www.marktreichel.com

https://www.linkedin.com/in/mark-treichel/

# 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*

Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!

We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.

Hire us and gain:

• Peace of mind during your exam process

• Insider knowledge of NCUA procedures and expectations

• Strategies to address potential issues before they become problems

• Continuous access to our extensive subject matter expertise

With our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.

Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.