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Agency Working to Ensure Access to Needed Financial Services for Members; Share Deposits Remain Protected by Share Insurance Fund

ALEXANDRIA, Va. (June 27, 2016) – The National Credit Union Administration will work with federally insured credit unions that may have been affected by the recent severe flooding in West Virginia to help protect consumers and ensure the continuity of credit union services.

NCUA has not received reports of damage to any federally insured credit union. Credit union members in these areas should contact their credit unions or check their credit unions’ websites for the latest information.
Member deposits at federally insured credit unions 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.

Credit union members with questions about their insurance can find information online here (opens new window), or they may contact NCUA’s Consumer Assistance Center at 800.755.1030 between 8 a.m. and 5 p.m. Eastern.
During natural disasters, NCUA works with state regulators and state league organizations to ensure all federally insured credit unions are aware of and can utilize NCUA’s available assistance. Under the agency’s disaster relief policy NCUA will, when necessary:

• Encourage credit unions to make prudent loans with special terms and reduced documentation to affected members;
• Reschedule routine examinations of affected credit unions, if necessary;
• Guarantee lines of credit for credit unions through the Share Insurance Fund; and
• Make loans to meet the liquidity needs of member credit unions through the Central Liquidity Facility.

Low-income designated credit unions affected by flooding can apply for up to $7,500 in Urgent Needs grant assistance to repair damage or restore services to members. Information about Urgent Needs Grants is available online here (opens new window). Credit unions in need of NCUA assistance should contact their primary supervisory examiner.

NCUA Working to Add More than 200 Certified Credit Unions by the End of 2016

SEATTLE (June 27, 2016) – Credit unions certified as Community Development Financial Institutions can do more to serve members and their communities, and National Credit Union Administration Board Chairman Rick Metsger encouraged qualified credit unions to seek certification.

“Credit unions are uniquely positioned to advance the goals of the Community Development Financial Institutions Program,” Metsger said, “and I encourage every qualified credit union to make CDFI certification a priority in the next few months. Increasing the number of credit unions with this certification will allow significant dollars to be put to work helping people of modest means meet their financial needs. This is the core of the credit union mission.”

Metsger spoke at the Credit Union National Association’s annual America’s Credit Union Conference here today.

NCUA earlier this year signed a partnership agreement with the U.S. Treasury Department’s Community Development Financial Institutions Fund to streamline the certification application process for credit unions with the low-income designation. At the beginning of this year, there were 295 federally insured credit unions with CDFI certification, and Metsger said NCUA hopes to add more than 200 to that by the end of the year. There is no charge to apply for certification.

In this streamlined application process, NCUA will analyze a low-income credit union’s products and services and other indicators showing the likelihood it will qualify for certification. The credit union must submit data to NCUA on its loan originations and identify its target market. If the credit union is qualified, NCUA will provide an application form and the data necessary to complete it.

Certification gives credit unions more resources to expand products and services and make investments in their communities, Metsger said.

“Certified credit unions have access to grant funds that can help them assist the underserved, build financial capacity among members and bring new businesses into their communities,” he said. “I would add that the benefits of CDFI certification do not mean NCUA examiners will be visiting more often.”

NCUA’s Office of Small Credit Union Initiatives can help credit unions with questions about the certification process, Metsger said. The agency has an online video series (opens new window) that explains the certification process, and a recent webinar on certification will be available online in about three weeks.

ALEXANDRIA, Va. (July 1, 2016) – The video recording of the June 2016 open meeting of the National Credit Union Administration Board is now available on the agency’s website.

Archived videos of past Board meetings may be viewed here, and each video remains on the site for one year.

At the June meeting, the Office of Examination and Insurance briefed the Board about plans for adding a “sensitivity to market risk” element to assess interest rate risk to the current CAMEL rating system.

The Board also unanimously approved two items:

• A proposed rule that makes technical amendments to improve the transparency, organization, and ease of credit union use of the Community Development Revolving Loan Fund; and
• An interim final rule adjusting civil monetary penalties for inflation, as required by federal law.

NCUA posts these videos as part of the agency’s ongoing efforts to provide transparency and to allow those unable to attend Board meetings the opportunity to become better informed. An interval between the meeting and posting is necessary for the videos to comply with Section 508 of the Rehabilitation Act for the hearing and visually impaired.

The
Board Actions page of NCUA’s website has more information, including Board agendas, which are posted at least one week in advance of each open meeting, copies of Board Action Bulletins, which summarize the meetings, copies of Board memorandums and other documents.

ALEXANDRIA, Va. (July 6, 2016) – Firm labor markets and increasing consumer spending means credit risk is likely to remain low in most areas, according to a new Economic Update video released today by the National Credit Union Administration.

The latest installment of NCUA’s economic series, available here (opens new window), features three segments, making it easier for viewers to get the information relevant to them.

In the opening segment, NCUA Chief Economist Ralph Monaco reviews current economic trends and how they could affect credit union income and costs. Topics covered include recent labor market developments, housing market improvements and household spending.

In the second segment, Monaco focuses on interest rates and the outlook going forward. The mixed bag of U.S. economic statistics and heightened concern about foreign economic developments were enough to convince Federal Reserve policymakers to put off increases in short-term interest rates until later this year, at the earliest.

“The timing and pace of future rate increases will depend on how the economy performs,” Monaco said. “For most credit unions, if they are alert to changing conditions, the likely rate environment should be manageable.”

The final segment examines Brexit—the United Kingdom’s recent decision to leave the European Union and the implications for the United States and, potentially, for the credit union sector.

According to Monaco, the Brexit vote has dimmed the outlook for growth in other countries over the next few years and raised financial market uncertainty. That may eventually translate into somewhat slower U.S. growth directly, with much of the effect showing up in manufacturing and commodities production.

“Brexit reminds us that economic circumstances can change quickly,” Monaco said. “Credit unions need to be aware and ready to adapt to potential changes that can affect the financial health of their membership.”

NCUA’s Economic Update video series is an ideal information resource for credit union board members, loan officers and management. It is available on NCUA’s YouTube channel (opens new window).

Learn How Social Media Improve Your Credit Union’s Bottom Line 

ALEXANDRIA, Va. (July 12, 2016) – Credit unions can learn how to use social media to increase their web traffic, improve their brand identity and boost their lending during the National Credit Union Administration’s upcoming webinar, “Marketing – Effective Use of Social Media,” on Wednesday, Aug. 10, starting at 2 p.m. Eastern.

Lauren Bethea, economic development specialist with NCUA’s Office of Small Credit Union Initiatives will lead a panel that includes: 

• Kenneth C. Bator, CEO, Bator Training and Consulting, Inc. 
• Christopher Dukes, Intern, Office of Small Credit Union Initiatives, NCUA
• Kenzie Snowden, Social Media and Outreach Specialist, Office of Public and Congressional Affairs, NCUA
• Jeff Snyder, Communications Officer Pennsylvania Credit Union Association

During this webinar, the panel will discuss how to create a social media plan, define your credit union’s target audience, determine what messages you want to send to your audience, and how to have meaningful interactions with them. 

Online registration is available here (opens new window). Participants will use this same link to log into the webinar. Registrants should allow pop-ups from this website. There is no charge to participate in this 90-minute webinar.

Participants may submit questions in advance at [email protected]. The subject line of the email should read, “Marketing – Effective Use of Social Media.” Participants with technical questions about accessing the webinar may email [email protected]. 

ALEXANDRIA, Va. (July 13, 2016) – National Credit Union Administration Board Chairman Rick Metsger and Board Member J. Mark McWatters both issued statements welcoming President Barack Obama’s intent to nominate John Herrera of North Carolina to the NCUA Board:

“I congratulate John Herrera and hope the Senate acts quickly on his nomination,” Metsger said. “John’s experience creating the Latino Community Credit Union and at Self-Help Services will broaden the Board’s perspective and strengthen its ability to fulfill the mandate of the Federal Credit Union Act, including serving persons of modest means. I look forward to working with him to protect the deposits of America’s more than 103 million credit union members, and to expand the availability of not-for-profit cooperative financial services to unbanked and underbanked communities.”

“I congratulate John Herrera on his selection by President Obama to serve on the NCUA Board,” McWatters said. “John’s experience in working with underserved communities and involvement in creating a thriving credit union will provide much value to NCUA, federally insured credit unions and all credit union members. I wish him success as he proceeds through the nomination and confirmation process.”

Herrera is vice president of Latino and Hispanic affairs for Self-Help Services, a non-profit community development financial institution. Herrera also was a cofounder of the Latino Community Credit Union in 2000 and serves as vice chairman of the credit union’s board. It has become the largest Latino-focused credit union in the country, with 62,203 members, 11 branches, and $216.8 million in assets.

In 2013, Herrera was recognized by the White House as an Immigrant Innovator Champion of Change. From 2003 to 2010, he was a commissioner on the North Carolina Credit Union Commission. Herrera received a bachelor’s degree from the University of Delaware and a graduate degree from North Carolina State University.

ALEXANDRIA, Va. (July 14, 2016) – Credit unions interested in the National Credit Union Administration’s updated interest rate risk supervision and plans for possibly adding an “S” to the CAMEL rating can get valuable information from an upcoming agency webinar.

The webinar, “Interest Rate Risk Supervision and Adding ‘S’ to CAMEL,” is scheduled to be held Thursday, Aug. 18, beginning at 2 p.m. Eastern. There is no charge.

A panel of NCUA staff members—Larry Fazio, Director of Examination and Insurance; J. Owen Cole, Director of the Division of Capital and Credit Markets; senior capital markets specialist Thomas Fay; and economist Scott Borger—will brief participants on the agency’s revised interest rate risk supervision procedures and its plans to consider adding an “S” (for “sensitivity to market risk”) to the CAMEL rating system. Questions to be covered include:

• What are the key changes to interest rate supervision?
• Why is NCUA making changes?
• How do these changes benefit credit unions and NCUA supervision?
• What are the key dates of the revised interest rate risk supervision program?
• What are the timeline and the process for considering adding an “S” rating?

Online registration for this webinar is now open
here (opens new window). Participants also will use this link to log into the webinar. Registrants should allow pop-ups from this website. Participants may submit questions in advance at
[email protected]. The subject line of the email should read, “IRR Supervision Program.” 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.

In advance of this webinar, participants can view
the video of NCUA’s June 2016 open Board meeting, which includes a presentation by the Office of Examination and Insurance on these subjects.

New Resources Educate Consumers about Rights When Sending Money Abroad

ALEXANDRIA, Va. (July 15, 2016) – Consumers have new ways to learn about their rights and protections when sending money internationally through a new video and brochure released today by the National Credit Union Administration.  

The video, available here (opens new window), and brochure (opens new window) offer an overview of consumer protections provided under a rule (opens new window) issued by the Consumer Financial Protection Bureau (opens new window). Consumers can also find basic information on sending money domestically and internationally on NCUA’s dedicated Wire and Remittances Transfer (opens new window) page. All resources are available in Spanish (opens new window).

Consumers who use remittance services offered by certain covered remittance providers are entitled to a number of protections, including:

• disclosures showing actual exchange rates, fees, and the amount of money to be delivered in the local currency before the consumer makes a payment;
• a receipt confirming the payment;
• the right to cancel the transaction within 30 minutes of making the payment; and
• the right to dispute errors and have them resolved.

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.

ALEXANDRIA, Va. (July 18, 2016) – Consulting services provided by the National Credit Union Administration to 161 federally insured credit unions will help them grow, innovate and provide better member services, the agency announced today.

“Through the agency’s consulting services, NCUA is helping credit unions do a better job of providing affordable financial services to their members,” NCUA Board Chairman Rick Metsger said. “Thinking back to my own experience as a credit union board member, I learned the importance of the type of strategic thinking and planning our consulting program provides. I hope eligible credit unions will consider applying for our consulting program in the future.”

Credit unions chosen for the consulting program work with an experienced NCUA economic development specialist for a six-month semester. Almost half of the credit unions selected to receive consulting services during the second half of 2016 have assets of less than $10 million. Fifty-two percent are low-income-designated credit unions, and 16 percent have both the low-income and minority depository institution designation. 

Offered through NCUA’s Office of Small Credit Union Initiatives, the consulting services provide participating credit unions with assistance in developing growth strategies, planning for new products, creating succession plans, and other activities. The services are provided at no charge. A credit union can nominate itself or be nominated by an NCUA or state examiner. To be eligible for consulting assistance, a credit union must have assets of less than $100 million, have been chartered for fewer than 10 years, have a low-income designation, or be a minority depository institution.

NCUA is now accepting consulting program nominations for the first semester of 2017. An online nomination form is available here [link no longer available], and the deadline for submitting nominations is Nov. 30 at 5 p.m. Eastern.

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.

Los nuevos recursos informan a los consumidores sobre los derechos al enviar dinero al exterior

ALEXANDRIA, Va. (15 de julio de 2016) – Los consumidores tienen nuevas formas de informarse sobre los derechos y las protecciones de los que gozan al enviar dinero al exterior a través de un video y un folleto nuevos divulgados hoy por la Administración Nacional de Cooperativas de Ahorro y Crédito.

El video, disponible aquí (opens new window), y el folleto (opens new window) ofrecen una descripción general de las protecciones del consumidor otorgadas por una regla (opens new window) emitida por la Oficina para la Protección Financiera del Consumidor (opens new window). Los consumidores también pueden encontrar información básica sobre cómo enviar dinero dentro y fuera del país en la página de transferencias electrónicas y de remesas (opens new window) exclusiva de la NCUA.

Los consumidores que utilizan los servicios de remesas ofrecidos por ciertos proveedores de remesas tienen derecho a una cantidad de protecciones, entre las que se incluyen:

• divulgaciones de las tasas vigentes de cambio, cargos y la cantidad de dinero a ser entregada en moneda local antes de que el consumidor haga el pago;
• un recibo de confirmación del pago;
• el derecho a cancelar la transacción dentro de los 30 minutos de realizado el pago; y
• el derecho de disputar errores que deberán ser solucionados.

En virtud de la Ley de Cooperativas Federales de Ahorro y Crédito, promover la educación financiera es una misión primordial de las cooperativas de ahorro y crédito. Mientras que las cooperativas de ahorro y crédito satisfacen las necesidades de sus socios y promueven la educación financiera dentro de las comunidades donde prestan servicio, la NCUA trabaja para reforzar los esfuerzos de las cooperativas de ahorro y crédito, concientizar a los consumidores y aumentar el acceso a los servicios de las cooperativas de ahorro y crédito. La NCUA también participa en las iniciativas para la educación financiera a nivel nacional, incluyendo la Comisión Federal de Educación Financiera, un grupo entre agencias creado por el Congreso para mejorar la educación financiera de la nación.