ALEXANDRIA, Va.–During a busy meeting here, the NCUA board approved changes to supervisory committee audit rules, approved new bylaws amendments, gave the OK for the creation of new PALs II programs, and heard an update on the health of the National CU Share Insurance Fund.
Supervisory Committee Audits
The NCUA board has voted 3-0 to amend regulations governing the responsibilities of a federally insured credit union (FICU) when it comes to obtaining an annual supervisory committee audit. The final rule, which seeks to update what the agency called “outdated” provisions of the regulation also provides added flexibility to federally insured credit unions with assets less than $500 million while continuing to ensure appropriate financial oversight, NCUA said.
The full story can be found here.
FCU Bylaws
The NCUA board has voted 3-0 to approve a number of new bylaws amendments for federal credit unions. The changes include making it easier to expel abusive members or those who have committed illegal acts; making it easier to publicize board nominations; encouraging credit unions to form boards that better represent their fields of membership; allowing for remote meeting participation using technology, and making it easier to bring in potential new board members.
The full story can be found here.
PALS II
The NCUA board voted 2-1 to approve final new rules for Final Rule, Part 701, Payday Alternative Loans II (PALs II). The new rules create an additional PAL option and do not replace the current PALs I loans. Board Member Todd Harper voted against the proposal, saying among other things the program runs the risk of pushing members into payday lender-like triple-digit APRs on loans.
PAL II loans are now permitted up to be made by credit unions in amounts up to $2,000, with no minimum loan amount and a maximum term of 12 months. That’s a change from the PALs I loans that are restricted to amounts between $200 and $1,000 and a six-month term.
The full story can be found here.
Share Insurance Fund
The NCUA board was given an update on the health of the National Credit Union Share Insurance Fund (NCUSIF), including that the percentage of NCUSIF assets (4%) in CAMEL Code 3, 4 and 5 credit unions is at one of its lowest points in many years. NCUA CFO Rendell Jones said the fund closed Q2 with total assets of $16.2 billion.
The full story can be found here.