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ALEXANDRIA, Va. (June 18, 2020) – During the Illinois Credit Union League’s Virtual Town Hall Meeting on June 11, National Credit Union Administration Board Member Todd M. Harper called on the NCUA and the credit union industry to take action to advance economic equality and justice.

“Civil rights and human rights are core American values, and I fully embrace them,” Board Member Harper said. “I also believe deeply in equality. That’s why the brutal killing of George Floyd shocked and sickened me. For the African American community, the circumstances of Mr. Floyd’s death are unfortunately far too familiar. As a leader at the NCUA, I cannot respond by just saying, ‘we need to do better’ or ‘we must do more.’ Those lines rightfully ring hollow to communities of color. They are empty promises. To achieve real, sustainable change, I, like each of us, must take action within my sphere of influence.”

During his remarks, which are available on the NCUA’s website, Harper outlined four initial approaches he will advance as a Board Member. They include:

• Building diverse and inclusive workforces and supplier chains,
• Enhancing support for minority depository institutions,
• Enforcing fair lending laws, and
• Funding initiatives aimed at closing the wealth gap.

Additionally, Harper detailed his experience learning about credit unions’ efforts around the country to meet their members’ needs and develop innovative initiatives aimed at creating economic equity and opportunity. He stressed that credit unions that engage with their communities would be remembered and supported for their efforts. Harper also called on the credit union system to push for greater financial inclusion.

“To address long-standing societal problems of economic equality and justice, we need you to recommit to addressing these issues in your communities by finding ways to adapt your products and services,” Harper said. “In serving everyone, your credit union, your members, and our country will be better for it. You will also be fulfilling the “people helping people” philosophy at the heart of the credit union movement.”

Harper also discussed the economic outlook and how it could potentially affect credit union performance, the regulatory and legislative enhancements made to the Central Liquidity Facility, and the NCUA’s response to the COVID-19 pandemic. He invited those credit unions that are not already members of the CLF or have access to the facility through an agent to join the facility.

ALEXANDRIA, Va. (June 18, 2020) – During the Illinois Credit Union League’s Virtual Town Hall Meeting on June 11, National Credit Union Administration Board Member Todd M. Harper called on the NCUA and the credit union industry to take action to advance economic equality and justice.

“Civil rights and human rights are core American values, and I fully embrace them,” Board Member Harper said. “I also believe deeply in equality. That’s why the brutal killing of George Floyd shocked and sickened me. For the African American community, the circumstances of Mr. Floyd’s death are unfortunately far too familiar. As a leader at the NCUA, I cannot respond by just saying, ‘we need to do better’ or ‘we must do more.’ Those lines rightfully ring hollow to communities of color. They are empty promises. To achieve real, sustainable change, I, like each of us, must take action within my sphere of influence.”

During his remarks, which are available on the NCUA’s website, Harper outlined four initial approaches he will advance as a Board Member. They include:

• Building diverse and inclusive workforces and supplier chains,
• Enhancing support for minority depository institutions,
• Enforcing fair lending laws, and
• Funding initiatives aimed at closing the wealth gap.

Additionally, Harper detailed his experience learning about credit unions’ efforts around the country to meet their members’ needs and develop innovative initiatives aimed at creating economic equity and opportunity. He stressed that credit unions that engage with their communities would be remembered and supported for their efforts. Harper also called on the credit union system to push for greater financial inclusion.

“To address long-standing societal problems of economic equality and justice, we need you to recommit to addressing these issues in your communities by finding ways to adapt your products and services,” Harper said. “In serving everyone, your credit union, your members, and our country will be better for it. You will also be fulfilling the “people helping people” philosophy at the heart of the credit union movement.”

Harper also discussed the economic outlook and how it could potentially affect credit union performance, the regulatory and legislative enhancements made to the Central Liquidity Facility, and the NCUA’s response to the COVID-19 pandemic. He invited those credit unions that are not already members of the CLF or have access to the facility through an agent to join the facility.

ALEXANDRIA, Va. (June 16, 2020) – National Credit Union Administration Chairman Rodney E. Hood issued the following statement commending the service of Andrew Olmem, who is stepping down as Deputy Director of the National Economic Council.

“Andrew Olmem has played a pivotal role in creating a regulatory environment that helps drive the U.S. economy forward and create jobs. During the unprecedented coronavirus pandemic, Andrew provided steadfast and thoughtful leadership that culminated in the enactment of the landmark CARES Act, which provided much-needed relief to American workers and businesses. As a result of Andrew’s tireless dedication, the CARES Act provided financial regulators with tools to offer regulatory relief, flexibility, and liquidity to the financial institutions they supervise. I thank Andrew for his service, and I wish him the very best in all his future endeavors.”

ALEXANDRIA, Va. (June 15, 2020) – National Credit Union Administration Chairman Rodney E. Hood issued the following statement on President Donald J. Trump’s announced intention to nominate Kyle S. Hauptman to the agency’s Board:

“I congratulate Mr. Hauptman on President Trump’s intent to nominate him to the NCUA Board,” NCUA Chairman Hood said. “Kyle has significant experience in the financial services sector as well as the public policy arena, which will serve him well. If confirmed, I look forward to working with Kyle to ensure credit unions have the regulatory structure to meet the evolving needs of their members and serve as a vital component of the nation’s economic recovery following the COVID-19 pandemic. I wish him well as he proceeds through the nomination process.”

Mr. Hauptman currently serves Senator Tom Cotton (R-Ark.) as the Staff Director for the Economic Policy Subcommittee of the U.S. Senate Committee on Banking, Housing, and Urban Affairs. 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 as well as in their international offices in Tokyo and Sydney. Mr. Hauptman served as a voting member on the U.S. Securities and Exchange Commission Advisory Committee on Small and Emerging Companies from 2016-2017. Mr. Hauptman also served on President Donald J. Trump’s transition team in 2016.

Mr. Hauptman holds a master’s in business administration from Columbia Business School and a bachelor of arts from University of California, Los Angeles.

Accounts Remain Protected by Share Insurance Fund; Member Services Uninterrupted

ALEXANDRIA, Va. (June 11, 2020) – The National Credit Union Administration today placed Southern Pine Credit Union in Valdosta, Georgia, into conservatorship. This action was taken in consultation with the Georgia Department of Banking and Finance.

Member deposits at Southern Pine Credit Union remain protected by the National Credit Union Share Insurance Fund. Administered by the NCUA, the Share Insurance Fund insures individual accounts at Southern Pine Credit Union up to $250,000, and a member’s interest in all joint accounts combined is insured 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.

Member services will continue uninterrupted at the credit union’s main office at 5495 Clyattville Lake Park Road, Valdosta, Georgia. Members can continue to conduct normal financial transactions, deposit and access funds, make loan payments, and use shares. The office is open Monday through Friday from 8 a.m. to 4 p.m. Eastern.

Members with questions about Southern Pine Credit Union’s operations may contact the credit union at 229.559.3311. Members with questions about the conservatorship may review the Southern Pine Credit Union 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 NCUA’s MyCreditUnion.gov (opens new window) consumer website.

The NCUA placed Southern Pine 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.

Southern Pine Credit Union is a federally insured, state-chartered credit union with 2,149 members and assets of approximately $46.4 million, according to the credit union’s most recent Call Report. Southern Pine Credit Union serves current and retired employees of Packaging Corporation of America in Valdosta, Georgia, and their immediate family members.

ALEXANDRIA, Va. (June 9, 2020) – The National Credit Union Administration and the Export-Import Bank of the United States today launched a three-year collaborative effort to bring small businesses and credit unions together and expand awareness about EXIM programs.

The NCUA and EXIM signed a memorandum of understanding (opens new window) to undertake a series of initiatives that will help credit unions better understand and make use of EXIM guaranteed loans and resources. These joint initiatives may include webinars and training events.

“Under this agreement, we’ll be working with EXIM to develop educational and training initiatives on export financing opportunities to share with credit unions, so they can educate their small-business members about the available opportunities, such as an EXIM guaranteed loan being exempt from the member business cap of 12.25 percent,” said NCUA Chairman Rodney E. Hood. “Helping small businesses to gain access to capital is essential, and we can anticipate that this collaboration will be a great help to many hard-pressed entrepreneurs, particularly the steep challenges they face in today’s environment.”

“This MOU represents EXIM’s first-ever targeted outreach to credit unions and their millions of customers, and will provide important support to America’s small businesses – especially those that may be exporting for the first time,” said Chairman Reed. “NCUA Chairman Hood is a visionary leader and I look forward to the collaboration between our agencies to raise awareness with credit unions on the services available through EXIM to help their members export, grow their businesses and U.S. jobs, and bring prosperity to local communities.”

Commercial lending by federally insured credit unions has grown in recent years. At the end of 2019, credit unions reported more than $81 billion in commercial loans outstanding.

(June 5, 2020) – The members of the Federal Financial Institutions Examination Council (FFIEC) released the following statement on the importance of financial inclusion:

“We, the prudential and consumer financial protection regulators of the U.S. financial system, are committed to financial inclusion. Racism and discrimination must not be tolerated. Everyone deserves the opportunity to participate in our financial mainstream. We remain steadfastly dedicated to ensuring that the financial institutions which we regulate provide fair access and fair treatment to everyone in America.”

Agency	Contact	Phone
Federal Reserve	Susan Stawick	202.452.2955
CFPB	Marisol Garibay	202.435.5160
FDIC	Julianne Breitbeil	202.898.6895
NCUA	Laura Todor	703.518.1149
OCC	Stephanie Collins	202.649.6870
SLC	Jim Kurtzke	202.728.5733

ALEXANDRIA, Va. (June 2, 2020) – National Credit Union Administration (NCUA) Chairman Rodney E. Hood issued the following statement today reflecting on the death of George Floyd and current events:

“As the first African-American to lead a federal banking agency, I feel compelled to speak following the tragic death of George Floyd. Over the past few months, communities across the country have been overwhelmed with challenge and uncertainty. Besides being on the heels of a global pandemic, we are also experiencing heightened levels of strife following yet another instance of abuse of authority and violence against a black man.

For me, these discussions are more than simply abstracts — they are personal to me. In my banking career, I’ve attended conferences and professional events where I was the only man of color in the room. I’ve arrived early to speak on a panel discussion, and people were surprised to learn that I was a participant. I vividly remember the conversations with my father about how to engage with police when pulled over, and my mother performing safety checks on my car before I went out on the weekends to ensure the signal and brake lights were all functioning properly. In 2020, I find myself having similar conversations with my young African-American cousins.

As an African-American man, I am shocked and appalled and share the heartbreak of many in the black community. I am all too familiar with the anger and frustration that comes with the everyday challenges and realities surrounding race. While I pray for justice, healing, and peace for our nation and for the family and loved ones of George Floyd, I am also encouraging everyone to have difficult conversations and to look for ways to promote diversity and inclusion within our communities. Individually and collectively, we can make a difference — one conversation and relationship at a time.

At the NCUA, we are striving for ways to lead on these issues. One of the top priorities for my chairmanship is financial inclusion, which means expanded access to the financial mainstream for underserved communities as well as diverse hiring, contracting and board membership. I also called for the creation of the NCUA Culture, Diversity, and Inclusion Council to focus on issues of inclusion within the agency. True inclusion within our financial regulators, financial institutions and communities is a goal we all must strive towards. Diversity is important, but without cultural change that encourages true inclusion, it risks being little more than checking the right boxes.”

Member Deposits Remain Protected up to $250,000 by the Share Insurance Fund

ALEXANDRIA, Va. (May 29, 2020) – The National Credit Union Administration today liquidated IBEW Local Union 712 Federal Credit Union in Beaver, Pennsylvania.  

West Penn P&P Federal Credit Union of Beaver, Pennsylvania, immediately assumed IBEW Local Union 712 Federal Credit Union’s assets, member shares, and loans. West Penn P&P Federal Credit Union is a federally chartered credit union with 2,150 members and assets of nearly $14.8 million, according to the credit union’s most recent Call Report.

The new West Penn P&P Federal Credit Union members will experience no interruption in services, and accounts remain insured by the National Credit Union Share Insurance Fund. Administered by NCUA, the Share Insurance Fund insures individual accounts up to $250,000, and a member’s interest in all joint accounts combined is insured up to $250,000. The Share Insurance Fund 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.

Members with questions about their accounts may contact West Penn P&P Federal Credit Union at 724.774.9237 between 8:30 a.m. and 5 p.m., Monday through Friday.

At the time of liquidation and subsequent purchase by West Penn P&P Federal Credit Union, IBEW Local Union 712 served 2,935 members and had assets of approximately $7.7 million, according to the credit union’s most recent Call Report. Chartered in 1964, IBEW Local Union 712 Federal Credit Union served members of IBEW Local Union 712. 

IBEW Local Union 712 Federal Credit Union is the first federally insured credit union liquidated in 2020.

ALEXANDRIA, Va. (May 28, 2020) – Credit unions can significantly bolster the entire system’s access to emergency liquidity by joining the Central Liquidity Facility, National Credit Union Administration Board Member Todd M. Harper said.

“Through my experiences in working on Capitol Hill during the last financial crisis, I knew disruption in the financial markets could quickly turn into liquidity shortfalls,” Board Member Harper said. “I strongly encourage all consumer credit unions that do not already belong to or have access to an agent for the Central Liquidity Facility to join as soon as possible. By joining the CLF, you will be demonstrating the best of the cooperative nature of the credit union movement.”

Harper made these remarks remotely during the Credit Union National Association’s Examination and Supervision Committee Meeting on Thursday, May 21. The full text of his remarks is available on the NCUA’s public website.

During his speech, Harper stated that the CARES Act temporarily makes it easier for credit unions to join the Central Liquidity Facility, including corporate credit unions to act as agents for consumer credit unions. The law also eased some restrictions around getting a liquidity loan and temporarily increased the capacity of the CLF from 12 times its capital to 16 times its capital through the end of 2020. According to Harper, this represents an opening to bolster the credit union system’s access to external liquidity.

Continue Focusing on Members

Harper also outlined the financial impact COVID-19 is having on the broader economy. He noted the sharp and rapid deterioration in labor market conditions, lost wages, and heightened uncertainty means the economy may not return to pre-coronavirus levels for some time. This will necessitate credit unions continuing to work with their members who have been affected by the pandemic’s financial and economic disruptions, he said.

“Consistent with safety and soundness and consumer financial protection, I encourage you to continue to develop products and services aimed at helping families pay for essential needs,” Harper said. “By focusing on your members, making responsible loans, accommodating their needs, your members will remember it in the long term.”

PCA Changes Will Provide Flexibility

Harper also discussed the NCUA Board’s recent changes to the agency’s prompt corrective action requirements. Approved during the Board’s May meeting, the first amendment will waive the earnings transfer requirement for credit unions that fall from well capitalized to adequately capitalized. This change will allow the credit union to use the capital to help their members. The second change creates a streamlined net worth restoration plan for credit unions that become undercapitalized because of an inflow of shares.

Both the earnings transfer waiver and the net worth restoration plan provisions will expire at the end of 2020.