1. Presented by: John J. Kolhoff, Director Office of Credit Unions NASCUS Board Chair March 25, 2014

2.  NASCUS representation on the federal level  State regulator representative on the State Liaison Committee of FFIEC.  Represented on several task forces of the FFIEC including Consumer Compliance and Information Sharing.  Participating member of Federal Banking and Information Infrastructure Committee (FBIIC).  Participating member of the State Coordinating Committee relative to the CFPB.

3.  Strong working and coordinating relationship with other regulatory associations including; CSBS, NAIC, AARMM, NCSL.  Strong working and coordinating relationship with trade associations including; CUNA, AACUL, individual leagues, NACUSO and others.  Educational and Accreditation initiatives.

4.  Monitoring and advancing the regulatory interests of state regulators and state-chartered credit unions.  Closely monitors individual state and federal regulatory issues.  NASCUS advocates in the establishment of a five person NCUA Board. One Board seat should be a former state regulator.

5.  Derivatives  Significant impact on the final NCUA Rule which applies almost exclusively to FCUs.  FISCUs must notify NCUA prior to entering into the derivatives market.  State regulations apply.  Working with MCUL on opinion regarding implied authority for MI CUs to have this authority.

6.  IRR  Significant regulator concern regarding potential IRR in depositories in general.  OCU to implement the FFIEC “S” or Sensitivity to Market Risk Component. Letter to be issued soon.  BSA Compliance  OCU working with NASCUS and CUNA to bring the BSA School to Michigan.  CyberSecurity

7.  Significant work on NCUA, FFIEC, FBIIC and other regulator task forces.  Seeking useful guidance relating to depository responsibility relating to marijuana related business services.  Internal housekeeping initiatives.

8.  Stress Testing and Capital Planning  Home Based FCU Rules (applies to FCUs)  Incentive Based Compensation (held up due to federal interagency issues).

9.  Risk based Capital  NCUA 2014 Rule Review

10.  Flood Insurance - H.R. 3370  Passed both Houses  Sent to President 3/18/14  Limits annual premium increases to an average of 15%/year or individually to 18%.  Goal of no premium more than 1% of the value of the total coverage.  Grandfathers comes that complied with previous flood maps.

11.  CFPB Reform – H.R. 3193  Passed House with R support.  Renames Financial Product Safety Commission.  Creates a five person commission.  Subjects agency to annual appropriations process.  Requires agency to obtain consumers’ permission before examining personal financial data.  Easier avenues for FSOC to delay or set aside agency’s regulations.

12.  Regulatory Transparency – H.R. 2804  Passed House with R support  Requires each federal agency to submit a monthly report to Office of Management and Budget for each rule the agency expects to finalize during the following year.

13.  CU Residential Loan Parity Act – H. R. 4226  Introduced in the House on 3/13/14  Referred to Financial Services Committee  Amends the FCUA to exclude a loan secured by a non-owner occupied 1-4 family dwelling from the definition of a MBL

14.  Supplemental Capital – H. R. 719  49 co-sponsors in the House  Actively pursuing introduction in the Senate  Participated in meetings with several legislative representatives including staff of the Banking Committees.  Fully support the broader availability of this authority already allowed for LIDCU.

15.  Access to FHLB system for all CUs – H.R. 3584  Passed out of the House Fin. Services Committing.  Awaiting floor vote.  References to NCUA receiving audit and exam materials for private insurer removed.  Contains provision requiring SSAs to certify CU’s eligibility for federal insurance.

16. John J. Kolhoff, Director kolhoffj@michigan.gov @difsjohnkolhoff Twitter www.michigan.gov/creditunion Phone (517) 373-6930 Fax (517) 335-0908