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Credit Unions Provide Education Services to More than 104 Million Members

WASHINGTON, D.C. (Nov. 6, 2019) – Credit unions can play an important role in helping more Americans save and build stronger financial futures by providing financial education and expanding access, National Credit Union Administration Chairman Rodney E. Hood said today.

“If we are to improve the financial well-being of all Americans, then more people need access to financial education,” Chairman Hood said. “We must encourage the creation of products and services that make savings easier, and we need to bring more Americans into the financial mainstream. I know we are up to the challenge. Credit unions began when ordinary people came together to improve the financial lives of their neighbors and communities.”

Chairman Hood spoke to the America Saves Summit (opens new window) in Washington. D.C. The text of his remarks is available online.

The need for more education and greater access to help people save is crucial, Hood said.

“Far too many Americans today hang dangerously close to the edge financially,” he said. “Data released by the Federal Reserve shows many adults are not prepared to deal with small, unplanned expenses or brief financial disruptions.”

Chairman Hood noted that more than half of all federally insured credit unions, with a total membership of more than 104 million, offer financial education. That means nearly 90 percent of credit union members have access to these services.

“Credit unions were founded more than a century ago to meet the needs of communities ignored by traditional financial providers and improve the lives of the members,” Hood said. “Helping members make smarter financial decisions is part of the credit union mission.”

Credit unions that have branches in schools play a particularly important role, Hood said. While only 17 states mandate personal finance courses in high schools, credit unions are helping to educate young people on how to make good financial decisions.

“I’m especially proud of the 365 credit unions that have in-school branches,” he said. “Research by the Financial Literacy and Education Commission and others shows financial education at an early age plays a critical role in shaping financial practices later in life.”

The NCUA, Hood said, provides materials to help credit unions with financial education programs on its consumer website, MyCreditUnion.gov (opens new window).

Innovation is Essential

Americans will find it easier to save if credit unions increase the availability of safe and affordable financial services and products, Hood said, adding that savings programs, technology, and a modern regulatory framework can all play a role in expanding access.

“Automatic savings programs are an effective way of making saving easy and effortless,” Hood said. “Embracing the opportunities financial technology provides is also necessary. Reforming our regulatory structure to meet the challenges of a twenty-first-century financial landscape and the needs of consumers is essential.”

Financial Education and Financial Inclusion

Chairman Hood said the country could no longer afford to have millions of citizens outside the financial mainstream.

“We know the lack of access to affordable financial services holds working families back,” he said. “We need to remove the obstacles these Americans face. That will require us to utilize technology, form new public-private partnerships, and support community-based depository institutions. It will take the combined efforts of policymakers at the federal, state, and local levels, community organizations, and industry leaders.”

This cooperative effort, Hood said, promises great rewards.

“We all must work together; because all of us have a stake in the outcome,” he said. “We all benefit when more of our citizens can control their financial futures and enjoy the limitless opportunities this nation provides.”

Credit Unions Provide Education Services to More than 104 Million Members

WASHINGTON, D.C. (Nov. 6, 2019) – Credit unions can play an important role in helping more Americans save and build stronger financial futures by providing financial education and expanding access, National Credit Union Administration Chairman Rodney E. Hood said today.

“If we are to improve the financial well-being of all Americans, then more people need access to financial education,” Chairman Hood said. “We must encourage the creation of products and services that make savings easier, and we need to bring more Americans into the financial mainstream. I know we are up to the challenge. Credit unions began when ordinary people came together to improve the financial lives of their neighbors and communities.”

Chairman Hood spoke to the America Saves Summit (opens new window) in Washington. D.C. The text of his remarks is available online.

The need for more education and greater access to help people save is crucial, Hood said.

“Far too many Americans today hang dangerously close to the edge financially,” he said. “Data released by the Federal Reserve shows many adults are not prepared to deal with small, unplanned expenses or brief financial disruptions.”

Chairman Hood noted that more than half of all federally insured credit unions, with a total membership of more than 104 million, offer financial education. That means nearly 90 percent of credit union members have access to these services.

“Credit unions were founded more than a century ago to meet the needs of communities ignored by traditional financial providers and improve the lives of the members,” Hood said. “Helping members make smarter financial decisions is part of the credit union mission.”

Credit unions that have branches in schools play a particularly important role, Hood said. While only 17 states mandate personal finance courses in high schools, credit unions are helping to educate young people on how to make good financial decisions.

“I’m especially proud of the 365 credit unions that have in-school branches,” he said. “Research by the Financial Literacy and Education Commission and others shows financial education at an early age plays a critical role in shaping financial practices later in life.”

The NCUA, Hood said, provides materials to help credit unions with financial education programs on its consumer website, MyCreditUnion.gov (opens new window).

Innovation is Essential

Americans will find it easier to save if credit unions increase the availability of safe and affordable financial services and products, Hood said, adding that savings programs, technology, and a modern regulatory framework can all play a role in expanding access.

“Automatic savings programs are an effective way of making saving easy and effortless,” Hood said. “Embracing the opportunities financial technology provides is also necessary. Reforming our regulatory structure to meet the challenges of a twenty-first-century financial landscape and the needs of consumers is essential.”

Financial Education and Financial Inclusion

Chairman Hood said the country could no longer afford to have millions of citizens outside the financial mainstream.

“We know the lack of access to affordable financial services holds working families back,” he said. “We need to remove the obstacles these Americans face. That will require us to utilize technology, form new public-private partnerships, and support community-based depository institutions. It will take the combined efforts of policymakers at the federal, state, and local levels, community organizations, and industry leaders.”

This cooperative effort, Hood said, promises great rewards.

“We all must work together; because all of us have a stake in the outcome,” he said. “We all benefit when more of our citizens can control their financial futures and enjoy the limitless opportunities this nation provides.”

Board Member Describes a Journey to Understanding and a Commitment

ALEXANDRIA, Va. (Nov. 6, 2019) – Promoting diversity and inclusion is everyone’s responsibility, and it results in broader perspectives that lead to better decisions, National Credit Union Administration Board Member Todd M. Harper said today.

Harper challenged credit unions to take five steps to improve performance and prepare for the future.

“By shining a light on diversity, equity and inclusion,” Harper said, “we can create better workplaces, a more responsive government, and a credit union system that works for everyone. We can, as our founders envisioned, create ‘a more perfect union.’”

Harper spoke to the NCUA’s inaugural Diversity, Equity, and Inclusion Summit. The text of his remarks is available online.

Harper described how, as a boy from Indiana, he became increasingly aware of a broader, more diverse world as he grew up. He also talked about friends and mentors who taught him valuable personal and professional lessons that moved him to help others in return. One was a coworker named Pat.

“Pat used to have a poster in her cubicle of a little black girl and a little white boy playing together,” he said. “That poster reads: ‘When Differences End, Understanding Begins.’ I got that poster after Pat died many years ago, and I still have it.”

Coming Out

Harper discussed his personal experience of not feeling accepted at the beginning of his career.

“I hid who I was,” Harper said. “After all, people lost their jobs simply for being gay. Fortunately, over time, I became more comfortable in my own skin. In doing so, I came out on my own terms and made friends who accepted me for who I am.”

Harper noted his own experience illustrates the importance of employee resource groups. These employee-led groups can be a valuable resource for employees and employers because they help foster a diverse, inclusive workplace aligned with an organization’s objectives.

The NCUA has seven employee resource groups. They help the agency create an environment that recognizes and encourages the use of the diverse talents and perspectives of all employees to achieve the NCUA’s mission.

“Employee resource groups are making the NCUA a stronger agency and a better place to work, and that’s good for everyone in the credit union system,” Harper said.

Five Steps to Commit to Diversity

Harper listed five steps people in the credit union system can take to make an investment in greater diversity, equity and inclusion:

• Complete the NCUA’s annual Voluntary Credit Union Diversity Self-Assessment (opens new window), which helps credit unions evaluate their diversity policies and practices;
• Encourage others in the industry to take the assessment;
• Practice inclusion every day, beginning with talking with coworkers about their priorities;
• Create employee resource groups or individually mentor a woman, a person of color, or someone in need of a mentor; and
• If the credit union is large enough, create a supplier diversity program.

“If you don’t deliberately include, you will unintentionally exclude,” Harper said. “Diversity, equity and inclusion are everyone’s responsibility. By taking these five steps, you and your credit union can become diversity champions.”

Board Member Describes a Journey to Understanding and a Commitment

ALEXANDRIA, Va. (Nov. 6, 2019) – Promoting diversity and inclusion is everyone’s responsibility, and it results in broader perspectives that lead to better decisions, National Credit Union Administration Board Member Todd M. Harper said today.

Harper challenged credit unions to take five steps to improve performance and prepare for the future.

“By shining a light on diversity, equity and inclusion,” Harper said, “we can create better workplaces, a more responsive government, and a credit union system that works for everyone. We can, as our founders envisioned, create ‘a more perfect union.’”

Harper spoke to the NCUA’s inaugural Diversity, Equity, and Inclusion Summit. The text of his remarks is available online.

Harper described how, as a boy from Indiana, he became increasingly aware of a broader, more diverse world as he grew up. He also talked about friends and mentors who taught him valuable personal and professional lessons that moved him to help others in return. One was a coworker named Pat.

“Pat used to have a poster in her cubicle of a little black girl and a little white boy playing together,” he said. “That poster reads: ‘When Differences End, Understanding Begins.’ I got that poster after Pat died many years ago, and I still have it.”

Coming Out

Harper discussed his personal experience of not feeling accepted at the beginning of his career.

“I hid who I was,” Harper said. “After all, people lost their jobs simply for being gay. Fortunately, over time, I became more comfortable in my own skin. In doing so, I came out on my own terms and made friends who accepted me for who I am.”

Harper noted his own experience illustrates the importance of employee resource groups. These employee-led groups can be a valuable resource for employees and employers because they help foster a diverse, inclusive workplace aligned with an organization’s objectives.

The NCUA has seven employee resource groups. They help the agency create an environment that recognizes and encourages the use of the diverse talents and perspectives of all employees to achieve the NCUA’s mission.

“Employee resource groups are making the NCUA a stronger agency and a better place to work, and that’s good for everyone in the credit union system,” Harper said.

Five Steps to Commit to Diversity

Harper listed five steps people in the credit union system can take to make an investment in greater diversity, equity and inclusion:

• Complete the NCUA’s annual Voluntary Credit Union Diversity Self-Assessment (opens new window), which helps credit unions evaluate their diversity policies and practices;
• Encourage others in the industry to take the assessment;
• Practice inclusion every day, beginning with talking with coworkers about their priorities;
• Create employee resource groups or individually mentor a woman, a person of color, or someone in need of a mentor; and
• If the credit union is large enough, create a supplier diversity program.

“If you don’t deliberately include, you will unintentionally exclude,” Harper said. “Diversity, equity and inclusion are everyone’s responsibility. By taking these five steps, you and your credit union can become diversity champions.”

ALEXANDRIA, Va. (Nov. 5, 2019) – Credit unions that participate in U.S. Small Business Administration programs or that are interested in those programs can get valuable information on a Nov. 13 webinar hosted by the SBA and the National Credit Union Administration.

Registration for the webinar, “The Big Picture of SBA Lending for Credit Unions — Part 2,” is now open (opens new window). The webinar is scheduled to begin at 2 p.m. Eastern and run approximately one hour. 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 offices of Credit Union Resources and Expansion and Examination and Insurance will be joined on the webinar by staff from the SBA’s offices of Financial Assistance, Financial Program Operations, and Credit Risk Management. The discussion will cover prudent steps credit union lenders can take to preserve their loan guarantees through the origination, servicing, and lender review cycles.

Participants can submit questions anytime during the presentation or in advance by emailing [email protected]. The email’s subject line should read, “SBA Lending for Credit Unions — Part 2.”

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.

The NCUA and the SBA in April announced a three-year collaboration initiative to bring small businesses and credit unions together and expand awareness about SBA programs.

NCUA’s Office of Credit Union Resources and Expansion supports low-income-designated credit unions and credit unions interested in a low-income designation; minority credit unions; credit unions seeking changes in their charters, bylaws, or fields of membership; and groups organizing to start new credit unions.

ALEXANDRIA, Va. (Nov. 5, 2019) – National Credit Union Administration Chairman Rodney E. Hood announced today the appointments of Gisele Roget and Evann Berry to senior leadership roles responsible for the agency’s communications, external affairs, and industry engagement functions.

Both will assume their duties on Nov. 12.

“Gisele and Evann are proven leaders with well-earned reputations,” Chairman Hood said. “Gisele’s management skills and public policy expertise will help ensure the success of my initiatives for the NCUA. Evann will play a critical role in the agency’s strategic communications and stakeholder engagement initiatives. I look forward to working with them as we create a regulatory environment that encourages innovation and growth and strengthens American’s system of cooperative credit.”

Roget Named Deputy Chief of Staff

Gisele Roget will serve as Deputy Chief of Staff. In this role, she will also oversee the Office of External Affairs and Communications and lead the agency’s communications and congressional affairs initiatives. 

“I’m honored by this appointment,” Roget said. “I’m eager to support the important initiatives undertaken by Chairman Hood to ensure the regulation of our nation’s credit unions is effective, not excessive.”

Roget joins the NCUA from the Federal Housing Administration, where she has served as Deputy Assistant Secretary for Single Family Housing since July 2017. In this role, she managed a 750-person organization charged with implementing the federal government’s primary mortgage program for low- to moderate-income borrowers. 

Previously, Roget held senior roles in the Global Government Relations division of MetLife, where she directed legislative and policy strategy. She also served on the professional staff on the Financial Services Committee in the U.S. House of Representatives from 2007 to 2014. 

During her tenure there, Roget worked on the development of important financial services legislation, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Housing and Economic Recovery Act of 2008.

Roget holds a bachelor of arts in history from Yale University. 

 

Berry Named Senior Advisor to the Chairman for Communications and Engagement

Evann Berry will serve as Senior Advisor to the Chairman for Communications and Engagement. In this role, she will serve as the Chairman’s media spokesperson and liaison with the credit union industry and other related stakeholders.

“I am honored to be appointed by Chairman Hood for this role,” Berry said. “I look forward to supporting his initiatives to promote the NCUA and its vital safety and soundness mission.”

Berry joins the NCUA from the office of Senator Cindy Hyde-Smith (R-Miss.), where she served as deputy communications director and policy advisor. She previously served as a legislative aide to former Senator Thad Cochran (R-Miss.), handling various policy issues, including economic development, transportation, and housing.

Berry earned a bachelor’s degree in biological engineering from Mississippi State University.

ALEXANDRIA, Va. (Nov. 1, 2019) – Three low-income credit unions designated as minority depository institutions will build mentoring programs with three larger institutions with the help of grants announced today by the National Credit Union Administration.

“I’m delighted we could help these small credit unions establish relationships with larger institutions to help them grow and thrive,” NCUA Chairman Rodney E. Hood said. “These grants are in keeping with the agency’s efforts to support and preserve minority depository institutions, which are so vital to providing affordable financial services and investments to their communities.”

The agency awarded a total of $74,875 in grants to:

• Fidelis Federal Credit Union, of New York City, which will be mentored by Neighborhood Trust Federal Credit Union, also of New York City;
• Southern Teachers and Parents Federal Credit Union, of Baton Rouge, Louisiana, which will be mentored by ECFU Financial, of Baton Rouge; and
• District Government Employees Federal Credit Union, of Washington, D.C., which will be mentored by Local Government Federal Credit Union, of Raleigh, North Carolina.

The NCUA awarded the grants under its pilot MDI mentoring program, which will help small low-income minority depository institutions establish mentoring programs with larger low-income credit unions that can provide expertise and guidance in serving low-income and underserved populations. The larger credit unions will provide technical assistance, such as building staff capacity through training, improvements to credit union operations, and assistance with modernization processes. The NCUA will use the results of this pilot program to explore the possibly expanding the initiative in the future.

The NCUA’s Office of Credit Union Resources and Expansion supports low-income-designated credit unions; credit unions interested in a low-income designation; minority credit unions; credit unions seeking changes in their charters, bylaws, or fields of membership; and groups organizing to start new credit unions.

NCUA Board Member Asks for Comments during 2020-2021 Budget Consideration

ALEXANDRIA, Va. (Oct. 30, 2019) – National Credit Union Administration Board Member Todd M. Harper is requesting public comment on his proposal to create a dedicated consumer compliance exam program for large, complex credit unions.

“For more than three decades, the NCUA has focused its examination program primarily on safety and soundness reviews,” Harper said. “This policy worked well when the NCUA oversaw a large number of small credit unions serving a limited field of membership with only a few basic financial products, but today’s credit unions are larger and more complex, with 317 credit unions exceeding $1 billion in assets having 71.7 million members.”

The NCUA’s current compliance examinations covering consumer financial protection laws in credit unions with total assets of $10 billion or less differs from other financial institutions regulators. Other regulators complete regularly scheduled, risk-focused consumer compliance reviews and assign a separate consumer compliance rating outside of the CAMEL process for institutions under their jurisdiction.

Harper noted the NCUA’s approach to consumer financial protection reviews also runs counter to the congressionally mandated mission of the Federal Financial Institutions Examination Council, which works to develop uniform standards and processes across all financial institution regulators.

Harper would like to add three new full-time employees in the NCUA’s Office of Consumer Financial Protection in 2020, who would develop and later launch a dedicated consumer compliance examination program for large, complex credit unions.

“As the largest credit unions continue to grow in size, the time has come for the NCUA to evolve its consumer compliance program,” Harper said. “I invite all interested parties to comment on my proposal during the public deliberations over the NCUA’s proposed 2020–2021 budget.”

To comment on the proposal for a dedicated consumer compliance program, email [email protected] by Dec. 2. To request to present at the Nov. 20 budget briefing, email [email protected]. For more details about commenting on the budget and presenting at the budget briefing, see the NCUA’s press release on the proposed 2020–2021 budget available at the NCUA Budget and Supplementary Materials page.

ALEXANDRIA, Va. (Oct. 30, 2019) – Credit unions can get valuable information about a range of consumer protection topics on a Nov. 19 webinar hosted by the National Credit Union Administration.

Registration for the webinar, “Fair Lending and Consumer Compliance Regulatory Update,” is now open (opens new window). The webinar is scheduled to begin at 2 p.m. Eastern and run approximately 90 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 Consumer Financial Protection will cover several subjects, including:

Participants can submit questions over Twitter anytime during the presentation and in advance by emailing [email protected]. The email’s subject line should read, “Fair Lending and Consumer Compliance Regulator 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.

Chairman Speaks to California and Nevada Leagues’ REACH Conference

MONTEREY, Calif. (Oct. 29, 2019) – The National Credit Union Administration is guided by the core value of “people helping people” when it makes decisions, Chairman Rodney E. Hood said yesterday.

“It’s a guiding value for people who work in the credit union industry,” Chairman Hood said. “In my role as regulator, I keep the focus on that core value statement, because it can guide our decision-making at the federal level.”

Chairman Hood spoke to California and Nevada Credit Union Leagues’ REACH conference.

“The question I ask is,” Chairman Hood said, “what can we do in Washington to help you serve your members better, improve your product lines, make a difference in the lives of your people and your communities?”

Progress to Report

The Chairman described several actions the agency has taken to fulfill that purpose. Among those, the NCUA:

• Gave credit unions greater flexibility in liquidity management by increasing the limit on public unit and non-member shares;
• Increased the threshold on appraisal requirements for commercial property from $250,000 to $1 million;
• Issued interim guidance on doing business with the legal hemp industry, the first federal financial regulator to do so;
• Proposed to delay the risk-based capital rule for two years;
• Adopted the Payday Alternative Loans II rule, a free-market solution that responds to market needs; and
• Encouraged expanded employment opportunities for people convicted of minor crimes who have paid their debt to society and seek a new path forward.

“I want you to consider those efforts as a down payment,” Chairman Hood said. “We want this industry to be successful at steering through those changes so you can create more opportunity for your members and for your institutions, while also ensuring the safety and soundness of this industry in the future.”

“I want to emphasize that, with all the things we’re doing, we’re looking to give credit unions the tools they need to serve their members better,” Chairman Hood said. “We want you to have more flexibility to innovate, to create financial products that respond to your members’ needs, and to continue providing the highest levels of service to your communities.”

Promoting Diversity and Inclusion

Chairman Hood discussed issues he sees in the near future, and he paid particular attention to financial inclusion, noting the agency’s planned Diversity, Equity, and Inclusion Summit.

“Diversity and inclusion in the credit union industry remains one of our top priorities,” he said. “I truly believe that financial inclusion is the civil rights issue of our time. Given the profound demographic changes and social challenges we’re seeing in America, those principles are only going to grow in importance.

“Whether it’s the challenges faced by African-American, Latino, or Native American working families; the access challenges that military veterans or disabled Americans experience; or the lack of access to capital that’s putting stress on communities in rural America; we need to do a better job of meeting those needs,” he said.

Chairman Hood said that, in addition to supervision, his role as regulator is to help credit unions do more to serve members and reach the underserved.

“Let’s always keep the focus on people helping people by fostering greater financial inclusion, accessibility, and opportunity for all Americans. If we do that together, we can make a real difference in people’s lives.”