Links in “Credit Unions”

The Federal Home Loan Banks (FHLBs) may become an increasingly valuable source of liquidity for credit unions as future interest rates rise and lending becomes tighter. Because of this, it’s important that credit unions understand how the proposed rule changes will affect their eligibility for membership. [10/16/14]

20 credit union executives have been invited to join Filene’s i3 innovation program. Previous concepts to emerge from this innovation lab include Prize-Linked Savings, Debt-in-Focus/Savvy Money, Savings Resolution, Just4You and eBrochure/Leeflet. [10/16/14]

The IRS posted a proposal in today’s Federal Register that would eliminate the 36-month non-payment testing period as a trigger for the filing of the 1099-C Cancellation of Debt form. The IRS claims that the existing rule is confusing to taxpayers, doesn’t create tax compliance on the part of debtors and doesn’t provide the IRS with useful third party information that it can use to compel taxpayer compliance. [10/15/14]

The case Perez v. Mortgage Bankers Association involves the issue of whether loan officers must be paid overtime. Thomas Perez is the Secretary of Labor and his agency’s opinion letter stated that mortgage loan officers are non-exempt employees under their interpretation of the Fair Labor Standards Act. The Mortgage Bankers Association sued, claiming this change in interpretation required a notice and comment period before it could become effective. [10/15/14]

According to NAFCU, the Federal Housing Finance Agency’s proposal to create a single security to be issued by Fannie Mae and Freddie Mac would reduce the training and compliance burden for credit unions that do business with the government-sponsored enterprises. NAFCU has further urged the agency to ensure that GSE securities currently held by credit unions not lose their marketability after the introduction of the single security. [10/15/14]

ACA, the largest trade group for the credit and collection industry, issued a statement that the federal agencies' efforts to regulate litigation activities of lawyers to recover unpaid debt would be a violation of the right to petition for redress under the First Amendment. "There is absolutely no basis for executive-branch regulators (or any actors in the executive or legislative branch)... to intrude themselves into litigation between private parties for which a judge is already presiding." [10/15/14]

While financial institutions deal more with money than with morals, there are several mistakes with currency transaction reports that can reflect unfavorably on your entire BSA program. Take a look at this list to see if your institution is guilty of one or more of these “deadly CTR sins,” and find out what is needed for penitence. [10/14/14]

NAFCU supports allowing credit unions with a fixed asset management plan to exceed the current 5% cap on investments in fixed assets. However, the association recommends eliminating all occupancy requirements entirely. [10/14/14]

This year bi-partisan support for credit union-friendly candidates has hit a record high. CUNA estimates that its expenditures for this election cycle are close to $6 million. [10/14/14]

Observant employees at Erie Community Credit Union in Erie, PA, spotted what they believed to be phony auto loans paid to a shell company. Law enforcement is now crediting these employees with helping to bring down a nationwide scam that caused losses to 21 financial institutions, including Navy Federal Credit Union. [10/14/14]