Credit Union Board Modernization Act Update

On Saturday, July 11, the 21st Century ROAD to Housing Act became law. This bill contains the Credit Union Board Modernization Act (CUBMA). CUBMA amends Section 113 of the Federal Credit Union Act (12 U.S.C. 1761b).

The CUBMA affects the frequency of board meetings required by Federal Credit Unions. The amendment replaces the single blanket monthly requirement with a tiered system based on the credit union’s risk profile.

• De novo federal credit union: First five years of existence. Board Meeting Frequency: monthly; statute §(b)(1).
• Composite rating 1 or 2 AND management rating 1 or 2: Under UFIRS (or equivalent system). Both conditions must be met. Board Meeting Frequency: 6 times/year; statute §(b)(2).
• Composite rating 3, 4, or 5 OR management rating 3, 4, or 5: Under UFIRS (or equivalent system). Either condition alone triggers monthly. Board Meeting Frequency: monthly; statute §(b)(3).

Advocacy in Action

California’s Credit Unions is proud to have worked on CUBMA for several legislative sessions. The nexus for this regulatory relief bill stems from a conversation with Shapiro credit unions in California.

After consistent work and coordination between credit unions and Congressman Juan Vargas (CA-52), the bill was introduced in the House of Representatives. The bill advanced through the House and Senate with the help of leadership from California’s Credit Unions and America’s Credit Unions.

For compliance questions, contact Lisa Quaranta, Senior Vice President of Regulatory Advocacy. For questions regarding bill development, contact Stephanie Cuevas, Senior Vice President of Federal Government Affairs.

For More Information

Access the ‘Compliance Hotline’

Your League-member benefits include the Compliance Hotline — providing exclusive access to dedicated compliance experts:

• 844-731-6072
• CANV@viclarityus.com

Using the above phone number and email address, you can gain access to a knowledgeable team that’s ready to address all your credit union’s compliance inquiries — promptly and efficiently. With the Compliance Hotline, you can proactively respond to impromptu questions and issues by getting clarity and insight on technical topics that normally slow you down. We want to help you unlock the full potential of your League membership by leveraging the resources and support you need to navigate the complex world of compliance effortlessly. We’re ALWAYS just a phone call or email away!

Additionally, other League-member compliance resources include:

• ViClarity
• CU PolicyPro
• ComplySight
• InfoSight
• CU Store
• Record Retention Guide
• GRC Technology Solutions

For more information, email Lisa Quaranta.

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