January 17, 2014
Friday Edition
Risk-based capital to be discussed by NCUA

The current seven-percent leverage capital standard was set by statute in 1998. While only the U.S. Congress can change the statute, NCUA Chairman Debbie Matz said in July that the recent financial crisis and changes in the ways the industry operates means the agency must make changes to how it implements the law by adopting a more flexible and forward-looking approach. 

CUNA has supported net worth standard changes that better reflect risk than the present approach does, but which will not simply add net worth requirements to the current system. CUNA has also been urging the agency to adopt a more productive approach to rule making that focuses on problem areas rather than issuing rules with blanket applicability, regardless of the credit unions level of risk. CUNA's Examination and Supervision Subcommittee has met with NCUA officials on the capital ratio issue.

Earlier this week, CUNA News Now reported that NCUA board member Rick Metsger said fewer than 200 credit unions would be required to make adjustments under the risk-based capital proposal that will be discussed next Thursday.

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NCUA unveils 2013 reg review results, including MBL recommendations

Amendments to member business lending (MBL) regulations could be proposed by an NCUA committee early this year, NCUA's Office of General Counsel (OGC) said in its review of agency regulations.

The OGC recommended that MBL regulations "should be revisited and updated to reflect the current business climate and to address certain other pressing issues facing credit unions."

The OGC said the agency could consider:

  • Whether 'soft costs' should be included in calculating the market value of a construction and development project
  • Clarifying the meaning of 'associated borrower'
  • Changing collateral valuation
  • Determining appropriate financial analysis practices as part of the underwriting process
  • Exempting well-capitalized credit unions with sufficient CAMEL ratings from the MBL rule's personal guarantee requirement
  • Replacing the two-year direct experience requirement with a more flexible, user friendly method of ensuring a credit union is utilizing qualified individuals in its business lending program; and
  • Updating the rule to clarify the legal relationship between NCUA and state supervisors

Appraisals and the Central Liquidity Facility are also addressed in the document. The general counsel recommended that the agency eliminate any redundant requirements on credit unions to provide copies of appraisals upon request. Technical changes to CLF language were also suggested.

To view the complete article visit CUNA News Now

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CFPB seeks advisory board and council applications

Yesterday afternoon, the CFPB announced that it is seeking applications for positions on its advisory groups, the Consumer Advisory Board (CAB), the Credit Union Advisory Council (CUAC), and the Community Bank Advisory Council (CBAC), which serve as key resources to the Bureau by providing valuable input and on-the-ground perspectives.

The Dodd-Frank Wall Street Reform and Consumer Protection Act, which created the CFPB, required that the CAB be established to advise and consult with the Bureau’s director on a variety of consumer financial issues. The CAB meets three times per year.

The CBAC and CUAC were created to ensure that the Bureau receives feedback from community banks and credit unions with asset sizes below $10 billion that are not under the CFPB’s supervision, but may be affected by Bureau regulations. The CBAC and CUAC meet four times per year.

Applicants should have a background in consumer protection, financial services, fair lending and civil rights, consumer financial products or services, or community development. Federally registered lobbyists will not be considered.

More information about application guidelines and the responsibilities of advisory group members is available in today’s Federal Register Notice. Applications will be accepted until Feb. 28, 2014.

Click here for the notice
.

Click here for a machine readable application.

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Catch the $ave Wave at this year's National Credit Union Youth Week

Credit unions will be celebrating youth this April. Join in the celebration all month, or just during National Credit Union Youth Week, by encouraging kids to set up savings accounts and learn how to manage money.

This year’s theme, Catch the $ave Wave, harnesses the excitement for beaches, sand, and surfing to show your younger members they can benefit from visiting — and saving at — your credit union.

By focusing on potential younger members, you can lower the age demographic of your credit union, while increasing the loyalty of their parents.

Click here to learn more about the National Credit Union Youth Week, visit the Celebration Store, register for the saving challenge, and access marketing resources.

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CU happenings

Army Aviation made the holiday season brighter for area children and seniors
Army Aviation Center Federal Credit Union (AACFCU) employees donated Christmas gifts to children and senior citizens throughout its service areas through programs sponsored by local nonprofit organizations such as the Salvation Army, Volunteers of America Southeast and local nursing homes.

“Our employees look forward to this time of year as their opportunity to give back to those less fortunate,” said Lisa Hales, AACFCU vice president of marketing. “We have wonderful, giving employees.”


Cheryl Seay, AACFCU business development
officer, with donations for the South Walton Fire
District Angel Tree program in Santa Rosa Beach, Fla.

 

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In This Issue
Friday Edition
Risk-based capital to be discussed by NCUA
NCUA unveils 2013 reg review results, including MBL recommendations
CFPB seeks advisory board and council applications
Catch the $ave Wave at this year's National Credit Union Youth Week
CU happenings
LSCU & Affiliates Media


President's Quarterly Report
LSCU & Affiliates President/CEO Patrick La Pine looks at the League's activities for the fourth quarter which includes an office move in Tallahassee, a new LEVERAGE hire and an update on tax reform.

Tax Reform's New Message
The House is continuing to push tax reform, just in a different way.

Upcoming Event Deadlines
Jan. 28 Last day to receive "early bird" rate for Small Asset Size Conference - Orlando
Jan. 29 Last day to receive "early bird" rate for Small Asset Size Conference - Ft. Lauderdale
Jan. 30 Last day to receive "early bird" rate for Small Asset Size Conference - Birmingham
Upcoming League Events
Jan. 22 Loan Member Has Died: Now What?
Jan. 23 Consumer Loan Portfolio Grading
Jan. 28 Reg CC Funds Availability & More
Jan. 29 Compliance & BSA for SR Mgmt-Board
Jan. 30 What is Personal Tax Return Telling Me?
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