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About
About
Created by the U.S. Congress in 1970, the National Credit Union Administration is an independent federal agency that insures deposits at federally insured credit unions, protects the members who own credit unions, and charters and regulates federal credit unions.
Regulation & Supervision
Regulation & Supervision
The NCUA protects the safety and soundness of the credit union system by identifying, monitoring and reducing risks to the National Credit Union Share Insurance Fund. Backed by the full faith and credit of the United States, the Share Insurance Fund provides up to $250,000 of federal share insurance to millions of account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.
Analysis
Analysis
The NCUA’s economists and analysts compile data on the credit union system’s financial performance, merger activity, changes in credit union chartering and fields of membership, as well as broader economic trends affecting credit unions. Users can find information on a single credit union or analyze broader nation-wide trends.
Support Services
Support Services
The NCUA provides a number of support services to the credit union system, such as providing training, grants and loans, chartering, and field-of-membership services; maintaining the health and stability of Share Insurance Fund; managing the assets of failed credit unions; and providing emergency liquidity.
Consumers
Consumers
The NCUA works to protect credit union members and consumers, raise awareness of potential frauds, facilitate access to affordable financial services, and educate consumers on the importance of savings and how they can improve their financial well-being.
News
News
Stay up to date on the NCUA's activities by subscribing to the NCUA's Express messages. Read press releases, speeches, testimony, and Annual Reports. Register for upcoming conferences and events.
Cybersecurity Resources
Cybersecurity Resources
Cyberattacks and cybersecurity vulnerabilities pose significant risks to the financial system. Because of vulnerabilities within the credit union industry and the broader financial system to potential cyberattacks, cybersecurity is one of the NCUA’s top supervisory priorities and a top-tier risk under the agency’s enterprise risk-management program.

Second Mortgage Insurance Product

01-1076 / December 2001

Second Mortgage Insurance Product

Subject

Mortgage Lending

Historic Status

Non-historic

Dirk J. Miller, President
J.T. Miller Company, Inc.
8085 Wayzata Blvd.
Suite 201
Minneapolis, MN 55426

Re: Second Mortgage Insurance Product.

Dear Mr. Miller:

You asked that we review a product description for the Processors Liability Policy (PLP), which your company is marketing to credit unions. The product is an insurance policy designed to protect a lender’s lien position. While we know of no law prohibiting credit unions from purchasing the PLP coverage, we can provide no opinion on the validity or usefulness of your product.

You indicate that your PLP coverage serves as a substitute for a title search, because it relies on an owner’s affidavit, credit report and loan application. The National Credit Union Administration (NCUA), along with other financial regulatory agencies, has adopted a regulation governing the sharing of nonpublic personal information about consumers. 12 C.F.R. Part 716. Credit unions purchasing your product must comply with the requirements of our consumer financial privacy regulation if they transfer any nonpublic personal information to you. We suggest you review the regulation’s limitations on reuse and re-disclosure of that information, 12 C.F.R. §716.11, and any applicable state laws.

Sincerely,

Sheila A. Albin
Associate General Counsel

OGC/DMS: bhs
SSIC 3000
01-1076

cc: David Marquis, Director
Office of Examination & Insurance

Last modified on

11/14/24