NWCUA Regulatory Advocacy Update

The Association has been generating and monitoring regulatory movement and change at the state and federal levels. Below is a quick update on some of those pressing regulatory issues.

NWCUA to Meet with Oregon Division of Finance and Corporate Services (DFCS)
Following up on discussions held in January with the DFCS around last-minute changes to the annual Oregon state-charter fee assessment, the Association will be meeting with the DFCS to discuss this process. This initial meeting will be informational, allowing staff from the Association and representative credit unions to fully understand the process, including what the fees are used to cover and how they are predicted, among other items.  

While this meeting is meant to focus on sharing information, we understand that this is a pressing issue with all Oregon state-chartered credit unions. We will keep the group apprised as this process moves forward and offer an opportunity for input from all impacted credit unions.

CFPB Discusses Rulemaking Process
With its charge to “make markets for consumer financial products and services work for Americans,” the Consumer Financial Protection Bureau (CFPB) is working to buck trends in rulemaking, which we hope will serve the industry well.

CFPB staff will seek out various stakeholders prior to drafting a proposed rule in an effort to ensure that the proposal is thorough and well-thought-out prior to going to the public—much as CFPB has done with the TILA-RESPA form development comment process.

Once published as a proposal, comments will be collected in both written and oral form by CFPB staff. While written responses to the rulemaking docket will be the primary means for communicating desired changes and comments, verbal exchanges will also be considered when submitted to appropriate CFPB personnel. Any person making an oral presentation to CFPB representatives will be required to submit a summary of the conversation and participants to the rulemaking docket within three days.

This marks an interesting change from traditional comment collection and one we are hopeful will help engage additional stakeholders in the comment process.

To read the entire CFPB policy click here.

NCUA Guaranteed Notes Committee Formed
At its board meeting earlier this week, NCUA approved the formation of the NCUA Guaranteed Notes (NGN) Securities Management and Oversight Committee with an estimated duration of 10 years. The committee will monitor the Temporary Corporate Credit Union Stabilization Fund (TCCUSF), ensuring compliance, reviewing performance of collateral and NGNs, and working to maintain the program’s transparency.

Information about the NGN, including performance analyses, records of guarantee payments, and reports on NGN trusts, securities, and risk management, will soon be available online to stakeholders and potential investors. Additionally, the committee will report to the NCUA on the program’s performance on a quarterly basis.

The Association has continually pressed for transparency in this process and is pleased to see these monitoring programs put into place.

The 2012 NGN program budget is estimated at over $12 million, with the additional cost of eight or nine full-time staff members, and will not be related to the NCUA’s operating costs. Funding for NGN operations was figured into the corporate resolution cost estimates by NCUA and will solely come from those funds.

NCUA Adds Another Lawsuit in Attempt to Recover Billions in Losses
On Tuesday, NCUA filed another lawsuit in an attempt to recover more than $2 billion in losses from failed corporate credit unions, this time against Goldman Sachs. Seeking more than $490 million in damages for losses from the collapse of U.S. Central and Western Corporate federal credit unions, the NCUA believes issuers violated federal and state laws, presenting risky mortgage-backed securities as being far less risky—most with a triple-A rating—than stated, making untrue statements and omitting key information.

In June, NCUA filed suits against JPMorgan Chase, Royal Bank of Scotland Group PLC., and Edinburgh-based RBS.

While the potential asset recoveries from these lawsuits have not been considered into the current stabilization fund, NCUA states any funds garnered would go directly to credit unions.

The Association is currently seeking comment from credit unions on the following proposals:

  • CFPB: Regulation D – Alternative Mortgage Parity
  • NCUA: CUSO Investment and Reporting Requirements
  • Federal Reserve Board: Interchange – $.01 fraud adjustment

You can read a summary of the proposals here. If you have any questions or would like to offer comments, simply send a message by clicking here. 


The NWCUA Regulatory Advocacy team works with state and federal regulators to help reduce the regulatory burden on credit unions and help protect the credit union movement. The Association encourages members to participate in the regulatory process. If you have any questions on these or any regulatory issues please contact Director of Regulatory Advocacy Jaycee Winn at jwinn@nwcua.org or 800.995.9064 x209.

Posted in Advocacy News, Federal, NCUA, NWCUA.