Ncua memorandum of understanding 2021 01

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MemorandumofUnderstanding between the Consumer FinancialProtection Bureau and the National Credit Union Administration Regarding Enhanced Cooperation and Coordination Purpose The National Credit Union Administration (NCUA) is empowered to examine all federally insured credit unions, and the Consumer Financial Protection Bureau (CFPB) is empowered to examine federally insured credit unions with assets greaterthan$10 billion and theiraffiliates (Covered Institutions) 1 to assess compliance with Federal consumer financial laws. This Memorandum of Understanding (MOU) is entered into betweenthe CFPB and the NCUA (collectively, the Agencies) to improve coordination, cooperation, and efficiency generally, and to reduce the burden to institutions and examination staffin connection with the supervision of Covered Institutions.

This agreement willnot supersede the framework already in place under the existing coordination structure betweenthe Agencies and any state supervisory authority, including the Memorandum of Understanding on Supervisory Coordination executed on May 16, 2012 (2012 Supervisory Coordination MOU). Accordingly, the Agencies agree tothe following actions based on each Agency's current processes:

1. DocumentSharing As memorialized in the 2012 Supervisory Coordination MOU, the Agencies have agreed to continue to share with each other certain relevant supervisory information concerning Covered Institutions, including Covered Examination request letters, drafts ofCovered Reports of Examination, certain material supervisory information relating to Covered Supervisory Activities or Covered Examinations of Covered Institutions, and certain final Reports of Examination. Effective immediately, the agencies will pursue opportunities to proactively share such documents with respect toCovered Institutions through electronic means. To facilitate more efficient accesstodocuments in the near future, the NCUAand the CFPB will establish a working group in 2021 to improve this process and develop requirements for secure, two-way sharing of this supervisory information.

2. Joint Strategy Planning The Agencies' headquarters staffwill meet semiannually to discuss their respective supervision strategies and priorities for Covered Institutions. These meetings will be designed to identify and address areas of: 1) alignment and possible coordination; and 2) overlap and possible duplication resulting in unnecessary burden. To the extentthat such supervisory strategies a re in alignment, the Agencies will coordinate their examinations, as appropriate. The staffs will 1 As used in this MOU, theterm "Covered Institutions" means federally insured credit unions with assets greaterthan $10 billion and their affiliates. The total assets ofan insured credit union are measured in accordancewith the Supervisory Statement: Determinationof DepositoryInstitution and Credit Union Asset Size for Purposes ofSections 1025 and 1026 of the Dodd-Frank Act, issued on November 17, 2011.

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document for Agency leadership the findings, conclusions and recommendations agreed to during these semiannual meetings.

3. Coordination ofCovered Examinations A. On an annual basis, the Agencies will provide each other their respective examination schedules for Covered Institutions. This information will be shared at both the regional contact level and centrally via the Document Sharing agreement in Section 1. B. To the extent thatthere are common subject matter areas ofreview for Covered Institutions, the Agencies will coordinate examination activities, as appropriate. 4. JointTrainingProgram To identify and take advantage of opportunities to collaborate on training, Agency staffwill meet annually (or more frequently by mutual agreement)to, among other matters, exchange training catalogs and schedules, and devise plans for sharing training content, except that in 2021, Agency staffwill meet in March to exchange such materials and develop plans for sharing such training content. Each Agencywill endeavor to make available its virtual or live trainingto the other, to the extent possible. Starting in 2022, the Agencies will coordinate, develop and hold formalized joint training sessions at least once a year in subject areas of mutual interest. Each agency will bear its own costs with respecttojoint trainings. 5. Supervisoryand Enforcement Coordination A. The Enforcement and Supervision staffof the Agencies will meet at least semiannua llyto discuss current supervisory activities and enforcement actions involving Covered Institutions. The discussions ha II include a leve I of specificityto enable both Agenciesto identify, to the extent they exist, potential conflicts in interpretationof whatconstitutes compliance as well as divergentapproaches in the appropriate remedy.

B. Each Agency will share, in its discretion, information (including Non-public Information, as defined by the Memorandum of Understanding by and Between the Consumer Financial Protection Bureau and the National Credit Union Administration, execution undated (Undated MOU)) relatedto its enforcement activities to the extent that disclosure of the information is relevant to the exercise ofthe other Agency's statutoryor regulatoryauthority. C. When sharing information pursuant to this Section 5, the providing Agency will determine what information is appropriate to share. This agreement is not intended to alter, waive, or compromise the discretionof an Agency to determine whether and which information it will share.

D. The Agencies expectthe processes inSections 2, 3, and S.A to ensure mutual awareness regarding respective supervisory activities and enforcement actions while they are developing and still confidential and non-public under the Agencies' respective statutes and regulations. However, where staffcannot resolve conflicts, staffshall ensure Agency leadership awareness before finalizing the respective Agency's action. For example, should one Agency contemplate public enforcement action where the other Agency has previously reviewed the same subject

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matter and either (a) found no violation of law, or (b) imposed a supervisory remedy (e.g., an MRA), staffshall ensure thatconflict is raised to decision-makers through their respective internal processes.

E. Additionally, absent exigent circumstances, each Agency sha II notify the other at least two business days prior to filing any action, suit, or proceeding to enforce the laws, as described in section 111.C ofthe 2012 Supervisory Coordination MOU, including any rules thereunder, against a Covered Institution.

6. OMWI, Diversity, and Inclusion The Agencies agreeto meet to further discuss the sharing ofself-assessmentanddiversitydata from Covered Institutions. The Agencies will determine theappropriate safeguards and required notices to Covered Institutions the Agencies would use to share any such data. 7. Chief Data Officer Coordination The Agencies agree thattheirChief Data Officers will meet at least semiannually to coordinate regarding data sharing betweenthe Agencies and to collaborate on data management best practices.

8. Confidentiality Non-public information shared by the Agencies pursuant to this MOU shall be maintained and treated in accordance with the terms of the Undated MOU and the Addendum to Memorandum of Understanding by and Between the Consumer Financial Protection Bureau and the National Credit Union Administration, executedon July 15, 2011 (collectively, Bilateral MOUs). 9. GeneralTerms A. Signature. This MOU is effective upon signature by representatives ofthe Agencies. It may be executed in separate counterparts, eachofwhich, when executed and delivered, will be deemed an original, and which takentogether constituteone and the same agreement. B. Amendment. This MOU may be amended by mutual agreement ofthe Agencies. C. Termination/Withdrawal. This MOU may be terminated by mutual agreement ofthe Agencies. Or an Agency maywithdraw from this MOU by providing thirty (30) calendar days advance written notice to the other Agency. Following termination of, or withdrawal from, this MOU, all Non-public Information shared pursuant tothis MOU will continue to be treated as setforth in this MOU.

D. Savings Provision. No provision of this MOU is intended to and may not be construed to limit or otherwise affectthe authority ofthe Agenciesto administer, implement, or enforce any provision of law governing the Agencies' respective authorities or responsibilities. E. Costs. Nothing in this MOU obligates current or future funds ofany Agency, and each Agency is responsible for any costs it incurs in performing theroles and responsibilities described in this

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MOU. All activities undertaken in connection with this MOU are subject to the availability of personnel, resources, and funds.

F.

Third Parties. Nothing in this MOU creates or affords any rights or remedies to any partythat is not a signatoryto this MOU.

G. Previously ExecutedMOUs. The provisions of this MOU are intended to supplement the provisions of previously executed MOUs between the Agencies, including the 2012 Supervisory Coordination MOU and the Bilateral MOUs, and are not intended to supersede or replaceany provision of the previously executed MOUs. In the event of any conflict between a provision of this MOU and a provision ofa previously executed MOU, the Agencies will adhere to the provision of the previously executed MOU.

H. Definitions. When a term used in this MOU is defined in the 2012 Supervisory Coordination MOU and/or the Bilateral MOUs, for purposes ofthis MOU the termshall have the meaning defined in the 2012 Supervisory Coordination MOU and/or the Bilateral MOUs. FOR THE NATIONAL CREDIT FOR THE CONSUMER FINANCIAL UNION ADMINISTRATION PROTECTION BUREAU By:~tt-~JJ Rodney E. Hood Chainnan of the Board Date:~ \'-\-1'lO 7.... 1