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ALEXANDRIA, Va. (April 12, 2021) – National Credit Union Administration Chairman Todd M. Harper announced today he has appointed Samuel Schumach to serve as Deputy Director for External Affairs and Communications.

“Sam brings a wealth of strategic communications and congressional relations experience to this position,” Chairman Harper said. “His deep set of public affairs skills, along with his knowledge of the legislative process and proven leadership abilities, will serve the NCUA well as we continue to respond to the economic fallout caused by the COVID-19 pandemic, strengthen our commitment to consumer financial protection and economic equity, address cybersecurity risks, and position the agency for the future.”

Schumach joins the NCUA from the Federal Aviation Administration, where he served as a legislative affairs officer, responsible for managing legislative affairs and communications for the Office of Commercial Space Transportation.

Prior to his FAA experience, Schumach was a media spokesperson for the Consumer Financial Protection Bureau and served as the press secretary for the United States Office of Personnel Management, The White House Office of National Drug Control Policy, and for former U.S. Senate Majority Leader Harry Reid. His private sector experience includes strategic communication and congressional relations consulting at Deloitte Consulting, LLP. He also served for nearly a decade as an enlisted member in the active and reserve components of the United States Air Force.

“I am thrilled to join the dedicated team at NCUA at such a pivotal time for the credit union industry,” said Schumach. “Credit unions have been a part of my financial life since the day I opened my first account, and I know first-hand how vital they are to communities across the country. I look forward to working alongside Chairman Harper and the Board to promote a safe, sound, and equitable credit union industry.”

Schumach earned a master’s degree in global security studies from The Johns Hopkins University and a bachelor’s degree in political science from the University of Nevada, Las Vegas. He is a partner in the Truman National Security Project, an associate member of the Hispanic Bar Association of D.C., a member of the National Press Club, and he holds a private pilot license.

(April 9, 2021) – The federal banking agencies, in consultation with the Financial Crimes Enforcement Network and the National Credit Union Administration, today issued a joint statement addressing how risk management principles described in the “Supervisory Guidance on Model Risk Management” relate to systems or models used by banks to assist in complying with the requirements of Bank Secrecy Act (BSA) laws and regulations. The statement further notes that it does not alter existing BSA/anti-money laundering (AML) legal or regulatory requirements or establish new supervisory expectations, and that no specific model risk management framework is required.

The agencies, along with the National Credit Union Administration and the Financial Crimes Enforcement Network, also announced a request for information (RFI) on the extent to which the principles discussed in the guidance support compliance by banks and credit unions with BSA/AML and Office of Foreign Assets Control requirements. The agencies are seeking comments and information to better understand bank practices and determine whether additional explanation or clarification may be helpful.

Comments to the RFI will be accepted for 60 days following publication in the Federal Register.

Attachments

Joint Statement (opens new window)
Request for Information (opens new window)

Agency	Contact	Phone
Federal Reserve	Darren Gersh	202.452.2955
FDIC	Brian Sullivan	202.412.1436
FinCEN	Candice Basso	703.905.3770
NCUA	Joseph Adamoli	571.645.6636
OCC	Stephanie Collins	202.649.6870

Member Deposits Remain Protected up to $250,000 by the Share Insurance Fund

ALEXANDRIA, Va. (March 31, 2021) – The National Credit Union Administration today liquidated Indianapolis’ Newspaper Federal Credit Union of Indianapolis, Indiana.

Elements Financial Federal Credit Union of Indianapolis, Indiana, immediately assumed most of Indianapolis’ Newspaper Federal Credit Union’s shares. Elements Financial Federal Credit Union is a federally insured and chartered credit union with 116,004 members and assets of more than $2 billion, according to the credit union’s most recent Call Report.

Elements Financial Federal Credit Union expects no interruption in services for the new members, and their accounts remain federally insured by the National Credit Union Share Insurance Fund. Administered by NCUA, the Share Insurance Fund insures individual accounts up to $250,000, and insures a member’s interest in all joint accounts combined up to $250,000. The Share Insurance Fund also separately protects IRA and KEOGH retirement accounts up to $250,000. The Share Insurance Fund has the backing of the full faith and credit of the United States.

Members with questions about their accounts may contact Elements Financial Federal Credit Union at 317.524.5025, Monday through Friday from 8 a.m. to 4:30 p.m., or through their website (opens new window).

The NCUA has retained a portion of Indianapolis’ Newspaper Federal Credit Union’s shares. Members should contact NCUA’s Asset Management and Assistance Center to see if their shares have been retained:

Indianapolis’ Newspaper Federal Credit Union
c/o National Credit Union Administration
4807 Spicewood Springs Road, Suite 5100
Austin, Texas 78759
512.231.7940
[email protected]

The NCUA will also retain all the Indianapolis’ Newspaper Federal Credit Union’s loans and will use Statebridge Company to perform loan servicing. Members with questions pertaining to their loan account can contact Malaya Lawrence at 866.466.3360, extension 6357 or by email at [email protected]. Members will also submit loan payments to Statebridge Company:

Statebridge Company, LLC
Attn:  Payment Processing Dept
P.O. BOX 173313
Denver, CO 80217-3313

The NCUA made the decision to liquidate Indianapolis’ Newspaper Federal Credit Union and discontinue its operations after determining the credit union was insolvent and has no prospect for restoring viable operations on its own.

At the time of liquidation and subsequent assumption by Elements Financial Federal Credit Union, Indianapolis’ Newspaper Federal Credit Union served 1,143 members and had assets of approximately $6.4 million, according to the credit union’s most recent Call Report. Chartered in 1961, Indianapolis’ Newspaper Federal Credit Union primarily served current and past employees of the Indianapolis Star and a few other select employee groups in Indianapolis, Indiana.

Indianapolis’ Newspaper Federal Credit Union is the first federally insured credit union liquidation in 2021.

Creditor Claim Form

(April 1, 2021) – The Federal Financial Institutions Examination Council (FFIEC) today announced the appointment of Susannah Marshall to the FFIEC’s State Liaison Committee (SLC). Marshall was designated by the Conference of State Bank Supervisors (CSBS) to serve on the SLC for a two-year term that begins today and continues through March 31, 2023.

Marshall has served as Commissioner of the Arkansas Bank Department since October 1, 2020. Marshall began her Bank Department career as Commercial Bank Examiner in 1995, and in 2003 was promoted to Financial Analyst. In 2005, Marshall was promoted to Financial Analyst Supervisor, and was appointed as Deputy Bank Commissioner in 2007. Marshall served as Deputy Bank Commissioner until her 2020 appointment to Bank Commissioner.

As Bank Commissioner, Marshall is responsible for the regulation, supervision and examination of Arkansas state-chartered banks, bank holding companies, a trust company, and a state-chartered non-profit organization. As of December 31, 2020, the agency supervised 75 state chartered commercial banks with total assets over $126.6 billion.

Marshall has previously served on the Board of Directors for the CSBS and currently serves on various committees within the organization, including Vice-Chairman of a multi-state, regional regulatory committee and a national committee of state and federal regulators.

Marshall earned a bachelor’s degree in Accounting from Arkansas State University, Jonesboro, Arkansas, in 1995 and is a 2002 graduate of the Southwestern Graduate School of Banking, Dallas, Texas. During her tenure with the Bank Department, Marshall obtained the designations of Commissioned Senior Examiner and Certified Examination Manager.

The FFIEC also announced that the American Council of State Savings Supervisors (ACSSS) has reappointed Superintendent Kevin Allard, Ohio Division of Financial Institutions, to the SLC for a first full two-year term; and the National Association of State Credit Union Supervisors (NASCUS) has reappointed Senior Deputy Commissioner Stephen Pleger, Georgia Department of Banking and Finance, for a second two-year term to the SLC. Allard and Pleger’s two-year terms will expire on March 31, 2023.

The SLC is comprised of five members, and also includes:

• Tom Fite, Director, Indiana Department of Financial Institutions, selected by the Council; and
• Melanie Hall, Commissioner, Montana Division of Banking and Financial Institutions, selected by the Council.

The FFIEC was created by the federal Financial Institutions Regulatory and Interest Rate Control Act of 1978 to “prescribe uniform principles and standards for the federal examination of financial institutions” and “make recommendations to promote uniformity” in the supervision of financial institutions. It also conducts schools for examiners employed by the five federal member agencies represented on the FFIEC and makes those schools available to employees of state agencies that supervise financial institutions.

The FFIEC consists of the following six voting members: a member of the Board of Governors of the Federal Reserve System; the Chairman of the Federal Deposit Insurance Corporation; the Director of the Consumer Financial Protection Bureau; the Comptroller of the Currency; the Chairman of the National Credit Union Administration; and the Chairman of the SLC.

The SLC consists of five representatives of state banking and credit union agencies that supervise financial institutions. Members are designated by the CSBS, ACSSS, NASCUS, and the FFIEC. An SLC member may have his or her two-year term extended by the appointing organization for an additional, two-year term.

Agency	Contact	Phone
NCUA	Joseph Adamoli	703.518.6330
SLC	Catherine Pickles	202.728.5734

(April 1, 2021) – Todd M. Harper, Chairman, National Credit Union Administration (NCUA), has been named Chairman of the Federal Financial Institutions Examination Council (FFIEC). His two-year term runs from April 1, 2021, through March 31, 2023. The Council also named Blake Paulson, Acting Comptroller of the Currency, Office of the Comptroller of the Currency (OCC), as its new vice chairman for the same two-year term.

“I am honored to serve as the next Chairman of the FFIEC and will work to foster communication, cooperation, and coordination within the Council to advance greater uniformity and best practices in supervision,” said Mr. Harper. “I want to thank past Chairmen Kathleen Kraninger and David Uejio for their service to the FFIEC. Going forward, our work will focus on the COVID-19 economic fallout, safety and soundness, consumer financial protection, economic equity and justice, cybersecurity, appraisals, and stakeholder collaboration.”

Mr. Harper became the NCUA’s twelfth Chairman on January 20, 2021. He previously served as an NCUA Board member, director of the agency’s then-Office of Public and Congressional Affairs, and chief policy advisor to former Chairmen Debbie Matz and Rick Metsger, advising both on FFIEC matters. Prior to his tenure at the NCUA, Mr. Harper worked for the U.S. House of Representatives as staff director for the Subcommittee on Capital Markets, Insurance, and Government-Sponsored Enterprises.

Mr. Harper holds an undergraduate degree in business analysis from Indiana University’s Kelley School of Business and a graduate degree in public policy from Harvard University’s Kennedy School of Government.

The FFIEC was established in March 1979 to prescribe uniform principles, standards, and report forms and to promote uniformity in the supervision of financial institutions. It also conducts schools for examiners employed by the five federal member agencies represented on the FFIEC and makes those schools available to employees of state agencies that supervise financial institutions. The Council consists of the following six voting members: a member of the Board of Governors of the Federal Reserve System; the Chairman of the Federal Deposit Insurance Corporation; the Director of the Consumer Financial Protection Bureau; the Comptroller of the Currency; the Chairman of the National Credit Union Administration; and the Chairman of the State Liaison Committee.

Agency	Contact	Phone
Federal Reserve	Darren Gersh	202.452.2955
CFPB	Michael Robinson	202.435.7170
FDIC	Julianne Breitbeil	202.898.6895
NCUA	Joseph Adamoli	703.518.6330
OCC	Stephanie Collins	202.649.6870
SLC	Catherine Pickels	202.728.5734

WASHINGTON (March 29, 2021) – Five federal financial regulatory agencies are gathering insight on financial institutions’ use of artificial intelligence (AI). The agencies seek information from the public on how financial institutions use AI in their activities, including fraud prevention, personalization of customer services, credit underwriting, and other operations.  

The Federal Reserve Board, the Consumer Financial Protection Bureau (CFPB), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA) and the Office of the Comptroller of the Currency (OCC) announced the request for information (RFI) to gain input from financial institutions, trade associations, consumer groups, and other stakeholders on the growing use of AI by financial institutions. More specifically, the RFI seeks comments to better understand the use of AI, including machine learning, by financial institutions; appropriate governance, risk management, and controls over AI; challenges in developing, adopting, and managing AI; and whether any clarification would be helpful.  

Comments will be accepted for 60 days following publication in the Federal Register.

Attachment: Request for Information and Comment on Financial Institutions’ Use of Artificial Intelligence, including Machine Learning (opens new window)

Agency	Contact	Phone
Federal Reserve Board	Darren Gersh	202.452.2955
CFPB	Michael Robinson	202.435.7170
FDIC	Julianne Breitbeil	202.898.6895
NCUA	Ben Hardaway	703.518.6333
OCC	Bryan Hubbard	202.649.6870

Accounts Remain Protected by Share Insurance Fund; Member Services Uninterrupted

ALEXANDRIA, Va. (March 26, 2021) – The Texas Credit Union Department today took possession of Edinburg Teachers Credit Union, located in Edinburg, Texas, and appointed the National Credit Union Administration as conservator.

Member deposits at Edinburg Teachers Credit Union remain protected by the National Credit Union Share Insurance Fund. Administered by the NCUA, the Share Insurance Fund insures individual accounts at Edinburg Teachers Credit Union up to $250,000, and a member’s interest in all joint accounts combined up to $250,000. The Share Insurance Fund also separately protects IRA and KEOGH retirement accounts up to $250,000. The Share Insurance Fund has the backing of the full faith and credit of the United States.

Member services will continue uninterrupted at the credit union’s main office at 900 West University Drive, Edinburg, Texas. Members can continue to conduct normal financial transactions, deposit and access funds, make loan payments, and use shares. The office is open Monday through Friday from 8 a.m. to 5 p.m. and Saturday 8 a.m. to 1 p.m. Central.

Members with questions about Edinburg Teachers Credit Union’s operations may contact the credit union at 956.259.3511. Members with questions about the conservatorship may review the Edinburg Teachers Credit Union frequently asked questions posted on the NCUA’s website. They can also contact the NCUA’s Consumer Assistance Center at 800.755.1030, Monday through Friday from 8 a.m. to 5 p.m. Eastern.

Members with questions about their Share Insurance Fund coverage can find more information in the Share Insurance Coverage (opens new window) section of NCUA’s MyCreditUnion.gov (opens new window) consumer website. They can also contact the NCUA’s Consumer Assistance Center (opens new window).

Edinburg Teachers Credit Union is a federally insured, state-chartered credit union with 12,572 members and assets of $106,218,446, according to the credit union’s most recent Call Report. Edinburg Teachers Credit Union serves several education-based and other employee groups as well as their family members.

ALEXANDRIA, Va. (March 26, 2021) – The NCUA Board unanimously approved by notation vote a 30-day extension of the comment period for its proposed rule on credit union service organizations, Part 712.

This rule, proposed during the January 2021 NCUA Board Meeting, would expand the list of permissible activities and services for CUSOs. Specifically, it would:

• Expand the list of permissible activities and services for CUSOs to include originating any type of loan that a federal credit union may originate; and
• Grant the NCUA Board additional flexibility to approve permissible activities and services.

The NCUA is also seeking comment on broadening the investment authority of federal credit unions in CUSOs.

The new due date for public comments will be published in the Federal Register in the near future. For more information on these proposed changes to the agency’s CUSO rule, please go to https://www.regulations.gov/docket/NCUA-2021-0036/document (opens new window). 

ALEXANDRIA, Va. (March 25, 2021) – Federally insured credit unions can get valuable information on Bank Secrecy Act and anti-money laundering compliance during a National Credit Union Administration webinar scheduled for April 14.

Online registration for the webinar, “Bank Secrecy Act Update,” is now open (opens new window). The webinar is scheduled to begin at 2 p.m. Eastern and run for approximately 60 minutes. Participants will be able to log into the webinar and view it on their computers or mobile devices using the registration link. They should allow pop-ups from this website.

Staff from the NCUA’s Office of Examination and Insurance will be joined by Cathryn Martin, BSA compliance officer at Tower Federal Credit Union in Laurel, Maryland, to cover topics that include:

• Updates on recently issued BSA statements,
• Actions for managing high-risk accounts, and
• Highlights of the Anti-Money Laundering Act of 2020.

Participants can submit questions anytime during the presentation or in advance by emailing [email protected]. The email’s subject line should read, “BSA Update.” Please email technical questions about accessing the webinar to [email protected]. This webinar will be closed captioned and archived online approximately three weeks following the live event.

ALEXANDRIA, Va. (March 23, 2021) – Although the COVID-19 pandemic continues to pose challenges for the country and the credit union system, the economic outlook has recently improved, National Credit Union Administration Chairman Todd M. Harper said yesterday during the Maine Credit Union League’s Town Hall Meeting.

“The recently enacted $1.9 trillion American Rescue Plan Act will help shore up household finances and is expected to give the economy a substantial boost,” Chairman Harper said. “The return of warmer weather and rising number of Americans who have been vaccinated should also spur increased economic activity and job creation in the months ahead.”

Harper’s remarks are available on the NCUA’s website.

Even with these improvements, Harper cautioned that it would take time for the economy to fully recover, and credit unions “face a prolonged period of very low interest rates.” He added, “In the year ahead, your credit union’s ability to manage interest-rate risk will play a crucial role in financial performance.”

Consider the Reputational Risks before Garnishing Stimulus Payments

Harper also discussed the practice by some financial institutions, including credit unions, to garnish economic stimulus payments, calling this a very important subject.

“As we saw with stimulus payments last year, some credit unions decided to garnish these funds instead of stepping up and working with their members. Credit unions that do this again should consider the reputational issues that will come from these practices,” Harper said.

Harper referred to credit unions as financial first responders who should protect member’s relief payments from collection, garnishment, and the right of offset, and he urged them to demonstrate the cooperative philosophy at the heart of the credit union movement. Failing to accommodate members’ needs during tough economic times will sacrifice a credit union’s long-term financial viability and create negative publicity for the entire credit union system, Harper said.

“All credit unions should heed the lyrics of Bill Withers who sang, ‘Lean on me, when you’re not strong, and I’ll be your friend. I’ll help you carry on,’” Harper said. “Credit unions that follow this wise, timeless advice will serve their members, themselves, the credit union system, and our economy well in the long term.”

Chairman Harper’s remarks also included a discussion of the credit union industry, the NCUA’s response to COVID-19, consumer financial protection, and economic equity and justice.

The NCUA COVID-19 Resource Center includes answers to frequently asked questions on economic impact payment and stimulus checks. It includes FAQs for federally insured credit unions and FAQs for credit union members.