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National Credit Union Administration (NCUA)
Register Now for the Planning Retirement with Credit Unions Webinar on May 28
As part of the Older Americans Month, the NCUA’s Office of Consumer Financial Protection will host a webinar on the importance of preparing for retirement and how credit unions are helping their members get ready.
A representative from the U.S. Department of Labor’s Employee Benefits Security Administration will outline the retirement resources they have available that can help credit union members prepare. Also, representatives from AmeriCU Credit Union in Rome, New York, will discuss their approach and the types of resources their credit union has available to help their members plan for retirement.
May 22 NCUA Board Meeting
The NCUA Board received briefings on the performance of the NCUSIF in the first quarter of 2025 and the NCUA’s Voluntary Separation Program.
The Share Insurance Fund reported a net income of $79.8 million, a $1.2 million increase from the fourth quarter of 2024. The Fund’s assets increased 3.14% in the first quarter to $23.0 billion from $22.3 billion at the end of 2024. The equity ratio remains at 1.30% as of end of 2024.
There were no credit union failures in the first quarter of 2025. In addition, there was a reduction in the number of CAMELS 3, 4, and 5 credit unions.
The briefing on the Voluntary Separation program describes the NCUA’s program and expects approximately 250 employees to depart as part of this program. To date, 152 employees have been placed on paid administrative leave under the NDRP until they officially separate from the agency no later than Dec. 31, 2025. The remaining NDRP participants will start their administrative leave in the weeks and months ahead. The NCUA’s VSIP option offered a separation incentive payment of $50,000 to employees who are, or will become, regular retirement eligible and who separate from the agency by Dec. 31, 2025.
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Federal Reserve Bank (FRB)
First Issue 2025 of Consumer Compliance Outlook
The FRB issued the first issue of the 2025 Consumer Compliance Outlook (CCO). This issue includes articles on:
FedWire Funds Service Implementation of ISO 20022 Messaging Standard
On July 14, 2025, FedWire Funds will adopt the ISO 20022 message format for Fedwire Funds Services and sunset the existing proprietary Fedwire Application Interface Manual (FAIM) and replace all FAIM messages with ISO 20022 messages. The ISO 20022 implementation date also applies to the Financial Institution Reconcilement Data (FIRD) Files, Statement of Account Spreadsheet Files (SASF), and the Transaction End-of-Minute (EOM) Detail Reports.
The financial services industry’s need for a common “language” is what led the International Organization for Standardization to launch its ISO 20022 messaging standard in 2004. Within the industry, the ISO 20022 messaging standard is used for business areas such as:
Financial services organizations in more than 70 countries currently use the ISO 20022 standard.
ISO 20022 messages are vital to instant payments and play an important role in the overall modernization of payment processes. Specifically, they provide a structured and data-rich common language that is readily exchanged among corporates and banking systems. This capability is foundational for innovations like moving from end-of-day batch file processing to real-time payment processing. Additionally, ISO 20022 messages provide the opportunity for enhanced analytics, which can lead to offering valuable new levels of payment services to financial institutions’ customers.
Broad industry adoption of the ISO 20022 messaging standard and the benefits of its highly structured data made it the logical choice for the FedNow Service, the Federal Reserve’s instant payments infrastructure. And because ISO designed the standard to meet the needs of future innovation, it can support the FedNow Service as it evolves and adds capabilities.
What Credit Unions Should Do Now:
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Credit Unions using a service provider: If your servicer provider has not already shared their plans for the ISO 20022 migration, reach out to them and ensure there are plans in place for the migration.
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Credit Unions with direct Fedwire Funds service connection: FedNow should have informed the credit union about the upcoming change. Inventory the systems that support credit union wire operations, reach out to your internal software developers or vendors.
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Become familiar with the ISO 20022 standards: The Federal Reserve is using the MyStandards platform to provide access to the FedNow ISO 20022 message specifications and accompanying implementation guide. These can be accessed on the Federal Reserve Financial Services portal (Off-site) under the FedNow Service. Users will need a MyStandards account, which can be created on the SWIFT website (Off-site). View the step-by-step guide for tips on accessing the specifications.
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Review information in the Fedwire Funds Service ISO 20022 Implementation Center: Credit unions can access various resources shared by FedNow on the Implementation Center website.
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Semi-Annual Oregon Escrow Rate Adjustment
The rate financial institutions in Oregon must pay on real estate loan escrow accounts is established in ORS 86.245. The rate on these accounts must be adjusted on Jan. 1 and July 1 of each year.
For each change period, January and July, the rate is based on the most recent auction date information for the 91-Day Treasury Bill (AKA 13-week Treasury Bill) prior to Nov. 15 and May 15, respectively. The rate is calculated by subtracting 100 basis points from the discount rate that corresponds to the applicable auction date.
Interest shall be computed on the average monthly balance in the account and shall be paid not less than quarterly to the borrower by crediting to the escrow account the amount of the interest due.
The discount rate for the 91-Day/13-week Treasury Bill as of auction date May 14, 2025, was 4.29%*. Because the discount rate is greater than 1%, subtracting 100 basis points will result in a rate of 3.29%. Credit unions with escrow accounts for real estate in Oregon will be required to pay interest of 3.29% on escrow accounts for the period July 1 – Dec. 31, 2025.
*Source: Treasury Direct
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