Skip to main content

NCUA Change involving joint ownership share accounts.

ALEXANDRIA, Va.–The NCUA board has voted 3-0 to approve a change involving joint ownership share accounts.

The change to Final Rule Part 745 is relatively minor in that it codifies a practice already in place at many credit unions when it comes to the use of electronic signatures. The rule would only apply in cases where a credit union fails and a jointly owned account is affected. The rule was finalized largely as proposed, with the agency saying it will provide targeted regulatory relief by allowing federally-insured credit unions to use information in account records to establish co-ownership of the share account and satisfy the signature card requirement.

The final rule includes a clarifying change "to better convey the examples of evidence of co-ownership in the proposed regulatory text do not define the only form of evidence that could satisfy the signature requirement," according to NCUA. It is set to take effect 30 days after publication in the Federal Register.

NCUA Chairman Todd Harper, agency staff and the other board members all noted the change will not add any additional compliance burden on credit union. The approval of the rule brings NCUA in line with a similar change adopted earlier by the FDIC.

The proposal was originally put out for comment in May of 2020. NCUA said it received 11 comment letters on the proposal, none of which objected.

"I’d like to see more of this great work by NCUA staff, in codifying these sorts of things and putting them into the affirmative," said NCUA Vice Chairman Kyle Hauptman. "If you’ve talked to a compliance officer at a small institution, you know the position they are in. It can be a thankless job, a bit like playing the position of goalie in hockey or soccer, when the only time THEY are the focus is when things aren’t going well for their ‘team.’ They want to see it stated that something is ok. It’s not enough to NOT see a rule against something, they need it stated that something is in fact acceptable.

"On a related note, I understand that, coincidentally, the Part 745 share insurance rules are part of NCUA’s annual Regulatory Review Process where the agency examines one-third of our existing regulations for consistency, accuracy, and clarity," continued Hauptman. "This is a huge undertaking, and I want to thank the staff for the excellent work done throughout the year. Too often, changes do not get made until problems arise. I appreciate the proactive approach staff have taken to maintain the integrity of NCUA regulations."

NCUA Board Member Rodney Hood said the move will help “ensure confidence in the payout of funds” in the rare case of a credit union failure.
 

Comments

Popular posts from this blog

NCUA Board briefed on four topics

The NCUA Board heard briefings on four topics during its meeting Thursday, including the status of the deregulation initiative, a clarification regarding existing rules applicable to brokered and reciprocal deposit arrangements, and the agency’s 2026-2030 Strategic Plan and 2026 Annual Performance Plan.   Acting Director of the Office of Examination and Insurance Amanda Parkhill provided an overview of Phase 1 of the agency’s Deregulation Project, which focuses on targeted, technical changes to remove outdated or unnecessary requirements and improve clarity. The agency made it clear that the effort will likely continue into late 2026 or early 2027, evolving over time based on policy priorities and stakeholder input.   NCUA General Counsel Frank Kressman briefed the board on brokered and reciprocal deposit arrangements and the NCUA’s FAQs on this topic. The briefing demonstrated how a brokered deposit network operates with respect to low-income designated (LID) FICUs ...

How Your Bank/Credit Union Can Fight ‘Soft Switching’ — and Even Steal a Few Accounts of Your Own

Your Members Aren't Leaving in a Huff, They're Just Fading Away. Here's How to Stop It. “Soft switching” is picking up as Americans’ financial activity continues to fragment among multiple players, according to new research from JD Power. This trend has implications both for banks and credit unions that want to retain and grow existing relationships, as well as those that would also like to expand by snapping up accounts from other institutions. Key risk:  Once someone establishes a relationship with another provider, their one-time primary financial institution risks slipping into second place — or even losing the relationship entirely. Need to Know: The average checking account customer now has three deposit accounts at different institutions, the study found. One out of five consumers moved money away from their primary financial institution in the past three months, according to the study, an increase over the 17% rate seen in the previous edition. Departures aren’t sud...

Sunday Reading - Landmine Rat Honored

  Landmine Rat Honored   Cambodia unveiled the world’s first statue honoring a landmine-detecting rat (w/photo) Friday. Magawa the rat lived to 8 years old and identified more than 100 landmines and other explosives from 2016 to 2021.  There are more than 100 African pouched rats deployed in landmine detection operations across the world. To identify mines, the rats are trained to sniff out explosive compounds like trinitrotoluene, or TNT. (The rats are not heavy enough to trigger detonation.) In Cambodia, up to 6 million landmines remain undiscovered, most planted during three decades of conflict, from the Vietnam War era through Cambodia's civil war . Since 1979, roughly 20,000 people have been killed in Cambodia, and roughly 40,000 wounded as a result of the mines. Magawa cleared more than ...

It All Starts in the Boardroom

It all starts in the boardroom—but the consequences are felt far beyond it. When Governance Breaks Down, Members Pay the Price Credit unions are built on a simple but powerful idea: they are owned by their members. Unlike traditional banks, where shareholders drive decisions, credit unions are meant to operate democratically—guided by a volunteer board elected by the very people they serve. But that model only works when participation exists. A governance breakdown happens when the people elected to oversee an institution stop truly representing the people who own it. In credit unions, this breakdown doesn’t usually come from scandal or sudden failure. It happens quietly, over time—through disengagement. The Root of the Problem: Low Engagement Most credit union members don’t vote. Board election turnout is typically in the low single digits. In some cases, it’s barely measurable. That means a very small percentage of the membership is effectively deciding who governs an institution th...

It's Financial Literacy Month

April is Financial Literacy Month—a time dedicated to empowering individuals and families with the knowledge and tools needed to make informed financial decisions. Whether you're budgeting, saving, managing debt, or planning for the future, improving your financial literacy can have a lasting impact on your well-being. We invite you to explore our Consumer Education website, where you'll find helpful resources, tips, and guidance to support your financial journey. If you find it valuable, please share it with your family and friends—because financial knowledge is even more powerful when it’s shared. https://www.ncofcu.org/financial-literacy  ================================================= Remember, you're not alone with  NCOFCU.org Join/Upgrade Check out some of NCOFCU's additional features: Annual Conference First Responder Credit Union Academy Financial Literacy Podcasts YouTube Mini's Advocacy  

On Stablecoins, NCUA Has Opportunity to Strike Right Balance and Get it Right

By Grant Sheehan As digital payments continue to evolve, the National Credit Union Administration’s (NCUA) efforts to establish a regulatory framework for stablecoins mark an important step forward. For credit unions, especially those serving mission-driven communities like firefighters and first responders, access to emerging financial technologies is not just an opportunity but a necessity to remain competitive and relevant. The  National Council of Firefighter Credit Unions  (NCOFCU) appreciates the  thoughtful input  provided by both America’s Credit Unions and the Defense Credit Union Council (DCUC) on the NCUA’s proposed stablecoin framework. We find strong merit in the recommendations of both organizations and believe their combined perspectives offer a constructive roadmap for getting this right. Important First Phase, But… At its core, the proposal represents an important first phase in implementing the stablecoin provisions of the GENIUS Act. Establishing a...

Sunday Reading - Why the IRS is necessary

  'Taxman'   Why the IRS is necessary The Internal Revenue Service, or IRS, is a division of the US Treasury Department created in 1862   that enforces the Internal Revenue Code —Title 26 of the US Code, a compilation of federal statutes—and, effectively, oversees tax collection. In 2024, the IRS's roughly 75,000 employees collected roughly $5T in tax revenue.   Given its role in diverting household income streams, it also has a bad reputation. Half of Americans had an "unfavorable view" of the IRS as of 2024 ( see data ). In a ranking of 16 well-known federal agencies by popularity that year, t...

Where are your children banking?

  Grant Sheehan CCUE | CCUP | CEO, NCOFCU The B reach  Between Purpose and Experience Just recently, I came across a story that has stayed with me. It wasn’t dramatic in the traditional sense. There was no scandal, no crisis, no headline-grabbing failure. In fact, it was something much quieter than that. It was simply the story of an eighteen-year-old leaving his credit union. On the surface, that might not sound remarkable. Young people move their money frequently. They open new accounts, experiment with apps, follow trends, and often make financial decisions influenced by the digital tools at their disposal. But this story was different. This young man had been a credit union member since he was a few weeks old, as many credit unions do. His mother has spent her career working inside the credit union movement as an executive. For eighteen years, his financial life was connected to a credit union. If anyone might be expected to remain a lifelong member, it wou...

AI: A new fraud frontier

While fraudsters and their schemes are far from new, the fraud market reached an unprecedented milestone in 2023. According to data from the Federal Trade Commission (FTC), 2.6 million fraud reports were filed, with consumers losing more than $10 billion to fraud last year alone. An increase of 14% over 2022, this is the first time fraud losses have reached the double-digit, billion-dollar benchmark. The top types of fraud included imposter and investment scams, with each type of fraud loss experiencing an increase. This increase in fraud might be due in part to the advancement of technological innovations that are now widely accessible to everyone. Take artificial intelligence (AI), for example. While tools like ChatGPT have a significant upside, there is also a downside to their widespread availability, specifically in that they don’t discriminate between good and bad actors. Generative AI programs have actually made it possible to conduct phishing or behavioral fraud t...

Guardians Credit Union Moves Management Of Its ATM Fleet To Dolphin Debit

WEST PALM BEACH, Fla.—The $306-million  Guardians Credit Union  has turned management of its ATM fleet over to  Dolphin Debit . Minire Syla The credit union has four ATMs at branches and 10 at various select employee group sites. The decision was a big move for Guardians, which had always managed its own ATM fleet, the CU stated. “Dolphin stood out because of their experience, reliability, and the fact that they could truly take the burden off our staff,” said Chief Financial Officer Minire Syla. “Their ability to manage everything seamlessly, combined with the marketing opportunities on ATM screens, made them the best choice for us.” The credit union said it had a number of key priorities for the move, and Syla explained that while reducing the burden on staff, compliance, and cost savings were all important, what was paramount was providing “the best possible experience for our members.” “The convenience and reliability of our ATMs are crucial and outsourcing to Dolphin...