Home > General Information > NCUA Board and Actions > Board Reports > 2008 > Actions: Results, March 19, 2009
Board Action Bulletins: 2009
Prepared by the Office of Public & Congressional Affairs
NCUA Board Meeting results for March 19, 2009
RegFlex adds more flexibility
The NCUA Board approved a final rule change to Part 742, Regulatory Flexibility
Program, (RegFlex) providing additional flexibility to qualifying federal credit
unions (FCUs) when acquiring unimproved land for future expansion.
Currently, when an FCU acquires unimproved land for future expansion, it must partially
occupy the completed premises within three years or obtain a waiver. The amendment
increases the three years to six years for RegFlex FCUs without a waiver. NCUA also
is making conforming amendments to its fixed asset rule to be consistent with RegFlex
changes.
The final rule is effective 30 days after publication in the Federal Register.
Reporting requirement and record retention proposal issued
The NCUA Board issued a proposed rule change to Parts 741, 748, and 749 to
revise credit union reporting requirements and record retention guidelines in order
to implement NCUA’s new, web-based data reporting system for credit unions.
NCUA is developing a secure, web-based system to allow federally insured credit
unions to electronically submit financial reports, report of officials, and other
information online. Implementation of the new system is projected for September
2009 for natural person credit unions and 2010 for corporate credit unions.
The new system will modernize the way insured credit unions submit reports and other
important information, and it will make reporting more efficient and cost effective.
Also, information accuracy will be enhanced by providing a means for updating data
outside the financial reporting cycle.
The proposal also includes provisions that provide alternative reporting methods
for credit unions unable to submit online reports. Comments are due within 60 days
of publication in the Federal Register.
Truth in Savings proposal issued
The NCUA Board issued a proposed change to Part 707, Truth in Savings, designed
to modify provisions and provide guidance on electronic delivery of disclosures.
NCUA is proposing to amend the rule and the official staff commentary to require
all credit unions to disclose aggregate overdraft fees for the period and year-to-date
on periodic statements. Currently, the year-to-date disclosure requirement only
applies to credit unions that promote the payment of overdrafts. The proposed rule
also addresses balance disclosures credit unions provide to members through automated
systems.
Required by the Truth in Savings Act (TISA), the amendment will align NCUA’s TISA
rule and official staff interpretation with the Federal Reserve Board’s Regulation
DD. The proposal was issued with a 60-day comment period.
NCUSIF status report
NCUSIF year-to-date revenue and expense included investment income of $32.0
million, accrued recapitalization and premium income of $4.8 billion, operating
expense of $12.7 million, and loss on investment -corporate- of $1 billion. Net
income through February was $146.9 million.
With insurance loss expense of $3.7 billion, recoveries of $108.1 million, and charges
of $10.4 million through February, the NCUSIF reserve balance was $3.98 billion
February 28, 2009.
Based on year-end 2008 insured shares of $611 billion, the NCUSIF equity ratio was
1.28 percent as of February 28, 2009. Three federally insured credit unions
failed through February – 1 liquidation and 2 assisted mergers -- at a cost of $7.6
million.
There were 269 problem code credit unions at February 28, 2009, with shares representing
2.86 percent of total insured shares -- 60 percent have less than $10 million in
assets and 2 percent have more than $1 billion in assets.
Board votes are unanimous unless otherwise indicated
Back