Compliance Blog

Posted by Anthony Demangone

Buckle up, folks. Today will be quite a day.  Here's what's on tap:

NCUA's Board Meeting. NCUA will issue a final rule on mergers, conversions, and fiduciary duties.  This rule may have far reaching effects concerning board recruitment, board education, and general corporate governance issue.  While the fiduciary duties portion of the rule doesn't really create anything new, it will draw more attention to the issue and perhaps heighten expectations.  I'll write more about this tomorrow.  In addition, NCUA is looking at a proposal concerning unlimited share insurance protection for non-interest bearing transaction accounts. If you are chomping at the bit to see what the rules say, visit this NCUA page after 9 a.m.

Interchange.  Today, the Fed will issue a proposal concerning debit interchange fees.  While the ultimate rule can only affect institutions with more than $10 billion in assets, we have grave concerns that this process will reduce debit interchange income for all.  I'm sure there will be a ton of news items throughout the day on this subject. 

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Here are a few other items of interest...

Automated Underwriting?  Why, yes. Yes you can.  NCUA issued this legal opinion, which indicates that completely automated underwriting systems do not necessarily run afoul of the Federal Credit Union Act and NCUA regulations. 

Agricultural Lending.  The FDIC issued this financial institution letter to share its expectations on what it considers to be "prudent" management of agricultural lending through farming and economic cycles. Sure, the FDIC doesn't regulate credit unions, but I bet that if you do agricultural lending, this document will be of some use. 

The NCUA Report.  NCUA released the latest edition of this publication. This report looks at additional corporate issues, an overview of the overhead transfer rate, foreclosures, and more.