NCUA

Numerous federal financial agencies likely will be operational to begin 2020 thanks to the adoption of a $13.06 billion appropriations package outlined in the House’s FY 2020 spending bill.

The spending package provides more federal funding than the FY 2019 enacted level and more than the Trump administration’s budget request.

Find out more details about the spending package.

Credit unions will have an extra two years to work toward compliance with the National Credit Union Administration’s risk-based capital (RBC) rule following a recent vote to delay its implementation to Jan. 1, 2022.

Credit union advocacy groups pushed for the delay in implementation, the third since the rule was adopted in 2015 to modernize the credit union capital regime.

Learn more about the delay and what industry advocates are saying.

The D.C. Circuit Court of Appeals announced this week that it had denied a rehearing en banc in the case American Bankers Association v. National Credit Union Administration concerning the credit union regulator’s field of membership rule.

The banking trade association previously had said that the original ruling “stretches Chevron deference beyond its limits.”

Read on for reaction from credit union advocates on the announcement.

The five federal financial regulatory agencies recently issued a joint statement on the use of alternative data in underwriting by banks, credit unions and non-bank financial firms. The agencies sought to call out the consumer benefits of using alternative data in terms of credit availability.

The agencies described how a well-designed compliance management program can enable companies to account for relevant consumer protection laws and regulations to ensure all opportunities, risks and compliance requirements when using alternative date in credit decisions.

Get more details about the statement.

Responding to the trade group’s petition opposing the agency’s field-of-membership rule filed in federal court, the National Credit Union Administration argued that a banking trade group did not present a an adequate argument for rehearing court decision on the rule’s validity.

A three-judge panel ruled in August that NCUA could define a “local community” as a combined statistical area inhabited by up to 2.5 million people or define an entire state as a “rural district.”

Learn more details about the arguments presented and the agency’s proposed rule amendments.

The Office of the Inspector General (IG) for the National Credit Union Administration (NCUA) stated that it is conducting an audit of the agency’s examination processes in its latest semiannual report to Congress with relation to assessing third-party risks.

Notably, NCUA is the only federal prudential financial agency that lacks examination authority over third-party vendors used by the entities it supervises – a fact a piece of draft legislation seeks to change.

Learn more about the audit and what it says about the perceived importance of third-party oversight at credit unions.

The National Credit Union Administration board unanimously approved a proposed rule increasing the current residential real estate appraisal threshold to equal that set by banking regulators.

The agency also approved a measure to add a new, age-based filing exception to its Interpretive Ruling and Policy Statement.

Read on to learn more about the implications of the changes.

Newly introduced Senate legislation would exempt loans to veteran-owned businesses from the member business lending (MBL) cap, which limits the amount of total assets credit unions can devote to business lending.

The bipartisan measure bears the same name as its House counterpart and, likewise, has received strong support from the credit union industry.

Learn more about the aim of the legislation.

The Federal Financial Institutions Examination Council recently issued an updated version of its Business Continuity Management booklet.

The updated manual highlights points of note for regulatory examiners with regard to enterprise-wide approaches that address technology, business operations, testing and communication strategies critical to the continuity of the business, according to a press release.

Find out what changes the council made to the booklet.

The National Credit Union Administration (NCUA) recently proposed a new rule that would address concerns raised in a lawsuit over the agency’s field-of-membership (FOM) rule.

The agency also finalized a rule allowing public and nonmember deposits account for half of a federal credit union’s (FCU) total paid-in and unimpaired capital, less any public unit and nonmember shares.

Learn more details about the rulemaking actions.