Compliance Blog

On Friday, NCUA issued this Supervisory Letter regarding their move to reincorporate federal credit union bylaws into their rules and regulations.

Here's a few paragraphs that caught the Compliance Guy's attention:

"Under the risk-based examination system in use for FCUs, examiners do not currently, nor will they with the reincorporation of the Bylaws, inquire into an FCU’s bylaw disputes unless the FCU’s management raises the issue." (Taken from the cover letter.  This sounds good, right?)

"Any FCU member or FCU official may report a bylaw dispute within an FCU. Likewise, any FCU, member, or official may report a bylaw dispute to NCUA. FCU members still have the right to seek enforcement of the Bylaws in court. However, FCU members do not need to seek judicial relief before reporting a bylaw dispute to NCUA." (This was taken from the guidance itself, which doesn't sound as strong as the paragraph noted above.)

NAFCU members:  NAFCU has posted its Final Regulation on NCUA's Purchase, Sale and Pledge of Eligible Obligations.  NAFCU members can access it here.

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NAFCU members: the December 2007 newsletter is available here.