February 21, 2023 The Law Office of Michael S. Edwards on February 20, 2023 filed a comment letter in response to the National Credit Union Administration’s (NCUA) proposed rule on Financial Innovation: Loan Participations, Eligible Obligations and Notes of Liquidating Credit Unions that would amend Sections 701.21 (“Loans and Lines of Credit to Members”), 701.22 (“Loan Participations”), and 701.23 (“Eligible Obligations”) of NCUA rules. This office supported most aspects of…

NCUA Finalizes Delay of Risk-Based Capital Rule By Michael S. Edwards, Esq. The National Credit Union Administration (NCUA) today finalized its delay of the agency’s Risk-Based Capital regulation until January 1, 2022.  The Risk-Based Capital rule is modeled on the Basel III capital framework and was originally scheduled to take effect in a few weeks on January 1, 2020. NCUA Chairman Rodney Hood stated that the agency was delaying the…

Is Your Credit Union Ready for CCPA? By Michael S. Edwards, Esq. The California Consumer Privacy Act (CCPA) is scheduled to take effect on January 1, 2020 and many credit unions around the country are wondering what CCPA means for them.  CCPA is a new data privacy law that applies to most businesses that have customers located in California even if the business is based in another state.  As member-owned…

Credit union directors have an important advocacy role to play in helping achieve public policies that help credit unions thrive.  Check out my new article on director advocacy for Credit Union Executives Society!

New Options for Field of Membership and Dealing with Problem Members I have work on credit union Field of Membership and common bonds–which limit who is eligible to join a particular credit union–over the years from the public policy, litigation and supervisory approval standpoints.  Check out my new article for Credit Union Executives Society on the D.C. Circuit Court of Appeals‘ recent decision on geographic Fields of Membership and also…

NCUA Has a World of Capital Options By Michael S. Edwards Today I filed a comment letter with the National Credit Union Administration (NCUA) urging the agency to use the delay of its Risk-Based Capital Rules to expand credit unions’ capital options. If finalized, the proposal would delay the implementation of the Risk-Based Capital Rules until January 1, 2022, which would give the agency time to consider how best to…

NCUA Loosens Appraisal Rules, Tightens Fidelity Bonds The National Credit Union Administration (NCUA) Board today adopted final rules on credit union commercial real estate appraisals and fidelity bonds, proposed a more liberal approach for allowing persons with criminal histories to work at credit unions and reprogrammed approximately $5.3 million dollars of its budget. The agency’s new commercial real estate appraisals regulation passed by a vote of 2 to 1 and…

NCUA Proposes Two-Year Delay of Risk-Based Capital Rule The National Credit Union Administration (NCUA) Board voted 2 to 1 today to propose a two-year delay of the agency’s Risk-Based Capital rule during a sometimes-contentious Board Meeting that lasted approximately two hours. NCUA’s Risk-Based Capital rule is based on the Basel III international risk-based capital standard and would take effect on January 1, 2022 if the agency finalizes the proposal. The…

During today’s NCUA Board Meeting, the NCUA Board issued a proposed rule on public unit and non-member shares (which we summarized here) and also received updates on the agency’s new Office of Credit Union Resources and Expansion (CURE) and the National Credit Union Share Insurance Fund. Martha Ninichuk, Director of the CURE Office, reported that CURE has established a new portal for Low-Income Designated Credit Unions, is providing credit unions…

The National Credit Union Administration Board today approved a proposed regulation  on federal credit union public unit and non-member shares.  Section 107 of the Federal Credit Union Act authorizes federal credit unions to accept shares deposited by non-member public entities such as state and local governments and also authorizes federally-chartered Low-Income Designated Credit Unions (LICUs) to accept shares deposited by non-member legal entities and natural persons.  The proposed rule, if…