NCUA

The National Credit Union Administration (NCUA) unanimously approved an advance notice of proposed rulemaking (ANPR) requesting public comment on modernizing the agency’s regulation on compensation related to loans and lines of credit to members.

NCUA’s loan origination compensation (LO Comp) regulation covers direct or indirect commissions, fees or other compensation by credit union officials, employees or their family members in connection with loans made by the credit union.

Learn what specific feedback the agency is seeking from stakeholders.

Credit unions have thrown support behind bipartisan legislation that would exempt loans made to veterans from counting against credit union’s member business lending (MBL) cap.  

The Veterans Member Business Loan Act would exclude extensions of credit made to veterans from the definition of a member business loan. The legislation was introduced by Reps. Vicente Gonzalez (D-Texas), Tulsi Gabbard (D-Hawaii), Paul Cook (R-Calif.) and Don Young (R-Ark.).

Learn more information about the newly proposed legislation.

As his last official action as chairman of the National Credit Union Administration (NCUA) Board, J. Mark McWatters administered the oath of office to Rodney Hood on Monday. President Donald Trump tapped Hood to be the board’s 11th chairman.

The Senate confirmed Hood, along with Todd Harper, as the board’s newest members in March with support from the credit union industry.

Learn more details about what this means for Hood.

The Senate voted to confirm Rodney Hood and Todd Harper to become National Credit Union Administration (NCUA) Board members.

Hood will take over the board seat vacated by Rick Metsger in August 2017 after his term expired and will serve until August 2023. The seat Harper will fill has been vacant since 2016, when former Chairman Debbie Matz retired. He will serve a term ending in April 2021.

Read on to learn more about the matter.

Taking the next step in its project to modernize federal examination processes, the Federal Financial Institutions Examination Council (FFIEC) recently issued a policy statement aimed at promoting clarity and consistency of reports of examination.

The principles include expectations for what information should be included in ROEs, as well as guidance on how that information should be presented to promote consistency, clarity and ease of reference, among other things.

Find out more details about the principles set forth in the new policy statement.

The Senate Banking Committee recently heard testimony from two nominees to join the National Credit Union Administration (NCUA) Board of Directors – Rodney Hood and Todd Harper. Both expressed interest in aligning NCUA’s regulatory approach with that of other federal agencies.

The committee also considered Trump’s nominees to become the Treasury Department’s assistant secretary of financial institutions – Bimal Patel – and head up the Federal Housing Finance Agency – Mark Calabria – during the hearing.

Find out what they had to say during the hearing.

After conducting a comprehensive review of its security logs and alerts, the National Credit Union Administration (NCUA) found no evidence of information being compromised as a result of recent spear phishing attacks targeting Bank Secrecy Act (BSA) officers at credit unions.

Reports of such attacks have come from other parts of the financial sector as well, NCUA noted in a blog post, encouraging all credit union staff to be wary of suspicious emails and that credit unions may report suspicious activity to the agency.

Read on to learn more about how to identify and avoid being victimized by such attacks.

A new brief in the ongoing legal challenge over the National Credit Union Administration’s (NCUA) field-of-membership (FOM) rule argues that the rule theoretically permits credit unions to engage in redlining, a practice heavily regulated in the banking industry.

Banking trade associations contend that the rule allows credit unions to serve a metropolitan area without serving its urban core, despite arguments to the contrary levied by credit union trade advocates.

Find out more details about the latest developments in the matter. 

A debate has emerged within the financial industry over PenFed Credit Union’s recent acquisition of an institution with an open charter as part of an “emergency merger” authorized by the National Credit Union Administration.

Independent Community Bankers of America President and CEO Rebeca Romero Rainey urged the freshly appointed leaders of the House Financial Services Committee to investigate NCUA’s reasoning in approving the merger.

Find out more about the arguments presented by all sides.

Taking issue with the fact that a federal credit union’s latest acquisition effectively gives the entity a nationwide charter, the American Bankers Association (ABA) announced it is pushing back against the National Credit Union Administration (NCUA) for allowing the transaction to take place.

The acquisition included an open charter – something that hasn’t been issued since before the Federal Credit Union Act of 1934.

Find out more about the controversy raised by the merger.