Supervisory Priorities; Call Reports; and DBO Assessment Rate

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The National Credit Union Administration’s Letter to Credit Unions 20-CU-22 updates the agency’s 2020 supervisory priorities to reflect economic conditions that emerged in response to the COVID-19 pandemic, as well as various statutory and regulatory changes that have occurred since March 2020.

With these revised priorities, the NCUA is focusing its examination activities on areas that pose elevated risk to the credit union industry and the National Credit Union Share Insurance Fund given the current environment, including: BSA Compliance/Anti-Money Laundering; CARES Act Provisions; Consumer Financial Protection Regulations; Credit Risk Management and ALLL; Cybersecurity; LIBOR Transition Planning; Liquidity Risk; and Serving Hemp-Related Businesses.

The California and Nevada Credit Union Leagues strongly urge credit unions to read more about these areas of supervisory focus in the Letter to Credit Unions 20-CU-22Additionally, given the ongoing impact of the pandemic, the NCUA will be updating the Examiner’s Guide to incorporate additional guidance for examiners, including review procedures for assessing the safety and soundness of credit unions. More information on the NCUA’s response to the pandemic is available on the agency’s Coronavirus (COVID-19): Information for Federally Insured Credit Unions and Members webpage.

NCUA ‘Urgent Needs Grants’ Fully Utilized
Funding for the COVID-19 urgent needs grants initiative has been fully utilized and new applications will no longer be accepted, the NCUA announced. The agency will complete the review process for COVID-19 urgent needs grant applications that are currently pending and notify credit unions of its decisions on those applications by email.

Urgent needs grants will remain available for events not related to the pandemic. Federally insured, low-income-designated credit unions may apply for grants up to $7,500 for emergency and natural disaster relief. Eligible credit unions wishing to apply for urgent needs grants should review the NCUA’s Urgent Needs Grants Guidelines. Apply through the agency’s CyberGrants portal. Credit unions with questions should contact the Office of Credit Union Resources and Expansion at CUREApps@ncua.gov.

DBO: No Assessment Rate Increases in 2020 – 21
California credit unions learned this week that the California Department of Business Oversight (DBO) has announced no assessment rate increases for fiscal year 2020 – 21 in invoices mailed June 30 to state-chartered credit unions, banks and other financial institutions.

The 2020 – 21 assessment rate for credit unions is $1.01 per $1,000 of assets, the same as last year’s rate. Assessments are due by July 30, with more time allowed for payments made via electronic funds transfers (EFT). The latter are due by Aug. 6.

For questions about the calculation of an assessment, please refer to “How to Calculate Your Assessment” or contact Patrick Carroll at 415-263-8559 or patrick.carroll@dbo.ca.gov. Questions regarding assessment payment processing should be directed to Accounting at AccountingAR@dbo.ca.gov.

DBO to Monitor Compliance with Face Covering Guidance
Additionally, In accordance with Gov. Gavin Newsom’s directive on face coverings, the DBO is reminding all licensees to make sure employees and customers fully comply at all times with the latest guidance on face masks from the governor and the California Department of Public Health (CDPH).

All credit union members are required to wear appropriate face coverings in the circumstances outlined in the CDPH guidance. Those who refuse to wear masks and do not meet the exemptions outlined by CDPH should not be allowed to enter credit unions and other places of business.

As the governor noted, the DBO and other state agencies will be monitoring compliance with the face-covering guidance, which will remain in effect until further notice. The DBO recognizes that enforcement of the face-mask guidance may be difficult at times and appreciates licensees’ help with this critical effort to protect all Californians during this historic crisis. Please send any questions to Ask.DBO@dbo.ca.gov.

NCUA 2Q and 3Q Call Report Update
National Credit Union Administration Call Reports for the June 30 reporting cycle (second quarter) are due no later than 11:59:59 p.m. (Eastern) on July 26. You can read more here for information about Call Report cycle due dates, the CUOnline system, and other pertinent information.

NCUA also announced that Call Reports for the Sept. 30 reporting cycle (third quarter) are due no later than 11:59:59 p.m. (Easter) on Oct. 25.

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