NASCUS Encouraging Feedback on NCUA and CFPB Proposals

Jan. 23, 2012 - NASCUS is in the process of developing comment letters on several proposals. We encourage your feedback and opinions. Feedback on any of these issues can be communicated to Brian Knight at before Feb. 14 for consideration in our comment letters.

Loan Participations: Comments due to NCUA Feb. 21
NASCUS Summary (Member log-in required)
NASCUS is increasingly concerned about the escalation of NCUA's efforts to encroach upon areas traditionally regulated by the states, such as this loan participation issue and in areas such as CUSOs. Generally, the NCUA's rules regarding loan participations have not applied to federally insured state-chartered credit unions (FISCUs). Federal credit unions (FCU) are subject to a 10 percent continuing participation interest by the originating lender for the loan's duration. The new proposed rule would extend this 10 percent requirement to FISCUs and impose concentration limits.

Maintaining Access to Emergency Liquidity: Comments due to NCUA Feb. 21
NASCUS Summary (Member log-in required)
To address its concerns for the ability of FICUs to access emergency liquidity during a systemic crisis, NCUA is considering promulgating requirements for a federal liquidity backstop in this advanced notice of proposed rulemaking (ANPR). NCUA's request for comments was prompted by the impending winding down of US Central Bridge Corporate. Currently, virtually all FICUs have access to the Central Liquidity Facility (CLF or facility) by belonging to a corporate credit union that is in turn part of the agent group headed by U.S. Central Bridge Corporate. Because US Central Bridge Corporate holds CLF stock on behalf of the whole agent group, virtually all FICUs have the CLF as a source of emergency liquidity. However, when US Central Bridge Corporate is wound down and closed, it will redeem its CLF stock which in turn will terminate CLF access for all FICUs except those FICUs that have purchased their CLF stock subscription. In other words, the closing of US Central Bridge Corporate could in effect void this emergency liquidity source of a majority of FICUs.

CFPB Inherited Rules: Comments due to CFPB by March 5, 2012
NASCUS Summary (Member log-in required)
The Bureau of Consumer Financial Protection (CFPB) has published a Notice of request for comments from the public on how the CFPB could streamline regulations it recently inherited from other Federal agencies. The CFPB's Notice: 1) asks the public to identify provisions of the inherited regulations that should be made the highest priority for updating, modifying, or eliminating because they are outdated, unduly burdensome, or unnecessary; 2) discusses several specific requirements that may warrant review; and 3) seeks suggestions for practical measures to make complying with the regulations easier.