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ALEXANDRIA, Va. (Dec. 9, 2020) – The National Credit Union Administration is announcing several enhancements to the Fraud Hotline, which allows the public to report insider fraud concerns associated with credit union employees, directors, or volunteers to the NCUA.

With these improvements, fraud tips can now be submitted electronically through the NCUA’s website. Individuals can remain anonymous or provide contact information for appropriate agency staff to discuss their fraud concerns. The new form also allows for a description of the fraud and other critical information to assist in the evaluation of the reported concerns.

The NCUA encourages anyone that suspects or is aware of insider fraud at a federally insured credit union to report the information as soon as possible. Swift reporting minimizes risks, exposures, and losses, while supporting appropriate supervisory or administrative action against those that commit fraud or misuse their position.

ALEXANDRIA, Va. (Dec. 7, 2020) – The National Credit Union Administration today announced the selection of Elizabeth J. Fischmann as the agency’s first Chief Ethics Counsel, effective December 21.

In this new role, Fischmann will oversee the Office of Ethics Counsel that will certify the agency’s compliance with relevant federal ethics laws and regulations, promote accountability and ethical conduct, and help ensure the success of the NCUA’s ethics programs, including programs designed to prevent harassment, and misconduct in the workplace. She will report directly to the NCUA Board and will be supervised by the NCUA Chairman.

“Elizabeth Fischmann is a strong leader with an impressive legal background and record of accomplishment in managing ethics programs in the federal government,” said NCUA Chairman Rodney E. Hood. “I look forward to working with her to uphold the strong ethical culture within NCUA.”

Ms. Fischmann currently serves as the Associate General Counsel, Ethics, and Designated Agency Ethics Official for the U.S. Department of Health and Human Services, leading a staff of 37 employees, administering the HHS-wide ethics program, and supervising the implementation of the HHS ethics program. Her professional experience includes serving as an Associate Counsel at the U.S. Office of Government Ethics and Deputy Counsel for the U.S. Department of the Navy.

Ms. Fischmann attained a Juris Doctorate from Georgetown University Law Center and a Bachelor of Arts from the University of Virginia. She is a member of the District of Columbia Bar and Maryland Bar.

ALEXANDRIA, Va. (Dec. 3, 2020) – National Credit Union Administration Chairman Rodney E. Hood issued the following statement today in recognition of International Day of Persons with Disabilities.

“Today, the NCUA is proud to recognize this year’s International Day of Persons with Disabilities, an occasion to reflect on challenges faced by people with disabilities during periods of crisis. This year’s theme, ‘Building Back Better: Toward a Disability-Inclusive, Accessible and Sustainable Post COVID-19 World’ emphasizes a commitment towards strengthening collective efforts for universal access to essential services. That commitment is particularly critical when it comes to financial inclusion, which I believe is the civil rights issue of our time, and must be a top priority for the financial services industry. By focusing on ways we can improve financial inclusion for Americans with disabilities, we can eliminate the barriers that have excluded them from access to quality, affordable financial services.”

Expanding the availability of safe and affordable credit and loan products to meet the needs of diverse and underserved communities, including people with disabilities, is a pillar of the NCUA’s financial inclusion initiative, ACCESS: Advancing Communities through Credit, Education, Stability, and Support. ACCESS builds on similar efforts underway at the NCUA and in credit unions that include building diverse and inclusive workforces and supplier chains, enhancing support for minority depository institutions, and supporting initiatives aimed at increasing opportunity for all Americans.

To learn more about the ACCESS Initiative, please visit https://www.ncua.gov/access.

ALEXANDRIA, Va. (Dec. 4, 2020) – Data on the financial performance of federally insured credit unions for the quarter ending September 30, 2020, are now available (opens new window) from the National Credit Union Administration.

The NCUA’s Quarterly Data Summary Reports include an overview of the quarterly Call Report data as well as tables showing the recent history of major credit union performance indicators.

The NCUA also makes extensive credit union system performance data available in the Credit Union Analysis section of NCUA.gov. The analysis section includes quarterly data summaries as well as detailed financial information, a graphics package illustrating financial trends in federally insured credit unions, and a spreadsheet listing all federally insured credit unions as of September 30, 2020, including key metrics.

ALEXANDRIA, Va. (Dec. 2, 2020) – National Credit Union Administration Chairman Rodney E. Hood congratulated Kyle S. Hauptman on his confirmation today by the U.S. Senate as a member of the NCUA Board.

“I congratulate Kyle on his confirmation and I look forward to working with him as we help to ensure our nation’s credit unions are able to serve their members during this difficult period,” Chairman Hood said. “I would also like to thank Board Member J. Mark McWatters for his more than six years of service to the agency and credit union community, both of which benefited greatly from his insight and leadership.”

Board Member Hauptman will begin his term of service as soon as he takes the oath of office. He replaces Board Member McWatters whose term expired in August 2019.

President Donald J. Trump announced the nomination of Hauptman on June 15. The U.S. Senate Banking, Housing and Urban Affairs Committee held its confirmation hearing on July 21.

Hauptman’s term on the NCUA Board will run through August 2, 2025.

ALEXANDRIA, Va. (Nov. 30, 2020) – The National Credit Union Administration issued two prohibition notices in November. These individuals are prohibited from participating in the affairs of any federally insured financial institution.

• Jennifer Furlong, a former employee of Groton Municipal Employees Federal Credit Union in Groton, Connecticut, entered into a pretrial diversion or similar program resulting in the charge of third degree larceny in connection with her employment.
• Teresa Hyler, a former employee of Beacon Credit Union in Lynchburg, Virginia, was sentenced on a charge of embezzlement in connection with her employment.

Prohibition and administrative orders are searchable by name, institution, city, state, and year at the NCUA’s Administrative Orders webpage. The webpage also provides links to the federal enforcement actions of federal banking agencies against other institutions or their affiliated parties.

You may view NCUA enforcement orders online or inspect them at the NCUA’s Office of General Counsel between 9 a.m. and 4 p.m. Eastern, Monday through Friday. You also may order copies by mail from the NCUA at 1775 Duke Street, Alexandria, Virginia 22314-3428.

ALEXANDRIA, Va. (Nov. 23, 2020) – National Credit Union Administration Chairman Rodney E. Hood issued the following statement today on the departure of Board Member J. Mark McWatters:

“Board Member Mark McWatters’ service on the NCUA Board concluded last week. I would like to extend a sincere thank you to Board Member McWatters for his service. His years on the NCUA Board are a credit to his decades long career in law and policymaking. I wish Mark all the best in his future endeavors.”

Board Member McWatters’ service on the NCUA Board ended on November 20, 2020.

Board Briefed on Progress of Diversity and Inclusion in Credit Union System

ALEXANDRIA, Va. (Nov. 19, 2020) – Using a live audio webcast, the National Credit Union Administration Board held its tenth open meeting of 2020 and unanimously approved:

• A proposed rule to amend its regulations by removing the prohibition on the capitalization of interest in connection with loan workouts and modifications.
• The reprogramming of unspent money in the 2020 travel budget to fund NCUA’s activities related to the coronavirus pandemic and the agency’s Central Office renovation.

The Director of the Office of Minority and Women Inclusion briefed the NCUA Board on the state of credit union diversity and the 2019 Credit Union Diversity Self-Assessment results. The Chief Financial Officer also briefed the Board on the National Credit Union Share Insurance Fund’s performance during the third quarter of 2020.

Proposed Rule on Capitalization of Interest Provides Relief

The Board approved a proposed rule (opens new window) that removes the prohibition on the capitalization of interest in connection with loan workouts and modifications.

“At the onset of the COVID-19 pandemic roughly nine months ago, that priority shifted into high gear as I worked with agency staff on COVID-relief measures that would allow credit unions the flexibility to work with borrowers experiencing economic hardship as a result of the pandemic,” Chairman Rodney E. Hood said. “Today’s proposed rule continues to move toward those relief efforts.”

The Board determined that the current prohibition on authorizing additional advances to finance unpaid interest might be overly burdensome and, in some cases, hamper a federally insured credit union’s good-faith efforts to engage in loan workouts with borrowers facing difficulty because of the economic disruption that the COVID-19 event has caused. Advancing interest may avert the need for alternative actions that would be more harmful to borrowers.

The proposed rule would establish documentation requirements to help ensure that the addition of unpaid interest to the principal balance of a mortgage loan does not hinder the borrower’s ability to become current on the loan. The proposed change would apply to workouts of all types of member loans, including commercial and business loans.

Comments are due 60 days from publication in the Federal Register.

Board Briefed on Results of the 2019 Credit Union Diversity Self-Assessment

The Director of the Office of Minority and Women Inclusion briefed (opens new window) the NCUA Board on the Voluntary Credit Union Diversity Self-Assessment and the results for 2019 (opens new window); the NCUA’s initiatives to promote diversity, equity, and inclusion within the credit union system; and the progress that’s been made.

“Given the challenging times our nation is currently facing, there is a heightened interest and emphasis on diversity, equity, and inclusion,” Chairman Rodney E. Hood said. “Tremendous benefits in growth, talent, and innovation are possible when a credit union’s employees, managers, and board of directors reflect the diversity of the communities they serve.”

The NCUA has collected diversity data from credit unions through the Diversity Self-Assessment for four years. In 2019, 118 credit unions submitted self–assessments, compared to 81 self-assessments submitted in 2018. A majority (56 percent) of these credit unions reported a leadership and organizational commitment to diversity, and 48 percent reported taking steps to implement employment practices that demonstrate that commitment.

Approximately 200 unique credit unions submitted a self–assessment to the NCUA’s OMWI for at least one of the four years the assessment has been available. Credit unions that submitted the self-assessment more than once showed marked improvement in their diversity and inclusion levels from year-to-year.

The Credit Union Diversity Self-Assessment (opens new window) outlines best practices for creating a more diverse and inclusive credit union, and increasingly, it is being used by credit unions to assess and monitor their diversity-related efforts. The NCUA now accepts self-assessments year-round. The cut-off date for annual submissions is January 15 of the following year.

Share Insurance Fund Remains Strong

The National Credit Union Share Insurance Fund reported (opens new window) $19.2 billion in assets as of the third quarter of 2020. The fund also reported $46.6 million in net income year-to-date.

The Share Insurance Fund in October received additional capitalization deposits of approximately $1.5 billion from insured credit unions after the NCUA invoiced for its semi-annual contributed capital adjustment for credit unions with $50 million or more in assets.

Additionally, for the third quarter of 2020:

• The number of CAMEL codes 4 and 5 credit unions decreased 1.8 percent from the end of the second quarter, from 166 to 163. Assets for these credit unions decreased 5 percent for the same period from $10.3 billion to $9.7 billion.
• The number of CAMEL code 3 credit unions decreased 2.3 percent from the end of the second quarter, from 785 to 767. Assets for these credit unions decreased 8.9 percent for the same period from $44.6 billion to $40.6 billion.

There were no federally insured credit union failures in the third quarter that caused a loss to the Share Insurance Fund. Total year-to-date losses associated with one failure in 2020 is $1.6 million.

The third-quarter figures are preliminary and unaudited. Additional information on the performance of the Share Insurance Fund is available online.

Unspent Travel Budget Repurposed for COVID-19 Response, Renovations

The NCUA Board approved reprogramming $4.3 million from the agency’s projected unspent 2020 travel budget to fund pandemic response activities. This includes COVID-related renovations to the NCUA’s Central Office building, such as updating the building’s HVAC system.

The Office of the Chief Financial Officer updated its midsession projection for travel-related spending and now estimates at least $18 million will remain unspent due to the COVID-19 pandemic. The office previously projected $13 million of unspent travel for 2020.

Additional information on this reprogramming can be found on the agency’s website (opens new window).

(Nov. 19, 2020) – Federal financial institution regulatory agencies today issued a joint fact sheet clarifying that bank and credit unions compliance efforts to meet Bank Secrecy Act due diligence requirements for customers that are charities and other nonprofit organizations should be based on the money laundering risks posed by the customer relationship.

The fact sheet highlights the importance of legitimate charities and nonprofit organizations having access to financial services and being able to transmit funds through legitimate and transparent channels, especially in the context of responding to the coronavirus pandemic. It also clarifies that charities and nonprofit organizations as a whole do not present a uniform or unacceptably high risk of being used or exploited for money laundering, terrorist financing, or sanctions violations, and that banks and credit unions must develop risk profiles that are appropriate for the risks presented by each customer. Additionally, it provides examples of customer information that may be useful to banks and credit unions in determining those risk profiles.

The fact sheet does not alter existing Bank Secrecy Act/anti-money laundering legal or regulatory requirements or establish new supervisory expectations. It was developed by the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Financial Crimes Enforcement Network, the National Credit Union Administration, and the Office of the Comptroller of the Currency.

Attachment
Joint Fact Sheet on Bank Secrecy Act Due Diligence Requirements for Charities and Non-Profit Organizations

Agency	Contact	Phone
Federal Reserve	Darren Gersh	202.452.2955
FDIC	LaJuan Williams-Young	202.898.3876
NCUA	Laura Todor	703.518.1149
OCC	Stephanie Collins	202.649.6870

ALEXANDRIA, Va. (Nov. 18, 2020) – National Credit Union Administration Chairman Rodney E. Hood issued the following statement today commending Jay Clayton, Chairman of the U.S. Securities and Exchange Commission, who announced his intention to depart at the end of the year.

“Working alongside Chairman Clayton on the Financial Stability Oversight Council, I saw firsthand the professionalism and business acumen that has defined his success at the SEC and throughout his career. We shared a passion for public service and in promoting diversity, inclusion, and opportunity within our agencies and in the broader financial services sector. With sincerest appreciation for his friendship and public service, I wish him all the best in his future endeavors.”