Compliance Blog

Posted by Anthony Demangone

Here are a few items from NCUA that should be of interest.

First, NCUA released (via its NCUA Express service) a legal opinion letter that addresses the incidental power of "correspondent services." 

You asked if a federal credit union (FCU) could provide the following correspondent services to other credit unions: share draft processing; check collection; ACH origination and receipt; wire transfers; coin and currency; and a line of credit. An FCU may offer lines of credit to other credit unions under its statutory lending authority in the FCU Act. An FCU may provide the other proposed services to credit unions pursuant to its incidental powers authority. 

The letter is a nice overview of the "correspondent services" power, and it is a good reminder of the incidental powers regulation itself. Credit unions have a good deal of flexibility thanks to this rule, so it is worth a read if you haven't poked around in it in a while. 

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NCUA also has a "virtual" town hall coming up on February 17th.  Sign up here.  Here's what you can expect:

The 90-minute virtual Town Hall will feature detailed discussion of NCUA’s initiatives to reform the corporate credit union system, minimize costs to consumer credit unions and promote financial education for volunteers.