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46. Loan Participation Policy 47. Loan Policy and Procedures 48. Written Loan Extension Procedures 49. Member Business Lending Policy and Procedures 50. Risk Based Lending Policy/Procedure Required Policy -- 12 CFR 701.22 12 CFR 701.21 and 12 CFR 741; NCUA Letter No. 154 Section 10 NCUA Field Examiner’s Guide 12 CFR 723; NCUA Letter to Credit Union Nos. 04-FCU-01 (SBA Loans) 04-FCU-10 (Underwriting – Self- Employed) NCUA Letter No. 174 and NCUA Letter to Credit Union No. 99- FCU-05 Appropriate Policies / Procedures should be adopted in connection with a Loan Participation Policy. Policies and Procedures should be bifurcated as the Credit Union determines to be best -- with the basic issues addressed in Policy as required. However, whatever choices the Credit Union makes -- the elements addressed in the foregoing must be addressed via policy as noted. No Further Comment. Appropriate Procedures are recommended tools to insure compliance with the complex laws that govern this area – and to protect against violations of such laws -- noncompliance and also to insure the Credit Union uses these laws in a manner that protects the Credit Union (as is – at least in part – the intent of the law in question). 51. Loan Review and Risk Assessment Issues Lending Generally – Including Audit and Loan Personnel Assessments: NCUA Accounting Bulletin 06-01; Risk Based Lending: NCUA Letter No. 174 and NCUA Letter to Credit Union No. 99-FCU-05 53. NSF and/or Overdraft Privilege Policy and Procedures Policy may be a short statement with more detailed procedures under the applicable and evolving laws See, 12 CFR 701.21 and NCUA Letter to Credit Union Nos. 05- FCU-21. 05-FCU-03 54. Privacy Policy Required Per 12 CFR 716 55. Record Retention Policy and Procedures 56. Record Production Policies and Procedures may be bifurcated as the Credit Union chooses. However, the elements addressed in the foregoing must be addressed. Credit Union may also wish to have procedures; or to adopt procedures in connection with Information Security 12 CFR 748 and 749 Policies and Procedures may be bifurcated as the Credit Union chooses. However, the elements addressed in the foregoing must be addressed. Copyright©1994-2010 by Credit Union Resources & Educational Services, LLC. All rights reserved. Revised February 2010 No Further Comment. No Further Comment. No Further Comment. NA NA Recommend Detailed Procedures on the 36
Procedures 60. Training Policy See Standard NCUA Bylaws – Article VI. Section 6. 64. Vendor Management Policy and Procedures 65. Vendor Risk Assessment General: See NCUA Letter Nos.: 00-FCU- 11; 07-FCU-13; 01- FCU-20; and 08-FCU- 09 03-FCU-06; 02-FCU-13; Mortgage Brokers: 08-FCU-19 Technology Vendors: 02-FCU-13; Information System Service Providers 98- FCU-11; Brokers (Investments) See NCUA Letter No. 157 Copyright©1994-2010 by Credit Union Resources & Educational Services, LLC. All rights reserved. Revised February 2010 NA May address applicable provisions in depth via procedures vs. policy as long as in accord with what can be a very brief policy. Production of Information to avoid Privacy Violations in light of the many situations a Credit Union faces in this regard. We include this in the General Compliance Policy. See Above. This is incredibly important as Credit Union place themselves in significant peril by entering into contracts that do not address “before – during and after.” From a legal and compliance point of view – this is an absolute must – with proper and intelligent / experienced legal due diligence-contract reviews upon which to negotiate and assess contractual relationships (what we refer to a the “prenuptial” in the contractual marriage). NCUA Supervisory Letter No.: 07-01: Third Party Vendor / Outsourcing: “Risk assessments for less complex third party arrangements may be part of a broader risk management program or documented in board minutes.” NCUA Letter to Credit Unions No. 08- FCU-09. NOTE A: Generally the policy should address the overall program or reference the program in a short policy. For the most part we address the details of BSA/AML in procedure, but recommend the policy refer to and incorporate approval of same. Also, be sure the appointment of the BSA Officer empowers the BSA Officer to delegate tasks/duties to others as this is common in the industry as long as the BSA Officer maintains oversight. NOTE B: Procedures will address the following NOTE C: The BSA/AML Manual (FFIEC) provides that it is “sound practice to update the risk assessment every 12-18 months” or as needed. This risk assessment and updates should be specifically documented and noted in the Board Minutes. NOTE D: See NCUA Letter to Credit Union No. 00-FCU-10 for Examination Procedure Summary. Also, Chapter 13 of the NCUA Field Examiner’s Guide Provides: “However, no requirement exists for a separate IRR (“interest rate risk”) or ALM policy independent of other policies, even for large, complex credit unions. Credit unions have the option of either creating a separate IRR or ALM policy or 37
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Compliance Update - I REGULATORY AN
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Introductory Notes: Basic Obligatio
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performed by boards of directors. T
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What if an applicant “volunteers
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Please answer the following questio
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MULTIPLE ISSUES AND RESOURCES - SOM
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• Review of the negative shares r
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illustrates how certain provisions
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SAMPLE CREDIT UNION BUSINESS PLAN M
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EMPLOYMENT AGREEMENT Revise to addr
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13. Evaluate the job performance of
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2. By Employer For No Cause. Employ
Page 25 and 26: Vendor Due Diligence II Security As
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Page 41 and 42: Compliance Update - II REGULATORY A
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Page 47 and 48: any CUSO. [Gifts may not be accepte
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Page 71 and 72: WHAT POLICIES, PROCEDURES AND RISK
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Page 75: Union Assessment 33. Identity Theft
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Page 85 and 86: 135-2009 Community Notice // OE/CE
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