Credit Union Regulatory Guidance Including: NCUA, CFPB, FDIC, OCC, FFIEC

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Hello, this is Samantha Shares. This episode covers NCUA Chairman Kyle S. Hauptman's opening remarks from the February 27, 2025 Board Meeting.The following is an audio version of Chairman Hauptman's first board meeting remarks as NCUA Chairman. This podcast is educational and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and forty years of National Credit Union Administration experience. We assist our clients with NCUA so they save time and money. If you are worried about a recent, upcoming or in process NCUA examination, reach out to learn how they can assist at MarkTreichel.com. Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with NCUA.And now the Chairman's opening remarks.NCUA Chairman Kyle S. Hauptman Board Meeting Opening RemarksAs Prepared for Delivery on February 27, 2025This is my first board meeting as Chairman. It's truly an honor to serve as the thirteenth Chairman of the NCUA and advance priorities that promote growth, opportunity, and innovation within the credit union system. I want to thank the President for his trust in me, and I also want to thank Todd Harper for his service through some challenging times for NCUA and the credit union system.Over the past few weeks there has been various announcements and Executive Orders affecting the federal workforce. Some of these directives may bring significant changes to the NCUA.All of us at this table understand that change, and the uncertainty that accompanies it, can be challenging for a number of parties: the credit union system, other stakeholders, and most definitely NCUA employees. All of us at the NCUA, including the Board, are diligently assessing how these announcements may affect the NCUA, our operations, regulatory structures, and our workforce."All of us at this table understand that change, and the uncertainty that accompanies it, can be challenging for a number of parties: the credit union system, other stakeholders, and most definitely NCUA employees."To the NCUA employees who may be watching: The work each of you does, day in and day out, keeps our credit union system thriving and credit union members safe. There's also loads of misinformation and rumor out there. I've spent some time recently reading forums on Reddit that touch on NCUA or federal employees. And there's some crazy stuff out there. People moving money out of banks and credit unions to buy Treasury bonds because they think deposit insurance is going away. And that's not one of the crazier ones.Let's continue to stay focused on our mission, and we --- the Board --- will continue to support your work as we navigate any changes together. Thank you for your patience and your dedication to the NCUA.One thing that struck me last week. Our executive director mentioned how much NCUA staff liked seeing an email about this year's fee schedule for credit unions. I was curious why a fairly routine, mundane topic would generate a positive reaction. But it was precisely because it was mundane that people reacted that way. A sign that the big picture hasn't changed, NCUA business continues.I want to ask of my 1200 colleagues at NCUA to reach out to me anytime, by phone, Teams, email. While we on the Board don't have any more info on White House directives than anyone else, I'm happy to talk about problems and possible solutions. I'll tell you what I know and don't know.And to the people who we work for, the 142 million Americans who pay into the Share Insurance Fund: Know that NCUA's mission is unchanged. There are 4500 credit unions to examine, and most importantly, a $22 billion Share Insurance Fund that is the true north for each of us on the Board. Our deposit insurance is unchanged, the exams are continuing just the rest of our work here. Be assured we haven't taken our eye off the ball."There are 4500 credit unions to examine, and most importantly, a $22 billion Share Insurance Fund that is the true north for each of us on the Board."We're aware that uncertainty surrounding your employer and your job isn't new for credit union members. Many credit unions were founded by employee groups of companies that no longer exist. We're aware that most Americans, the people who pay my salary, live a daily reality of uncertainty to their work situation. Just four years ago, 21 million Americans lost their jobs in one month. We get how the real world works. So just maybe grant us a bit of grace as we adjust and work through changes. And again, your money is safe in the NCUA insurance fund, and it's safe at NCUA-insured credit unions. Our NCUA staff are professionals, and they, and credit union members, should know the management around here has worked around the clock to ensure we still meet the needs of America's credit union members and my outstanding NCUA coworkers.And finally, I know that as Chairm

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered: Section 1. Policy and Purpose. The Constitution vests all executive power in the President and charges him with faithfully executing the laws. Since it would be impossible for the President to single-handedly perform all the executive business of the Federal Government, the Constitution also provides for subordinate officers to assist the President in his executive duties. In the exercise of their often-considerable authority, these executive branch officials remain subject to the President’s ongoing supervision and control. The President in turn is regularly elected by and accountable to the American people. This is one of the structural safeguards, along with the separation of powers between the executive and legislative branches, regular elections for the Congress, and an independent judiciary whose judges are appointed by the President by and with the advice and consent of the Senate, by which the Framers created a Government accountable to the American people. However, previous administrations have allowed so-called “independent regulatory agencies” to operate with minimal Presidential supervision. These regulatory agencies currently exercise substantial executive authority without sufficient accountability to the President, and through him, to the American people. Moreover, these regulatory agencies have been permitted to promulgate significant regulations without review by the President. These practices undermine such regulatory agencies’ accountability to the American people and prevent a unified and coherent execution of Federal law. For the Federal Government to be truly accountable to the American people, officials who wield vast executive power must be supervised and controlled by the people’s elected President. Therefore, in order to improve the administration of the executive branch and to increase regulatory officials’ accountability to the American people, it shall be the policy of the executive branch to ensure Presidential supervision and control of the entire executive branch. Moreover, all executive departments and agencies, including so-called independent agencies, shall submit for review all proposed and final significant regulatory actions to the Office of Information and Regulatory Affairs (OIRA) within the Executive Office of the President before publication in the Federal Register. Sec. 2. Definitions. For the purposes of this order: (a) The term “employees” shall have the meaning given that term in section 2105 of title 5, United States Code. (b) The term “independent regulatory agency” shall have the meaning given that term in section 3502(5) of title 44, United States Code. This order shall not apply to the Board of Governors of the Federal Reserve System or to the Federal Open Market Committee in its conduct of monetary policy. This order shall apply to the Board of Governors of the Federal Reserve System only in connection with its conduct and authorities directly related to its supervision and regulation of financial institutions. (c) The term “independent regulatory agency chairman” shall mean, with regard to a multi-member independent regulatory agency, the chairman of such agency, and shall mean, with regard to a single-headed independent regulatory agency, such agency’s chairman, director, or other presiding officer. (d) The term “head” of an independent regulatory agency shall mean those appointed to supervise independent regulatory agencies and in whom the agencies’ authorities are generally vested, encompassing the chairman, director, or other presiding officer, and, as applicable, other members, commissioners, or similar such officials with responsibility for supervising such agencies. Sec. 3. OIRA Review of Agency Regulations. (a) Section 3(b) of Executive Order 12866 of September 30, 1993 (“Regulatory Planning and Review”), as amended, is hereby amended to read as follows: “(b) “Agency,” unless otherwise indicated, means any authority of the United States that is an “agency” under 44 U.S.C. 3502(1), and shall also include the Federal Election Commission. This order shall not apply to the Board of Governors of the Federal Reserve System or to the Federal Open Market Committee in its conduct of monetary policy. This order shall apply to the Board of Governors of the Federal Reserve System only in connection with its conduct and authorities directly related to its supervision and regulation of financial institutions.”. (b) The Director of the Office of Management and Budget (OMB) shall provide guidance on implementation of this order to the heads of executive departments and agencies newly submitting regulatory actions under section 3(b) of Executive Order 12866. Agency submissions by independent regulatory agencies under such section shall commence within the earlier of 60 days

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/This episode covers NCUA's Guidance to Examiners on how they should evaluate credit union earnings. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/NCUA's Supervisory Letter on Enterprise Risk Management. Audiobook style. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/## Episode OverviewThis episode covers the OCC's Fall 2024 Operational Risk report, examining key areas of focus for financial institutions including cybersecurity, operational resilience, innovation, and fraud risk management.## Key Topics Covered### Cybersecurity- Elevated operational risks due to evolving cyber threats and AI technology- Importance of third-party risk management in the expanding cyber threat landscape- Critical security measures including MFA, system hardening, and patch management- New post-quantum computing encryption standards from NIST### Operational Resilience- Focus on mitigating disruption events and cyber incidents- Case study from mid-2024 involving global disruptions from flawed software updates- Importance of testing and validating resilience plans### Innovation and New Services- Banks' adoption of new technologies and fintech partnerships- Cautious approach to AI and machine learning implementation- Considerations for digital asset custody and cryptocurrency services- Challenges of maintaining legacy systems while pursuing digitization### Fraud Risk Management- Evolution of fraud prevention strategies- Importance of customer identification and verification- Implementation of transaction verification and authentication controls- Role of technology in flagging suspicious activity### Third-Party Risk Management- Continuous lifecycle approach to third-party relationships- Risk management processes scaled to bank size and complexity- Importance of ongoing monitoring as relationships evolve## Resources Mentioned- Credit Union Exam Solutions Incorporated- Mark Treichel's Website: marktreichel.com- "With Flying Colors" Podcast## Contact Information- LinkedIn: Mark Treichel- Website: marktreichel.com## DisclaimerThis podcast is educational and does not constitute legal advice. All opinions expressed are for informational purposes only. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/The full OCC report can be found HERE Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/https://ncua.gov/regulation-supervision/letters-credit-unions-other-guidance/evaluating-third-party-relationships-0 Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Hello, this is Samantha Shares. This episode covers N C U A’s Authority to issue cease and desist orders as outlined in its enforcement manual. The following is an audio version of that portion of the manual. This podcast is educational and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and Forty years of National Credit Union Administration experience. We assist our clients with N C U A so they save time and money. If you are worried about a recent, upcoming or in process N C U A examination, reach out to learn how they can assist at Mark Treichel DOT COM. Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with N C U A. And now cease and desist orders.Cease and Desist Order 1. What is a Cease and Desist Order?A Cease and Desist (C AND D) Order normally requires the credit union to stop illegal or unsafe or unsound activities which caused or is likely to cause more than a minimal financial loss to, or have a significant adverse effect on, the insured credit union. A document called Notice of Charges and Hearing sets out the specific charges and statement of facts supporting the charges. The Notice also arranges for an administrative hearing. The C AND D contains the required corrective actions. The C AND D action is designed to address only actions necessary to correct the most significant items. A C AND D Order can be issued against an insured credit union or an institution-affiliated party. The term institution-affiliated party means any of the following: ► Any committee member, director, officer, or employee of, or agent for, an insured credit union.► Any consultant, joint venture partner, and any other person as determined by the N C U A Board who participates in the conduct of the affairs of an insured credit union.► Any independent contractor who knowingly or recklessly participates in any violation of any law or regulation, any breach of fiduciary duty, or any unsafe or unsound practice.The types of violations most likely to be remedied by a C AND D Order include: ► Failure to maintain adequate books and records.► Deficient appraisal reports.► Transactions involving conflicts of interest.► Inadequate due diligence.► Inadequate control and oversight of operations. There is a great deal of flexibility in what actions N C U A may require. In addition to ordering a cessation of certain activities, a C AND D Order may require affirmative corrective action, including: ► Making restitution or provide reimbursement, indemnification, or guarantee against loss under specific conditions.► Restricting growth.► Rescinding an agreement or contract.► Disposing of any loan or asset.► Employing qualified officers or employees.► Taking such other action N C U A determines to be appropriate. Orders to Cease and Desist are issued pursuant to the FCU Act section206(e), 12 U.S.C.section1786(e). The provisions for the C AND D Order are set out in article-by-article form and prescribe those restrictions and corrective and remedial measures necessary to correct deficiencies or violations in the credit union and return it to a safe and sound condition. Violations of a C AND D Order can provide the legal basis for assessing civil money penalties (CMPs) against directors, officers, and other institution-affiliated parties. A C AND D Order may also be enforced through application to a U.S. district court. Moreover, a willful violation of a Final C AND D Order is itself grounds for conservatorship under the FCU Act section206(h)(1)(D), 12 U.S.C. section1786(h)(1)(D). There are three types of cease and desist orders available to N C U A: a. Consent Order A Consent Order is an Order to Cease and Desist that is entered into and becomes final through the board of directors' execution of a Stipulation and Consent document on behalf of the credit union. This type of order also requires the issuance of a Notice of Charges. The N C U A Board issues the Consent Order without the need for an administrative hearing. The Consent Order becomes effective at the time specified in the Order. b. Final (Permanent) Cease and Desist OrderAside from its title, a Final C AND D Order is identical in form and legal effect to a Consent Order. However, a Final C AND D Order is imposed on an involuntary basis after issuance of a Notice of Charges, a hearing before an administrative law judge,and a final decision and order issued by the N C U A Board. A Final C AND D Order is effective 30 days after service upon the credit union. Any Final C AND D Order is subject to review by a U.S. Court of Appeals. c. Temporary Cease and Desist Order A Temporary C AND D Order is an interim order issued by the N C U A pursuant to its authority under the FCU Act section206(f), 12 U.S.C. section1786(f), and is used to impose measures immediately pending resolution of a Final C AND D Order. S

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/ Hello, this is Samantha Shares. This episode covers N C U A's 2025 Supervisory Priorities. The following is an audio version of Letter to Credit Unions 25-CU-01. This podcast is educational and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and Forty years of National Credit Union Administration experience. We assist our clients with N C U A so they save time and money. If you are worried about a recent, upcoming or in process N C U A examination, reach out to learn how they can assist at Mark Treichel DOT COM. Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with N C U A. And now the Supervisory Priority Letter. Dear Boards of Directors and Chief Executive Officers: This letter outlines the N C U A's supervisory priorities and other updates to the agency's 2025 examination program. Our priorities focus on the areas posing the highest risk to credit union members, the credit union industry, and the National Credit Union Share Insurance Fund (Share Insurance Fund). There continued to be signs of financial stress on credit union balance sheets during 2024. Aggregate loan performance began to deteriorate in 2022, and the trend has continued through 2024. The overall loan delinquency rate is currently at its highest point since year-end 2013, while the rolling 12-month net charge-off rate is at its highest point since the second quarter of 2012. Additionally, the return on average assets continues to experience pressure from the interest rate environment and provision for loan and lease loss expense. Even considering these trends, the credit union system remains stable and relatively resilient against economic disruptions. With that economic landscape in mind, below are the N C U A's primary areas of supervisory focus for 2025. Supervisory Priorities for 2025 Credit Risk Credit risk will remain a supervisory priority for 2025. Loan growth moderated during 2024 while overall delinquencies and charge-offs increased. Most notably, the performance within credit card portfolios has deteriorated much more rapidly than other aspects of federally insured credit union loan portfolios. The current delinquency rate and rolling 12-month net charge-off rate for credit card loans both exceed the peak that was reached during the global financial crisis fifteen years ago. Used vehicle loan performance has also materially deteriorated. The delinquency rate and rolling 12-month net charge-off rates for used vehicle loans are currently at the highest levels on record. To address these matters, N C U A examiners will continue to review your credit union's lending and related risk-management practices. This priority will include reviewing the sufficiency of your loan underwriting standards, collection programs, Allowance for Credit Losses reserves, charge-off practices, management and board reporting, and management of any concentrations of credit risk. To the extent possible, examiners will also review your credit union's third-party risk-management practices when lending, servicing, or collection functions are outsourced. Moreover, it is important for your credit union to work with borrowers encountering financial difficulties. These efforts are consistent with the credit union system's statutory mission of meeting the credit and savings needs of members, especially those of modest means. Accordingly, examiners will assess your credit union's modification and workout strategies for borrowers experiencing financial difficulty, including assessing whether your credit union's efforts were reasonable and conducted with proper controls and management oversight. For more resources, refer to the Examiner's Guide and the following Letters to Credit Unions: 23-CU-05, Commercial Real Estate Loan Accommodations and Workouts23-CU-04, Update to Interagency Policy Statement on Allowances for Credit Losses14-CU-08, Home Equity Lines of Credit Nearing Their End-of-Draw Period10-CU-03, Concentration Risk09-CU-19, Evaluating Residential Real Estate Loan Modification Programs07-CU-13, Evaluating Third Party Relationships03-CU-01, Loan Charge-off Guidance91-CU-120, Interest Rate Adjustment Errors for A R M Loans Balance Sheet Management and Risk to Earnings and Net Worth Credit unions are exposed to various risks affecting their earnings and net worth. Among the most significant are credit, liquidity, and market risk. These risks are tied to the institution's ability to manage its financial assets and liabilities and have a direct effect on earnings and net worth. For credit unions, the primary market risk element is interest rate risk. Interest rate changes can affect the income credit unions generate from their lending and funding activities, which can affect the credit union's ability to build net worth. Loan losses can also diminish a credit union's earnings a

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/ Hello, this is Samantha Shares. This episode covers A portion of The O C C's Semiannual risk perspective Special topic Increase fraud targeting the federal banking system. The following is an audio version of that topic. This podcast is educational and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and forty years of National Credit Union Administration experience. We assist our clients with N C U A so they save time and money. If you are worried about a recent, upcoming or in process N C U A examination, reach out to learn how they can assist at Mark Treichel DOT COM. Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with N C U A. And now the letter. The special topic focuses on the increasing trend in external fraud activity targeting consumers and the federal banking system. The frequency of both traditional and novel, more sophisticated fraud activities targeting customers and banks continues to increase. Banks should maintain sound fraud risk management practices through prudent controls and appropriate fraud monitoring capabilities to identify, investigate, mitigate, and report fraudulent activity. Banks can also support their customers by providing educational information about trending fraud activities and ways to protect themselves. Criminals continue to exploit traditional payment methods through check and wire transfer schemes. The Financial Crimes Enforcement Network (F I N C E N) September 2024 "Financial Trend Analysis" analyzed threat patterns and trend information on mail theft-related check fraud incidents over a six-month period in mid-2023. The report noted that financial institutions filed 15,417 B S A reports on mail theft-related check fraud, 13,618 (88 percent) of which were filed by banks. It described several types of check fraud such as bad actors altering stolen check payees and amounts, using the stolen check to create counterfeit checks, fraudulently signing the check, and selling the check or its identifying information on dark web marketplaces or encrypted social media platforms. Furthermore, the O C C's Customer Assistance Group observed an increase in the number of check fraud-related complaints submitted by consumers over the past year. Federal banking system-related wire transfer complaints that consumers submitted to the Customer Assistance Group reflect an increasing trend. For wire transfer schemes, the fraudster often poses as a trusted business, government agency, or even a bank employee, fabricating scenarios that require immediate action and convincing, with urgency, victims to wire money to a fraudster's account. In most cases, once the wire transfer is complete, the funds cannot be retrieved. While artificial intelligence (A I) can enhance fraud risk management capabilities, reduce costs, and improve efficiency, this and other new technologies are also being used to enable increasingly more sophisticated and frequent fraud tactics. Fraudsters could use A I to implement sophisticated frauds by digitally altering voices, biometric systems, or images (also known as "deepfakes"), or to facilitate social engineering schemes, identity theft, and impersonation of a trusted business or government agency. For example, deepfakes through voice replication have been used to perpetrate fraud by tricking voice biometric systems or by convincing a victim they are dealing with someone they know and trust, such as a family member. Increasing product and service digitization can also heighten fraud risk, including fraud targeting peer-to-peer (P2P) and other fast payment platforms. P2P payment platforms can provide enhanced capabilities and convenience to consumers and other users for managing payments. However, criminals also have exploited the faster, more streamlined payment capabilities and the irreversible and irrevocable nature of these payments. Effective fraud risk management includes appropriate internal controls, such as authentication, customer identification and verification processes, fraud monitoring, and open lines of communication between bank departments responsible for researching unusual activities. It is critical for banks to promptly identify, investigate, and resolve suspicious activities and potential fraudulent concerns. Banks should also continue to promptly identify, investigate, report, and resolve fraud concerns in accordance with applicable laws and regulations, including the B S A, Expedited Funds Availability Act (Regulation C C) and Electronic Fund Transfer Act (Regulation E). Recent increases in the volume of fraud cases have led to heightened unfair or deceptive acts or practices (U D A P) risk as some banks may take prolonged timeframes to complete investigations or implement broad account access limitations, preventing customers---including those who are not vic

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/CFPB Finalizes Rule to Remove Medical Bills from Credit ReportsToday, the Consumer Financial Protection Bureau announced a final rule that will remove approximately forty-nine billion dollars in medical bills from the credit reports of about fifteen million Americans. The C F P B's action will ban the inclusion of medical bills on credit reports used by lenders and prohibit lenders from using medical information in their lending decisions.Director Rohit Chopra expressed that people who get sick shouldn't have their financial future upended. The rule will close a special carveout that previously allowed debt collectors to use the credit reporting system to coerce people into paying medical bills they may not even owe.The C F P B's research has shown that a medical bill on someone's credit report poorly predicts whether they will repay a loan. With this new rule, approximately twenty-two thousand additional, affordable mortgages could be approved yearly. Americans with medical debt on their credit reports could see their credit scores rise by an average of twenty points.This follows changes made by Equifax, Experian, and TransUnion, who previously announced they would remove certain medical debts from credit reports. The rule becomes effective sixty days after publication in the Federal Register.This concludes the announcement.If your Credit union could use assistance with your exam, reach out to Mark Treichel on LinkedIn, or at mark Treichel dot com. This is Samantha Shares and we Thank you for listening. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Hello, this is Samantha Shares. Happy new Year!This episode covers N C U A Board’s Approval of a Non-Registered Investment Fund Pilot Program The following is an audio version of that press release. This podcast is educational and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and Forty years of National Credit Union Administration experience. We assist our clients with N C U A so they save time and money. If you are worried about a recent, upcoming or in process N C U A examination, reach out to learn how they can assist at Mark Treichel DOT COM. Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with N C U A.And now the press release.NCUA Board Approves Non-Registered Investment Fund Pilot ProgramOn December 30th The National Credit Union Administration Board approved, by notation vote, an investment pilot program authorized under section 703 point 19 C of the N C U A’s regulations.The N C U A will permit up to 30 complex federal credit unions to engage in investment activities prohibited under part 703 but permitted by the Federal Credit Union Act. Note A credit union is considered "complex" if its total assets exceed a specific threshold set by the N C U A. As of today,the threshold is 500 million dollars or more in total assets. A L M First Financial Advisors, LLC., a Securities and Exchange Commission registered investment advisor, requested the investment pilot program.The requested pilot program would allow complex federal credit unions to invest in a series of non-registered investment funds comprised of consumer loans, as follows:The pilot fund would be comprised of permissible consumer loans for federally insured credit unions with maturities of less than 10 years and overnight investments.Federal credit unions must be complex and have a capital adequacy classification of well capitalized to invest in the fund and are limited to an aggregate investment of 50 percent of net worth as defined in part 702 of N C U A’s regulations.The pilot program is subject to the A L M First Loan Fund Investment Pilot Program Requirements and Conditions, which are available on the N C U A website.Under part 703 of the N C U A’s regulations, federal credit unions are authorized to invest in funds that are registered with the S E C or regulated by the Office of the Comptroller of the Currency, provided the underlying assets purchased by the fund are permissible under N C U A rules for federal credit unions.This concludes the press release If your Credit union could use assistance with your exam, reach out to Mark Treichel on LinkedIn, or at mark Treichel dot com. This is Samantha Shares and we Thank you for listening. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/NCUA approved their budget for 2025 and 2025 at the December Board meeting. This is a recording of that item. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/https://www.linkedin.com/in/mark-treichel/https://www.marktreichel.com/ Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/A link to the action:https://files.consumerfinance.gov/f/documents/cfpb_Zelle-Complaint_2024-12.pdf Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Reach Out to learn how we assist our clients with NCUA so they save time and money.https://www.linkedin.com/in/mark-treichel/ https://ncua.gov/regulation-supervision/letters-credit-unions-other-guidance/consumer-harm-stemming-certain-overdraft-and-non-sufficient-funds-fee-practiceshttps://www.marktreichel.com/ Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Reach out to learn how we assist our clients with NCUA so they save time and money.Set up a free call here:https://calendly.com/cuexamsolutions/talk-to-mark-about-any-exam-topic Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/This episodes is an audio version of the FDIC's training for board members on corporate governance. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/NCUA Simplifies Share Insurance Rules for Trust AccountsKey Points:- NCUA is merging revocable and irrevocable trust categories into a single "trust accounts" category for share insurance purposes- New calculation method: Insured up to $250,000 x number of beneficiaries (max 5), capped at $1.25 million per grantor per credit union - Changes take effect December 1, 2026 to allow time for credit unions and members to prepare- Expands coverage for mortgage servicing accounts to include servicer advances- Provides more flexibility in recordkeeping requirements for determining insurance coverage- Aims to simplify rules, facilitate faster insurance payouts, and align with recent FDIC changes- Most members' coverage expected to remain the same, but some with complex trusts may see changesThe episode reviews the new rules in detail and provides examples of how coverage will be calculated under the changes. Credit unions should familiarize themselves with the new trust account rules before they take effect in 2026. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/# NCUA Chairman's Congressional Testimony: State of Credit Unions in 2024## Episode OverviewA deep dive into NCUA Chairman Todd M. Harper's testimony before the House Financial Services Committee, covering the current state of the credit union system, key challenges, and regulatory initiatives.## Key Points### Credit Union System Performance- Total assets nearly $2.3 trillion- Total outstanding loans exceed $1.6 trillion- Net worth ratio: 10.84%- Return on average assets: 0.69%- Warning signs: rising delinquency rates, declining capital levels### Major Concerns- One in five credit unions rated as troubled (CAMELS 3, 4, or 5)- Number of troubled complex credit unions tripled in Q2 2024- Commercial real estate showing stress due to hybrid work environments- Rising consumer financial stress affecting loan performance### Cybersecurity Initiatives- Deployed updated Information Security Examination procedures- Received 1,000+ reportable cyber incidents since September 2023- 70% of cyber incidents related to credit union vendors- Expanded partnerships with CISA and FBI### Consumer Protection Efforts- Focus areas: overdraft programs, fair lending, auto lending- Eight credit unions referred to DOJ for discrimination in 2024- First-ever race-based redlining settlement against a credit union- New requirements for large credit unions to disclose overdraft fees### Minority Depository Institutions (MDIs)- 490 MDI credit unions serving 6.6+ million members- Combined assets over $90 billion- 39 MDIs received nearly $1.4 million in technical assistance grants- Average asset size: $183 million### Legislative Requests1. Restore third-party vendor oversight authority2. Reform Central Liquidity Facility3. Provide more flexibility in Share Insurance Fund management4. Increase Community Development Revolving Loan Fund to $10 million## Hurricane Response- Detailed response to Hurricanes Helene and Milton (Sept/Oct 2024)- Provided emergency grants and loans to affected credit unions- Extended regulatory filing deadlines- Supported cash needs during telecommunications outages## Notable Statistics- Share Insurance Fund equity ratio: 1.28%- Share Insurance Fund net income: $154.3 million- Insured shares and deposits: $1.76 trillion- Uninsured shares and deposits: $169.4 billion## Contact InformationFor more information: [ncua.gov](https://ncua.gov)## Additional Resources- NCUA's Financial Technology and Digital Asset webpage- Credit Union Diversity Self-Assessment tool- Automated Cybersecurity Evaluation Toolbox (ACET)*Show notes based on testimony delivered November 20, 2024* Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Hello, this is Samantha Shares. This episode covers N C U A’s Authority to Assess Civil Money Penalties as outlined in its Enforcement Manual. The following is an audio version of manual. This podcast is educational and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and Forty years of National Credit Union Administration experience. We assist our clients with N C U A so they save time and money. If you are worried about a recent, upcoming or in process N C U A examination, reach out to learn how they can assist at Mark Treichel DOT COM. Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with N C U A. And now civil money penalties. 1. What are civil money penalties?The FCU Act section206(k), 12 U.S.C. section1786(k), contains N.C.U.A.'s authority to issue civil money penalties; N.C.U.A. Rules and Regulations. Section 747, Subpart A, contains the rules and regulations governing civil money penalty administrative hearings. The N.C.U.A.Board may assess civil money penalties against either a credit union or an institution­ affiliated party (see definition of institution-affiliated party above). The FCU Act specifies three tiers of civil money penalties, as follows: ► First tier. Any credit union or institution-affiliated party that violates a law or regulation, a final order of the N.C.U.A. Board, a published agreement with the Board (such as a published Letter of Understanding and Agreement), or a condition imposed in a published writing by the Board in connection with the granting of any application (such as the Insurance Agreement), may receive a penalty of not more than 5,000 dollars for each day of the violation. First tier penalties may apply to credit unions that, even after warnings, repeatedly submit late or substantially inaccurate call reports. ► Second tier. If the credit union or institution-affiliated party commits a first tier violation, and exhibits reckless conduct or a breach of fiduciary duty, and the violation, practice or breach is part of a pattern of misconduct, or causes more than a minimal loss to the credit union, or results in a monetary gain or other benefit to the institution-affiliated party, then the N.C.U.A. Board may assess a civil money penalty of not more than 25,000 dollars per day for each day of the violation. ► Third tier. Any credit union or institution-affiliated party that knowingly commits the first tier violations, knowingly engages in unsafe or unsound practices, knowingly breaches any fiduciary duty, or knowingly or recklessly causes a substantial loss to the credit union or a substantial monetary gain or other benefit to a party because of the violation, breach, or practice, may receive assessment of a civil money penalty of not more than $1,000,000 perday for each day of the violation, or in the case of a credit union, 1 percent of assets, whichever is less. 2. How are civil money penalties assessed?The normal administrative procedure for a civil money penalty action is as follows: 1. The regional director notifies the party of his or her intent to recommend to the N.C.U.A. Board the issuance of a civil money penalty, requesting a written response from the party.2. The N.C.U.A. Board issues a Notice of Assessment, setting forth a statement of the law and facts on which it bases the assessment.3. The assessed party has 90 days to make payment, but may request a hearing within 20 days.4. An administrative law judge will hold a formal hearing if requested.5. After the administrative hearing, the administrative law judge submits a recommended decision to the N.C.U.A. Board.6. The N.C.U.A. Board issues its final order.7. An institution-affiliated party or credit union may appeal to the U.S. Court of Appeals within 20 days of receipt of the final order. This concludes the N.C.U.A. civil money penalty authorities and policies. If your Credit union could use assistance with your exam, reach out to Mark Treichel on LinkedIn, or at mark Treichel dot com. This is Samantha Shares and we Thank you for listening. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Episode SummaryThis episode covers the National Credit Union Administration's (NCUA) examiner guidance on Preliminary Warning Letters (PWLs) to credit unions, as outlined in the National Supervision Policy Manual.## Key Points1. Purpose of Preliminary Warning Letters (PWLs): - Issued when a credit union's problems are serious or persistent - Used when a credit union's board is unwilling to sign a Letter of Understanding and Agreement (LUA) - Supports potential formal administrative action2. Content of a PWL: - Written from the Regional Director's perspective - Lists serious areas of concern and cites relevant regulations - Includes required actions and timeframes for resolving issues3. Process for Issuing a PWL: - Examiners draft PWLs after examinations or supervision contacts - Division of Supervision (DOS) reviews and processes for Regional Director approval - Can be hand-delivered or mailed, depending on severity of issues4. Supervision of Credit Unions with PWLs: - Follow-up examinations typically every 120 or 180 days - Examiners document compliance with PWL in Status Updates - PWLs usually not outstanding for longer than 12 months5. Terminating a PWL: - Recommended when credit union meets specific performance standards - Examiners prepare draft removal letter for Regional Director's signature## SponsorCredit Union Exam Solutions Inc. - Offering assistance with NCUA examinations## Additional Resources- Sample PWLs and BSA-specific PWL templates mentioned- Reference to NCUA Instruction 4820, Enforcement Manual## Call to ActionFor credit unions needing assistance with exams, contact Mark Treichel on LinkedIn or at marktreichel.com. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Hello, this is Samantha Shares. This episode covers N C U A’s authority to Involuntarily Liquidate a Credit Union. The following is an audio version of N.C.U.A.’s Liquidation authorities. This podcast is educational and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and Forty years of National Credit Union Administration experience. We assist our clients with N C U A so they save time and money. If you are worried about a recent, upcoming or in process N C U A examination, reach out to learn how they can assist at Mark Treichel DOT COM. Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with N C U A. And now liquidations. INVOLUNTARY LIQUIDATIONS1. What is the purpose of this chapter?This chapter provides guidance in processing involuntary liquidations. 2. What are the types of involuntary liquidations?a. Title I involuntary Undersection120 of the FCU Act, 12 U.S.C. section1766, the NCUA Board can place a solvent federal credit union into involuntary liquidation for violations of its charter, its bylaws, the FCU Act, or the NCUA Rules and Regulations. Also, under section120, 12 U.S.C. section1766, the NCUA Board can place a federal credit union into involuntary liquidation upon finding that the board or liquidating agent did not conduct a voluntary liquidation in an orderly or efficient manner or in the best interests of the members. The rules and regulations relating to these administrative proceedings are contained in NCUA Rules and Regulations section747, Subpart E. The effect of this action is the elimination of a federal credit union as a legal entity after due process provided for by section120(b) of the FCU Act, 12 U.S.C. section1766, and Part 747, Subpart E, of the NCUA Rules and Regulations. It is the most drastic enforcement action that can be taken against a solvent federal credit union. Since Title I liquidation is not a commonly used administrative action, examiner involvement will differ from case-to-case.b. Title II involuntary Section 207 of the FCU Act, 12 U.S.C. section1787, requires the NCUA Board to close for liquidation any federal credit union it deems bankrupt or insolvent. In these cases, the NCUA Board must also appoint itself as liquidating agent. In addition, the NCUABoard can accept appointment as liquidating agent of a bankrupt or insolvent federally-insured, state-chartered credit union.c. Purchase and assumption A purchase and assumption (P&A) is an action similar to a merger, but unlike a merger the NCUA Board places the credit union into involuntary liquidation first. In a P&A, another credit union or another financial institution assumes all or part of the assets, liabilities, and shares. 3. What are the goals for an involuntary liquidation?The primary goals of an involuntary liquidation are: ► Prompt return of members' shares.► Payment to the creditors.► Disposition of the remaining assets to the NCUSIF. 4. What are the grounds for an involuntary liquidation of an insolvent credit union pursuant to section207 of FCU Act?The grounds for this most severe action is insolvency or bankruptcy as defined insection700.2(e) of NCUA Rules and Regulations. For a liquidation pursuant to section207, 12 U.S.C. 1787, of the FCU Act, the credit union has no right to a pre-closure administrative hearing. The federal credit union's charter is immediately revoked and the credit union is placed into involuntary liquidation. The credit union may, however, challenge the action in U.S. District Court within 10 days. It is critical, therefore, that the finding of insolvency be based upon tangible evidence and indisputable circumstances using the most current information available. The examiner prepares a supplemental memorandum for the liquidation package that contains all significant data to support the recommended action, including an analysis of the various exceptions to insolvency set forth in section700.2(e) of the regulations. It is imperative that the administrative record adequately supports insolvency. The examiner must be prepared to testify in court to establish the reasonableness of the insolvency calculation. For this reason, involuntary liquidations require the concurrence of the Office of General Counsel to ensure that the liquidation package is legally sufficient.A Notice of Revocation of Charter and Involuntary Liquidation and Appointment of a Liquidating Agent will be served on the federal credit union. The order is effective immediately upon service, and all assets, books and records of the credit union immediately become the property of the NCUA. Agents for the Liquidating Agent will be appointed as provided in section207(a) of the FCU Act, 12 U.S.C. section1787. 5. What are the grounds for an involuntary liquidation of a solvent credit union?Pursuant to the authority in section120(b)(1

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Show Notes: NCUA Board Cybersecurity Briefing - October 2024 🎙️ With Flying Colors - A Credit Union Examination PodcastHosted by Samantha SharesSponsored by Credit Union Exam Solutions Inc. Episode Overview:Join us for a comprehensive breakdown of the NCUA's October 2024 cybersecurity briefing, where key officials provided critical insights into the current threat landscape facing credit unions. 📊 Key Statistics:- 1,072 cyber incidents reported (Sept 2023 - Aug 2024)- 742 incidents (70%) involved third-party vendors- 13 major service provider events affected multiple credit unions- Financial services is 5th most targeted critical infrastructure sector- Ransomware demands typically range from $1M-$10M 🔑 Main Discussion Points: 1. Current Cyber Threat Landscape: - Ransomware attacks - Business email compromises - ATM security issues - Third-party provider outages 2. Emerging Threats: - Malvertising attacks - Social engineering tactics - Web application vulnerabilities 3. NCUA Recommendations: - Maintain offline encrypted backups - Implement zero trust architecture - Create incident response plans - Strengthen vendor risk management 🚨 Incident Reporting Requirements:- 72-hour reporting window- Contact methods: - Phone: 1-833-CYBERCU (1-833-292-3728) - Email: [email protected] - New web form coming December 2024 📱 Pro Tip: Save the NCUA cyber incident reporting number in your contacts for quick access during emergencies. 🔗 Resources Mentioned:- NCUA Cybersecurity Resources Page- Letter to Credit Unions 24-CU-02 (October 21, 2024)- NCUA's Automated Cybersecurity Examination Tool (ACET)- CISA Cybersecurity Resources 💡 Key Takeaway:Cybersecurity threats to credit unions continue to evolve and increase, with third-party vendors representing a significant vulnerability in the system. Credit unions must remain vigilant and maintain strong cyber hygiene practices. 📞 Contact Information:- For exam assistance: Visit marktreichel.com- Connect with Mark Treichel on LinkedIn 🎧 Next Episode:Stay tuned for more insights on credit union examination success strategies. #CreditUnions #Cybersecurity #NCUA #FinancialServices #RiskManagement Sponsored by Credit Union Exam Solutions Inc. - Over 240 years of combined NCUA experience helping credit unions save time and money on examinations. Note: This podcast is educational and does not constitute legal advice. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/🎙️ Episode SummaryJoin us for an inside look at the NCUA's October 2024 board meeting, where we explore groundbreaking developments in new credit union charters and field of membership expansions. From innovative pilot programs to surging underserved area applications, discover how the credit union movement is evolving to serve more communities.⏰ Timeline00:00 - Introduction02:15 - Overview of 2024 New Charters05:30 - Provisional Charter Pilot Program10:45 - Field of Membership Updates15:20 - Underserved Area Applications Surge20:10 - Process Improvements25:30 - Future Outlook🔑 Key Points• NCUA has chartered 3 new credit unions in 2024• Provisional Charter Pilot helping address startup capital challenges• 87 underserved area applications YTD (up from 32 in 2020)• New credit unions serving 15,000+ members with $51.9M in assets💡 Featured Credit Unions- Tribe Federal Credit Union (Minneapolis, MN) - MDI & low-income designation - Serving Minneapolis community - Fairbreak Federal Credit Union (Memphis, TN) - MDI & low-income designation - Serving Memphis area📊 Notable Statistics- New CU Performance: • $51.9M total assets • $34.8M share deposits • $15.4M loans • ~15,000 members served- Processing Times: • 152 days avg. review time (2023) • 215 days avg. review time (2024)🎯 NCUA Initiatives• Provisional Charter Program• Enhanced CAPRI online system• Streamlined application tracking• Improved transparency in charter process💭 Memorable Quote"The test of our progress is not whether we add to the abundance of those who have so much, it is whether we provide enough for those who have so little." - FDR🔗 Resources Mentioned• NCUA New Charter Website• CAPRI System• Charter Application Guidelines• Field of Membership Manual📝 Action Items for Credit Unions1. Check NCUA website for charter templates2. Review underserved area requirements3. Explore CAPRI system updates4. Connect with CURE office for guidance👥 Featured Speakers• Todd Harper - NCUA Chairman• Kyle Hauptman - Vice Chairman• Tonya Otsuka - Board Member• Martha Ninichuk - Director, Office of Credit Union Resources and Expansion• Leilani Stamper - Consumer Access Division Director📅 Next Steps• Provisional Charter Program review (End of 2024)• CAPRI system enhancement for community/underserved applications (Q1 2025)• Recommendations for program future (2025)#CreditUnions #FinancialInclusion #NCUA #Banking #Cooperation Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/https://www.marktreichel.com/podcasthttps://www.linkedin.com/in/mark-treichel/2024 September NCUA Board Meeting: Simplified Share Insurance RulesThis episode covers the NCUA's final rule on simplifying share insurance coverage, focusing on trust accounts and mortgage servicing accounts. The discussions include details on the changes, their implications, and responses to questions and comments from the NCUA board members. Introduction Final Rule on Part 745 Presentation of the Final Rule Simplification of Trust Accounts Comments and Further Discussion Mortgage Servicing Accounts Record Keeping Regulations Board Members' Questions Conclusion Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/ Hello, this is Samantha Shares. This episode covers The Defense Credit Union Council’s letter to N C U A’s Chairman Todd Harper regarding his support for imposing Community Reinvestment Act on credit unions. The following is an audio version of that advisory and the press release. This podcast is educational and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and Forty years of National Credit Union Administration experience. We assist our clients with N C U A so they save time and money. If you are worried about a recent, upcoming or in process N C U A examination, reach out to learn how they can assist at Mark Treichel DOT COM. Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with N C U A. And now the letter. October 15, 2024 Chairman Todd M. HarperNational Credit Union Administration Dear Chairman Harper,Our members noted your recent social media posts and comments indicating support for imposing Community Reinvestment Act (C R A) provisions on credit unions and soliciting input on the issue. On behalf of the Defense Credit Union Council (D C U C) and our nearly 200 members and 40 million members of defense credit unions, as well as the entire credit union movement, we are writing to express our deep concerns regarding the potential application of C R A to credit unions. This decision should not be made in haste or in response to news stories about the actions of one or two credit unions. It would be a public policy failure to universalize the recent “redlining” violation of one particular credit union and apply remedies for that misdeed into a regulatory burden that is wholly inappropriate for the member-owned cooperative credit union industry. Additionally, the fact that the “redlining” finding by the Department of Justice was uncovered without C R A being applicable to credit unions strongly suggests that this remedy would not address whatever problem you assert should lead to C R A for part or all of the credit union movement. Our members take their mission seriously as not-for-profit, member-owned cooperatives with a distinct mission to serve their members, especially those of modest means. This cooperative structure has always served to ensure that credit unions are inherently focused on meeting the financial needs of their members, unlike for-profit banks, which have external shareholders to satisfy. Credit unions already serve low- and moderate-income individuals and communities without the need for additional regulatory mandates. Imposing expensive C R A requirements on credit unions is redundant and unnecessary and eliminate the number of credit unions currently serving their members’ best interests along with those who are economically disadvantaged.Data consistently shows that credit unions, including Defense Credit Unions, have an exemplary record of providing affordable financial services to underserved populations. Many credit unions, particularly those serving military bases and defense personnel, operate in areas where banking options are limited, and the financial needs of service members are distinct. By offering low-cost loans, financial literacy programs, and savings products, credit unions fulfill their mission of promoting financial inclusion and security.Since the C R A was enacted to address the issue of discriminatory lending practices (i.e., “redlining”) by for-profit, shareholder-driven banks, why punish all credit unions? Credit unions, by definition, do not engage in the practices that C R A was designed to combat. The fundamental difference in structure and purpose between banks and credit unions makes C R A an ill-fitting regulatory framework on the latter. Plus, credit unions are already held accountable to their members, ensuring that their activities benefit the communities they serve. Finally, the N C U A, as the independent regulator of federally insured credit unions, has a critical role in protecting and promoting the unique cooperative model of credit unions. We commend the N C U A for consistently opposing the application of C R A to credit unions and urge the agency to continue to advocate against any such proposals. Particularly since credit unions are already subject to extensive regulatory oversight and examination by the N C U A. We strongly urge the National Credit Union Administration (N C U A) to continue its long- standing opposition to such requirements and request a meeting with your office and our member CEOs to discuss this issue in greater detail.Chairman Harper, we have a shared interest in protecting and empowering consumers, and we look forward to working constructively with you and your team to arrive at workable solutions that improve member access and service. Thank you for your attention to this matter and for protecting the unique role that credit unions pla

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Hello, this is Samantha Shares. This episode covers the National Credit Union Administration’s Letter to credit unions 24 dash C U 2 Board of Director Engagement in Cybersecurity Oversight The following is an audio version of that letter. This podcast is educational and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and Forty years of National Credit Union Administration experience. We assist our clients with N C U A so they save time and money. If you are worried about a recent, upcoming or in process N C U A examination, reach out to learn how they can assist at Mark Treichel DOT COM. Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with N C U A. And now the letter.Board of Director Engagement in Cybersecurity OversightToFederally Insured Credit UnionsSubjectCybersecurityDear Boards of Directors and Chief Executive Officers:The frequency, speed, and sophistication of cyberattacks have increased at an exponential rate. Foreign adversaries and cyber-fraudsters continue to target all sectors of our nation’s critical infrastructure — including credit unions and other financial institutions. From September 1, 2023, the effective date of the N C U A’s cyber incident notification rule, through August 31, 2024, federally insured credit unions reported 1,072 cyber incidents. Seven out of ten of these cyber incident reports were related to the use or involvement of a third-party vendor.A recent ransomware attack on a credit union has been attributed to malvertising a relatively new cyberattack technique that injects malicious code within digital ads. For this type of attack to work, the user doesn’t even have to physically click on a link for the system to become infected. Instead, a simple internet search can result in malvertising that exploits the vulnerabilities in an internet browser. Credit union cybersecurity teams should focus on standardizing and securing web browsers and deploying ad blocking software to protect against this threat.Given the proliferation of sophisticated information security threats and the importance of safeguarding the assets and information of your members, the N C U A urges credit union boards of directors to prioritize cybersecurity as a top oversight and governance responsibility. Credit union board directors like you must ensure that a credit union’s senior leadership is highly focused on managing cyber risks and that your credit union has the necessary resources to maintain an effective cybersecurity program that aligns with the products, services, and risk profile of your institution.The following are four key areas your board of directors should focus on:Provide for Recurring TrainingYour board should engage in ongoing education about current cybersecurity threats, trends, and best practices. The N C U A provides various resources to assist, including training webinars, web-based learning resources(Opens new window), and written guidance. Your credit union board needs to stay aware of the specific cyber risks that pertain to your credit union’s operations and the implications of these risks. Board members don’t need to be technical experts, but they must know enough about cybersecurity to provide effective oversight and direction for the executive team and subject matter experts.Furthermore, your board should ensure the credit union’s employees receive regular cybersecurity education to maintain high awareness and preparedness across the organization. This education should emphasize the importance of a security-minded culture and adherence to important information security practices to mitigate the risk of cyber incidents.Approve Information Security ProgramYour board must approve a comprehensive information security program that meets the requirements of part 748of the N C U A’s regulations, which includes risk assessments, security controls, and incident response plans. Your credit union board should review the program at least annually to ensure it adapts to the evolving threat landscape and incorporates lessons learned from past incidents.Oversee Operational ManagementYour board is responsible for overseeing management of the credit union, focusing on the following cybersecurity areas:Third-Party Due Diligence. Your board should set clear expectations for management about the due diligence of third-party vendors with respect to information security. The credit union must ensure that contracts with third-party vendors include specific cybersecurity requirements, like timely notification to the credit union of any incidents, and clauses that protect credit union and member data.Embed Cybersecurity and Operational Resilience into the Organizational Culture. Your board and management should ensure that cybersecurity is a core value within the credit union, influencing decision-making at all le

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/ Hello, this is Samantha Shares. This episode covers The American Bankers Association Trade group’s letter to N C U A Board Chairman Todd Harper on N C U A’s on the agencies improved transparency. This letter demonstrates the challenges of N C U A’s recent public comments that are negative towards credit unions. The letter uses these references to attack N C U A and credit unions. The following is an audio version of that letter. This podcast is educational and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and Forty years of National Credit Union Administration experience. We assist our clients with N C U A so they save time and money. If you are worried about a recent, upcoming or in process N C U A examination, reach out to learn how they can assist at Mark Treichel DOT COM. Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with N C U A. And now the letter. October 15, 2024 The Honorable Todd. Harper ChairmanNational Credit Union Administration Dear Chairman Harper:The American Bankers Association (A B A) commends the National Credit Union Administration (N C U A) for its renewed focus on credit union transparency. As credit unions grow and become more complex, proper disclosure of pertinent information to credit union member-owners and the public gains importance. In addition to recent reporting changes for credit unions with more than $1 billion in assets regarding fee practices,1 a new proposal on executive compensation transparency for federal credit unions will provide greater accountability within the credit union system. With the White House Office of Management and Budget indicating that the N C U A may issue a Notice of Proposed Rulemaking as soon as this month,2 we urge the N C U A to implement additional transparency requirements relating to the increasingly complex andconcerning activities of some credit unions, namely merger transactions involving banks. Specifically, we urge the N C U A to require such credit unions to receive membership approval, disclose financial terms, anddemonstrate how combinations with banks might impact consumers, communities, and taxpayers. In 2007, the N C U A organized an Outreach Task Force in response to inquiries from Congress3 – and a subsequent report by the Government Accountability Office4 – on credit unions. Among other topics, the Task Force examined N C U A policies and procedures on senior executive compensation. Although state-charteredcredit unions disclose compensation data for key employees through IRS Form 990 like most other nonprofit organizations, federal credit unions are exempt from doing so given their status as federal instrumentalities. In its 2008 report to the N C U A Board, the Task Force concluded that disclosure of senior executive compensation would be “consistent with prevalent public policy and should enhance accountability to the [credit union]members,” and align with “federal credit unions’ member-owned, demoC R Atically-controlled status.”5 Due to their cooperative structure, credit unions afford their members “the right to vote on strategic federal credit union decisions including the directors, mergers, and conversions.”6 Because the results of such votes can directly affect senior executive compensation, the “Task Force concluded members should know or have access to senior executive officer compensation information when deliberating on how to cast their vote.”7 | | | Given the importance of merger transactions in the life of an organization, transparency about the possible personal incentives of management related to the transaction is especially important.While mergers between credit unions and the acquisitions of credit unions by banks require membership votes, the acquisitions of banks by credit unions do not.8 In December 2023, the N C U A’s Director of the Office of Examination and Insurance stated in a memorandum to you that “a credit union's purchase of a bank is typically a strategic action to expand its geographic footprint or to grow a loan program.”9 Thememorandum noted that the N C U A approved 64 bank transactions with credit unions between 2011 and September 30, 2023, “a small portion of the overall consolidation occurring in the financial servicesmarketplace.”10 However, credit union acquisitions of banks now represent a much larger share of total transactions.According to an October 3, 2024 report from the American Banker, “about 90 bank sales were announcedthrough September,” and “credit union buyers were involved in nearly a fifth of the deals to date this year.”11 The 18 deals announced so far in 2024 have already eclipsed the record 16 set in 2022, and total bank assets targeted by credit unions so far this year – more than $9 billion – have surpassed 2022’s record $5.15billion.12 C N B C also reported that you are aware

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/NCUA Board Briefing on the National Credit Union Share Insurance Fund - September 2024This episode covers NCUA's September 2024 Board Meeting Briefing on the National Credit Union Share Insurance Fund. Featured are the NCUA Board and staff in their own words and voices, discussing the fund’s performance, projections, and regulatory matters affecting the credit union system. The session also includes discussions on credit union health, regulatory updates, and the economic environment. Introduction Opening Statements & Announcements Vice Chairman's Remarks Share Insurance Fund Report - 2024 Q2 Financial Overview and Slide Discussion Chairman Harper's Discussion Vice Chairman Hauptman’s Discussion Concluding Remarks Closing Statements Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/https://www.linkedin.com/in/mark-treichel/https://www.marktreichel.com/podcast2024 September NCUA Board Meeting: Simplifying Share InsuranceThis episode of the podcast covers the NCUA's September 2024 Board Meeting, focusing on the implementation of a final rule to simplify share insurance coverage. Key highlights include the merger of revocable and irrevocable trust accounts into a single category, changes to mortgage servicing account coverage, and the rationale behind not providing legacy coverage for existing accounts. Introduction Simplification of Insurance Rules Presentation of the Final Rule Details of the Final Rule Changes to Trust Accounts Effects on Members and Credit Unions Mortgage Servicing Accounts Record Keeping Requirements Closing Remarks Conclusion Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Title: NCUA's New Fair Hiring in Banking Rule Key Points:- The NCUA Board has issued a final rule to incorporate IRPS 19-1 and the Fair Hiring in Banking Act (FHBA) into its regulations.- The rule expands career opportunities for individuals to work and volunteer at insured credit unions who have certain criminal records.- Key changes include: - Expanding definition of "de minimis" offenses that don't require NCUA consent - Excluding certain older offenses from prohibition (e.g. 7+ years old) - Clarifying procedures for consent applications - Aligning NCUA rules more closely with FDIC's Section 19 regulations- The rule codifies existing NCUA policy (IRPS 19-1) into formal regulations.- It implements changes required by the FHBA passed by Congress in December 2022.- Credit unions must still conduct background checks, but have more flexibility in hiring those with minor or older criminal records.- The NCUA will primarily rely on FBI criminal history records when evaluating applications.- The rule takes effect 30 days after publication in the Federal Register.- Credit unions should review the new regulations and update their hiring policies and procedures accordingly.For more information, visit www.ncua.gov or contact your regional NCUA office. This episode sponsored by Credit Union Exam Solutions Inc. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Hello, this is Samantha Shares. This episode covers the Statement of C F P B Director Rohit Chopra, Member, F D I C Board of Directors, on Stopping Fintech Deposit Meltdowns The following is an audio version of that statement. This podcast is educational and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and Forty years of National Credit Union Administration experience. We assist our clients with N C U A so they save time and money. If you are worried about a recent, upcoming or in process N C U A examination, reach out to learn how they can assist at Mark Treichel DOT COM. Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with N C U A. And now the statement. Statement of C F P B Director Rohit Chopra, Member, F D I C Board of Directors, on Stopping Fintech Deposit MeltdownsOver the past decade, we have seen a significant incursion into consumer deposit taking and payments activities by companies that aren’t banks or credit unions. These firms want the public benefits of being a bank or credit union, without the public obligations.This trend poses significant risks. We have developed a legal framework for banks over the past century designed to ensure people’s deposits are safe and that they have constant access to their funds. Deposit insurance and the special F D I C resolution process protect people if the bank fails and they retain quick access to their cash. When nonbanks engage in deposit taking, whether directly or in partnership with a bank, all these protections may not apply.Today, the F D I C Board of Directors is proposing a rule that would strengthen requirements for banks that partner with nonbanks in offering deposit-style products.This year, Synapse, a middleman between nonbanks offering deposit-style products to end users and their partner banks, filed for bankruptcy. The firm appears to have failed to properly track customer account balances and may have engaged in other shady practices. As a result, tens of thousands of customers have had their funds frozen for months. The banks have been unable to reconcile all the records necessary to get end users their funds back. This has led to severe harm, especially for people who were using the nonbank account as a primary checking or savings account.If one of the bank partners had failed, instead of Synapse, the horrible account balance tracking may have prevented the F D I C from making quick deposit insurance determinations and returning funds promptly to end users. When consumers do not have access to their funds, it can undermine confidence in the financial system and ruin lives.The proposed rule would require banks to maintain records identifying the ultimate end users, their balances, and other information for custodial accounts with transaction-style features. Banks would still be permitted to maintain these records through a third party as long as certain protections are in place, including daily reconciliations to make sure the numbers at the customer-level add up. Banks would also have to maintain constant access to the records, including in the event of the nonbank’s bankruptcy or other disruption. This framework would expedite an F D I C insurance determination if the bank fails and prevent the type of chaos we’re seeing with the Synapse bankruptcy if the nonbank fails.To be clear, this rule would not address all the risks posed by banking with a nonbank. Even if all the records are appropriately maintained, there still may be some delay in getting end users their money back as the nonbank’s bankruptcy proceeding plays out.1 In addition, nonbank deposit taking offered directly without a bank partner is generally outside the jurisdiction of the federal banking agencies.2 If the firm fails, consumers become unsecured creditors of the nonbank’s bankruptcy estate and may lose their funds.This proposal must not be the end of our collective work on this issue.First, disclosure requirements related to the intricacies of pass-through deposit insurance are woefully inadequate. Consumers should, at the very least, be told clearly and concisely that they could face delays or lose their money by banking with a nonbank.Second, we must continue to take enforcement actions against nonbanks that make misrepresentations about deposit insurance or misuse the F D I C name or logo.Finally, for nonbanks like Venmo, PayPal, and Cash App, that offer deposit-style products directly, state and federal policymakers should consider requiring these firms to promptly sweep people’s balances to their linked insured account automatically. Under their state licenses, these nonbank firms are supposed to be in the money movement business, not the banking business of keeping deposits. This concludes the C F P B Directors’ statement. If your Credit union could use assistance with your

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/# Show Notes: NCUA Vice Chairman Hauptman's 2024 ACU Congressional Caucus Remarks## Key Points:1. Records Retention Policy Update - NCUA revising policies to limit required retention periods - Prompted by feedback from credit unions2. Overdraft and NSF Fees - Hauptman opposes forcing large credit unions to publicly state revenue from these fees - Warns against over-regulation potentially limiting financial access3. Technology and Innovation - NCUA exploring AI for fraud detection and customer service - Discussion on digital assets and stablecoins in credit union evolution## Notable Quotes:- "The only people who think compliance is easy are those that don't have to do it."- "America's more than 140 million credit union members know their lives better than we do."- "My true north is making sure credit unions don't go the way of Blockbuster video because their regulator wouldn't let them compete."## Context:- Speech delivered on September 9, 2024- Hauptman's term on the NCUA Board ends in August 2025## Call to Action:For assistance with NCUA exams, contact Mark Treichel at marktreichel.com or on LinkedIn. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Hello, this is Samantha Shares. This episode covers Transcript of Chair Powell’s Press Conference Opening Statement September 18, 2024 The following is an audio version of that transcript. This podcast is educational and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and Forty years of National Credit Union Administration experience. We assist our clients with N C U A so they save time and money. If you are worried about a recent, upcoming or in process N C U A examination, reach out to learn how they can assist at Mark Treichel DOT COM. Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with N C U A. And now Chairman Powell’s opening statement. Transcript of Chair Powell’s Press Conference Opening Statement September 18, 2024 CHAIR POWELL. Good afternoon. My colleagues and I remain squarely focused on achieving our dual mandate goals of maximum employment and stable prices for the benefit of the American people. Our economy is strong overall and has made significant progress toward our goals over the past two years. The labor market has cooled from its formerly overheated state. Inflation has eased substantially from a peak of 7 percent to an estimated 2.2 percent as of August. We are committed to maintaining our economy’s strength by supporting maximum employment and returning inflation to our 2 percent goal.Today, the Federal Open Market Committee decided to reduce the degree of policy restraint by lowering our policy interest rate by 1/2 percentage point. This decision reflects our growing confidence that, with an appropriate recalibration of our policy stance, strength in the labor market can be maintained in a context of moderate growth and inflation moving sustainably down to 2 percent. We also decided to continue to reduce our securities holdings. I will have more to say about monetary policy after briefly reviewing economic developments.Recent indicators suggest that economic activity has continued to expand at a solid pace. GDP rose at an annual rate of 2.2 percent in the first half of the year, and available data point to a roughly similar pace of growth this quarter. Growth of consumer spending has remained resilient, and investment in equipment and intangibles has picked up from its anemic pace last year. In the housing sector, investment fell back in the second quarter after rising strongly in the first. Improving supply conditions have supported resilient demand and the strong performance of the U.S. economy over the past year. In our Summary of EconomicProjections, Committee participants generally expect GDP growth to remain solid, with a median projection of 2 percent over the next few years.In the labor market, conditions have continued to cool. Payroll job gains averaged 116 thousand per month over the past three months, a notable stepdown from the pace seen earlier in the year. The unemployment rate has moved up but remains low at 4.2 percent. Nominal wage growth has eased over the past year and the jobs-to-workers gap has narrowed. Overall, a broad set of indicators suggests that conditions in the labor market are now less tight than just before the pandemic in 2019. The labor market is not a source of elevated inflationary pressures. The median projection for the unemployment rate in the SEP is 4.4 percent at the end of this year, 4 tenths higher than projected in June.Inflation has eased notably over the past two years but remains above our longer-run goal of 2 percent. Estimates based on the Consumer Price Index and other data indicate that total PCE prices rose 2.2 percent over the 12 months ending in August; and that, excluding the volatile food and energy categories, core PCE prices rose 2.7 percent. Longer-term inflation expectations appear to remain well anchored, as reflected in a broad range of surveys of households, businesses, and forecasters, as well as measures from financial markets. The median projection in the SEP for total PCE inflation is 2.3 percent this year and 2.1 percent next year, somewhat lower than projected in June. Thereafter, the median projection is 2 percent.Our monetary policy actions are guided by our dual mandate to promote maximum employment and stable prices for the American people. For much of the past three years, inflation ran well above our 2 percent goal, and labor market conditions were extremely tight. Our primary focus had been on bringing down inflation, and appropriately so. We are acutely aware that high inflation imposes significant hardship as it erodes purchasing power,especially for those least able to meet the higher costs of essentials like food, housing, and transportation.Our restrictive monetary policy has helped restore the balance between aggregate supply and demand, easing inflationary pressures and ensuring that inflation expectations remain we

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/- Topic: NCUA Chairman Todd Harper's vision for the future of credit unions- Occasion: 90th anniversary of the Federal Credit Union Act- Key principles for credit union success over next 90 years:1. Transparency - Public disclosure of executive compensation (proposed rule) - Reporting of overdraft/NSF fees for large credit unions - Advocating for third-party vendor authority2. Fairness - Focus on serving underserved populations - Advancing diversity, equity, inclusion, and accessibility - New rule on quality control for automated valuation models3. Vigilance - Active management of risks, especially cybersecurity - Proposed rule on incentive-based compensation for large credit unions4. Foresight - Addressing credit union consolidation trend - Proposed rule requiring succession planning- Emphasis on long-term stewardship and positive impact- Call for continued innovation and focus on member needsThe podcast notes avoid reproducing any copyrighted song lyrics or extensive quotes from the article. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/# Show Notes: CFPB on Housing - Prepared Remarks of CFPB Director Rohit Chopra## Episode OverviewThis episode covers the prepared remarks of CFPB Director Rohit Chopra at the National Housing Conference on September 9, 2024. The remarks focus on mortgage refinancing and its potential impact on homeowners and the economy.## Key Points1. Interest rates and their impact on mortgage decisions2. Current state of the mortgage refinancing market3. Expectations for lower interest rates in the future4. Potential benefits of refinancing for homeowners and the economy5. Obstacles to refinancing, including closing costs and complexity6. CFPB actions to improve the refinancing process## Detailed Notes### Current Mortgage Market- Interest rates peaked at 7.79% in October 2023, now eased to 6.35%- Over 12 million mortgages have interest rates above 5%- Potential for millions of borrowers to benefit from refinancing as rates decline### Obstacles to Refinancing- High closing costs- Complexity of the refinancing process- Potential disparities in refinancing opportunities for minority homeowners### CFPB Actions1. Monitoring implementation of new mortgage technology, including AI2. Exploring changes to mortgage regulations to streamline refinancing3. Pursuing rules to accelerate "open banking" in mortgages### Conclusion- Lower interest rates expected- Focus on ensuring benefits reach a broad range of homeowners- Potential economic boost from widespread refinancing## SponsorshipThis podcast is sponsored by Credit Union Exam Solutions Incorporated, offering assistance with NCUA examinations.## Additional Resources- Check out the "With Flying Colors" podcast for tips on NCUA success- For credit union exam assistance, visit marktreichel.com or connect on LinkedIn Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Key Points:1. Federal banking agencies released a statement on potential risks of banks using third parties to deliver deposit products and services.2. Highlights risk management practices for banks to consider when managing these arrangements.3. Reemphasizes existing guidance; does not create new requirements or expectations.4. Identifies potential risks in areas like: - Operational and compliance issues - Growth and liquidity management - Misrepresentation of deposit insurance5. Provides examples of effective risk management practices, including: - Robust governance and third-party risk management - Managing operational and compliance implications - AML/CFT and sanctions compliance - Managing growth, liquidity and capital impacts - Addressing deposit insurance misrepresentations6. Includes list of existing regulatory resources and guidance for banks to referenceKey Takeaways:- Increasing use of third parties for deposit products raises potential risks- Banks remain responsible for regulatory compliance even when using third parties- Effective risk management and oversight is crucial as these arrangements evolve- Banks should review existing guidance and ensure appropriate controls are in pla Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/NCUA's Proposed Incentive-based Compensation RuleThis episode, hosted by Samantha Shares, provides a detailed summary of the NCUA's proposed incentive-based compensation rule, which implements Section 956 of the Dodd-Frank Act. This regulation is designed to address flawed compensation practices contributing to the 2008 financial crisis, covering financial institutions with $1 billion or more in assets. Introduction Overview of the Proposed Rule Scope of the Regulation Tiered Structure and Definitions Requirements for Covered Institutions Additional Requirements for Level 1 and Level 2 Institutions Regulatory Flexibility and International Context Public Comments and Enforcement Provisions Conclusion and Contact Information Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/ Hello, this is Samantha Shares. This episode is a high level summary of the final interagency guidance on reconsiderations of value (R O V) for residential real estate valuations This podcast is educational and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and Forty years of National Credit Union Administration experience. We assist our clients with N C U A so they save time and money. If you are worried about a recent, upcoming or in process N C U A examination, reach out to learn how they can assist at Mark Treichel DOT COM. Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with N C U A. And now the summary.1. Purpose and Scope: - The guidance is issued by the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, National Credit Union Administration, and Office of the Comptroller of the Currency. - It aims to highlight risks associated with deficient residential real estate valuations and describe how credit unions can incorporate R O V processes into their risk management functions. - The scope is limited to real estate-related financial transactions secured by single 1-4 family residential properties. 2. Background and Importance: - Credible collateral valuations, including appraisals, are essential to the integrity of residential real estate lending. - Deficient valuations can result from prohibited discrimination, errors, omissions, or inappropriate valuation methods. - Such deficiencies can prevent individuals and families from building wealth through homeownership and pose risks to credit unions. 3. Regulatory Context: - The guidance references several relevant laws and regulations, including: - Equal Credit Opportunity Act (ECOA) and Regulation B - Fair Housing Act (FH Act) - Truth in Lending Act (TILA) and Regulation Z - Uniform Standards of Professional Appraisal Practice (USPAP) - It emphasizes that credit unions must comply with these laws and operate in a safe and sound manner. 4. Reconsideration of Value (R O V) Process: - An R O V is a request from the financial institution to the appraiser or valuation preparer to reassess the report based on potential deficiencies or new information. - R O Vs can be initiated by the institution's review process or after consideration of consumer-provided information. - The guidance allows credit unions to implement R O V policies and procedures to review relevant information not considered in the original valuation. 5. Use of Third Parties: - The use of third parties in the valuation review process does not diminish an institution's responsibility to comply with applicable laws and regulations. - Credit unions are expected to manage risks arising from third-party valuations and valuation review functions. 6. Complaint Resolution Process: - Credit unions can capture consumer feedback on potential valuation deficiencies through existing complaint resolution processes. - The process should cover complaints from various channels and sources. - Complaints can be an important indicator of potential risks and risk management weaknesses. 7. Recommendations for Policies, Procedures, and Control Systems: - Consider R O Vs as a possible resolution for valuation complaints - Establish processes for identifying, managing, analyzing, escalating, and resolving valuation-related complaints - Inform and educate consumers on how to raise valuation concerns early in the underwriting process - Identify stakeholders and outline roles and responsibilities for processing R O V requests - Establish risk-based R O V systems to route requests to appropriate business units - Use standardized processes to increase consistency in handling R O V requests - Ensure relevant staff, including third parties, are trained to identify valuation deficiencies, including practices that may result in discrimination 8. Flexibility in Implementation: - The guidance is principles-based and does not mandate specific requirements. - It allows credit unions flexibility in implementation based on their size, complexity, and risk profile. - Smaller credit unions may have policies and procedures that differ from larger credit unions. 9. Regulatory Expectations: - While the guidance does not have the force of law or regulation, it outlines supervisory expectations for how credit unions should handle R O Vs and valuation-related complaints. - Credit unions are expected to incorporate these considerations into their risk management practices. 10. Potential Impact: - The guidance aims to improve the integrity of the residential real estate lending process by addressing potential deficiencies in valuations. - It may help mitigate risks associated with discrimination in property valuations and improve consumer protection in the lending process. This guida

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Board Approves Revised Proposal on Succession PlanningThe NCUA Board approved by a vote of 2-1 a proposed rulethat requires boards of directors at federally insured credit unions to establish and adhere to processes for succession planning. This new proposed rule modifies the 2022 proposalbased on the public comments received and upon further consideration of the issues.“Succession planning is vital to the long-term success of any institution, including credit unions,” Chairman Harper said. “A credit union board’s failure to plan for the transition of its management and key decision-makers could come with high costs, including the potential for an unanticipated merger of the credit union when key personnel depart. In my view, it’s better to maintain many small credit unions serving a wide variety of purposes and niche markets than continuing to consolidate credit unions into ever larger institutions.”Under the revised proposal, boards of directors at federally insured credit unions would be required to establish written succession plans that address specified executive and other positions. Additionally, each board of directors would be required to review the succession plan in accordance with a schedule it establishes, but no less than annually. The plan would be required to address the credit union’s strategy for recruiting candidates to assume each of the key positions and promote the credit union’s safe and sound operation.The NCUA Board encourages all credit unions, regardless of asset size, to have a succession plan to fill key positions and ensure continuity of their operations. These succession plans should be consistent with the size and complexity of the credit union. The proposed rule includes a suggested succession plan template(Opens new window) that may be appropriate for smaller credit unions.Comments on the proposed rule must be received no later than 60 days following publication in the Federal Register. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/1. Episode topic: Interagency Statement on the Issuance of the AML/CFT Program Notices of Proposed Rulemaking2. Date of issuance: June 28, 20243. Agencies involved: - U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) - Board of Governors of the Federal Reserve System - Federal Deposit Insurance Corporation - National Credit Union Administration - Office of the Comptroller of the Currency4. Purpose: To amend AML/CFT program requirements for financial institutions subject to the Bank Secrecy Act (BSA)5. Key proposed changes: - New statement of purpose for AML/CFT programs - Risk assessment process requirements - Fostering innovative approaches to BSA compliance - Requirement for U.S. presence6. Alignment with Anti-Money Laundering Act of 2020 (AML Act) purposes7. Broader implementation efforts: - Updates to supervision and examination processes - Enhanced feedback loops - Additional AML Act reviews8. Note that these changes are separate from the Corporate Transparency Act implementation9. Podcast sponsored by Credit Union Exam Solutions Inc.10. Presenter: Samantha Shares11. Additional resource mentioned: "With Flying Colors" podcast for NCUA success tips12. Contact for assistance: Mark Treichel (LinkedIn or marktreichel.com)These notes capture the main points discussed in the podcast about the proposed rulemaking and its implications for financial institutions. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Federal Credit Union Loan Interest Rate CeilingIn this episode, Samantha Shares delves into the NCUA's new proposed rule on the Federal Credit Union Loan Interest Rate Ceiling that was voted on at the July 18th Board Meeting. With a vote of 3-0, the proposed rule has been passed, maintaining the temporary 18 percent interest rate ceiling for loans made by federal credit unions. Join us for an in-depth discussion featuring real audio from the meeting, including detailed analyses, historical contexts, and the implications for credit unions and their members. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Proposed Rule on Incentive-Based Compensation ArrangementsIn this episode, Samantha Shares discusses the NCUA’s new proposed rule on Incentive-Based Compensation Arrangements, voted on during the July 18th Board Meeting. The episode includes a detailed presentation by various board members and staff on the scope, requirements, and implications of the proposed rule, as well as a debate among the board members regarding its enactment. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Proposed Succession Planning Rule: July NCUA Board MeetingThis episode covers NCUA’s new proposed rule on Succession Planning discussed at the July 18th Board Meeting. The rule aims to improve the preparation and transition processes within credit unions by mandating formal written succession plans. The conversation includes insights from key staff and board members, and notes the rationale behind the proposal, as well as the expected benefits and concerns raised. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/ Hello, this is Samantha Shares. This episode covers N C U A’s Enforcement Manual on Letters of Understanding and agreement – also known as L U A’s. The following is an audio version of that advisory and the press release. This podcast is educational and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and Forty years of National Credit Union Administration experience. We assist our clients with N C U A so they save time and money. If you are worried about a recent, upcoming or in process N C U A examination, reach out to learn how they can assist at Mark Treichel DOT COM. Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with N C U A. And now the Enforcement manual on L U A’s. What is a Letter of Understanding and Agreement?An L U A is a bilateral document signed by the credit union's board of directors and the regional director (RD). The credit union agrees to take, or not take, a certain specified action(s). RDs often issue L U As when credit unions have not adequately responded to less severe measures, such as Documents of Resolution. N C U A also requires L U As for newly chartered credit unions and for the granting of permanent special assistance. Delegation of Authority SUP 16 authorizes RDs to enter into L U As with elected and appointed officials of FCUs and FISCUs. RDs discuss and negotiate publication with credit unions to prevent unfair surprises to credit unions and their officials. TheRDs will address the issue of publication in every L U A between N C U A and a credit union by including one of the following three provisions:2 1. This L U A will not be published.2. This L U A will be published.3. The RD is reserving for a reasonable time his/her right to publish this L U A.3• | | | 2 Minor modifications and variations of the listed provisions that clearly communicate the same ideas are acceptable.3 This third provision can also specify the period of time within which the RD will decide whether to publish the L U A or can correlate publication to a specified event (or the failure of an event to occur).a. Required Letter of Understanding and Agreement provisionsThis section is redacted. | | | b. Published Letter of Understanding and Agreement The FCU Act §206(s)(1)(A), 12 U.S.C. §1786(s)(1)(A), requires the N C U A Board to publish and make available to the public "any written agreement or other written statement for which a violation may be enforced by the Board unless the Board, in its discretion, determines that publication would be contrary to the public interest." L U As must be published if violations are to be considered enforceable. The N C U A Board may take administrative actions against credit unions or officials when they fail to meet terms of published L U As. Violations of the terms of a published L U A alone are grounds for administrative action and, although not required, the L U A should include language to that effect as stated above. N C U A may enforce a published L U A by bringing an enforcement action, such as a cease and desist order or civil money penalty, and proving noncompliance with the published L U A.These publication requirements apply to all L U As, including those issued to newly chartered credit unions, as well as those issued in connection with special assistance. N C U A may take an enforcement action, even if the L U A is not published, if the credit union fails to comply with the terms of the L U A and the credit union's conduct constitutes a material safety and soundness violation or violation of law or regulation. While not required by the delegation, the regions should provide the Office of General Counsel and E&I with a draft of an L U A considered for publication two business days prior to its delivery to the officials of the credit union for signature. c. Non-Published Letters of Understanding and Agreement Non-published L U As are not enforceable. The mere violation of a non-published L U A is not grounds for a formal enforcement action, but may serve as the basis for developing grounds for a formal enforcement action if underlying safety and soundness concerns or violations of statutes or regulations exist. The FCU Act provides that N C U A may enforce the terms of an unpublished L U A if the N C U A Board approves non-publication based upon a finding that publication would be contrary to the public interest. If the RD recommends to the N C U A Board that an L U A not be published because publication would be contrary to the public interest, and the N C U A Board issues this determination, the L U A will still be enforceable. The RD's recommendation must clearly show why publication would be contrary to the public interest. The FCU Act requires a quarterly written report to Congress to summarize all non-published L U As that are enforceable under this exception. Th

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/ Hello, this is Samantha Shares. This episode covers N C U A’s Enforcement Action Philosophy per its redacted Enforcement Manual. The following is an audio version of that advisory and the press release. This podcast is educational and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and Forty years of National Credit Union Administration experience. We assist our clients with N C U A so they save time and money. If you are worried about a recent, upcoming or in process N C U A examination, reach out to learn how they can assist at Mark Treichel DOT COM. Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with N C U A. And now the N C U A’s enforcement philosophy and enforcement alternatives. What is the agency's philosophy on enforcement actions?N C U A must deal with a credit union's problems before they become fatal. Success requires appropriate action and timing. It also requires clear communications between N C U A and the credit union's senior management and board of directors. Enforcement actions focus special attention on the problems or weaknesses and prompts corrections by credit union officials and management. Once N C U A staff identifies and communicates problems or weaknesses to the credit union, senior management and the board of directors are to correct them promptly. The examination report is the first step in determining if an enforcement action is necessary. The actions a credit union takes or agrees to take in response to the examination report will help determine whether to take enforcement action and if so, what type.Enforcement actions may be taken as a result of findings in an examination report or other supervision contact. Field staff need not wait for the completion of the formal examination or follow-up examination report to initiate these actions. This manual provides guidance in selecting the action or combination of actions best suited to accomplish corrective or remedial measures. The manual also promotes consistency while preserving flexibility for specific circumstances. N C U A's long-term supervision strategy takes into consideration not only the measures needed to address the credit union's problems currently but also what measures will be needed in the future if the credit union's problems develop into serious supervisory issues threatening viability. Certain types of enforcement action may also provide better transitions to more severe supervisory responses later if the condition of the credit union warrants. This manual provides guidance on the long-term strategy aspects of documentation for enforcement actions. The documentation of earlier enforcement actions, of failure to comply, and of the consequences for the credit union of that failure is an important part of establishing the record for more severe subsequent action. 1. What enforcement actions are available?Enforcement actions fall into two broad categories: informal and formal. a. Informal enforcement actions Use Informal enforcement actions when a credit union's overall condition is sound, but written commitments from the board of directors is needed to ensure that it will correct problems and weaknesses identified by N C U A staff. These enforcement actions provide a credit union with more explicit guidance and direction than is normally contained in an examination report. Agreement to an informal action is evidence of the board's commitment to correct problems before they hurt the credit union's performance or cause further decline in its financial condition. Regional directors (RD) are delegated the authority to issue informal enforcement actions. Informal enforcement actions are: ► Regional director letters.► Non-published letter of understanding and agreement.► Establishment of special reserves► Preliminary warning letters. | | | b. Formal enforcement actions The N C U A may use a wide variety of formal enforcement actions to support its supervisory objectives. Unlike most informal actions, formal enforcement actions are authorized by statute (mandated in some cases), are generally more severe, and are disclosed to the public. Also, formal actions are enforceable through other formal enforcement actions, such as the assessment of civil money penalties, andmay require litigation before an administrative law judge or a federal district court. Formal actions against a credit union are:► Published letters of understanding and agreement.► Cease and desist orders.► Civil money penalties.► Prompt Corrective Action (PCA) directives.► Termination of insurance.► Conservatorship.► Liquidation. 2. How do I determine the appropriate type of enforcement actions to use?Tailor the enforcement action to the institution. Design an action to correct deficiencies and return the credit union to a safe and sound condition as soon as possible. No

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/ Hello, this is Samantha Shares. This episode covers N C U A’s Enforcement Manual Section on Removal of Officials.The following is an audio version of that advisory and the press release. This podcast is educational and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated, whose team has over two hundred and Forty years of National Credit Union Administration experience. We assist our clients with N C U A so they save time and money. If you are worried about a recent, upcoming or in process N C U A examination, reach out to learn how they can assist at Mark Treichel DOT COM. Also check out our other podcast called With Flying Colors where we provide tips on how to achieve success with N C U A. And now the N.C.U.A. enforcement manual on removal of officials. What is an NCUA “ removal” action?A removal action is the administrative action to remove directors, officers, or committee members. This action is available as an initial course of action or as a continuation of a cease and desist order if the officials refuse to comply as directed. Whether this enforcement action is an initial course or a continuation of a cease and desist order, it is separate and has its own applicability to particular situations. Section 206(g) of the FCU Act, 12 U.S.C. section1786(g), contains NCUA's authority to issue a removal order; NCUA Rules and Regulations section747, Subpart A, contains the rules and regulations governing removal administrative hearings. It may become necessary to initiate formal removal action where a breach of fiduciary duty occurs on the part of the director, officer, or committee member and where the credit union's board will not or cannot discharge the responsible person and where that person does not voluntarily resign. Removal of a director, an officer, or a committee member is not anticipatory in nature as in a cease and desist action. Removal is appropriate only when an official committed an act that constitutes grounds for removal, i.e., it cannot be imposed for future or threatened conduct. Removal can follow only if NCUA has issued a Notice of Intent to Remove or a Notice of Suspension and Intent to Remove and after completion of the appropriate administrative proceedings as provided in the FCU Act and NCUA Rules and Regulations.NCUA may remove a person even if they voluntarily resign or are terminated by the credit union. A removal action may be brought any time up to six years after resignation, termination of employment, liquidation, or any other termination of a relationship with the credit union (see section206(k)(3) of the FCU Act, 12 U.S.C.section1786(k)(3)). Any party who has been removed or suspended from office is also automatically removed, suspended, and prohibited from participating in the affairs of any federally insured financial institution without the express written consent of the appropriate regulatory authority. 1. What are the grounds for removal of an official?NCUA can remove from office any directors, officers, or committee members if:They directly or indirectly violated one of the following:► A statute or regulation.► A provision of a Final C&D Order.► Any published written agreement between the NCUA Board and the credit union.► Any condition imposed in writing by the NCUA Board related to granting any application or request by the CU (e.g. application for insurance or 208 Assistance).► Engaged or participated in any unsafe or unsound practice related to the credit union.► Committed or engaged in any act, omission, or practice constituting a breachof fiduciary duty.AndTheir actions either: ► Involved personal dishonesty.► Demonstrated their unfitness to participate in the credit union's affairs. AndTheir actions resulted in at least one of the following: The credit union has or will suffer financial loss or other damage.The interests of the members have or could be prejudiced.The party receives financial gain or others benefit because of the violation, practice, or breachThis concludes the NCUA Letter to credit unions on TOPIC If your Credit union could use assistance with your exam, reach out to Mark Treichel on LinkedIn, or at mark Treichel dot com. This is Samantha Shares and we Thank you for listening. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exa

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/NCUA issued its Annual Cybersecurity and Credit Union System Resilience Report today. It is long but worth listening to in this "real time" release of an audiobook version of the Report. Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/Here is a link to the entire document:https://www.occ.treas.gov/publications-and-resources/publications/semiannual-risk-perspective/index-semiannual-risk-perspective.html Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.Hire us and gain:• Peace of mind during your exam process• Insider knowledge of NCUA procedures and expectations• Strategies to address potential issues before they become problems• Continuous access to our extensive subject matter expertiseWith our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.