Links in “Credit Unions”

A security alert from an Atlanta firm warns that fraudsters may be getting access to member information when members misdial their credit union’s phone number. The scam, which is being called the “Misdial Trap,” was discovered by a $1 billion credit union in the Northwest and may be affecting more than 100 other credit unions and banks. See how the fraudsters are pulling this off. [11/20/14]

It first surfaced in 2006, but it appears to be back. Fraudsters are initiating wire transfers from HELOCs to construction companies after searching public records of new mortgage transactions to discover consumers with home equity lines of credit.  In some cases, the construction companies are shams; in other cases the companies are legitimate but are being used as “money mules.” Here are the common footprints to look for. [11/20/14]

NCUA Chair Debbie Matz is concerned that the DOD’s proposal to change the definition of consumer credit under the Military Lending Act could prevent credit unions from offering payday alternative loans. She is urging the DOD to take a closer look at the NCUA’s rule on short-term, small-amount loans as an example of what should be permitted. [11/20/14]

The latest release of the American Customer Service Index gives credit unions an overall score of 85, while the average bank scored a 76. Credit union satisfaction scores have continued to rise during the seven years that they have been included in the survey, while bank scores have declined. [11/19/14]

Dridex, a malware that used macros embedded in Microsoft documents, is the newest cyber threat that credit unions and banks need to be aware of. Here’s how it works. Hackers initiate high-volume phishing attacks that contain attachments, usually word documents that look like invoices or accounting statements, which are embedded with the malicious Visual Basic code. [11/19/14]

Wildfire Credit Union, a $677 million asset credit union in Saginaw, MI, has sued Fiserv for fraud due to its extreme dissatisfaction with the DNA core system it purchased. Wildfire was wooed away from Symitar just one year ago, but now says it wants all monies it paid to Fiserv returned. [11/19/14]

In the CFPB’s recent release of its Compliance Bulletin and Policy Guidance: Mortgage Servicing Transfer, the agency has targeted the transfer of residential mortgage servicing because it often has an adverse impact on consumers and many institutions will be required to prepare and submit informational plans that describe how they will be managing the risk to consumers. AffirmX's Jane Pannier gives a brief overview of what you need to know about changes. [11/18/14]

68 members of the House have written Federal Housing Finance Board Director Mel Watt to express their concerns that his agency’s proposed rule that would make changes to eligibility requirements for membership with the Federal Home Loan Banks could adversely affect the ability of credit unions and community banks to participate in this important liquidity avenue. [11/18/14]

The Supreme Court has agreed to hear two Bank of America cases to determine whether a second mortgage on an underwater property can be voided in bankruptcy after the 11^th Circuit Court of Appeals said it could. If the 11th Circuit's decision is upheld, lenders could lose the ability to foreclose on the property, even if its value increases. [11/18/19]

If you consider the 900-page proposed rule as an indication that the CFPB is very concerned about prepaid debit cards and other prepaid accounts, you would be right!  Read this blog to get an understanding of the enhanced scope of this rule and how it could impact your operations. [11/18/14]