President Trump Designates Rodney E. Hood as Chairman of the NCUA Board

ALEXANDRIA, Va. (April 8, 2019) – President Donald J. Trump has designated Rodney E. Hood as the eleventh Chairman of the National Credit Union Administration Board.

Today, as his last official action as Chairman of the Board, J. Mark McWatters administered the oath of office to Mr. Hood, at the NCUA headquarters.

“It is an honor to have been nominated by President Trump, confirmed by the U.S. Senate, and sworn in by Chairman McWatters to serve as the eleventh NCUA Chairman,” Mr. Hood said. “I look forward to leading the agency and focusing on the safety and soundness of America’s credit unions as they operate in today’s ever-changing marketplace. As President Trump’s pro-growth economic agenda seeks to empower individuals and communities across the nation, America’s credit unions are on the frontline of providing affordable access and opportunity to the financial system. 

“Over the next four years, I will be especially honored to lead the talented and professional NCUA team while doing my level best to ensure that they have the necessary resources to respond nimbly to today’s market risks and emerging issues. As Chairman, I look forward to enhancing and modernizing the federal credit union charter, addressing the issues of capital reform and cyber security, creating opportunities for credit unions to serve vulnerable communities, and reducing regulatory burdens.” 

Hood was nominated to the NCUA Board on January 16, 2019, and confirmed by the Senate on March 14, 2019. Upon his swearing in, his term will expire on August 2, 2023. Nominated to the NCUA Board by President Barack Obama on January 7, 2014, J. Mark McWatters will remain on the Board. His term expires on August 2, 2019.

“I look forward to working with Mr. Hood in continuing to pursue an agenda of safe and sound regulatory reform for the credit union community, upon his assuming the Chairmanship of the NCUA,” Chairman J. Mark McWatters said. “I thank President Trump for the honor of serving as Chair for the past two years and congratulate Mr. Hood on his designation. Mr. Hood brings a wealth of financial and credit union experience to the position having previously served on the board and will do an outstanding job as Chairman.”

Immediately prior to his rejoining the NCUA Board, Mr. Hood served as a corporate responsibility manager for JPMorgan Chase, managing national partnerships with non-profit organizations promoting financial inclusion and shared prosperity for underserved communities.

He previously served as Vice Chairman of the NCUA Board, as associate administrator of the Rural Housing Service at the U.S. Department of Agriculture, and as a member of the Board of Governors for the University of North Carolina. Before public service, Mr. Hood held management positions in retail finance, commercial banking, affordable housing and community development at G.E. Capital, Bank of America, Wells Fargo and North Carolina Mutual Life Insurance Company.

Mr. Hood holds a bachelor’s degree in business, communications, and political science from the University of North Carolina at Chapel Hill.

Board Re-Schedules May Meetings

ALEXANDRIA, Va. (April 9, 2019) – The National Credit Union Administration Board has re-scheduled its May open and closed meetings, originally set for Thursday, May 16.

Both meetings are now scheduled for Thursday, May 23. The open meeting will begin at 10 a.m. Eastern, and the closed meeting will follow immediately after the open meeting is concluded.

The May open meeting, like all NCUA open Board meetings, will be available on a livestream.

Information about NCUA Board meetings, including memorandums and other documents, is posted on the NCUA’s Board Meetings, Agendas, and Results page.

Board Seeks Comments on Compensation Related to Lending

Board Action Bulletin

ALEXANDRIA, Va. (April 18, 2019) – The National Credit Union Administration Board held its fourth open meeting of 2019 at the agency’s headquarters today and unanimously approved one item:

  • An advance notice of proposed rulemaking requesting public comment on modernizing the NCUA’s regulation on compensation related to loans and lines of credit to members.

Today marked the inaugural meeting for Board Chairman Rodney E. Hood, who was sworn in as the agency’s 11th Board chairman on April 8.

“I am looking forward to building on the NCUA’s recent efforts on regulatory reform, transparency, and helping credit unions grow while always making safety and soundness a priority,” Hood said. “To that end, I want to thank Board Member McWatters for his service as chairman and for his significant accomplishments leading this agency through a period of major transition.”

Board Analyzing Regulation on Compensation Related to Loans

The Board approved an advance notice of proposed rulemaking to seek public comment on possible changes to its regulation governing compensation in connection with lending.

The Board is considering modernizing the regulation as part of the agency’s regulatory reform agenda.

NCUA’s regulation covers direct or indirect commissions, fees, or other compensation by credit union officials, employees, or their family members in connection with loans made by the credit union.

The NCUA is particularly interested in the following areas:

  • Providing greater flexibility on compensation plans associated with lending while controlling related risks;
  • Determining loan metrics, such as loan volume, as part of compensation plans; and
  • Defining the structure and understanding industry standards for such plans.

Comments must be received within 60 days after publication in the Federal Register.

The NCUA tweets all open Board meetings live. Follow @TheNCUA on Twitter, and access Board Action Memorandums and NCUA rule changes at www.ncua.gov. The NCUA also live streams, archives and posts videos of open Board meetings online.

CDRLF Grant Round Opens June 2

NCUA Will Award $2 Million for Underserved Outreach, Digital Services, Counselor Certification, and Training

ALEXANDRIA, Va. (April 18, 2019) – Low-income credit unions interested in Community Development Revolving Loan Fund grants can submit applications between June 2 and July 20.

“Creating opportunities for credit unions to serve low-income and rural communities is central to the credit union mission.” NCUA Board Chairman Rodney E. Hood said. “These grants support efforts for credit unions to better serve their members. I encourage eligible credit unions to evaluate how a CDRLF grant can strengthen their outreach program within their communities.”

The NCUA will administer approximately $2 million in CDRLF grants to the most qualified applicants, subject to the availability of funds, in four categories:

  • Underserved Outreach (maximum grant $100,000): Assisting credit unions in improving the financial well-being of individuals in underserved areas.
  • Digital services and security (maximum grant $8,000): Supporting development of digital tools for member outreach programs.
  • Counselor certification (maximum grant $5,000): Providing support for credit union staff seeking certification in financial education.
  • Training (maximum grant $5,000): Helping credit unions develop staff talents and skills.

Credit unions interested in applying for CDRLF grants should register with the federal government’s System for Award Management. SAM.gov is an official U.S. government website that collects, validates, stores, and disseminates business information about the federal government’s trading partners to support contract awards, grants, and electronic payment processes.

Grant requirements, application instructions, and other information are available in the 2019 Grant Round Application Guidelines. Credit unions should use the NCUA’s CyberGrants portal to submit grant applications.

The NCUA’s Office of Credit Union Resources and Expansion will host a WebEx presentation on May 22 to explain the grant process and answer credit unions’ questions. More details on the presentation will be available in the near future.

Mid East Tennessee Community Credit Union Conserved

Accounts Remain Protected by Share Insurance Fund; Member Services Uninterrupted

ALEXANDRIA, Va. (April 23, 2019) – The National Credit Union Administration today placed Mid East Tennessee Community Credit Union in Decatur, Tennessee, into conservatorship.

Member deposits at Mid East Tennessee Community Credit Union remain protected by the National Credit Union Share Insurance Fund. Administered by the NCUA, the Share Insurance Fund insures individual accounts at Mid East Tennessee Community Credit Union up to $250,000, and a member’s interest in all joint accounts combined is insured 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 17640 State Highway 58 North, Decatur, Tennessee, and its branch office at 103 West Washington Avenue, Athens, Tennessee. Members can continue to conduct normal financial transactions, deposit and access funds, make loan payments, and use shares. Both offices are open Monday through Friday from 10 a.m. to 5 p.m. Eastern.

Members with questions about Mid East Tennessee Community Credit Union’s operations may contact the credit union at 423.334.2100. Members with questions about the conservatorship may review the Mid East Tennessee Community Credit Union frequently asked questions posted on the NCUA’s website. Members with questions about their Share Insurance Fund coverage can find more information in the Share Insurance Coverage section of NCUA’s MyCreditUnion.gov consumer website.

Mid East Tennessee Community Credit Union is a federally insured, state-chartered credit union with 1,855 members and assets of $12,093,966, according to the credit union’s most recent Call Report. Mid East Tennessee Community Credit Union serves persons who have a residence in, work in, worship in, volunteer in, have a relative that lives in, or participate in programs to alleviate poverty or distress in Meigs, Rhea, or McMinn counties.

NCUA/SBA Partnership Will Help Credit Unions Support Small Businesses

ALEXANDRIA, Va. (April 30, 2019) – The National Credit Union Administration and the U.S. Small Business Administration today launched a three-year collaborative effort to bring small businesses and credit unions together and expand awareness about SBA programs.

The NCUA and the SBA signed a memorandum of understanding to undertake a series of initiatives that will help credit unions better understand and make use of SBA-backed loans and resources. These joint initiatives may include webinars, training events, and media outreach.

“National Small Business Week is one week away and is an important opportunity to highlight SBA-guaranteed loans as another tool for credit unions to support small businesses and foster economic growth in their communities,” NCUA Board Chairman Rodney E. Hood said. “The credit union mission is grounded in the concept of providing affordable financial products and services tailored to meet their member’s needs, and that includes helping Americans start or expand businesses. Credit unions are well-situated to understand and work with their local businesses and entrepreneurs to extend affordable credit. I am delighted that we will be working with the SBA to help credit unions make these important investments, and I want to encourage credit unions to learn more about SBA programs.”

“The SBA’s partnership with the NCUA will provide an increased awareness of SBA programs that empower small businesses owners and credit unions from across the nation. Small businesses are the drivers of America’s economic growth and we want to ensure they are equipped with the tools they need for success,” SBA Acting Administrator Chris Pilkerton said. “I look forward to our two agencies collaborating on shared best practices, educational initiatives, and increasing our support of current and future entrepreneurs.”

Commercial lending by federally insured credit unions has grown in recent years. At the end of 2018, credit unions reported more than $71 billion in commercial loans outstanding. According to the SBA, nearly 200 credit unions have participated in the SBA guaranty program since October 2017.

NCUA Offers Older Americans Valuable Information on Managing, Protecting Money

ALEXANDRIA, Va. (May 7, 2019) – During Older Americans Month, the National Credit Union Administration is highlighting its online resources to help older adults manage money and protect against fraud and exploitation.

“During May, we are highlighting NCUA’s educational resources that address the unique financial and consumer protection needs of older Americans,” NCUA Board Chairman Rodney E. Hood said. “The theme of Older Americans Month is, ‘Connect, Create, Contribute,’ and the NCUA strives to connect older credit union members with important information to create greater personal financial security and contribute to their overall well-being. This includes both money management information as well as advice for how to recognize and protect themselves from elder financial abuse.”

The NCUA now has a video highlighting financial exploitation of older adults, and the agency offers information resources to help prevent elder financial abuse and avoid financial scams specifically targeting older people.

The Aging and Managing Finances section of the MyCreditUnion.gov consumer website also offers information on planning for long-term health care expenses and financial considerations of reverse mortgages,

Throughout the month, the NCUA will be posting helpful tips and consumer advice on social media sites. Follow and share @MyCU.gov on Twitter and the agency’s Facebook page.

Municipal Credit Union Conserved

Accounts Protected by Share Insurance Fund; Member Services Uninterrupted

ALEXANDRIA, Va. (May 17, 2019) – The New York State Department of Financial Services today took possession of Municipal Credit Union, located in New York City, and appointed the National Credit Union Administration as conservator.

Member deposits at Municipal Credit Union remain protected by the National Credit Union Share Insurance Fund. Administered by the NCUA, the Share Insurance Fund insures individual accounts at the credit union up to $250,000, and a member’s interest in all joint accounts combined is insured 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 all of the credit union’s 22 branch locations in the New York metropolitan area. Members can continue to conduct normal financial transactions, deposit and access funds, make loan payments, and use shares during the conservatorship.

Members with questions about Municipal Credit Union’s operations may contact the credit union at 212.238.3300 between 8:30 a.m. and 8 p.m. Monday through Friday. Members with questions about the conservatorship may review the Municipal Credit Union’s frequently asked questions posted on the NCUA’s website. Members with questions about their Share Insurance Fund coverage can find more information in the Share Insurance Coverage section of NCUA’s MyCreditUnion.gov consumer website.

Municipal Credit Union is a federally insured, state-chartered credit union with 588,059 members and assets of more than $3 billion, according to the credit union’s most recent Call Report. Municipal Credit Union serves persons working for the city of New York, along with other approved groups and associations.

NCUA Charters Otoe-Missouria Federal Credit Union

ALEXANDRIA, Va. (May 20, 2019) – National Credit Union Administration Board Chairman Rodney E. Hood today presented a federal credit union charter to the Otoe-Missouria Federal Credit Union in Red Rock, Oklahoma.

“I congratulate the tribal community for making their vision for this credit union a reality,” NCUA Board Chairman Rodney Hood said. “This charter supports the President’s plan to perpetuate economic growth and establishes greater opportunity and financial security for individuals and businesses by providing affordable services tailored to meeting the needs of the Otoe-Missouria Tribe, its employees, and its businesses.”

As the first federal credit union chartered in 2019, the Otoe-Missouria Federal Credit Union will serve the approximately 4,200 members and employees of the Otoe-Missouria Tribe as well as 17 tribal-owned businesses. Immediately after opening, the credit union plans to offer members:

  • Regular shares
  • Share draft accounts
  • Money market accounts
  • Share certificates
  • Club accounts
  • Auto loans
  • Unsecured loans
  • Share-secured loans
  • Payroll deduction
  • Home banking

Future planned services include debit cards, courtesy pay, mobile banking, and reloadable gift cards.

NCUA has designated Otoe-Missouria Federal Credit Union as a low-income credit union, based on its potential membership. This designation gives the credit union the ability to accept non-member deposits, obtain grants and loans from the Community Development Revolving Loan Fund, offer secondary capital accounts, and qualify for exemptions from statutory limits on member business lending.

The Otoe-Missouria Development Authority, established in 2006, is sponsoring the new credit union. The Authority serves all Otoe-Missouria Tribal members while assisting the Tribe to become self-sufficient in the operation and development of revenue sources to provide for the Tribe’s present and future needs.

Share Insurance Dividend Payments to Occur the Week of May 20

ALEXANDRIA, Va. (May 21, 2019) – This week, the National Credit Union Administration will pay dividends for more than 5,500 institutions eligible for the $160.1 million National Credit Union Share Insurance Fund distribution, the agency announced today.

“Prudent actions by the NCUA Board and the agency’s successful stewardship of the Share Insurance Fund made this distribution possible,” NCUA Board Chairman Rodney E. Hood said. “I’m delighted the NCUA has been able to issue nearly $900 million in equity distributions over the past year — money that is going back into communities to support small businesses, promote economic growth, and improve the financial well-being of credit union members across the country.”

Statements were mailed to dividend recipients indicating the amounts they will receive. An institution that filed a quarterly Call Report as a federally insured credit union for at least one reporting period in calendar year 2018 will be eligible for this pro rata distribution.

The NCUA Board approved a $160.1 million dividend in March after the Share Insurance Fund reported an equity ratio of 1.39 percent at the end of 2018. That ratio was above the Board-approved normal operating level of 1.38 percent, triggering a distribution under the Federal Credit Union Act and NCUA’s rules and regulations.

This is the second equity distribution since the closure of the Temporary Corporate Credit Union Stabilization Fund and the transfer of its assets to the Share Insurance Fund in October 2017.

The NCUA Board will continue to monitor the health and risk exposure of the Share Insurance Fund, and will evaluate the normal operating level annually to determine its appropriate level, based on an analysis of data and trends.

Information on the Share Insurance Fund distribution, including the method the NCUA used to determine each institution’s share, can be found here. Additional information on the Share Insurance Fund’s equity ratio and normal operating level is also available on the NCUA’s website.