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ALEXANDRIA, Va. (March 23, 2020) – Federally insured, low-income designated credit unions that experience unexpected costs as a result of COVID-19 can request urgent needs grants (opens new window) from the National Credit Union Administration.

“The NCUA recognizes that the COVID-19 outbreak will affect all federally insured credit unions and their members to varying degrees,” NCUA Chairman Rodney E. Hood said. “If you are a low-income credit union that needs assistance during this difficult time, I encourage you to apply for these grants to ensure you can continue to meet the financial needs of your members and communities.”

The NCUA’s Office of Credit Union Resources and Expansion can provide grants up to $7,500 to low-income credit unions for:

• Hardware, software, or other equipment to help them provide financial products and services from remote locations;
• Consulting services to develop programs and partnerships to assist those affected by COVID-19, such as small businesses or schools; and
• Developing marketing materials to assure members their insured deposits are safe.

Eligible credit unions also may apply for loans supported by the Community Development Revolving Loan Fund.

Eligible credit unions may apply for grants or loans through the NCUA’s CyberGrants portal (opens new window).

Credit unions with questions should contact the Office of Credit Union Resources and Expansion by email at [email protected]. 

(March 22, 2020) – The federal financial institution regulatory agencies and the state banking regulators issued an interagency statement encouraging financial institutions to work constructively with borrowers affected by COVID-19 and providing additional information regarding loan modifications.

The agencies encourage financial institutions to work with borrowers, will not criticize institutions for doing so in a safe and sound manner, and will not direct supervised institutions to automatically categorize loan modifications as troubled debt restructurings (TDRs).  The joint statement also provides supervisory views on past-due and nonaccrual regulatory reporting of loan modification programs.

The agencies view prudent loan modification programs offered to financial institution customers affected by COVID-19 as positive and proactive actions that can manage or mitigate adverse impacts on borrowers, and lead to improved loan performance and reduced credit risk.

The statement reminds institutions that not all modifications of loan terms result in a TDR. Short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs.  This includes short-term — for example, six months — modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant.

The agencies’ examiners will exercise judgment in reviewing loan modifications, including TDRs, and will not automatically adversely risk rate credits that are affected, including those considered TDRs.  Regardless of whether modifications are considered TDRs or are adversely classified, agency examiners will not criticize prudent efforts to modify terms on existing loans for affected customers.

Attachment: Interagency Statement (opens new window)

Agency	Contact	Phone
Federal Reserve Board	Eric Kollig	202.452.2955
CFPB	Marisol Garibay	202.435.7170
CSBS	Jim Kurtzke	202.728.5733
FDIC	David Barr	202.898.6992
NCUA	Ben Hardaway	703.518.6333
OCC	Stephanie Collins	202.649.6870

ALEXANDRIA, Va. (March 20, 2020) – The National Credit Union Administration today issued Letter to Federal Credit Unions, 20-FCU-02, NCUA Actions Related to COVID-19 – Annual Meeting Flexibility, announcing greater flexibility in conducting annual meetings.

Due to the national emergency proclamation issued by President Donald J. Trump on March 13, 2020, effective immediately, a federal credit union may adopt by a two-thirds vote of its Board of Directors an amendment to Article IV without undergoing further bylaw approval processes with the NCUA.

The full letter is available in the Letters to Credit Unions and Other Guidance section of NCUA.gov.

ALEXANDRIA, Va. (March 20, 2020) – The National Credit Union Administration today released its 2019 Annual Report (opens new window), highlighting the agency’s activities, policy initiatives, and accomplishments for the past year.

“In 2019, the NCUA continued to make strides in several areas with initiatives aimed at reducing regulatory burdens, expanding financial opportunities, and protecting the safety and soundness of a credit union system with more than 120 million member-owners,” said NCUA Chairman Rodney E. Hood. “We remain committed to fulfilling our obligations as a regulator and insurer, by protecting consumers, insuring the deposits of credit union members, and safeguarding the National Credit Union Share Insurance Fund from losses.”

During 2019, the NCUA Board and the agency undertook several important initiatives to create a regulatory framework that is effective without being excessive, and to promote greater financial inclusion. Those actions include:

• Approving a two-year delay of the implementation of the risk-based capital rule to allow time for further review and holistic improvements;
• Finalizing a rule that raised the threshold on the level of public unit and non-member shares a credit union can receive;
• Raising the threshold for commercial real estate transaction appraisals from $250,000 to $1 million;
• Issuing new guidance on secondary capital plans for low-income designated credit unions;
• Approving a final rule clarifying and updating federal credit union bylaws to provide greater flexibility in governance while protecting members’ rights and engagement.
• Hosting the inaugural Diversity, Equity, and Inclusion Summit, attended by credit union industry stakeholders, and making this an annual event;
• Issuing guidance to federally insured credit unions so they may provide certain financial services to legally operating hemp businesses;
• Approving a final policy statement that extends “second-chance” opportunities to job applicants with minor, non-violent criminal offenses in their past; and
• Adopting a final payday alternative loans rule enhancing credit unions’ ability to serve members who need short-term, small-dollar loans.

The 2019 Annual Report documents the NCUA’s performance in meeting its strategic goals and objectives as detailed in its strategic plan (opens new window). The report contains the audited financial statements for the agency’s four funds, which earned unmodified or “clean” opinions for 2019. It also provides assurances of the agency’s compliance with federal financial management guidelines, regulations, and relevant laws, and data on credit union financial performance during the year.

ALEXANDRIA, Va. (March 19, 2020) – The National Credit Union Administration is reminding credit union members of the safety of their deposits in federally insured credit unions. The NCUA also reminds individuals to remain vigilant against COVID-19-related scams. 

Federally insured credit unions offer a safe place for credit union members to save money. All deposits at federally insured credit unions are protected by the National Credit Union Share Insurance Fund, with deposits insured up to at least $250,000 per individual depositor. Credit union members have never lost a penny of insured savings at a federally insured credit union. Additional information on NCUA share insurance coverage for consumers is available at MyCreditUnion.gov (opens new window).

Credit union members can calculate the amount of insured funds at a federally insured credit union using NCUA’s Share Insurance Estimator (opens new window). The Estimator can be used for personal, business, or government accounts. Personal accounts include individual ownership, joint ownership, payable-on-death (accounts with named beneficiaries), living trusts, and IRAs. The Estimator also includes an extensive Glossary of Terms (opens new window) and Frequently Asked Questions (opens new window).

For questions about the NCUA’s share insurance coverage, call 1.800.755.1030, option 1, Monday through Friday, 8 a.m. to 5 p.m. Eastern, or send an email to [email protected]. 

The NCUA is also reminding individuals to remain vigilant against scams (opens new window) related to the coronavirus. Cyber actors may send emails with malicious attachments or links to fraudulent websites to trick victims into revealing sensitive information or donating to fraudulent charities or causes. Exercise caution in handling any email with a COVID-19-related subject line, attachment, or hyperlink, and be wary of social media pleas, texts, or calls related to COVID-19. Visit NCUA’s Fraud Prevention Center (opens new window) for more information about frauds and scams, including how to report a scam.

(March 12, 2020) –The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Tennessee Department of Financial Institutions, collectively the agencies, recognize the serious impact of tornadoes in Tennessee on the customers and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions subject to their supervision.  The agencies encourage institutions operating in the affected areas to meet the financial services needs of their communities.

A complete list of the affected disaster areas can be found at www.fema.gov (opens new window).

Lending: Financial institutions should work constructively with borrowers in communities affected by tornadoes in Tennessee.  Prudent efforts to adjust or alter terms on existing loans in affected areas should not be subject to examiner criticism.  In supervising institutions affected by tornadoes in Tennessee, the agencies will consider the unusual circumstances these institutions face.  The agencies recognize that efforts to work with borrowers in communities under stress can be consistent with safe-and-sound practices as well as in the public interest.

Temporary Facilities: The agencies understand that many financial institutions face staffing, power, telecommunications, and other challenges in re-opening facilities after the tornadoes in Tennessee.  In cases in which operational challenges persist, the primary federal and/or state regulator will expedite, as appropriate, any request to operate temporary facilities to provide more convenient availability of services to those affected by tornadoes in Tennessee.  In most cases, a telephone notice to the primary federal and/or state regulator will suffice initially to start the approval process, with necessary written notification being submitted shortly thereafter.

Publishing Requirements: The agencies understand that the damage caused by tornadoes in Tennessee may affect compliance with publishing and other requirements for branch closings, relocations, and temporary facilities under various laws and regulations.  Institutions experiencing disaster-related difficulties in complying with any publishing or other requirements should contact their primary federal and/or state regulator.

Regulatory Reporting Requirements: Institutions affected by tornadoes in Tennessee that expect to encounter difficulty meeting the agencies’ reporting requirements should contact their primary federal and/or state regulator to discuss their situation.  The agencies do not expect to assess penalties or take other supervisory action against institutions that take reasonable and prudent steps to comply with the agencies’ regulatory reporting requirements if those institutions are unable to fully satisfy those requirements because of the effects of tornadoes in Tennessee. The agencies’ staffs stand ready to work with affected institutions that may be experiencing problems fulfilling their reporting responsibilities, taking into account each institution’s particular circumstances, including the status of its reporting and recordkeeping systems and the condition of its underlying financial records.

Community Reinvestment Act (CRA): Financial institutions may receive CRA consideration for community development loans, investments, or services that revitalize or stabilize federally designated disaster areas in their assessment areas or in the states or regions that include their assessment areas.  For additional information, institutions should review the Interagency Questions and Answers Regarding Community Reinvestment at https://www.ffiec.gov/cra/qnadoc.htm (opens new window).

Investments: The agencies realize local government projects may be negatively affected by tornadoes in Tennessee.  Institutions should monitor municipal securities and loans affected by tornadoes in Tennessee.  Appropriate monitoring and prudent efforts to stabilize such investments are encouraged.

For more information, refer to the Interagency Supervisory Examiner Guidance for Institutions Affected by a Major Disaster, which is available as follows:

CSBS:  https://www.csbs.org/interagency-supervisory-examiner-guidance-institutions-affected-major-disaster (opens new window)
FDIC:  https://www.fdic.gov/news/news/financial/2017/fil17062.html (opens new window)
FRB:  https://www.federalreserve.gov/supervisionreg/srletters/sr1714a1.pdf (opens new window)
OCC:  https://www.occ.gov/news-issuances/bulletins/2017/bulletin-2017-61.html (opens new window)
NCUA:  https://www.ncua.gov/Resources/Documents/SL-17-02-examiner-guidance-institutions-affected-major-disaster-enclosure.pdf (opens new window)

Agency	Contact	Phone
CSBS	James Kurtzke	202.728.5733
Federal Reserve	Darren Gersh	202.452.2955
FDIC	Julianne Fisher Breitbeil	202.898.6895
NCUA	Ben Hardaway	703.518.6333
OCC	Stephanie Collins	202.649.6870

ALEXANDRIA, Va. (March 10, 2020) – National Credit Union Administration Chairman Rodney E. Hood today issued a statement commemorating the agency’s 50th anniversary:

We are marking a notable anniversary for the credit union industry: 50 years ago today, on March 10, 1970, the National Credit Union Administration was established as an independent regulator of our nation’s system of cooperative credit. The creation of an independent NCUA was a significant recognition of the growing importance of federally insured credit unions within the financial ecosystem.

Today, as we honor our history, I reaffirm my commitment to improving the culture at NCUA by making it an even better place to work in the years ahead. I also look forward to credit unions’ continued record of outstanding service to their members and communities.

Before the NCUA was established, the federal credit union regulator was housed in several agencies, including the Farm Credit Administration, the Federal Deposit Insurance Corporation, the Federal Security Agency, and the Department of Health, Education, and Welfare.

By the 1970s, the credit union industry had grown rapidly, both in terms of institutions and members. That rapid growth called for independent oversight and leadership. Thus, Congress created the NCUA as an independent regulatory body. Today, the agency oversees approximately 5,200 federally-insured credit unions, with roughly $1.57 trillion in assets, and protects the insured shares of more than 120 million member-owners.

Federal financial institution regulators and state regulators today encouraged financial institutions to meet the financial needs of customers and members affected by the coronavirus.  The agencies recognize the potential impact of the coronavirus on the customers, members, and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions subject to their supervision.

Regulators note that financial institutions should work constructively with borrowers and other customers in affected communities.  Prudent efforts that are consistent with safe and sound lending practices should not be subject to examiner criticism.

The agencies understand that many financial institutions may face current staffing and other challenges.  In cases in which operational challenges persist, regulators will expedite, as appropriate, any request to provide more convenient availability of services in affected communities.  The regulators also will work with affected financial institutions in scheduling examinations or inspections to minimize disruption and burden.

Agency	Contact	Phone
FDIC	Julianne Fisher Breitbeil	202.898.6895
CFPB	Marisol Garibay	202.435.7170
CSBS	Jim Kurtzke	202.728.5733
Federal Reserve	Darren Gersh	202.452.2955
NCUA	Ben Hardaway	703.518.6333
OCC	Bryan Hubbard	202.649.6870

The Federal Financial Institutions Examination Council (FFIEC) today updated guidance identifying actions that financial institutions should take to minimize the potential adverse effects of a pandemic.

Pandemic preparedness is an important part of a financial institution’s business continuity planning. The guidance provides the Council’s prudent expectations that regulated institutions should periodically review related risk management plans, including continuity plans, to ensure their ability to continue to deliver their products and services in a wide range of scenarios and with minimal disruption.

Sound planning, in advance of imminent risk to particular institutions, helps minimize disruptions to services to consumers, businesses, and communities when such contingencies occur.

Related Link

Agency	Contact	Phone
Federal Reserve	Darren Gersh	202.452.2955
CFPB	Marisol Garibay	202.435.7170
FDIC	Julianne Breitbeil	202.898.6895
NCUA	Ben Hardaway	703.518.6333
OCC	Bryan Hubbard	202.649.6870
SLC	Jim Kurtzke	202.728.5733

ALEXANDRIA, Va. (March 5, 2020) — National Credit Union Administration Chairman Rodney E. Hood issued the following statement in response to an Office of Inspector General investigation into allegations of misconduct in a specific NCUA office: 

In November 2019, the NCUA learned about allegations of misconduct, including allegations of behaviors that may have constituted harassment, which were immediately reported to the Office of Inspector General. Because the accusations involved possible abuse of work time, the Inspector General opened an investigation. The resulting investigative report was issued to the NCUA Board in February 2020. 

I was surprised and disappointed to learn of the activities described in the report. They are unacceptable and do not represent the values of this agency. 

Ensuring a professional work environment for all employees is a top priority. The NCUA is evaluating the organization’s policies and processes for reporting allegations and is taking additional actions. These actions include requesting the NCUA Board create an Office of Ethics Counsel, supplementing our existing anti-harassment training programs, and offering additional third-party counseling services to employees.

Harassment and misconduct have no place at the NCUA. These types of behaviors are unacceptable and will not be tolerated. The agency is committed to creating a culture where we treat every employee with the utmost respect and dignity.