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Top NCUA Supervisory Priorities: Cybersecurity, BSA, and IRR
Thursday, January 8, 2015 6:25 AM

The National Credit Union Administration sent a letter Tuesday to federally insured credit unions announcing their 2015 supervisory priorities, as well as their intent to provide assistance with preparation for 2015 examinations.

In the NCUA's letter, they stated their priorities as:

  • Cybersecurity: The NCUA plans to "redouble" efforts to ensure the credit union system is prepared for a range of cybersecurity threats. This includes focusing on proactive measures to encrypt sensitive data and develop an information security policy and more. Field staff will also evaluate a credit union's capacity to recover from a security breach;
  • Interest-rate risk: Field staff will continue to use existing guidance to assess credit unions' interest -rate risk, and the agency is currently in the process of updating such guidance. Staff will also evaluate compliance with the NCUA's interest-rate risk rule;
  • BSA compliance: Field staff will continue to assess BSA compliance, with a focus on "credit unions' relationships with money services businesses;"
  • Liquidity and contingency funding plans rule: Full compliance with relevant provisions of the NCUA's liquidity rule will be examined by agency staff. Credit unions with assets of at least $250 million will also be evaluated on contingent funding test results;
  • Truth in Lending Act-Real Estate Settlement Procedures Act (TILA-RESPA) integrated disclosure rule: The Consumer Financial Protection Bureau's TILA-RESPA rule will become effective Aug. 1, and NCUA staff will be assessing compliance once it goes into effect;
  • Ability-to-repay and qualified mortgage standards rule: Since credit unions have had a full year to comply with the rule, field staff will examine compliance and ensure that all mortgage lending programs are being operated in a safe and sound manner; and
  • Lending programs: The NCUA continues to monitor trends in credit union loan portfolios, and staff will examine whether institutions are performing due diligence in all loan products and services, particularly new ones that have become available in recent years.

Credit union personnel can view the letter in its entirety here.