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Matz & NCUA Answer Questions During Agency Webinar

National Credit Union Administration (NCUA) Board Chairman Matz and senior NCUA staff held a webinar on Thursday, October 4, 2012,  on the state of the credit union industry and key regulatory issues pending at the agency.

In response to a question regarding low-income designation letters NCUA recently sent to eligible credit unions, staff stated that:

  • The first round of eligibility letters were sent to all eligible federal credit unions;
  • NCUA does not have data available on state chartered credit unions that are eligible for the low-income credit union (LICU) designation, and therefore will not be sending them letters; and
  • On September 19, NCUA sent a second round of eligibility letters to the federal credit unions that did not respond to the previous letters; these credit unions will have until October 19 to respond to the subsequent letters.

CUNA and the Missouri Credit Union Association (MCUA)  are aware that the LICU process has not been efficient for state chartered credit unions and are urging NCUA to work with state regulators to insure eligible state credit unions receive their LICU designations on a timely basis.

Director of Examination and Insurance Larry Fazio noted that the agency is making several updates to the examination report for 2013, including by expanding the table of contents so it will detail the documents contained in the report (e.g., an explanation of what a document of resolution is and what to expect if one is received).  In addition, Fazio said the report will also be updated to include contact information for the examiner in charge and supervisory examiner, as well as information on both the formal and informal appeal process and appeal options a credit union has if it disagrees with an examiner’s directive. 

The NCUA Board will likely announce at its November meeting the range estimate for the 2013 Temporary Corporate Credit Union Stabilization Fund Assessment.

Regarding the troubled condition proposal, NCUA stated it believes the rule will “level the playing field” by allowing NCUA to designate certain state-chartered credit unions as in troubled condition in instances where the state regulator assigned it a higher CAMEL code rating.  In a related comment, NCUA stated that its staff consults with state regulators before a proposal is issued that might impact state-chartered credit unions.

In addition, Chairman Matz noted that the Board vacancy from Board Member Hyland’s departure will likely not be filled in the near future. The timetable for the decision, however, is up to the White House, although an appointment before the election is not likely.


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