NAMU CCUP flashcards

34 cards. Read the term and the definition here. The deck at the top of this page is optional.

Net worth ratio

Total net worth divided by total assets. It measures capital adequacy; 7% or higher is the well-capitalized threshold under prompt corrective action for credit unions.

Supervisory committee

A member-elected body responsible for internal audit oversight and verification of member accounts, independent of the board of directors.

Field of membership

The charter-based definition of who may join a credit union, such as an occupational group, association, or geographic community.

NCUSIF coverage limit

The National Credit Union Share Insurance Fund insures member share accounts up to $250,000 per member per insured credit union, with separate coverage for certain retirement accounts.

Seven cooperative principles

Voluntary membership, democratic control, member economic participation, autonomy, education and training, cooperation among cooperatives, and concern for community.

Board of directors role

Elected by members to set policy, hire and oversee the CEO, and ensure the credit union operates safely, soundly, and in members' interests.

Cross-selling standard

Recommending a product only when it meets a documented member need; suitability and fair treatment take priority over sales volume.

Know Your Member

Collecting and verifying identity, understanding expected account activity, and updating information when it changes to manage risk appropriately.

Joint account with survivorship

An account owned by two or more parties where, upon one owner's death, the balance passes to the surviving owner outside probate.

Service recovery

Acknowledging an error, taking ownership, resolving within authority, and escalating promptly without promising outcomes you cannot authorize.

Privacy notice

A required disclosure of how the credit union collects, uses, and shares nonpublic personal information, including any opt-out rights.

Regulation CC availability

Rules setting when deposited funds must be available: cash and wires next day, local checks generally within two business days, with exception holds allowed.

Regulation E provisional credit

For most disputes, provisional credit is generally provided within 10 business days (20 for new accounts), with final resolution within 45 days.

Currency Transaction Report

A filing required for cash transactions over $10,000, submitted within 15 calendar days of the transaction date.

Stop-payment order

A member's instruction to block payment of a specific check; it must be honored when received in time and documented with date and time.

Truth in Savings disclosure

Regulation DD requires disclosure of APY, dividend rate, minimum balance, and fee terms before an account is opened.

Five Cs of credit

Character, capacity, capital, collateral, and conditions. Capacity, the ability to repay, is generally the strongest predictor of repayment.

Debt-to-income ratio

Total monthly debt obligations divided by gross monthly income. Many credit unions cap total DTI near 36 to 43 percent depending on program.

Loan-to-value ratio

Loan amount divided by the lower of appraised value or purchase price. Higher LTV typically requires mortgage insurance or a higher rate.

Adverse action notice

A required notice stating the action taken, the specific reasons, and the applicant's rights, generally within 30 days of a completed application.

APR under Regulation Z

The cost of credit expressed as a yearly rate including finance charges, distinct from the note rate stated on the loan.

Flood insurance requirement

Insurance required for improved structures in special flood hazard areas when a loan is secured by the property.

BSA four pillars

A written anti-money laundering program requires internal controls, a designated compliance officer, ongoing training, and independent testing.

SAR confidentiality

Suspicious Activity Reports must be filed within 30 calendar days of detection and are confidential; the member must not be told about the filing.

Customer Identification Program

Collect name, date of birth, address, and identification number; verify identity; and retain records for five years after account closure.

ECOA prohibited bases

Race, color, religion, national origin, sex, marital status, age, receipt of public assistance, and good-faith exercise of rights.

SAFE Act registration

Mortgage loan originators must be registered in NMLS and include their unique identifier on loan documents.

Structuring red flag

Repeated cash deposits just under $10,000 designed to avoid reporting requirements, which is itself a suspicious activity and a federal crime.

Elder financial exploitation

Sudden large withdrawals, unfamiliar joint account holders, confusion about transactions, or caregiver control of finances that suggest abuse of an older member.

Residual risk

The risk remaining after controls are applied. Risk assessment uses likelihood times impact to prioritize which controls to strengthen.

Segregation of duties

Dividing tasks so no single person controls all stages of a transaction, reducing internal fraud risk in cash handling and wire transfers.

Dual control

Requiring two authorized individuals to complete sensitive actions such as vault access or wire transfers, preventing unilateral fraud or error.

Conflict of interest

A situation where personal interest could influence professional judgment; it must be disclosed promptly to a supervisor and avoided where required.

Confidentiality rule

Member information may be accessed only for a legitimate business purpose and shared only under permitted exceptions defined by law and policy.