NCUA Chairman Harper's Written Testimony Before the House Financial Services Committee

Credit Union Regulatory Guidance Including: NCUA, CFPB, FDIC, OCC, FFIEC

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# NCUA Chairman's Congressional Testimony: State of Credit Unions in 2024

## Episode Overview
A deep dive into NCUA Chairman Todd M. Harper's testimony before the House Financial Services Committee, covering the current state of the credit union system, key challenges, and regulatory initiatives.

## Key Points

### Credit Union System Performance
- Total assets nearly $2.3 trillion
- Total outstanding loans exceed $1.6 trillion
- Net worth ratio: 10.84%
- Return on average assets: 0.69%
- Warning signs: rising delinquency rates, declining capital levels

### Major Concerns
- One in five credit unions rated as troubled (CAMELS 3, 4, or 5)
- Number of troubled complex credit unions tripled in Q2 2024
- Commercial real estate showing stress due to hybrid work environments
- Rising consumer financial stress affecting loan performance

### Cybersecurity Initiatives
- Deployed updated Information Security Examination procedures
- Received 1,000+ reportable cyber incidents since September 2023
- 70% of cyber incidents related to credit union vendors
- Expanded partnerships with CISA and FBI

### Consumer Protection Efforts
- Focus areas: overdraft programs, fair lending, auto lending
- Eight credit unions referred to DOJ for discrimination in 2024
- First-ever race-based redlining settlement against a credit union
- New requirements for large credit unions to disclose overdraft fees

### Minority Depository Institutions (MDIs)
- 490 MDI credit unions serving 6.6+ million members
- Combined assets over $90 billion
- 39 MDIs received nearly $1.4 million in technical assistance grants
- Average asset size: $183 million

### Legislative Requests
1. Restore third-party vendor oversight authority
2. Reform Central Liquidity Facility
3. Provide more flexibility in Share Insurance Fund management
4. Increase Community Development Revolving Loan Fund to $10 million

## Hurricane Response
- Detailed response to Hurricanes Helene and Milton (Sept/Oct 2024)
- Provided emergency grants and loans to affected credit unions
- Extended regulatory filing deadlines
- Supported cash needs during telecommunications outages

## Notable Statistics
- Share Insurance Fund equity ratio: 1.28%
- Share Insurance Fund net income: $154.3 million
- Insured shares and deposits: $1.76 trillion
- Uninsured shares and deposits: $169.4 billion

## Contact Information
For more information: [ncua.gov](https://ncua.gov)

## Additional Resources
- NCUA's Financial Technology and Digital Asset webpage
- Credit Union Diversity Self-Assessment tool
- Automated Cybersecurity Evaluation Toolbox (ACET)

*Show notes based on testimony delivered November 20, 2024*

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