Links in “Credit Unions”

The CFPB has student loan servicers squarely in its sights as a result of a recent review where the agency found a host of illegal activities including servicers that divided payments among loans in order to maximize late payment fees, overstating the minimum payment due on periodic statements, failing to provide borrowers with accurate tax information and making illegal debt collection calls. [10/29/14]

NAFCU is urging the Federal Housing Finance Board to allow flexibility for Fannie Mae and Freddie Mac to determine how best to stabilize and improve their portfolio positions. In addition, any changes to the GSE’s enterprise housing goals for 2015 should not create obstacles to credit union access. [10/29/14]

Generally, paying off your debts and putting money down on a house are wise financial moves. Not so when the money you’re using to do this belongs to someone else. A former employee at $23 million Belen Railroad Employees Credit Union in Belen, NM, has pleaded guilty to withdrawing $118,000 from member accounts without their knowledge to pay off her debts and to make a downpayment on a new home purchase. [10/28/14]

Are you prepared for how virtual currencies may impact your BSA monitoring requirements?  FinCEN has issued two administrative rulings that deal with virtual currencies. The first addresses virtual currency payment systems and the second addresses the application of regulations to a virtual currency trading platform. [10/28/14]

CUNA President/CEO Jim Nussle in a recent op-ed piece in the New York Times highlighted credit union programs that help their members end the payday lending and predatory lender cycles, while encouraging savings. Nussle’s comments were in response to a previous editorial that asked how to best protect consumers who need help in restoring their credit. [10/28/14]

Three financial institutions reported this week that fraudulent credit and debit charges that occurred as a result of the Home Depot breach were chip-enabled transactions. Experts believe that fraudsters used a technique called “replay” where regular magnetic stripe card transactions are pushed through the card network as EMV purchases. [10/28/14]

Barbara Kamm, President/CEO of Technology CU in San Jose, CA, has been named by the White House as one of nine U.S. business leaders as a Champion of Change in honor of her work to support the value that immigrants bring to the technology workforce. This award follows on the heels of Shana Runck, Assistant Vice President of Community Relations and Financial Capabilities at New Mexico Educators FCU in Albuquerque, New Mexico, receiving the Latino Champion of Change award for her work in promoting financial literacy. [10/27/14]

Although New Mexico is one of 20 states that have approved licensing for marijuana business and despite the FinCEN guidance for due diligence on establishing accounts for marijuana business, a credit union examiner threatened a credit union in New Mexico with a Letter of Understanding and Agreement (LUA) if it did not close its marijuana business accounts.  The examiner stated that there was no way these types of accounts can be done legally. [10/27/14]

Based on recent compliance news, regulatory scrutiny for discrimination is on the rise, resulting in enforcement action after enforcement action. Join AffirmX Analyst Henry Miles in this video as he reviews the mistakes of others, a far less painful way to learn. [10/24/14]

As credit unions struggle to build their loan portfolios, many are turning to loan participations. To do this successfully, you must understand the regulatory and due diligence requirements. [10/24/14]