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Credit Union Will Bring Much-Needed Services to the Nepali-American community

ALEXANDRIA, Va. (Aug. 28, 2018) – The National Credit Union Administration has granted a federal charter and Share Insurance Fund coverage to Everest Federal Credit Union in Jackson Heights, New York.

“The first credit union to serve the Nepalese diaspora, Everest Federal Credit Union is ideally situated to provide affordable financial services to the Nepalese community.” NCUA Chairman J. Mark McWatters said. “I congratulate them on their new charter.”

Everest Federal Credit Union will serve the approximately 15,000 members of the Non Resident Nepalis National Coordination Council of USA. The new credit union will provide members access to much-needed affordable financial services. During its first year of operations, the credit union plans to offer:

• Regular shares
• Share drafts
• Share Certificates
• IRAs
• Unsecured loans
• Share-secured loans
• Auto loans
• Credit card loans
• Money orders
• Cashier’s checks
• Wire transfers
• Electronic banking

Everest Federal Credit Union’s charter became effective August 24, and it is the first NCUA charter this year.

The Non Resident Nepalis National Coordination Council preserves the cultural heritage of the Nepalese community while advocating for the welfare and rights of its members. The Council is part of the Non Resident Nepali Association, which helps Nepalese community organizations and members foster friendship and understanding in the United States.

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

ALEXANDRIA, Va. (Aug. 31, 2018) – The National Credit Union Administration today liquidated Melrose Credit Union of Briarwood, New York.

Teachers Federal Credit Union, of Hauppauge, New York, immediately assumed all of Melrose’s members and shares as well as some loans and other assets. Teachers Federal Credit Union is a federal credit union that serves 300,541 members and has assets of nearly $6.1 billion, according to the credit union’s most recent Call Report.

New Teachers Federal Credit Union members should experience no interruption in services, and their accounts remain federally insured by the National Credit Union Share Insurance Fund. Administered by the 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.

Teachers Federal Credit Union has posted information for its members on its website (opens new window), and members with questions can contact the credit union at 631.698.7000 between 8 a.m. and 5 p.m. Eastern on Mondays, Tuesdays, Wednesdays, and Saturdays and between 8 a.m. and 6 p.m. Eastern on Thursdays and Fridays. Members also may find insurance coverage information on the Share Insurance Coverage (opens new window) page of the NCUA’s consumer website, MyCreditUnion.gov (opens new window).

The NCUA has retained some Melrose loans. Members should contact the NCUA’s Asset Management and Assistance Center to see if their loans have been retained:

Melrose Credit Union
c/o National Credit Union Administration
4807 Spicewood Springs Road, Suite 5100
Austin, Texas 78759
512.231.7940

The existing Melrose office located at 13930 Queens Blvd., Briarwood, will remain open.

The NCUA made the decision to liquidate Melrose and discontinue its operations after determining the credit union was insolvent and had no prospect for restoring viable operations. The New York State Department of Financial Services placed Melrose into conservatorship on Feb. 10, 2017, and named the NCUA as conservator.

Chartered in 1922, Melrose served eligible members subject to the provisions of its bylaws, which could include any person upon approval for membership. At the time of liquidation and subsequent purchase by Teachers Federal Credit Union, Melrose served 19,864 members and had assets of approximately $1.1 billion, according to the credit union’s most recent Call Report.

Melrose is the fifth federally insured credit union liquidation in 2018.

 

ALEXANDRIA, Va. (Sept. 4, 2018) – The National Credit Union Administration has selected Robert Foster as its Chief Information Officer, effective October 14.

“Rob’s long experience in information technology and cybersecurity make him an ideal fit for such an essential role in the agency,” NCUA Board Chairman J. Mark McWatters said.

Foster has served as the agency’s Deputy Chief Information Officer since August 2017. Prior to coming to the NCUA, Foster served as Chief Information Officer with the Department of the Navy, acting as the senior official and advisor on a variety of matters relating to information management, resources, and technology. Foster previously served as Deputy Chief Information Officer at the Department of Health and Human Services and at U.S. Immigration and Customs Enforcement. He retired from the U.S. Navy in 2007, after a 21-year career.

Foster holds a bachelor’s degree in business administration from the University of Florida and a master’s in information technology management from the Naval Postgraduate School. He also holds professional certificates from the Department of Defense, the National Defense University, and George Washington University.

ALEXANDRIA, Va. (Sept. 5, 2018) – The video recording of the Aug. 2, 2018, 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 August open meeting, the Board unanimously approved five items:

• A proposed supplemental rule amending the agency’s prompt corrective action regulations to delay the effective date of the risk-based capital rule and raise the asset threshold defining a complex credit union.
• A $675,000 operating fund budget transfer to pay for cybersecurity improvements and employee relocation costs associated with the agency’s reorganization.
• Continuation of the current 18 percent annual interest rate limit for loans—with the exception of loans originated under the payday alternative loan program—through March 10, 2020.
• A final rule creating new suspension and debarment procedures to better protect the federal government’s interest in only doing business with presently responsible contractors.
• A proposed rule to add specificity and clarity to current regulations covering loans and lines of credit granted to members and to provide credit unions with regulatory relief.

The Chief Financial Officer briefed the Board on the agency’s revised 2018 budget estimates, which currently project a reduction in the agency’s operating fund budget of almost $8.5 million.

The NCUA posts board meeting 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 the 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. (Sept. 6, 2018) – The National Credit Union Administration has selected Towanda Brooks as its new Director of the Office of Human Resources.

“The work of the Office of Human Resources affects every agency employee, and Towanda’s depth of experience and accomplishments make her an excellent choice as director,” NCUA Board Chairman J. Mark McWatters said. “I look forward to working with her.”

Brooks joins the NCUA from the Department of Housing and Urban Development, where she served as Chief Human Capital Officer. Brooks’ career includes service in human resources at the Department of Commerce, the National Nuclear Security Administration, the Department of Homeland Security, the U.S. Secret Service, the Department of Agriculture, and the Library of Congress.

Brooks holds a bachelor’s degree from George Mason University and a master’s degree from The American University. She also received a professional certificate in executive leadership from Georgetown University.

ALEXANDRIA, Va. (Sept. 6, 2018) – Data on the financial performance of federally insured credit unions for the quarter ending June 30, 2018, are now available from the National Credit Union Administration.

The Quarterly Credit Union Data Summary (opens new window) features an updated design that includes an overview of the quarterly Call Report data as well as tables showing the recent history of major credit union performance indicators. The summary includes a description of collection and reporting changes that affect some of the performance indicators in the tables.

The NCUA makes extensive credit union system performance data available in the Credit Union Analysis section of NCUA.gov. In addition to the quarterly data summaries (opens new window), the analysis section has detailed financial information and chart packs showing financial trends (opens new window) in federally insured credit unions.

 

WASHINGTON—Five federal agencies today issued a joint statement explaining the role of supervisory guidance for regulated institutions.

The statement from the agencies—the Federal Reserve Board, the Bureau of Consumer Financial Protection, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency—confirms that supervisory guidance does not have the force and effect of law, and the agencies do not take enforcement actions based on supervisory guidance. The joint statement explains that supervisory guidance can outline the agencies’ supervisory expectations or priorities and articulate the agencies’ general views regarding appropriate practices for a given subject area.

 

Attachment: Interagency Statement on the Role of Supervisory Guidance (opens new window)

ALEXANDRIA, Va. (Sept. 11, 2018) – The National Credit Union Administration has selected NancyRae Kjelgaard as Associate Regional Director of Programs in the agency’s Region V office in Tempe, Arizona.

Kjelgaard comes to the NCUA from the Federal Housing Finance Agency, where she served in several roles, most recently as supervisory examiner of credit risk in the Office of Fannie Mae Examinations. Prior to her service at FHFA, Kjelgaard worked for the Florida Office of Financial Regulation, Division of Financial Institutions, as a financial administrator, commercial banking review examiner and credit union field examiner.

Kjelgaard holds a bachelor’s degree and a Master of Business Administration degree from Canisius College, Buffalo, New York, and a Juris Doctor from the University at Buffalo School of Law.

ALEXANDRIA, Va. (Sept. 12, 2018) – The National Credit Union Administration is closely monitoring Hurricane Florence, and the agency has a hurricane information webpage with material on preparedness and recovery available for credit unions and members in the storm’s path.

The NCUA will be ready to assist credit unions with maintaining or restoring operations, if necessary. The NCUA’s Office of Credit Union Resources and Expansion can provide urgent needs grants (opens new window) up to $7,500 to low-income credit unions that experience sudden costs to restore operations interrupted by the storm.

Credit union members are encouraged to check their credit unions’ websites and social media sites for real-time information updates, including operating hours. Members may also contact the NCUA’s Consumer Assistance Center at 800-755-1030 Monday through Friday between 8 a.m. and 5 p.m. Eastern.

Members’ deposits remain protected by the National Credit Union Share Insurance Fund. Administered by the 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 insurance coverage can find information online at the Share Insurance Coverage (opens new window) page of the NCUA’s MyCreditUnion.gov (opens new window) website.

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the state regulators recognize the serious impact of Hurricane Florence on the customers, members, and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions subject to their supervision. The agencies encourage institutions operating in the affected areas to meet the financial services needs of their communities.

A complete list of the affected disaster areas can be found at www.fema.gov (opens new window).

Lending: Financial institutions should work constructively with borrowers in communities affected by Hurricane Florence. Prudent efforts to adjust or alter terms on existing loans in affected areas should not be subject to examiner criticism. Modifications of existing loans should be evaluated individually to determine whether they represent troubled debt restructurings. This evaluation should be based on the facts and circumstances of each borrower and loan, which requires judgment, as not all modifications will result in a troubled debt restructuring. In supervising institutions affected by Hurricane Florence, the agencies will consider the unusual circumstances these institutions face. The agencies recognize that efforts to work with borrowers in communities under stress can be consistent with safe-and-sound practices as well as in the public interest.

Temporary Facilities: The agencies understand that many financial institutions may face staffing, power, telecommunications, and other challenges in re-opening facilities after Hurricane Florence. In cases in which operational challenges persist, the primary federal and/or state regulator will expedite, as appropriate, any request to operate temporary facilities to provide more convenient availability of services to those affected by Hurricane Florence. In most cases, a telephone notice to the primary federal and/or state regulator will suffice initially to start the approval process, with necessary written notification being submitted shortly thereafter.

Publishing Requirements: The agencies understand that the damage caused by Hurricane Florence may affect compliance with publishing and other requirements for branch closings, relocations, and temporary facilities under various laws and regulations, as applicable. Institutions experiencing disaster-related difficulties in complying with any publishing or other requirements should contact their primary federal and/or state regulator.

Regulatory Reporting Requirements: Institutions affected by Hurricane Florence that expect to encounter difficulty meeting the agencies’ reporting requirements should contact their primary federal and/or state regulator to discuss their situation. The agencies do not expect to assess penalties or take other supervisory action against institutions that take reasonable and prudent steps to comply with the agencies’ regulatory reporting requirements if those institutions are unable to fully satisfy those requirements because of the effects of Hurricane Florence. The agencies’ staffs stand ready to work with affected institutions that may be experiencing problems fulfilling their reporting responsibilities, taking into account each institution’s particular circumstances, including the status of its reporting and recordkeeping systems and the condition of its underlying financial records.

Community Reinvestment Act (CRA): Financial institutions, as applicable, may receive CRA consideration for community development loans, investments, or services that revitalize or stabilize federally designated disaster areas in their assessment areas or in the states or regions that include their assessment areas. For additional information, institutions should review the Interagency Questions and Answers Regarding Community Reinvestment at https://www.ffiec.gov/cra/qnadoc.htm (opens new window).

Investments: The agencies realize local government projects may be negatively affected by Hurricane Florence. Institutions should monitor municipal securities and loans affected by Hurricane Florence. Appropriate monitoring and prudent efforts to stabilize such investments are encouraged.

For more information, refer to the Interagency Supervisory Examiner Guidance for Institutions Affected by a Major Disaster, which is available as follows:

CSBS: https://www.csbs.org/interagency-supervisory-examiner-guidance-institutions-affected-major-disaster (opens new window)
FDIC: https://www.fdic.gov/news/news/financial/2017/fil17062.html (opens new window)
FRB: https://www.federalreserve.gov/supervisionreg/srletters/sr1714a1.pdf (opens new window)
OCC: https://www.occ.gov/news-issuances/bulletins/2017/bulletin-2017-61.html (opens new window)
NCUA: https://www.ncua.gov/Resources/Documents/SL-17-02-examiner-guidance-institutions-affected-major-disaster-enclosure.pdf (opens new window)