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April 27, 2011

Free intro webinar for new Financial Counseling Certification course
On May 2, the Association and REAL Solutions® will host a free webinar to introduce the FiCEP Credit Union Financial Counselor Certification Program. The hour-long webinar will begin at 10:00 a.m. and outline the purpose, content, timing, and cost of this important new educational opportunity. The course will feature webinars and in-person learning sessions. Participants who successfully complete the eight modules and pass the proctored examinations will receive professional certification as Credit Union Financial Counselors.

Credit union personnel who have completed the course and received certification have remarked on how beneficial it has proven in their interaction with members. The course has proven particularly popular among lenders, collectors, and member service staff.

Click here to register for this free webinar.

NCUSIF losses remain below estimates
The National Credit Union Administration (NCUA) did not report writing off any National Credit Union Share Insurance Fund (NCUSIF) assets as insurance loss expense for the second time in as many months. The agency had originally budgeted $54.2 million in funds to cover expected insurance loss expenses for the month of March but those projected losses did not materialize.

NCUA CFO Mary Ann Woodson reported that the NCUSIF's equity ratio stood at 1.29% as of March 31, and added that $140 million of the NCUSIF's $1.2 billion in reserves are allocated for expected losses related to specific, troubled natural-person credit unions.

A total of $1 billion of those NCUSIF reserves remain unallocated. Woodson, in her report, noted that the number of CAMEL Code 4 and 5 credit unions increased by 6 in March. The 366 total CAMEL 4 and 5 credit unions represent 5% of insured shares, or $37 billion. The number of CAMEL 3 credit unions declined by 5, dropping that total to 1798. CAMEL 3 credit unions represent 17% of insured shares, or $132 billion.

Matz addresses FFIEC
National Credit Union Administration (NCUA) Chairman Debbie Matz said she will work to restore "the responsibility and accountability in our financial system" during her term as leader of the Federal Financial Institutions Examination Council (FFIEC).

In an interview with CU Broadcast Matz added that she is "honored to serve and establish the credit union industry as a larger part of the overall big picture of the financial industry." Matz added that she has already "initiated discussions with the different sub-committees on how the FFIEC will address the many challenges now facing consumers and the financial services industry." The NCUA Chairman took charge of the FFIEC, which promotes uniformity in financial institution regulation, on March 4.

She is the first credit union representative to lead the group in over 20 years.

The agency's interest rate risk proposal was also discussed during the interview. The proposal, which was released last month and is open for comment until May 23, would require credit unions to develop a written policy on interest rate risk and to create their own interest rate risk management programs. The NCUA leader said that credit unions must establish these interest rate risk policies "to remain profitable." "It's extremely important credit unions remain proactive about interest rates right now because eventually interest rates will rise from today's historic lows," she added.

Matz also addressed the agency's NCUA-Safe public awareness campaign, the recently announced financial literacy grants, and the launch of its MyCreditUnion.gov website.