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ALEXANDRIA, Va. (April 22, 2016) – The National Credit Union Administration marked a year of numerous environmental accomplishments on Earth Day 2016, and Board Chairman Debbie Matz expressed confidence responsible environmental practices will remain part of the agency’s culture.

“One of NCUA’s goals is to be a good corporate citizen, and we make continuous efforts to reduce energy use and increase recycling,” Matz said. “This is part of our agency culture, exemplified by the greeNCUA initiative. It’s part of our annual performance plan, and I know that NCUA will keep making strides towards greater efficiency and reducing our environmental footprint.”

NCUA’s efforts to practice environmental stewardship in the past year included:

• Achieving the LEED Gold certification from the Green Building Institute for the agency’s central office;
• Recertification of the central office by Environmental Protection Agency with an Energy Star rating of 78 out of a possible 100 points;
• Implementation of energy-saving measures in the agency’s regional offices, including installation of more efficient lighting, heating and air conditioning, and other equipment; and
• Leasing laptop computers for staff with an Energy Star 6.0 certification. 

NCUA employees observed the forty-seventh Earth Day on April 20 with an in-house clean-up and recycling event. At the 2016 National Exam Training Program Conference, which more than 900 agency staff attended, participants also were given the option to access information including registration, the training agenda, and transportation electronically instead of using printed materials. Throughout the year, NCUA provides employee bulletins with information about and encouragement to adopt sound environmental practices, and employees are urged to submit green suggestions to the agency.

Launched in the United States in 1970 and celebrated on April 22 around the world, Earth Day seeks to increase environmental awareness and promote responsible living.

#NCUAChat to Educate Consumers on Protecting Wallets, Personal Information

ALEXANDRIA, Va. (April 26, 2016) – The Federal Trade Commission will be joining the National Credit Union Administration’s live Twitter chat April 27 to provide information to help people protect themselves from consumer financial fraud, which affects millions of Americans each year.

The Twitter chat is scheduled to begin tomorrow at 11 a.m. Eastern. Credit unions and consumers can follow @MyCUgov (opens new window) and contribute to the conversation using the #NCUAChat hashtag on Twitter. Participants can submit questions in advance to [email protected].

During the chat, the Federal Trade Commission will be sharing fraud prevention tips and resources. NCUA will share tips from MyCreditUnion.gov (opens new window) on how consumers can protect their finances (opens new window) and resources available on the agency’s Fraud Prevention Center (opens new window).

The Twitter chat is part of NCUA’s activities during Financial Literacy Month. Consumers can visit NCUA’s MyCreditUnion.gov (opens new window) and the agency’s financial literacy site, Pocket Cents (opens new window), at any time to get more information about saving, borrowing and managing credit.

Under the Federal Credit Union Act, promoting financial literacy is a core credit union mission. While credit unions serve the needs of their members and promote financial literacy within the communities they serve, NCUA works to reinforce credit union efforts, raise consumer awareness and increase access to credit union services. NCUA also participates in national financial literacy initiatives, including the Financial Literacy and Education Commission, an interagency group created by Congress to improve the nation’s financial literacy and education.

Agency Schedules May 11 Webinar on Grant Application Process

ALEXANDRIA, Va. (April 26, 2016) – Low-income credit unions seeking support to grow, train staff and improve security should consider applying for Community Development Revolving Loan Fund assistance grants from the National Credit Union Administration, Board Chairman Debbie Matz said today.

“These grants are important investments in credit unions, their members and their communities,” Matz said. “I encourage all low-income credit unions to learn more about the grant program and consider applying. There is assistance available to help you offer new products and services, train your staff, hire interns or strengthen your cyber security.”

NCUA will accept grant applications between June 1 and June 30. Interested credit unions may submit one application for all initiatives using NCUA’s CyberGrants program (opens new window). Each credit union may apply for more than one initiative; however, grant awards are subject to the availability of funds.

The four eligible initiatives and maximum grant awards are:

• Capacity and growth: Credit unions considering new lending programs, deposit products or other growth strategies to increase members’ financial service opportunities may apply for up to $15,000 in assistance.
• Cyber security: Up to $7,000 will be available for each eligible credit union to enhance cyber security and protect member information.
• Staff training: Grants of up to $3,000 will be available for selected credit unions to pay for training related to credit union operations, including compliance, lending and collections.
• Student internships: Up to $4,000 will be available to each credit union to hire students enrolled in high school or college.

A full list of eligible grant projects and NCUA’s evaluation criteria can be found online here.

May 11 Webinar will Cover Grant Process

NCUA will offer a 90-minute webinar, “NCUA 2016 Grant & Loan Opportunities,” to help credit unions learn more about the grant process.

The webinar will be held Wednesday, May 11, beginning at 2 p.m. Eastern. Online registration is available [link no longer available]. Participants will use this same link to log into the webinar. Registrants should allow pop-ups from this website. There is no charge.

Dominic Carullo, economic development specialist with NCUA’s Office of Small Credit Union Initiatives, will joined by a panel of OSCUI staffers: Geetha Valiyil, OSCUI comptroller; Susan Carter, financial analyst, and Ikenna Nwankpa, grant administrator. 

The webinar will cover the grant application process and the four eligible grant initiatives as well as urgent-needs grants and loans that are available year-round. A 30-minute question-and-answer session will follow.

Participants may submit questions in advance at [email protected]. The subject line of the email should read, “NCUA 2016 Grant Webinar.” Participants with technical questions about accessing the webinar may email [email protected]. This webinar will be closed captioned and then archived online here approximately three weeks following the live event.

NCUA’s Office of Small Credit Union Initiatives administers the Community Development Revolving Loan Fund grants. The office also fosters credit union development and the effective delivery of financial services for small credit unions, new credit unions, minority depository institutions and credit unions with a low-income designation.

Learn How to Execute a Successful Merger and Maximize the Benefits

ALEXANDRIA, Va. (April 28, 2016) – Credit union board directors considering a merger can learn more about the process and its benefits in a new online training module from the National Credit Union Administration.

The three-part video module, available online here (opens new window), examines current trends in mergers, when a credit union board should consider a merger and how to negotiate a merger agreement that best serves the credit union’s interests. 

A quiz at the conclusion of the module assesses the viewer’s knowledge. Finishing the quiz successfully earns the viewer a certificate of completion.

Credit unions board members can find additional information on the merger process in a pamphlet, Truth in Mergers: A Guide for Merging Credit Unions, available online here (opens new window).

Created by NCUA’s Office of Small Credit Union Initiatives, the online training module on mergers is part of a video series covering a variety of subjects important to credit union boards. The Office of Small Credit Union Initiatives fosters credit union development and the effective delivery of financial services for small credit unions, minority depository institutions, new credit unions and credit unions with a low-income designation. For more information, visit the office’s website or subscribe to its monthly FOCUS (opens new window) e-newsletter.

2015 Congressional Report Outlines Agency Initiatives to Improve the Recruitment and Retention of Minorities, Women

ALEXANDRIA, Va. (April 28, 2016) – The National Credit Union Administration saw greater diversity among its new hires during 2015, and the agency is committed to improving on that record.

“Greater diversity among our new hires, particularly at the senior staff level, is good news, but we know our job isn’t finished,” NCUA Board Chairman Debbie Matz said. “We recognize that NCUA still needs to do more. Beginning this year, the agency will launch several initiatives to promote greater diversity and inclusion. These efforts are part of our strategic goals, and we will be promoting them within both the agency and the credit union system.”

In 2015, minorities made up 35 percent of new hires overall, an increase from 31 percent in 2014. Minorities also made up 25 percent of senior staff hires during the year, and 50 percent of new senior staff hires were women.

The new figures are part of the annual report to Congress issued today from NCUA’s Office of Minority and Women Inclusion. The report, required by the Dodd-Frank Wall Street Reform and Consumer Protection Act, is available online.

NCUA’s workforce analysis showed that, despite progress, diversity overall has not significantly increased since 2012. As a result, NCUA is adjusting its long-term diversity and inclusion strategy to improve its track record. Beginning this year, the agency will review and refine its initiatives to recruit, retain and promote women and minorities. The initiatives include:

• Chartering employee resource groups to support the retention of diverse employees;
• Establishing an employee mentoring program;
• Developing an intentionally inclusive leadership culture;
• Providing additional training to employees and managers on unconscious bias; and
• Amending the charter of the agency’s Diversity Advisory Council to include greater senior executive representation.

NCUA is committed to creating an environment that fosters a diverse, well-trained and motivated staff. The Partnership for Public Service previously recognized NCUA as one of the best places to work among medium-sized agencies in the federal government for African Americans, Asians, Hispanics, and women.

NCUA’s efforts to create more diversity among its suppliers also continued last year. In 2015, NCUA awarded $7.3 million, or 22.5 percent, of its $32.5 million in contracts to minority- and women-owned businesses. This was the third consecutive year in which the agency surpassed the 20-percent mark in its supplier diversity levels. NCUA made $9.2 million or 25.5 percent of its $36 million in contract payments to minority- and women-owned businesses in 2015.

“A diverse supplier base is a sound business policy and allows NCUA to use its resources more effectively and efficiently,” Matz said.

The 2015 congressional report also includes information about NCUA’s ongoing efforts to promote financial literacy and help federally insured credit unions assess the diversity levels of their workforces.

Established in 2011, NCUA’s Office of Minority and Women Inclusion oversees all agency matters relating to measuring, monitoring and establishing policies for diversity in NCUA’s management, employment and business activities. It also assesses the diversity policies and practices of NCUA’s regulated entities, excluding the enforcement of statutes, regulations and executive orders pertaining to civil rights.

For Immediate Release

April 29, 2016

The Federal Financial Institutions Examination Council is seeking public comment on its proposal to revise the existing Uniform Interagency Consumer Compliance Rating System to reflect regulatory, supervisory, technological and market changes since the system was established.

The Consumer Compliance Rating System is a supervisory policy for evaluating financial institutions’ adherence to consumer compliance requirements. The FFIEC today released its proposal to revise the Consumer Compliance Rating System to reflect consumer compliance supervisory approaches already being used.

The revisions are designed to more fully align the rating system with the FFIEC agencies’ current risk-based, tailored examination approaches. The proposed revisions were not developed with the intention of setting new or higher supervisory expectations for financial institutions; their adoption will represent no additional regulatory burden.

The FFIEC invites public comments on any aspect of the attached proposal. Comments must be received 60 days from publication in the Federal Register. All comments received, including any personal information provided, will be posted, generally without change, to
www.regulations.gov. (opens new window)

Attachment

FFIEC CCR System Federal Register Notice #FFIEC-2016-0001 (opens new window)

The Federal Financial Institutions Examination Council (FFIEC) members today issued a revised Retail Payment Systems booklet, which is part of the FFIEC Information Technology Examination Handbook (IT Handbook). The update consists of the addition of a new appendix, Appendix E: Mobile Financial Services.

The Retail Payment Systems booklet contains guidance to assist examiners in evaluating financial institution and third-party provider management of the risks associated with retail payment systems. Appendix E contains guidance pertaining to mobile financial services risks that supplements existing booklet guidance on other retail payment topics, such as electronic payments related to credit cards and debit cards, remote deposit capture and changes in technology of retail payment systems.

Mobile financial services are the products and services that a financial institution provides to its customers through mobile devices. Appendix E focuses on the risks associated with mobile financial services and emphasizes an enterprise-wide risk management approach to effectively manage and mitigate those risks. It also contains a separate set of work-program objectives to assist the examiner in determining the state of risk and controls at an institution or third party providing mobile financial services. Financial institution management should also find this guidance helpful.

This appendix addresses the following:

• Mobile financial services technologies.
• Risk identification.
• Risk measurement.
• Risk mitigation.
• Monitoring and reporting.

The IT Handbook is available at http://ithandbook.ffiec.gov/ (opens new window).

The FFIEC was established in March 1979 to prescribe uniform principles, standards, and report forms and to promote uniformity in the supervision of financial institutions. It also conducts schools for examiners employed by the five federal member agencies represented on the FFIEC and makes those schools available to employees of state agencies that supervise financial institutions. The Council consists of the following six voting members: a member of the Board of Governors of the Federal Reserve System; the Chairman of the Federal Deposit Insurance Corporation; the Director of the Consumer Financial Protection Bureau; the Comptroller of the Currency; the Chairman of the National Credit Union Administration; and the Chairman of the State Liaison Committee.

Attachment

• FFIEC Retail Payment Systems, Appendix E: Mobile Financial Services (PDF) (opens new window)

The Federal Financial Institutions Examination Council’s (FFIEC) State Liaison Committee (SLC) today announced the election of Karen Lawson as its Chairman. The SLC Chairman’s term is a one-year period that begins May 1 and runs until April 30 of the following year. The SLC can re-elect the chairman for additional terms.

Lawson is the Director of the Office of Banking for the Michigan Department of Insurance and Financial Services. The office is responsible for the supervision, regulation, and examination of state-chartered banks, savings banks, trust banks, and business and industrial development companies. In addition to these entities, Department of Insurance and Financial Services regulates credit unions, insurance companies and agents, and various consumer finance licensees and registrants.

Lawson joined the State of Michigan as a bank examiner more than 20 years ago, and was appointed to lead the banking program in 2011. She is a member of the Board of Directors of the Conference of State Bank Supervisors (CSBS). Lawson has been active on the SLC since 2013, when she was first confirmed by the FFIEC for a two-year term that began on May 1, 2013. On May 1, 2015, Lawson was re-appointed for a second two-year term, which runs through April 30, 2017. During her time on the SLC, Lawson has also served as the SLC representative to the Council’s Task Force on Supervision from January 2014 to August 2014, as the alternate, and August 2014 to April 2016, as a member.

The five-person SLC membership also includes:

• Edward “Joe” Face, Commissioner of Financial Institutions for the Virginia State Corporation Commission’s Bureau of Financial Institutions, confirmed by the Council;
• Greg Gonzales, Commissioner, Tennessee Department of Financial Institutions, appointed by the CSBS;
• Mary Hughes, Financial Institutions Bureau Chief of the Idaho Department of Finance, appointed by the National Association of State Credit Union Supervisors (NASCUS); and
• Caroline Jones, Commissioner of the Texas Department of Savings and Mortgage Lending, appointed by the American Council of State Savings Supervisors (ACSSS).

The FFIEC was created by the Federal Financial Institutions Regulatory and Interest Rate Control Act of 1978 to prescribe uniform principles, standards and report forms for the federal examination of financial institutions, and to make recommendations to promote uniformity in the supervision of financial institutions. It also conducts schools for examiners employed by the five federal member agencies represented on the FFIEC and makes those schools available to employees of state agencies that supervise financial institutions.

The FFIEC currently consists of the following six voting members: the Comptroller of the Currency, Office of Comptroller of the Currency; a member of the Board of Governors of the Federal Reserve System (Board), appointed by the Chairman of the Board; Chairman of the Federal Deposit Insurance Corporation; Director of the Consumer Financial Protection Bureau; Chairman of the National Credit Union Administration; and the Chairman of the SLC.

The SLC consists of five representatives of state banking agencies that supervise financial institutions and members are designated from the CSBS, ACSSS, NASCUS, and the Council.

ALEXANDRIA, Va. (May 2, 2016) – Credit unions that qualify for consulting assistance from the National Credit Union Administration have until May 31 to submit nominations, the agency announced today.

“I hope all qualified credit unions will consider applying for our consulting program,” said William Myers, Director of NCUA’s Office of Small Credit Union Initiatives. “We offer the kind of practical, hands-on help that enables credit unions to identify and take advantage of market opportunities as well as improve services to members.”

Eligible credit unions should complete the agency’s online application form [link no longer available]. Credit unions may nominate themselves or be nominated by an NCUA examiner. Credit unions choose their top three service requests from a drop-down menu. Credit unions chosen to participate will be assigned an economic development specialist to assist them. To qualify for NCUA’s consulting assistance, a credit union must fall into one of the following categories:

• Have total assets of less than $100 million;
• Have been chartered for fewer than 10 years;
• Be designated as a Minority Depository Institution; or
• Have a low-income designation from NCUA.

The 2016 consulting period runs from July 1 through December 31. Credit unions selected for the program will be announced in June. Credit unions not chosen may apply again in subsequent rounds. There is no charge for this assistance.

NCUA’s Office of Small Credit Union Initiatives fosters credit union development and the effective delivery of financial services for small credit unions, new credit unions, minority depository institutions and credit unions with a low-income designation.

The Federal Financial Institutions Examination Council (FFIEC) today announced the appointment of Edward “Joe” Face to the Council’s State Liaison Committee. Face’s SLC nomination was confirmed by the Council for a two-year term starting May 1, 2016, and continuing through April 30, 2018.

Face has been the Commissioner of Financial Institutions for the Virginia State Corporation Commission’s Bureau of Financial Institutions since 1997. The Bureau of Financial Institutions regulates and supervises about 1,700 state-chartered financial institutions holding nearly $75 billion in assets. These institutions include banks, bank holding companies, independent trust companies, savings institutions, credit unions, small loan and consumer finance companies, mortgage lenders and brokers, industrial loan associations, money order sellers and transmitters, debt-counseling agencies, check cashers, motor vehicle title lenders, and payday lenders.

Face has been with the Bureau since 1979 when he began work as an examiner. During his career, he has worked in each of the Bureau’s regulatory sections and has participated in on-site examinations and investigations involving both depository and non-depository financial institutions. In addition, he has prepared investigation reports on various licensing applications, from new bank applications to merger-and-acquisition applications and branch applications.

In 1988, Face helped start the American Association of Residential Mortgage Regulators, the national association of state mortgage regulators. He served as the group’s first two-term president. He has also served as president of the National Association of Consumer Credit Administrators and the National Association of State Consumer Finance Regulators. Face is also a past chairman of the Conference of State Bank Supervisors (CSBS) (2006-2007), the nationwide organization of banking regulators from all 50 states and U.S. territories.

Face joins the current four members of the SLC:

• SLC Chairman Karen Lawson, Director, Office of Banking within the Michigan Department of Insurance and Financial Services, confirmed by the Council;
• Greg Gonzales, Commissioner, Tennessee Department of Financial Institutions, appointed by the CSBS;
• Mary Hughes, Financial Institutions Bureau Chief of the Idaho Department of Finance, appointed by the National Association of State Credit Union Supervisors (NASCUS); and
• Caroline Jones, Commissioner of the Texas Department of Savings and Mortgage Lending, appointed by the American Council of State Savings Supervisors (ACSSS).

The FFIEC was created by the Federal Financial Institutions Regulatory and Interest Rate Control Act of 1978 to prescribe uniform principles, standards and report forms for the federal examination of financial institutions, and to make recommendations to promote uniformity in the supervision of financial institutions. It also conducts schools for examiners employed by the five federal member agencies represented on the FFIEC and makes those schools available to employees of state agencies that supervise financial institutions.

The FFIEC currently consists of the following six voting members: the Comptroller of the Currency, Office of Comptroller of the Currency; a member of the Board of Governors of the Federal Reserve System (Board), appointed by the Chairman of the Board; Chairman of the Federal Deposit Insurance Corporation; Director of the Consumer Financial Protection Bureau; Chairman of the National Credit Union Administration; and the Chairman of the SLC.

The SLC consists of five representatives of state banking agencies that supervise financial institutions and members are designated from the CSBS, ACSSS, NASCUS and the Council.