|
|
|
|
|
|
|
NCUA Board Approves Insurance Simplification, Fair Hiring Rules |
|
The NCUA Board approved two America’s Credit Unions-supported final rules at its board meeting Thursday. Board members also heard a quarterly update on the National Credit Union Share Insurance Fund.
The final rules were approved with 2-0 votes (Chairman Todd Harper and Vice Chairman Kyle Hauptman were the only two board members in attendance) and will:
• Simplify share insurance regulations by establishing a “trust accounts” category that will provide for coverage for funds in both revocable and irrevocable trusts deposited at federally insured credit unions. This rule also provide consistent share insurance treatment for all mortgage-servicing account balances held to satisfy principal/interest obligations to a lender, and increases flexibility for NCUA to consider various records in determining share insurance coverage in liquidations.
• Implements the Fair Hiring in Banking Act and incorporates the agency’s “Second Chance” IRPS 19-1 as regulation. This allows certain deminimis and timing exceptions to the prohibition against hiring individuals convicted of certain criminal offenses involving dishonesty or breach of trust. It also amends the regulation governing conditions under which federally insured credit unions that are newly chartered or in troubled condition must notify the NCUA of any proposed changes to the credit union’s board, committee, or senior executive staff.
The National Credit Union Share Insurance Fund finished the quarter ending June 30 with a net income of $86.2 million.
NCUA staff also announced that as of June 30 the share insurance fund’s equity ratio is 1.28%, which is up from the 1.24% projection. Staff expects the ratio to remain at 1.28% when next updated at year-end.
Copyright 2024. America's Credit Unions. (link) |
|
|
|
|
|