ALEXANDRIA, Va.–For the second time in two weeks, NCUA has placed a credit union into conservatorship. Separately, it has also announced a new agreement with the CFPB.
The agency said it has conserved the $6.604-million Indianapolis’ Newspaper FCU, which has 1,155 members. INFCU serves various select employee groups in the greater Indianapolis area.
Indianapolis’ Newspapers FCU showed a loss of $852,232 on its Sept. 30 call report, with NCUA saying it made the move “because of unsafe and unsound practices at the credit union.”
NCUA said it is now working to “resolve issues affecting the credit union’s operations” and the CU’s main office on South Meridian St. in Indianapolis remains open.
Last week NCUA placed the $4.4-million C O Federal Credit Union in Charleston, S.C. into conservatorship. In its case, its September 2020 Call Report showed a loss of $37,653 but strong net worth at 10.68%, making it well capitalized.
NCUA, CFPB in Agreement
Separately, NCUA and the Consumer Financial Protection Bureau announced a memorandum of understanding agreement to improve coordination between the agencies related to the consumer protection supervision of credit unions over $10 billion dollars in assets.
“This agreement underscores NCUA’s commitment to consumer protection by facilitating vital information sharing between the agencies for credit unions over $10 billion dollars in assets,” said NCUA Chairman Rodney E. Hood in a statement. “Improved coordination with CFPB will produce better outcomes in support of consumers and reduce burden on covered institutions.”
Under the MOU, CFPB and NCUA said they will pursue opportunities to proactively and efficiently share supervisory information, including drafts of Covered Reports of Examination and final Reports of Examination for credit unions over $10 billion dollars in assets, using secure, two-way electronic means. The CFPB and NCUA will also jointly collaborate in semi-annual strategy planning sessions to identify and address areas of alignment and coordination in examinations for covered institutions.
“Today’s MOU is an important step towards improving our existing framework and increasing opportunities for collaboration between our agencies,” said CFPB Director Kathleen L. Kraninger. “By working in a collaborative way, we will engage in more effective processes to protect consumers in the financial marketplace. We look forward to our continued partnership with the NCUA.”
According to the two agencies, the MOU will better facilitate coordinated examinations to reduce redundancy and unnecessary overlap. CFPB and NCUA will also share information on training activities and content. Finally, the MOU will permit both agencies to share information related to supervisory activities and potential enforcement actions.
NAFCU Response
In response to the new agreement, NAFCU President and CEO Dan Berger said, “NAFCU strongly supports the CFPB and the NCUA’s efforts to improve agency coordination when it comes to supervising credit unions over $10 billion in assets. We hope improved coordination between the two regulators will provide for a more streamlined approach to their supervision and examination practices, and it would simplify processes for credit unions. We thank the agencies for their joint efforts, and we look forward to monitoring this partnership’s impact on the industry.”