Questions on Noninterest-Bearing Accounts

Credit Union Magazine takes questions on NCUA’s noninterest bearing account rule.

August 1, 2011

CUNA has received a number of questions from federally insured credit unions on NCUA’s noninterest-bearing transaction account rule. The rule implement the Dodd-Frank Act’s requirement for temporary unlimited share insurance for noninterest/dividend-bearing transaction accounts (e.g. demand checking/share draft accounts, official checks issued by a federally insured credit union, such as negotiable cashier’s or certified checks). This temporary unlimited share insurance continues until Dec. 31, 2012.

The rule also contains a notice requirement to ensure that credit union members are aware of and understand what accounts the temporary share insurance coverage will cover. Questions from credit unions include:

  • Is NCUA planning to issue additional guidance? NCUA staff indicated that since this is only a temporary provision of insurance for these accounts, the agency didn’t have any plans to issue additional guidance on this rule.
  • Is there a specific font-size requirement for the lobby and website notice? There’s no required font size for the notice—just make sure that it’s legible and members can easily see it.  
  • Does NCUA plan to issue notices to credit unions? NCUA staff expected that most credit unions would simply cut and paste into a document the model “Notice of Changes in Temporary NCUA Insurance Coverage for Transaction Accounts” contained in the regulation, and post the notice in a prominent place within credit union offices and on websites. 

CUNA will alert credit unions to any additional agency clarifications.

Visit CUNA’s CompBlog

CUNA recently rolled out its new compliance blog: “CompBlog” takes the information that credit unions have found for years in CUNA’s “Compliance Challenge” and delivers it in a more timely format. 

So, instead of the monthly “Challenge,” credit unions have access to virtually daily observations about regulatory developments as they happen, Q&As, and musings from CUNA’s compliance team. The new format also incorporates “What’s New in Compliance” so users won’t have to monitor two different Web pages for the latest regulatory developments.

Have an idea for a post or a question for CUNA’s compliance team? E-mail And be sure to keep the conversation going with your peers on COBWEB, CUNA’s compliance listserv.

Next: Updated SCRA Rights Notice

Updated SCRA Rights Notice

The Department of Housing and Urban Development (HUD) updated its notice regarding the legal rights and protections under the Servicemembers Civil Relief Act (SCRA).

HUD requires mortgage lenders to notify delinquent homeowners of the availability of homeownership counseling offered through the lender (if applicable)
and through HUD-approved counseling organizations.

In addition, lenders must notify homeowners in default of the mortgage and foreclosure rights of servicemembers and their dependents under the Servicemembers Civil Relief Act. This additional notice requirement became effective in late 2006.

The revised notice is dated June 2011, and quite a bit has changed from the original version, including additional text and updated contact information. Credit unions can either use the newer HUD template or update the language on their current forms to reflect these changes.  The form expires July 31, 2012.

Find a link to the revised form on CUNA’s e-Guide to Federal Laws and Regulations here.

NCUA Goes Green With ‘Express’ & ‘Dispatch’

NCUA has launched two new online communication systems for credit unions, consumers, and the industry-at-large:

  • NCUA Express is a voluntary electronic notification system that allows subscribers to receive e-mail or RSS feed announcements anytime the agency posts news to its website. NCUA will automatically switch users to the new platform, so current subscribers need take no further action.
  • NCUA Dispatch

is a blast e-mail notification service for credit unions and state regulators. It will eventually replace most paper mailings, improving NCUA’s ability to communicate quickly in a cost-effective and “green” manner.

NCUA Dispatch will be used for both routine and emergency notifications to the credit union industry.

There’s no need to sign up for the NCUA Dispatch service. Credit unions should update the Information System and Technology section of their profiles with NCUA to ensure the agency has their current e-mail address.

For questions on either system, contact NCUA’s technical support desk at 800-827-3255.