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NAFCU's widely read NAFCU Today is credit union leaders' go-to source for the latest on issues impacting the credit union industry. For those short on time, here's a roundup of this week's top need-to-know updates and resources.   

2022 NCUA Diversity Self-Assessment updates

The NCUA announced process improvements to the Credit Union Diversity Self-Assessment for 2022, including additional details for submitting surveys, improved navigation, pre-population of certain fields, and compliance with the 21st Century Integrated Digital Experience Act. The modernization also upgrades security and ensures data integrity and confidentiality.

The 2022 Diversity Self-Assessment will open the first week of October; submissions must be sent to the NCUA by January 31, 2023 to be included in the 2022 report.

CFPB orders Regions Bank to pay $191M

The CFPB Wednesday ordered Regions Bank, a repeat offender, to pay $191 million for illegal surprise overdraft fees. The order specifies that Regions must pay $141 million in redress to affected consumers and a $50 million fine to the CFPB, to be deposited into the CFPB victim relief fund. In addition, Regions Bank is prohibited from charging authorized-positive overdraft fees.

Of note, this order is in line with CFPB Director Rohit Chopra’s stance on repeat offenders, as well as the bureau’s request for information on ‘junk fees’ earlier this year, which NAFCU responded to. NAFCU will continue to monitor the CFPB’s oversight of overdraft practices.

NCUA releases annual MDI report

The NCUA Tuesday released its annual report to Congress on the performance of minority depository institution (MDI) credit unions. The report reveals MDI credit unions experienced growth in membership, assets, and loans in 2021. In addition, the NCUA supervised 509 MDI credit unions at the end of 2021, compared to 520 at the end of 2020 – a drop largely due to credit unions that fell outside the specific requirements for the MDI designation. Read more findings from the report.

Fed announces climate-focused bank exercise

The Federal Reserve Thursday announced it will hold a scenario analysis pilot program beginning next year to test banks’ exposure to theoretical consequences from climate change. Bank of America, Wells Fargo, JPMorgan, Goldman Sachs, Citigroup, Morgan Stanley, and Chase, will participate in the exercise. The scenarios, which will contain climate, economic, and financial components, will be published when it launches; the Fed will also make the results of the analysis public.

Relatedly, a new episode of the Credit Union Policy Podcast (CUPP) on the topic of climate change risk is scheduled to be released today. Learn more and stream the latest episodes.

Federal financial regulators issue interagency NCUA reminds CUs of urgent needs grants

In the wake of Hurricanes Ian and Fiona, the federal financial regulators, including the NCUA, Thursday issued an interagency statement related to supervisory practices for financial institutions that have been impacted. Through the statement, the agencies indicated that they intend to provide appropriate regulatory assistance to affected institutions related to several issues and instructed financial institutions operating in the affected areas to meet the financial services needs of their communities.

In addition, the NCUA Thursday reminded credit unions of urgent needs grants for low-income credit unions that are offered by the NCUA’s Office of Credit Union Resources and Expansion. The NCUA also maintains a hurricane and disaster information page on its website for more resources for affected credit unions.