From the Archives: December 2012

Four Comments on Proposals, TCCUSF Budget, Fighting Credit Discrimination, 

MCUL Comments on Four NCUA Regulatory Proposals
MCUL & Affiliates recently submitted comments to the NCUA on five regulatory topics, all generally positive in nature for credit unions, but some which could go much further.

The proposals included:

MCUL acknowledges the intent behind the proposals and the potential benefits they will provide to credit unions, but also proposed some alternative concepts. For example, on the small-asset size threshold, both MCUL and CUNA urged the agency to consider using the Small Business Administration’s threshold for RFA analysis, in similar fashion as other federal financial institutions regulators – a higher ceiling that would afford fair regulatory relief to more institutions that need and deserve it.

MCUL Comment Letters can be found on the MCUL & Affiliates homepage in the “Operation Grassroots” section.

2013 TCCUSF Budget Drops by 20%
The 2013 Temporary Corporate Credit Union Stabilization Fund budget will be $6.15 million, a 20% reduction from 2012's TCCUSF budget of $7.71 million, NCUA stated on Dec. 6.

The TCCUSF staffing level will not change in 2013, the NCUA said. The budget will pay for the work of the NCUA Guaranteed Notes Securities Management and Oversight Committee, and expenses related to corporate resolution efforts, which include paying external valuation experts, tax consultants, financial specialists, attorneys and accountants.

The NCUA said it needs these experts to assist the agency by:

NCUA Chair Debbie Matz during the meeting emphasized that the TCCUSF budget is not part of the agency's larger general budget. The TCCUSF expenses are paid for with money from the fund, she said. The agency indicated that a large decline in residential mortgage credit markets could significantly increase the cost of performing security valuations, and if additional funds are required, a supplemental request would be submitted to the NCUA board. However, if actual expenses are lower than the amount budgeted, funds would be returned to the TCCUSF, the agency stated.
To read more about the NCUA meeting, click here.

CFPB, DOJ Team up to Fight Credit Discrimination
The U.S. Department of Justice and the CFPB recently agreed to coordinate their efforts to enforce fair lending regulations. The memorandum of understanding will help the agencies avoid duplication of their respective federal law enforcement efforts, the CFPB noted in a release.

Both agencies were given the ability to enforce the fair lending principles outlined in Regulation B, which implements the Equal Credit Opportunity Act. ECOA bans creditors from discriminating against credit applicants based on their race, color, religion, national origin, sex, marital status, and other select factors.

The CFPB release said both agencies will periodically assess the implementation of this agreement and are committed to finding ways to further strengthen their coordination efforts.

To read the CFPB release, click here.

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