The federal government may have temporarily shut down but compliance never stops! The shutdown of the federal government, which has now lasted more than a week, does not actually impact regular operations of the NCUA.
Why? Because credit unions fund the NCUA, which means the agency does not rely on congressional appropriations to maintain its operations. However, a government shutdown can impact credit unions, especially those whose field of membership encompasses federal employees. The NCUA issued a letter to credit unions on this subject in 2011 when a government shutdown was threatened. If you haven’t taken a look at this letter you should do so now. Consistent with standards of safety and soundness, credit unions should continue to work with their individual members to address potential financial difficulties created by furloughs. Credit unions should also have a consistent plan to address services impacted by the shutdown, such as new FHA loans that are scheduled to close.
As the shutdown drags on, it is important to answer member questions about the impact on the credit union’s services and remind members that individual accounts remain insured up to $250,000.
You can also assure your members that compliance never rests!