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NCUA Board moves forward with two proposed rules
The NCUA Board held its October meeting yesterday. The board unanimously approved issuing a pair of proposed rules to simplify insurance rules and implement the Fair Hiring in Banking Act.
The insurance-related proposal would:
· simplify the share insurance regulations by establishing a “trust accounts” category that would provide for coverage of funds of both revocable trusts and irrevocable trusts deposited at federally insured credit unions (FICUs) in the accounts of members or those otherwise eligible to maintain insured accounts;
· provide consistent share insurance treatment for all mortgage servicing account balances held to satisfy principal and interest obligations to a lender; and
· provide more flexible recordkeeping requirements to explicitly allow the NCUA to look to records held in the normal course of business that are maintained by parties other than a FICU and its members on their behalf.
Additionally, the NCUA Board approved issuing a proposed rule to implement the Fair Hiring in Banking Act, which was enacted as part of the 2023 National Defense Authorization Act. The rule would replace a lifetime ban for those with disqualifying convictions to work in the banking sector and create an exception for criminal acts committed before the age of 21.
The board also received a cybersecurity briefing from agency staff on the current cyber threat landscape, the agency’s Information Security Examination (ISE) program, the finalization of the cyber incident reporting rule, and the cybersecurity resources available through the Cybersecurity and Infrastructure Security Agency.
NAFCU will continue to engage the NCUA on credit union priorities.