engagement.

“Since I was sworn in six months ago, regulatory reform has been among my top priorities,” Hood said. “We all agree that clear rules create confidence, fairness, and accountability. We need well-crafted regulations to ensure the safety and soundness of the credit union system. That’s why I want to see a regulatory system that is effective, but not excessive. We are making progress towards that goal.”

Agency Reminds Credit Unions to be Aware of Changes to Certification Rules

ALEXANDRIA, Va. (Oct. 7, 2019) – The National Credit Union Administration has extended the deadline for federally insured, low-income credit unions that want to become certified Community Development Financial Institutions to apply for qualification to use the agency’s streamlined CDFI certification process.

The deadline is now Nov. 30.

This will be the final opportunity to take advantage of the streamlined certification process in 2019.  

Credit unions need to be aware the U.S. Treasury Department has announced important changes to the Community Development Financial Institution and the Native American CDFI Assistance programs (opens new window). Beginning with the FY2020 application round, credit unions must be certified as CDFIs no later than the date the Notice of Funds is published in the Federal Register.

The agency’s Office of Credit Union Resources and Expansion hosts a resource page with details about CDFI certification and the streamlined process. The agency’s application guide (opens new window) has the necessary instructions for the qualification process. The Community Development Financial Institutions Fund’s webpage (opens new window) offers information about the benefits of CDFI certification.

Developed by the NCUA and the CDFI Fund, the streamlined application process has helped 50 credit unions obtain certification as community development financial institutions.

ALEXANDRIA, Va. (Oct. 1, 2019) – Financial losses due to cybercrime reached $2.7 billion in 2018 (opens new window), and during National Cybersecurity Awareness Month, the National Credit Union Administration is reminding credit union industry stakeholders to remain vigilant.

“In this day and age, cybersecurity is everyone’s business,” NCUA Chairman Rodney E. Hood said. “Hackers and thieves do not rest, and the NCUA is committed to leadership in detection and response to cyber threats. We expect credit unions to take appropriate measures to protect themselves and their members, and we provide numerous information resources to help them do that job. Earlier this year, I named a special advisor, who reports directly to me, to coordinate our efforts. I hope everyone in our industry will continue working to keep our financial system, and the millions of Americans who entrust their assets to us, safe.”

Cybersecurity remains a supervisory priority for the NCUA, and the agency puts special emphasis on:

• Advancing consistency, transparency and accountability within the cybersecurity examination program;
• Encouraging due diligence for supply chain and third-party service provider management at credit unions;
• Assisting institutions with resources to improve operational hygiene and resilience; and
• Ensuring NCUA’s systems and collected controlled unclassified information is secure.

The agency maintains a cybersecurity resources webpage to provide credit unions with important information, including regulations and guidance, about protecting themselves and their members from cyber threats.

During Cybersecurity Awareness Month, the NCUA will share tips on its Facebook page (opens new window) and on Twitter (opens new window) about online security, recognizing and preventing identity theft, and what consumers can do if they fall victim to a cybercrime. The NCUA provides consumers with information on staying safe in the Be Smart Online (opens new window) section of MyCreditUnion.gov (opens new window).

National Cyber Security Awareness Month is a collaborative effort by government, non-profit, and industry stakeholders to ensure Americans have the necessary information to help them stay more secure online. The NCUA has joined the U.S. Department of Homeland Security’s efforts with the National Cyber Security Alliance’s Stay Safe Online initiative (opens new window) to raise awareness and encourage vigilance. 

ALEXANDRIA, Va. (Oct. 2, 2019) – The National Credit Union Administration is inviting credit unions to its first annual Credit Union Diversity, Equity, and Inclusion Summit on Wednesday, Nov. 6, in Alexandria.

“I am delighted to announce this event, and I hope credit unions will join us for an important conversation,” NCUA Chairman Rodney E. Hood said. “I have described financial inclusion as the civil rights issue of our time, and by ‘inclusion,’ I mean not only broader access to affordable financial services, but also to employment and business opportunities. Our country is going through a period of profound demographic change, and our financial system should be leading efforts to respond to that change.”

Details about the Summit and registration are available on the NCUA.gov website. There is no charge for this event; however, seating is limited.

Chairman Hood and NCUA Board Members J. Mark McWatters and Todd M. Harper will address the Summit. The event will include panel discussions on best practices for promoting diversity, equity, and inclusion; on recruiting and retaining a diverse workforce; and on collecting diversity data. There will also be a demonstration of the NCUA’s credit union diversity self-assessment, which helps credit unions identify opportunities to strengthen diversity and inclusion policies and practices within their organizations.

“These efforts are at the very core of the credit union idea of ‘people helping people,’” Hood said. “Credit unions are stronger, and they serve their members and communities better, when they promote greater diversity, equity, and inclusion as part of their business model.”