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Agencies Aim to Double the Number of CDFI Credit Unions in 2016

ALEXANDRIA, Va. (Jan. 21, 2016) – The National Credit Union Administration and the U.S. Treasury Department’s Community Development Financial Institutions Fund today signed an agreement that will streamline the application process for low-income credit unions to become certified as Community Development Financial Institutions.

Credit unions that obtain CDFI certification can access training and competitive award programs provided by the CDFI Fund, and these resources can aid these institutions’ capacity to provide underserved communities with access to safe and affordable financial services. 

“This Memorandum of Understanding opens up enormous possibilities for credit unions,” NCUA Board Chairman Debbie Matz said. “By facilitating the CDFI application process and, ultimately, increasing  the number of certified CDFI credit unions, we’re laying the foundation for greater access to affordable financial services and more investment in local communities. This will help credit unions better serve members and communities that have been difficult to reach, and that will help more people build wealth and more secure financial futures for themselves and their families.”

“CDFIs nationwide are making a real difference in low-income communities by providing consumers with safe and affordable financial services and by providing neighborhood businesses with access to capital,” CDFI Fund Director Annie Donovan said. “Many low-income credit unions are already performing this important work, but need more support. By partnering with NCUA to increase the number of credit unions certified as CDFIs, we will not only expand access to the CDFI Fund’s programs but also reach more unbanked and underbanked individuals.”

“We’re looking forward to helping more credit unions become certified as Community Development Financial Institutions,” said William Myers, Director of NCUA’s Office of Small Credit Union Initiatives. “We’re going to be able to help credit unions save time and money in the certification process and bring more recognition to what credit unions do so well.”

Today’s action launches a plan with a goal of doubling the number of certified CDFI credit unions by the end of 2016. Increasing the number of certified CDFI credit unions could significantly expand funding that can be used to offer financial services to underbanked low-income individuals and make investments in local businesses, affordable housing, and community facilities.

There are currently 295 credit unions certified as CDFIs. The majority of these also hold NCUA’s low-income credit union designation.

Board Action Bulletin

Public Comments Also Sought on Agency’s Draft Five-Year Strategic Plan

ALEXANDRIA, Va. (Jan. 21, 2016) – The National Credit Union Administration Board convened its first open meeting of 2016 at the agency’s headquarters here today and unanimously approved the release of three items for public comment, including the agency’s:

• Methodology for calculating the annual Overhead Transfer Rate;
• Methodology for calculating the annual Federal Credit Union Operating Fee; and
• Proposed
  2017–2021 Strategic Plan describing NCUA’s strategic goals in the areas of safety and soundness, consumer protection and financial literacy, and workforce development and diversity.

The Board also unanimously approved technical amendments to the agency’s regulations to reflect changes in the function and reporting responsibilities of the Office of Minority and Women Inclusion.

Comments Sought on Overhead Transfer Rate and Federal Credit Union Operating Fee Methodologies

NCUA will take public comments on how the agency’s Overhead Transfer Rate and Federal Credit Union Operating Fee are calculated after the Board voted to publish both methodologies in the
Federal Register.

Both methodologies have previously been available on the
Budget and Supplementary Materials page of the agency’s website. NCUA Board Chairman Debbie Matz announced at the Board’s November 2015 open meeting that she would request publication of both methodologies in the
Federal Register, and comments will be posted on the agency’s website, as is done with proposed rules.

“I am certainly open to considering new ideas to simplify or improve both methodologies, as long as the methodologies remain objective, equitable and neutral with respect to charter type. Summaries of the comments, along with the Board’s responses to the comments, will be published later this year in the
Federal Register.”

The methodologies describe the process for calculating the Overhead Transfer Rate and the Federal Credit Union Operating Fee, which are the two primary funding mechanisms for the agency’s operating budget.

“The calculations NCUA annually performs to determine the Overhead Transfer Rate and the Operating Fee are purely mathematical, free of subjective and political judgments,” Matz said.

The Operating Fee formula was originally established in 1979. The Overhead Transfer Rate methodology has been in place since 2003 and was validated in 2011 by an independent accounting firm, PricewaterhouseCoopers.

Comments on the methodologies must be received within 90 days of publication in the
Federal Register.

Draft Strategic Plan Sets Goals for a Changing Financial Services Environment

The NCUA Board approved for public comment a proposed
2017–2021 Strategic Plan. The plan summarizes internal and external factors affecting the agency and the credit union system, evaluates NCUA programs and risks and provides goals and objectives.

The agency’s three strategic goals described in the draft five-year plan are:

• Ensuring a safe and sound credit union system;
• Promoting consumer protection and financial literacy; and
• Cultivating an inclusive, collaborative workplace that maximizes productivity and enhances impact.

“The credit union system has grown and evolved since the end of the financial crisis,” Matz said, “and NCUA continues to strive to keep pace with that growth and change. The draft plan provides a detailed description of the agency’s goals, the steps we’ll take to reach them and the offices responsible for getting us there, which in turn drives the agency’s budget process. Releasing the draft strategic plan for public comment is part of NCUA’s ongoing commitment to transparency. We look forward to reading the comments we receive.”

Copies of the agency’s proposed
2017–2021 Strategic Plan, as well as previous strategic plans and annual performance plans, are available online
here. Comments on the plan must be received within 60 days of publication of the
Federal Register notice about the strategic plan.

Board Approves OMWI Restructuring

NCUA will complete a restructuring of its Office of Minority and Women Inclusion with the Board’s approval of a final rule (Part 790) that will have the OMWI Director serve as the agency’s Director of Equal Employment Opportunity and report to the Board Chairman.

NCUA established its Office of Minority and Women Inclusion in 2011, with its Director reporting to the agency’s Executive Director. At that time, the agency’s EEO program operated separately from OMWI. In 2014, NCUA merged the EEO program into OMWI, but the lack of a permanent OMWI Director delayed the completion of the restructuring. When the final rule becomes effective, the OMWI Director will assume the EEO Director’s responsibilities and report to the Chairman. The change in reporting also complies with the letter and the spirit of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which required the creation of NCUA’s Office of Minority and Women Inclusion.

“Enhancing diversity and inclusion is a top priority for me and for our agency,” Matz said. “Since we created the office in 2011, the OMWI Director or Acting Director has met regularly with me, and we have worked together closely on issues of diversity and inclusion. Now that the Equal Employment Opportunity office has been merged into OMWI and we have a Director in place, we can update our reporting structure.”’

The final rule, available online
here (opens new window), is effective upon publication in the
Federal Register.

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. NCUA also live streams, archives and posts

videos of open Board meetings online.

Board Action Bulletin

The NCUA Board was briefed on a supervisory matter, and approved a personal action. Both matters remain confidential at this time.

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. NCUA also live streams, archives and posts

videos of open Board meetings online.

Tax Identity Theft Awareness Week Aims to Educate Consumers about Scams

ALEXANDRIA, Va. (Jan. 25, 2016) – With tax season beginning, the Federal Trade Commission has announced Tax Identity Theft Awareness Week for 2016, and the National Credit Union Administration has new online resources to help consumers protect themselves.

NCUA has updated its tax identity theft resources page (opens new window) on the MyCreditUnion.gov (opens new window) consumer website. The page includes useful information for preventing or reporting identity theft that may be perpetrated using fake contacts that appear to be legitimate Internal Revenue Service requests for taxpayer information. Credit unions are encouraged to share this information with their members.

“Cyber hackers and old-fashioned thieves can trick people into divulging personal and financial information not only during tax season, but all year long,” Board Chairman Debbie Matz said. “NCUA has an ongoing commitment to protecting and educating consumers, helping them understand how they can prevent theft and informing them where to get help should they become victims of fraud.”

Consumers should be aware the IRS does not initiate contacts with taxpayers by email, text messages or social media channels to request personal or financial information.

Tax Identity Theft Awareness Week for 2016 (opens new window) runs from Jan. 25 through Jan. 29.

The U.S. Department of Justice reports that, in 2014, 17.6 million Americans were victims of identity theft with estimated losses of $15.4 billion. Tax season is a particularly busy time for identity thieves, and the IRS itself can be a target. IRS paid about $5.8 billion in fraudulent tax refunds in 2013 while preventing about $24 billion in cases in which it was able to detect and prevent fraud.

MyCreditUnion.gov (opens new window) also has numerous resource pages with information to help credit union members understand and prevent identity theft and protect themselves from other frauds and scams. NCUA also has videos describing how to fight against fraud on its YouTube channel (opens new window).

NCUA Will Host a Feb. 11 Webinar on How to Use the New Reporting System

ALEXANDRIA, Va. (Jan. 25, 2016) – The National Credit Union Administration announced today that credit union service organizations will have 60 days to register with NCUA’s CUSO Registry, the new online system for CUSOs to report their operational and financial information directly to the agency.

The registration period begins Monday, Feb. 1, and ends Thursday, March 31. There is no fee to use the registry. CUSOs can access the registry at http://go.usa.gov/cPcy5 (opens new window).

NCUA will provide additional support material and customer support when the system goes live on Feb. 1.

As part of NCUA’s enhanced CUSO rule approved by the Board in November 2013, federally insured credit unions are responsible for ensuring the CUSOs they make loans to or invest in agree to provide certain information directly to NCUA.

Additional information on the CUSO Registry and the registration process can be found here.

In addition, as part of the launch of the CUSO Registry, NCUA will host a webinar on how to use the system on Thursday, Feb. 11, beginning at 2:30 p.m. Eastern. An online registration page for the webinar will be available in the coming days. There will be no charge for the webinar.

In advance of the webinar, registrants can submit questions to [email protected]. The subject line of the email should read, “CUSO Registry Training.”

ALEXANDRIA, Va. (Jan. 27, 2016) – Twenty-two federally insured credit unions subject to civil monetary penalties for filing late Call Reports in the third quarter of 2015 have consented to penalties, the National Credit Union Administration announced today.
In the third quarter of 2014, 31 credit unions consented to penalties.
The late filers will pay a total of $18,682 in penalties. Individual penalties range from $115 to $10,000. The median penalty was $330. The Federal Credit Union Act requires NCUA to send any funds received through civil monetary penalties to the U.S. Treasury.
“While the year-over-year number has dropped, it’s disappointing to see the number of late filers up from the previous quarter,” NCUA Board Chairman Debbie Matz said. “I urge credit unions that are encountering difficulties meeting the Call Report filing deadline to take advantage of the assistance NCUA offers. The agency needs all credit unions to file in a timely manner.”
A list of credit unions filing late in the third quarter and agreeing to pay civil monetary penalties is available online here.
The assessment of penalties primarily rests on three factors: the credit union’s asset size, its recent Call Report filing history and the length of the delay. Of the 22 credit unions agreeing to pay penalties for the third quarter of 2015:

• Ten had assets of less than $10 million;
• Eight had assets between $10 million and $50 million;
• Three had assets between $50 million and $250 million; and
• One had assets greater than $250 million.

Three of the late-filing credit unions had been late in a previous quarter.
A total of 40 credit unions filed Call Reports late for the third quarter of 2015. NCUA consulted regional offices and, when appropriate, state supervisory authorities to review each case. This review determined mitigating circumstances in nine cases that led to credit unions not being penalized. NCUA informed the remaining 31 credit unions of the penalties they faced and advised them they could reduce their penalties by signing a consent agreement. NCUA also said it would initiate administrative hearings against credit unions that did not consent. NCUA subsequently granted waivers to nine of those credit unions.

NCUA sends reminder messages about Call Report filing deadlines that include information on how to receive technical support to handle filing problems. The agency also has created an automated reminder email system that contacts credit unions that have not filed their Call Reports and confirms successful filing.
NCUA’s Office of Small Credit Union Initiatives has dedicated an Economic Development Specialist to assist small credit unions in filing Call Reports on time. Credit unions that would like assistance should send an email to [email protected]. NCUA also has produced a video (opens new window) describing how to file Call Reports.

ALEXANDRIA, Va. (Jan. 29, 2016) – The National Credit Union Administration has issued six orders in January prohibiting the following individuals from participating in the affairs of any federally insured financial institution:

• Tara Chambers, a former employee of Sears Spokane Employees Federal Credit Union in Spokane, Washington, pleaded guilty to the charges of theft and embezzlement. Chambers was sentenced to time served and five years’ supervised release.
• Felicia Marie Gomez, a former employee and institution-affiliated party of Bellwether Community Credit Union in Manchester, New Hampshire, consented to the issuance of a prohibition order to avoid the time and expense of administrative litigation.
• Nora Nelly Gonzalez, a former employee and institution-affiliated party of Southwest Financial Federal Credit Union in Dallas, Texas, consented to the issuance of a prohibition order to avoid the time and expense of administrative litigation.
• Angela Michelle Martin, a former employee of Mountain Community Federal Credit Union in Fort Oglethorpe, Georgia, pleaded guilty to the charge of embezzlement. Martin was sentenced to two years in prison, three years’ supervised release and ordered to pay restitution in the amount of $489,583.07.
• Male Yahaira Rivera, a former employee of Fairwinds Credit Union in Orlando, Florida, was convicted of embezzlement. Rivera was sentenced to 18 months in prison, five years’ supervised release and ordered to pay restitution in the amount of $258,000.
• Sherrie Ann Rivera, a former employee and institution-affiliated party of Peoples Credit Union in Pembroke Pines, Florida, consented to the issuance of a prohibition order to avoid the time and expense of administrative litigation.

Credit unions may search prohibition and administrative orders by name, institution, city, state and year at http://go.usa.gov/gFP5. The webpage also provides links to the enforcement actions of other federal banking regulators against other institutions or their affiliated parties.

NCUA enforcement orders are available online and for inspection at NCUA’s Office of General Counsel between 9 a.m. and 4 p.m. Monday through Friday. You also may order copies by mail from NCUA, 1775 Duke St., Alexandria, VA 22314-3428.

Violation of a prohibition order is a felony offense punishable by imprisonment and a fine of up to $1 million.

Qualified Taxpayers Can Receive up to $6,242 by Filing with the IRS

ALEXANDRIA, Va. (Jan. 29, 2016) – The National Credit Union Administration is joining the Internal Revenue Service and other federal agencies to remind qualified taxpayers about the potential benefits of applying for the Earned Income Tax Credit.

“Low-income working families can receive a substantial benefit if they qualify for the EITC,” NCUA Board Chairman Debbie Matz said. “We want to be sure credit union members who might qualify are aware of this credit. It goes directly to families who may use it to cover living expenses, build emergency savings or save for a down payment for a car or a home.”

Taxpayers who qualify and claim the credit could pay less federal tax or even receive a refund. The maximum refund for the 2015 tax year is $6,242. Consumers can find more information about the EITC on NCUA’s consumer website, MyCreditUnion.gov (opens new window), which has a webpage dedicated to explaining the EITC (opens new window).

NCUA is issuing this reminder in conjunction with EITC Awareness Day (opens new window), a nationwide effort to raise awareness about the EITC and the availability of free tax preparation assistance. Many credit unions offer their members help with preparing tax returns or participate in the Volunteer Income Tax Assistance (opens new window)program, an IRS-sponsored program that provides free tax-filing assistance. Credit union members who would like help are encouraged to contact their credit union to find out what resources are available.

The EITC is a benefit for working people with low to moderate income. Congress originally approved the tax credit in 1975 to partially offset the burden of Social Security taxes and to provide an incentive to work. Income and family size usually determine the amount of credit, but individuals without children may also qualify.

Member Deposits Remain Protected to $250,000, Member Services Uninterrupted

ALEXANDRIA, VA. (Feb. 1, 2016) – Montgomery County Credit Union of Dayton, Ohio, has merged into Bridge Credit Union of Columbus, Ohio, effective Jan. 31, the National Credit Union Administration announced today.

The new Bridge Credit Union members should experience no interruption in services, and member deposits remain protected 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 can contact Bridge Credit Union by telephone at 614-466-4988 or in person at the credit union’s main office at 1980 West Broad Street, Columbus. Bridge Credit Union is open Monday through Friday from 8 a.m. to 4 p.m. Members can continue to transact business at both former Montgomery County Credit Union branch locations in Dayton at 409 East Monument Avenue (937-224-4050) and 2222 Philadelphia Drive (937-278-2612).

Bridge Credit Union is a federally insured, state-chartered credit union that, prior to the merger, served 7,714 members and had assets of $52,161,421, according to the credit union’s most recent Call Report.

The Superintendent of the Ohio Division of Financial Institutions placed Montgomery County Credit Union into conservatorship on April 23, 2015, and appointed NCUA as agent for the conservator. The two agencies worked together to address issues affecting the credit union’s safety and soundness and determined that merging Montgomery County Credit Union into Bridge Credit Union was in the best interests of the members.

At the time of the merger, Montgomery County Credit Union was a federally insured, state-chartered credit union with 6,254 members and assets of $26,502,980, according to the credit union’s most recent Call Report. Chartered in 1963, Montgomery County Credit Union served anyone who lived, worked, worshiped or attended school in Montgomery County, Ohio.

RICHARDSON, Texas (Feb. 2, 2016) – Texans Credit Union, a state-chartered, federally insured credit union operating under the conservatorship of the National Credit Union Administration, posted year-end 2015 net income of $26.63 million, marking 48 consecutive months of positive earnings.

The credit union reported this was the strongest year-over-year financial performance in Texans’ 62-year history.

“Texans’ continued success is due to the credit union’s refocusing the institutional culture on service to its members,” said C. Keith Morton, NCUA Region IV Director and Agent for the Conservator. “This organizational shift is increasing operational efficiencies and improving the credit union’s infrastructure to better serve its membership.”

During the year, Texans repaid the remaining $40 million of Section 208 assistance, including interest, to the National Credit Union Share Insurance Fund three years ahead of schedule. Section 208 of the Federal Credit Union Act authorizes NCUA to provide assistance to a credit union to protect the Share Insurance Fund or the interests of a credit union’s members. Texans’ net worth ratio at year’s end was 3.48 percent, excluding subordinated debt, an increase of 181 basis points from the prior year-end. Total assets at the end of the year remained steady at more than $1.45 billion.

NCUA placed Texans into conservatorship in April 2011 to address service and operational weaknesses. Since then, NCUA, the management team and Texans’ employees have worked to improve the credit union’s financial condition and services for the credit union’s 111,000 members. Deposits at Texans Credit Union remain protected by the National Credit Union Share Insurance Fund.

Chartered in 1953, Texans operates 13 branches in the Dallas metropolitan area. Membership is open to individuals and their family members who live, work or attend school in Collin, Dallas, Grayson, Rockwall, Travis, Williamson counties and parts of Denton County. Texans also serves employees of various companies in the credit union’s field of membership, including Texas Instruments, Raytheon and Ericsson. For more information, visit www.texanscu.org (opens new window).