NCCO EXAM 1 STUDY GUIDE WITH
QUESTIONS AND ANSWERS 2025
UPDATE.
What is the difference between a preamble to a rule and the staff commentary? - ANS A
preamble is found in the official proposed rule or final rule issued in the Federal Register. Staff
Commentary is often found as an appendix or supplement to a rule, rather than in a number
section. Staff commentary can help explain and show examples of the rules in plain English.
What is the difference difference between a final rule and an interim final rule? - ANS Final
rules are issued after the comment period is over and the agency has had enough time to consider
all comments. An interim final rule is issued when the APA provides an exception to the public
notice and comment prior to the promulgation of a rule when an agency "for good cause finds
that notice and public procedure thereon are impracticable, unnecessary or contrary to the public
interest"
What is self-effectuating law? - ANS Some laws are referred to as "Acts" meaning regulations
are not needed to interpret the act or "bring it into effect"
Where are the federal regulations codified? - ANS They are codified in the Code of Federal
Regulations (CFR). The regulations are indexed by titles, chapters, parts and sections. Titles are
categorized by subject matter.
Besides the rules and regulations, what other kinds of guidance are available? What are the
purpose of these other kinds of guidance? - ANS Interpretive Rulings and Policy
Statements(IRPS) they are the NCUA's official interpretation of the FCU Act as it relates to a
particular issue. Letters to Credit Unions and other Guidance these address policy issues, and are
use to clarify NCUA exam expectations. Regulatory Alerts to notify CU's of changes to
regulations. Risk Alerts.
What are the three major titles of the FCU Act? - ANS General Provisions, Share Insurance, and
Central Liquidity Facility
What is the purpose of the NCUA Board? What are some of its duties? What is its role in
reviewing credit union charters? - ANS The purpose of the NCUA board to keep credit unions
safe and sound. The duties are administering NCUA's prompt correct action regime to ensure
capital soundness. NCUA may also conserve or liquidate a credit union to protect share
insurance fund. They approve, review and evaluate merger applications.
Where does NCUA get its authority form? - ANS The United States Federal Government
, How many regional offices does NCAU have? What are their duties? - ANS The NCUA has 3
regional offices. Each office is responsible for oversight, examination and supervision of the
federally insured credit union in its geographical region.
How does the National Credit Union Share Insurance Fund (NCUSIF) remain funded? - ANS By
the participating federally insured credit unions.
What are the different Offices (e.g., Office of Consumer Financial Protection, Office of Credit
Union Resources and Expansion, etc.) within NCUA and what do they do or when would a credit
union need to reach out to one of those Offices? - ANS Office of Consumer Financial Protection
- NCUA's heighten focus on consumer protection. CURE - is to support credit union growth and
development, offering assistance to any credit union in the following areas: chartering; charter
conversions; bylaw amendments; field of membership expansion requests; and low-income
designations
Does the CFPB have examination authority over all credit unions? What determines whether
CFPB has supervisory and examination authority over a credit union? - ANS Only CU's with
more then $10 billion in assets. CU's with $10 billion or less in assets are examined and
supervised by NCUA and, for state-chartered CU's, their state regulator. The CFPB's
examination and supervision powers are generally limited to the consumer laws and regulations
under its authority. NCUA will continue to examine all credit unions for safety and soundness.
Dodd-Frank
Are credit unions subject to the CFPB's Regulation DD? - ANS The language of the CFPB's
Regulations DD is clear that it does not cover credit unions, stating it "applies to depository
institutions except for credit unions."
How do the CFPB's authority and objectives impact credit unions? - ANS The transfer of
authority to the CFPB means that all credit unions need to comply with the bureau's regulations.
This requirement applies regardless of the size of the credit union. A credit union with $15
million in assets is required to follow Regulation Z as well as a credit union with $250 million in
assets.
How does the NCUA's examination program differ from an audit? - ANS Program conducts risk
focused examinations to determine area of risk to the CU's operational and financial health.
Audit will asses how a CU is operating to date; a financial audit verifies the CU financial
statements.
What are the seven types of risk that NCUA examines for? - ANS Credit Risk, Liquidity Risk,
Interest Rate Risk, Transaction Risk, Compliance Risk, Strategic Risk, Reputation Risk.
What are the various administrative tools available to NCUA, when may they be utilized, and
what is the severity of each? - ANS Examiner's findings Document of Resolution Letters of
Understanding and Agreement Cease and Desist Order Others: Civil Money Penalty, Prohibition
Orders, Removal of Officer(s)
QUESTIONS AND ANSWERS 2025
UPDATE.
What is the difference between a preamble to a rule and the staff commentary? - ANS A
preamble is found in the official proposed rule or final rule issued in the Federal Register. Staff
Commentary is often found as an appendix or supplement to a rule, rather than in a number
section. Staff commentary can help explain and show examples of the rules in plain English.
What is the difference difference between a final rule and an interim final rule? - ANS Final
rules are issued after the comment period is over and the agency has had enough time to consider
all comments. An interim final rule is issued when the APA provides an exception to the public
notice and comment prior to the promulgation of a rule when an agency "for good cause finds
that notice and public procedure thereon are impracticable, unnecessary or contrary to the public
interest"
What is self-effectuating law? - ANS Some laws are referred to as "Acts" meaning regulations
are not needed to interpret the act or "bring it into effect"
Where are the federal regulations codified? - ANS They are codified in the Code of Federal
Regulations (CFR). The regulations are indexed by titles, chapters, parts and sections. Titles are
categorized by subject matter.
Besides the rules and regulations, what other kinds of guidance are available? What are the
purpose of these other kinds of guidance? - ANS Interpretive Rulings and Policy
Statements(IRPS) they are the NCUA's official interpretation of the FCU Act as it relates to a
particular issue. Letters to Credit Unions and other Guidance these address policy issues, and are
use to clarify NCUA exam expectations. Regulatory Alerts to notify CU's of changes to
regulations. Risk Alerts.
What are the three major titles of the FCU Act? - ANS General Provisions, Share Insurance, and
Central Liquidity Facility
What is the purpose of the NCUA Board? What are some of its duties? What is its role in
reviewing credit union charters? - ANS The purpose of the NCUA board to keep credit unions
safe and sound. The duties are administering NCUA's prompt correct action regime to ensure
capital soundness. NCUA may also conserve or liquidate a credit union to protect share
insurance fund. They approve, review and evaluate merger applications.
Where does NCUA get its authority form? - ANS The United States Federal Government
, How many regional offices does NCAU have? What are their duties? - ANS The NCUA has 3
regional offices. Each office is responsible for oversight, examination and supervision of the
federally insured credit union in its geographical region.
How does the National Credit Union Share Insurance Fund (NCUSIF) remain funded? - ANS By
the participating federally insured credit unions.
What are the different Offices (e.g., Office of Consumer Financial Protection, Office of Credit
Union Resources and Expansion, etc.) within NCUA and what do they do or when would a credit
union need to reach out to one of those Offices? - ANS Office of Consumer Financial Protection
- NCUA's heighten focus on consumer protection. CURE - is to support credit union growth and
development, offering assistance to any credit union in the following areas: chartering; charter
conversions; bylaw amendments; field of membership expansion requests; and low-income
designations
Does the CFPB have examination authority over all credit unions? What determines whether
CFPB has supervisory and examination authority over a credit union? - ANS Only CU's with
more then $10 billion in assets. CU's with $10 billion or less in assets are examined and
supervised by NCUA and, for state-chartered CU's, their state regulator. The CFPB's
examination and supervision powers are generally limited to the consumer laws and regulations
under its authority. NCUA will continue to examine all credit unions for safety and soundness.
Dodd-Frank
Are credit unions subject to the CFPB's Regulation DD? - ANS The language of the CFPB's
Regulations DD is clear that it does not cover credit unions, stating it "applies to depository
institutions except for credit unions."
How do the CFPB's authority and objectives impact credit unions? - ANS The transfer of
authority to the CFPB means that all credit unions need to comply with the bureau's regulations.
This requirement applies regardless of the size of the credit union. A credit union with $15
million in assets is required to follow Regulation Z as well as a credit union with $250 million in
assets.
How does the NCUA's examination program differ from an audit? - ANS Program conducts risk
focused examinations to determine area of risk to the CU's operational and financial health.
Audit will asses how a CU is operating to date; a financial audit verifies the CU financial
statements.
What are the seven types of risk that NCUA examines for? - ANS Credit Risk, Liquidity Risk,
Interest Rate Risk, Transaction Risk, Compliance Risk, Strategic Risk, Reputation Risk.
What are the various administrative tools available to NCUA, when may they be utilized, and
what is the severity of each? - ANS Examiner's findings Document of Resolution Letters of
Understanding and Agreement Cease and Desist Order Others: Civil Money Penalty, Prohibition
Orders, Removal of Officer(s)
