U.S. Credit Union Law, Legislation, Supervision and Regulation

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U.S. Credit Union Law, Legislation, Supervision and Regulation

Please also see Credit Union Operations

National Credit Union Administration Regulations (March 2010)

NCUA Administrative Orders / Letters of Understanding and Agreement (LUAs)

On Friday, March 20, 2009, the National Credit Union Administration (NCUA) placed both U.S. Central Corporate Federal Credit Union (Lenexa, KS), and Western Corporate Federal Credit Union (San Dimas, CA) into conservatorship. The two corporate credit unions combined reported $57 billion in assets at the time of the takeover. The takeover was determined to be necessary after additional mark-to-market losses in both entities' mortgage- and asset-backed securities portfolio had increased. www.ncua.gov/news/press_releases/2009/MR09-0320.htm

On October 3, 2008, Share accounts in federally insured credit unions had the Standard Maximum Share Insurance Amount (SMSIA) increased to $250,000 as per the terms of the Emergency Economic Stabilization Act of 2008. The increase in coverage was made permanent on July 22, 2010. www.ncua.gov/news/press_releases/2010/MR10-0722$250KNCUAShareInsuranceProtectionNowPermanent.pdf

Federal laws that have applied to federal credit unions.

Federal Credit Union Act of 1934 (June 26, 1934, 48 Stat. 1216; 12 U.S.C. Sec. 1751–1772: Established the Bureau of Federal Credit Unions (predecessor to the National Credit Union Administration Board / NCUA) for the management of federal credit unions.; Credit unions were exempted from taxation.

Home Mortgage Disclosure Act of 1975: Federally insured credit unions located in metropolitan areas that engage in certain types of residential mortgage lending and have assets exceeding the Federal Reserve Board’s (FRB) published threshold must comply with Regulation C.; NCUA Alert providing criteria as to which credit unions must comply www.ncua.gov/reg_alerts/2008/08-RA-01.pdf (.pdf format); Federal Financial Institutions Examination Council’s (FFIEC) HMDA-related Internet site www.ffiec.gov/hmda/default.htm; www.ffiec.gov/hmda/contactNCUA.htm

The Credit Union Regulatory Improvement Act of 2007 (CURIA, H.R. 2317) has not received enough widespread support to be approved due to the opposition by the banking industry.

The Act would increase the statutory aggregate limit on credit union business loans to 20% of total assets, up from 12.25%.

The act also amends the current definition of a member business loans from the current amount of $50,000 to $100,000 (individual loans of less than $100,000 would not count against a credit union’s MBL cap; would also mean that any credit union could offer small businesses loans without having to set up a formal business lending program in accordance with Section 723 of NCUA’s regulations; would exclude from the MBL lending cap all MBLs made to non-profit religious organizations).

Presently, 40 states currently have parity provisions in their state laws, which make most changes in federal law applicable to federal credit unions also applicable to state chartered credit unions.

U.S. State Credit Union Regulation

Alabama Credit Union Administration www.acua.alabama.gov/

Alaska Department of Commerce - Division of Banking, Securities & Corporations www.dced.state.ak.us/bsc/home.htm

Arizona Department of Financial Institutions www.azdfi.gov/

California Dept. of Financial Institutions (DFI) www.dfi.ca.gov/

Colorado Division of Division of financial Services www.dora.state.co.us/financial-services/

Connecticut Department of Banking www.state.ct.us/dob/

Florida Office of Financial Regulation www.flofr.com/

Georgia Department of Banking and Finance dbf.georgia.gov/

Hawaii, Dept. of Commerce and Consumer Affairs, Division of Financial Institutions www.state.hi.us/dcca/dfi/

Idaho Department of Finance finance.idaho.gov/

Illinois Division of Financial Institutions, Credit Union Section www.idfpr.com/dfi/cud/cud_main.asp

Indiana Department of Financial Institutions www.in.gov/dfi/

Iowa Credit Union Division www.iacudiv.state.ia.us/

Kansas Department of Credit Unions www.accesskansas.org/kdcu/

Kentucky Department of Financial Institutions www.dfi.state.ky.us/

Louisiana Office of Financial Institutions www.ofi.state.la.us/

Maine Bureau of Financial Institutions www.state.me.us/pfr/bkg/bkg_index.htm

Maryland Commissioner of Financial Regulation www.dllr.state.md.us/finance/

Massachusetts Division of Banks www.state.ma.us/dob/

Michigan Office of Financial and Insurance Services www.michigan.gov/cis/0,1607,7-154-10555---,00.html

Minnesota Dept. of Commerce www.state.mn.us/cgi-bin/portal/mn/jsp/content.do?subchannel=-536881744&id=-536881351&agency=Commerce

Mississippi Department of Banking and Consumer Finance www.dbcf.state.ms.us/

Missouri Division of Finance www.missouri-finance.org/

Montana Banking and Financial Institutions Division www.discoveringmontana.com/doa/banking/

Nebraska Dept. of Banking and Finance www.ndbf.org/

Nevada Division of Financial Institutions www.fid.state.nv.us/

New Hampshire Banking Department www.state.nh.us/banking/

New Jersey Dept. of Banking and Insurance www.njdobi.org/

New Mexico Financial Institutions Division www.rld.state.nm.us/fid/index.htm

New York State Banking Department www.banking.state.ny.us/

North Carolina Credit Union Division www2.nccommerce.com/cu/

North Dakota Dept. of Financial Institutions www.state.nd.us/dfi/

Ohio Dept. of Commerce, Financial Insitutuions Division www.com.state.oh.us/dfi/

Oklahoma State Banking Department www.state.ok.us/~osbd/

Oregon Division of Finance & Corporate Securities www.cbs.state.or.us/external/dfcs/

Pennsylvania Dept. of Banking www.banking.state.pa.us/

Puerto Rico Corporacion Publica para la Supervision y Seguro de Cooperativas de Pueto Rico www.cossec.com/

Rhode Island Department of Business Regulation www.dbr.state.ri.us/

South Carolina Dept. of Consumer Affairs www.state.sc.us/consumer/

South Dakota Division of Banking www.state.sd.us/drr2/reg/bank/BANK-HOM.htm

Tennessee Department of Financial Institutions www.state.tn.us/financialinst/

Texas Department of Banking www.banking.state.tx.us/

Utah Dept. of Financial Institutions www.dfi.state.ut.us/

Vermont Banking Division www.bishca.state.vt.us/BankingDiv/banking_index.htm

Virginia Bureau of Financial Institutions www.state.va.us/scc/division/banking/index.htm

Washington Department of Financial Institutions www.dfi.wa.gov/

West Virginia Division of Banking www.wvdob.org/

Wisconsin Dept. of Financial Institutions www.wdfi.org/

Wyoming, Dept. of Audit, Division of Banking audit.state.wy.us/BANKING/default.htm

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