State and Federal Resources
Credit unions must now use a new accounting standard called Current Expected Credit Losses (CECL). Credit unions should use this method starting in 2023. March 2023 call reports must reflect the change.
The new standard requires credit unions recognize losses throughout the life of the loan. It requires some sort of loss determination when a loan is granted.
The change covers all credit unions with $10 million or more in assets.
We have resources to help credit unions switch to the new standard. If you need more help, we advise seeking help from an accounting professional.
CECL Resource Listing
The National Credit Union Association released MERIT, a new exam platform, in 2020. We are using this tool to conduct exams. The new system offers a secure entry point called NCUA Connect. Credit unions will use NCUA Connect to communicate with state and federal regulators during the exam process and submit call reports.
Credit unions can find their final reports in the MERIT system. We still send the reports directly to credit union CEOs. As we try new features, we will share changes in our expectations with credit unions here.
How to Request Help From NCUA
Send an email to the NCUA’s OneStop Help Desk at OneStop@NCUA.gov to set up a new account or get help with logging onto NCUA Connect. Account requests need to include:
- Your name
- Your email address
- The credit union's name or insurance number
- All NCUA applications you need
The NCUA verifies all requests. Once approved, you can interact with the NCUA and our division through MERIT.
Additional Information
Here is more guidance and resources on the new tool:
The Iowa Insurance Commissioner must approve all bonds sold in Iowa. The bond must state that the company will give written notice of any cancellation, non-renewal, change in deductible, or change or limitation of coverage to our office.
We follow minimum coverage and deductible limits for federal credit unions. Iowa law offers more details on the requirements of fidelity bond coverage.
This list is current as of 2014.
- Berkley Regional Insurance Co. (Fin Secure): Form 70 00 0610
- Colonial American Casualty & Surety Co. (Zurich North America): Form F2350
- Chubb Indemnity Insurance Company or Chubb National Insurance Company: Form 17-02-1834
- Cincinnati Insurance Company: Credit Union Blanket Bond No. 103 05 06
- Continental Casualty Company (CNA) Financial Institutions Bond for Credit Unions Form GSL55979XX (0212013)
- CUMIS Insurance Society Inc. or CUMIS Specialty Insurance Company, Inc.:
- Form 500
- Form 500 001
- Form 500 02
- Form 500 03
- Form 500 05
- Form 500 05 13
- Form 577
- Form 578
- Form 602
- Form 603
- Form 605
- Fidelity & Deposit Co. of Maryland (Zurich North America): Form F2350
- Insurance Services Office, Inc. (ISU): Financial Institution Crime Policy for Credit Unions
- FI 00 17 (Non-aggregate Form)
- FI 00 18 (Aggregate Form)
- National Union Fire Insurance Co. of Pittsburgh, PA: AIG 23
- Prosight Specialty Insurance (Southwest Marine and General Insurance Company): Fidelity Bond Form FB 00 01 0213
- Travelers Casualty and Surety Company (formally St. Paul Fire and Marine Insurance Co.):
- Form CUB-3001 (0112012)
- Form 40325 (11/1996)
No technology that’s connected to the Internet is unhackable. - Abhijit Naskar
These links can help credit unions address cybersecurity risks.
- CISA Shields Up
- CIS Controls
- FFIEC Handbook
- FFIEC Cybersecurity Guide for Financial Institutions
- FBI Infragard
- NCUA Cybersecurity tools (ACET & others)
- NCUA catastrophic and Incident Report Requirements
- Subscribe to receive updates on known exploitable vulnerabilities
Many credit unions offer remote work. Those that do so should check that their data security is up to standard. These links give more details on remote access.
This series from the NCUA gives useful information for credit union board members. While it is for directors of small- and medium-sized credit unions, all directors may find it helpful.
You can take an online test through the series and earn a certificate of completion. To do so, you must create an account.
These videos are available.
- What Every Board Member Should Know
- Credit Union Policies and Procedures
- Mergers
- Succession Planning
- Understanding the NCUA Examination
- Strategic Planning
- Understanding Financial Statements
- Understanding Key Ratios
- Effective Board Meetings
The NCUA bans these people from being an “institution-affiliated party” of any federally insured credit union.
- Lorie Kristine Bentler​
- Linda Lee Clark
- Taylor Lynnae Cole
- Henry Hill
- John Richards
- Alisa Marie Ryan
- Elizabeth S. Smith
Our list includes only Iowans who are under this ban. We ask that credit unions verify anyone seeking affiliation to see if they are on the NCUA’s national list.
Contact us with questions.
Credit Unions must inform the Superintendent of Credit Unions if they plan to offer debt cancellation products. They must give notice at least a month in advance.
The notice must include these details:
- Each type of GAP product. Please include collateral types and whether the policies are refundable.
- A full fee schedule.
- The name of the insurance company, policy limits, deductible amounts, and coverage limits.
Credit unions must also set guidelines for these programs. They should include these aspects:
- Collateral Covered
- Maximum Limit of Liability
- Maximum Allowable Loan Term
- Maximum Loan to Value Ratio
- Maximum Allowable Market Value or Maximum Allowable Loan or Lease Amount
- Primary Insurance Deductible Amount covered
- Availability of Replacement Vehicle Benefits
The NCUA allows federal credit unions to fund hybrid charitable and investment vehicles called Charitable Donation Accounts (CDAs). Iowa allows its credit unions to do this, as well, if they apply to the Superintendent of Credit Unions for approval.
The request should address the items in 189 IAC 17.19(2), (a) through (c), and all conditions in NCUA Rules and Regulations Part 721.3, paragraphs (b)(2)(i) through (vii).
The application package must also have these items:
- Current net worth ratio:
- A board-approved CDA policy. The policy must contain these items:
- An investment limit of no more than 5% of net worth
- The assets must be held in a separate custodial account of special purpose entity and specifically identified as a CDA.
- That, If using a trust, the trustee must be regulated by the Office of the Comptroller of the Currency (OCC), the U.S. Securities and Exchange Commission (SEC), another federal regulatory agency, or a state financial regulatory agency.
- That if the CDA manager is not part of the credit union, they must be a Registered Investment Adviser (RIA) or regulated by the OCC.
- That the CDA can only fund tax-exempt groups that fall under section 501 (c)(3) of the Internal Revenue Code
- That 51% of the total return on the investment will be donated to specified charities at a frequency of no less than five years.
- Risk tolerance and investment strategies.
- The CDA will be recorded on the credit union books in accordance with generally accepted accounting principles.
- Board minutes containing approval of the CDA policy and CDA investment
- Copy of the proposed investment agreement that contains a complete description of the activities
- Type of underlying Investment,
- Listing of approved charitable organizations,
- Frequency of distributions.
- Due diligence documentation should be available for examiner review
Educational Videos