National Credit Union Administration 2021 – Federal Register Recent Federal Regulation Documents

Community Development Revolving Loan Fund Access for Credit Unions
Document Number: 2021-07085
Type: Notice
Date: 2021-04-06
Agency: National Credit Union Administration, Agencies and Commissions
The National Credit Union Administration (NCUA) is issuing this Notice of Funding Opportunity (NOFO) to announce the availability of technical assistance grants (awards) for low-income designated credit unions (LICUs) through the CDRLF. The CDRLF serves as a source of financial support in the form of loans and technical assistance grants that better enable LICUs to support the communities in which they operate. All grant awards made under this NOFO are subject to funds availability and are at the NCUA's discretion.
Credit Union Service Organizations (CUSOs)
Document Number: 2021-06653
Type: Proposed Rule
Date: 2021-03-31
Agency: National Credit Union Administration, Agencies and Commissions
On February 26, 2021, the NCUA Board (Board) published a Notice of Proposed Rulemaking in the Federal Register requesting comment on the Board's proposal to amend the NCUA's credit union service organization (CUSO) regulation (proposed rule). The proposed rule would accomplish two objectives: Expanding the list of permissible activities and services for CUSOs to include originating any type of loan that a Federal credit union (FCU) may originate; and granting the Board additional flexibility to approve permissible activities and services. The proposed rule provided a 30-day comment period that closed on March 29, 2021. To allow interested persons more time to consider and submit their comments, the Board has decided to extend the comment period for an additional 30 days.
Request for Information and Comment on Financial Institutions' Use of Artificial Intelligence, Including Machine Learning
Document Number: 2021-06607
Type: Notice
Date: 2021-03-31
Agency: Federal Deposit Insurance Corporation, Agencies and Commissions, National Credit Union Administration, Office of the Comptroller of the Currency, Department of Treasury, Department of the Treasury, Bureau of Consumer Financial Protection, Board of Governors of the Federal Reserve System
The agencies are gathering information and comments on financial institutions' use of artificial intelligence (AI), including machine learning (ML). The purpose of this request for information (RFI) is to understand respondents' views on the use of AI by financial institutions in their provision of services to customers and for other business or operational purposes; appropriate governance, risk management, and controls over AI; and any challenges in developing, adopting, and managing AI. The RFI also solicits respondents' views on the use of AI in financial services to assist in determining whether any clarifications from the agencies would be helpful for financial institutions' use of AI in a safe and sound manner and in compliance with applicable laws and regulations, including those related to consumer protection.
Central Liquidity Facility
Document Number: 2021-05953
Type: Rule
Date: 2021-03-24
Agency: National Credit Union Administration, Agencies and Commissions
In response to the enactment of the Consolidated Appropriations Act, 2021, (CAA) the NCUA Board (Board) is issuing this interim final rule to cohere the NCUA's regulations to the statutory changes made by the CAA. Specifically, the CAA extended several enhancements to the NCUA's Central Liquidity Facility (CLF or Facility), which were first enacted by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). This rule amends the NCUA's CLF regulation to reflect these extensions. This rule also extends the withdrawal from CLF membership provisions that the Board included in the April 2020 interim final rule that made the aforementioned regulatory changes related to the CARES Act.
Asset Thresholds
Document Number: 2021-05967
Type: Rule
Date: 2021-03-23
Agency: National Credit Union Administration, Agencies and Commissions
To mitigate transition costs on credit unions related to the coronavirus disease 2019 (COVID-19 Pandemic), the NCUA Board (Board) is issuing this temporary interim final rule to permit federally insured credit unions (FICUs) to use asset data as of March 31, 2020, in order to determine the applicability of certain regulatory asset thresholds during calendar years 2021 and 2022. Specifically, the interim final rule allows a FICU to use March 31, 2020, financial data when determining whether the institution is subject to capital planning and stress testing requirements under the NCUA's regulations and supervision from the Office of National Examinations and Supervision.
Agency Information Collection Activities: Proposed Collection; Comment Request; Minority Depository Institution Preservation Program
Document Number: 2021-05552
Type: Notice
Date: 2021-03-18
Agency: National Credit Union Administration, Agencies and Commissions
The National Credit Union Administration (NCUA), as part of a continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to comment on the following extension of a currently approved collection, as required by the Paperwork Reduction Act of 1995.
Loans in Areas Having Special Flood Hazards; Interagency Questions and Answers Regarding Private Flood Insurance
Document Number: 2021-05314
Type: Proposed Rule
Date: 2021-03-18
Agency: Farm Credit Administration, Agencies and Commissions, Federal Deposit Insurance Corporation, Federal Reserve System, National Credit Union Administration, Office of the Comptroller of the Currency, Department of Treasury, Department of the Treasury
The OCC, Board, FDIC, FCA, and NCUA (collectively, the Agencies) propose to supplement the Interagency Questions and Answers Regarding Flood Insurance with new questions and answers regarding the acceptance of flood insurance policies issued by private insurers pursuant to the Agencies' private flood insurance final rule issued in February 2019. These questions and answers will assist lenders in meeting their responsibilities under the final rule and increase public understanding of the Agencies' respective flood insurance regulations. The Agencies solicit comment on all aspects of these new questions and answers.
Sunshine Act Meetings
Document Number: 2021-05468
Type: Notice
Date: 2021-03-16
Agency: National Credit Union Administration, Agencies and Commissions
Simplification of Risk Based Capital Requirements
Document Number: 2021-01397
Type: Proposed Rule
Date: 2021-03-09
Agency: National Credit Union Administration, Agencies and Commissions
The National Credit Union Administration (NCUA) Board (Board) is issuing this advance notice of proposed rulemaking (ANPR) to solicit comments on two approaches to simplify its risk-based capital requirements. The Board's risk-based capital requirements are set forth in a final rule dated October 29, 2015, which is currently scheduled to become effective on January 1, 2022. The delayed effective date has provided the Board with additional time to evaluate the capital standards for federally-insured credit unions (FICUs) that are classified as ``complex'' (those with total assets greater than $500 million). The first approach would replace the risk-based capital rule with a Risk-based Leverage Ratio (RBLR) requirement, which uses relevant risk attribute thresholds to determine which complex credit unions would be required to hold additional capital (buffers). The second approach would retain the 2015 risk-based capital rule but enable eligible complex FICUs to opt-in to a ``complex credit union leverage ratio'' (CCULR) framework to meet all regulatory capital requirements. The CCULR approach would be modeled on the ``Community Bank Leverage Ratio'' framework, which is available to certain banks.
CAMELS Rating System
Document Number: 2021-01396
Type: Proposed Rule
Date: 2021-03-09
Agency: National Credit Union Administration, Agencies and Commissions
The Board is proposing to add the ``S'' (Sensitivity to Market Risk) component to the existing CAMEL rating system and redefine the ``L'' (Liquidity Risk) component, thus updating the rating system from CAMEL to CAMELS. The proposal to add the ``S'' component will enhance transparency and allow the NCUA, State Supervisory Authorities, and federally insured credit unions to better distinguish between liquidity risk (``L'') and sensitivity to market risk (``S''). The amendment would also enhance consistency between the regulation of credit unions and other financial institutions. The Board is proposing to implement the addition of the ``S'' rating component and a redefined ``L'' rating as early as the first quarter of 2022.
Submission for OMB Review; Comment Request
Document Number: 2021-03914
Type: Notice
Date: 2021-02-25
Agency: National Credit Union Administration, Agencies and Commissions
The National Credit Union Administration (NCUA) will be submitting the following information collection request to the Office of Management and Budget (OMB) for review and clearance in accordance with the Paperwork Reduction Act of 1995 on or after the date of publication of this notice.
Joint Ownership Share Accounts
Document Number: 2021-03671
Type: Rule
Date: 2021-02-24
Agency: National Credit Union Administration, Agencies and Commissions
The NCUA Board (Board) is amending its share insurance regulation governing the requirements for a share account to be separately insured as a joint account by the National Credit Union Share Insurance Fund (NCUSIF). Specifically, the final rule provides an alternative method to satisfy the membership card or account signature card requirement necessary for insurance coverage (signature card requirement). Under the final rule, even if an insured credit union cannot produce membership cards or account signature cards signed by the joint accountholders, the signature card requirement can be satisfied by information contained in the account records of the insured credit union establishing co-ownership of the share account. For example, the signature card requirement can be satisfied by the credit union having issued a mechanism for accessing the account, such as a debit card, to each co-owner or evidence of usage of the joint share account by each co-owner.
Risk-Based Net Worth-COVID-19 Regulatory Relief
Document Number: 2021-01400
Type: Proposed Rule
Date: 2021-02-23
Agency: National Credit Union Administration, Agencies and Commissions
The NCUA Board (Board) is issuing this proposal to raise the asset threshold for defining a credit union as ``complex'' for purposes of being subject to any risk-based net worth requirement in the NCUA's regulations. The proposed rule would amend the NCUA's regulations to provide that any risk-based net worth requirement will be applicable only to a federally insured natural-person credit union (credit union) with quarter-end assets that exceed $500 million and a risk-based net worth requirement that exceeds six percent. The COVID-19 pandemic has created a vital need for financial institutions, including credit unions, to provide access to responsible credit and other member services to support consumers. Implementing this regulatory change in advance of January 1, 2022, the effective date of the 2015 final risk based capital (RBC) rule issued by the NCUA, would provide necessary capital relief to a significant number of credit unions without substantially decreasing the safety and soundness of credit unions or the National Credit Union Share Insurance Fund (NCUSIF).
Corporate Credit Unions
Document Number: 2021-01399
Type: Rule
Date: 2021-02-23
Agency: National Credit Union Administration, Agencies and Commissions
The NCUA Board (Board) is issuing a final rule that amends the NCUA's corporate credit union regulation. The final rule updates the definitions in this regulation and makes clear that corporate credit unions may purchase subordinated debt instruments issued by natural person credit unions. The final rule also specifies the capital treatment of these instruments for corporate credit unions that purchase them.
Subordinated Debt
Document Number: 2020-28281
Type: Rule
Date: 2021-02-23
Agency: National Credit Union Administration, Agencies and Commissions
The NCUA Board (Board) is amending various parts of the NCUA's regulations to permit Low-income Designated Credit Unions, Complex Credit Unions, and New Credit Unions to issue Subordinated Debt for purposes of Regulatory Capital treatment. The Board issued the proposed Subordinated Debt rule at its January 2020 meeting. The Board is finalizing the rule largely as proposed, except for a few changes to various sections based on comments received. Such changes include amending the definition of Accredited Investor, providing a longer timeframe in which a credit union may issue Subordinated Debt after approval, reducing the required number of years of Pro Forma Financial Statements an Issuing Credit Union must provide with its application, clarifying the prohibition on Subordinated Debt issuances outside of the United States, and clarifying that the Board will publish a fee schedule only if it makes a determination to charge a fee.
Sunshine Act Meetings
Document Number: 2021-03211
Type: Notice
Date: 2021-02-17
Agency: National Credit Union Administration, Agencies and Commissions
Submission for OMB Review; Comment Request
Document Number: 2021-02954
Type: Notice
Date: 2021-02-12
Agency: National Credit Union Administration, Agencies and Commissions
The National Credit Union Administration (NCUA) will submit the following information collection request to the Office of Management and Budget (OMB) for review and clearance in accordance with the Paperwork Reduction Act of 1995, on or after the date of publication of this notice.
Submission for OMB Review; Comment Request
Document Number: 2021-02450
Type: Notice
Date: 2021-02-05
Agency: National Credit Union Administration, Agencies and Commissions
The National Credit Union Administration (NCUA) will be submitting the following information collection request to the Office of Management and Budget (OMB) for review and clearance in accordance with the Paperwork Reduction Act of 1995 on or after the date of publication of this notice.
Role of Supervisory Guidance
Document Number: 2021-01867
Type: Rule
Date: 2021-02-03
Agency: National Credit Union Administration, Agencies and Commissions
The NCUA Board is adopting a final rule that codifies the Interagency Statement Clarifying the Role of Supervisory Guidance, issued by the NCUA, Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve (the Board), the Office of Comptroller of the Currency (OCC), and the Consumer Financial Protection Bureau (Bureau) (collectively, the agencies) on September 11, 2018 (2018 Statement). By codifying the 2018 Statement, with amendments, the final rule confirms that the NCUA will continue to follow and respect the limits of administrative law in carrying out their supervisory responsibilities. The 2018 Statement reiterated well-established law by stating that, unlike a law or regulation, supervisory guidance does not have the force and effect of law. As such, supervisory guidance does not create binding legal obligations for the public. Because it is incorporated into the final rule, the 2018 Statement, as amended, is binding on the NCUA. The final rule adopts the rule as proposed without change.
Bank Secrecy Act
Document Number: 2021-00048
Type: Proposed Rule
Date: 2021-01-22
Agency: National Credit Union Administration, Agencies and Commissions
The NCUA Board (Board) is inviting comment on a proposed rule that would modify the requirements for federally insured credit unions (FICUs) to file Suspicious Activity Reports (SARs). The proposed rule would amend the NCUA's SARs regulation to allow the Board to issue exemptions from the requirements of that regulation in order to grant relief to FICUs that develop innovative solutions to meet the requirements of the Bank Secrecy Act (BSA).
Sunshine Act Meeting
Document Number: 2021-00473
Type: Notice
Date: 2021-01-11
Agency: National Credit Union Administration, Agencies and Commissions
Chartering and Field of Membership-Shared Facility Requirements
Document Number: 2020-28277
Type: Proposed Rule
Date: 2021-01-11
Agency: National Credit Union Administration, Agencies and Commissions
The NCUA Board (Board) proposes to amend its chartering and field of membership (``FOM'') rules to modernize requirements related to service facilities for multiple common bond (``MCB'') federal credit unions (``FCUs''). The Board is proposing to include any shared branch, shared ATM, or shared electronic facility in the definition of ``service facility'' for an FCU that participates in a shared branching network. The FCU need not be an owner of the shared branch network for the shared branch or shared ATM to be a service facility. These changes would apply to the definition of service facility both for additions of select groups to MCB FCUs and for expansions into underserved areas.
Request for Information on NCUA Communications and Transparency
Document Number: 2020-29270
Type: Notice
Date: 2021-01-08
Agency: National Credit Union Administration, Agencies and Commissions
The NCUA is seeking comments and information from interested parties on the NCUA's communication methods and related initiatives to promote efficiency and increase transparency.
Civil Monetary Penalty Inflation Adjustment
Document Number: 2020-29181
Type: Rule
Date: 2021-01-07
Agency: National Credit Union Administration, Agencies and Commissions
The NCUA Board (Board) is amending its regulations to adjust the maximum amount of each civil monetary penalty (CMP) within its jurisdiction to account for inflation. This action, including the amount of the adjustments, is required under the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.