Links in “Credit Unions”

At yesterday’s board meeting, NCUA approved proposed changes to its appraisal rules to eliminate redundancy between its rule and new CFPB rules regarding providing consumers with copies of appraisals. The proposed rule would also create an exemption to the appraisal requirement when a refinance does not involve new funds, other than closing costs, and there has been no obvious and material change to the market conditions or the physical condition of the collateral property. [6/20/14]

NCUA has issued a proposed rule that clarifies that federally chartered credit unions and state-chartered, federally insured credit unions (where state law allows) may securitize the loans they originate. The proposed rule that would provide credit unions with greater parity with banks establishes seven minimum safety and soundness conditions for asset securitization. [6/20/14]

The full Senate has voted to confirm the nomination of Mark McWatters to the NCUA Board. McWatters, a Republican, will fill the seat held by Michael Fryzel, whose term expired in August, 2013. [6/20/14]

When it comes to fair lending, many institutions fail to compare their performance to the complete contextual picture, neglecting such factors as income, low-/high-minority population, age, gender, etc. In this video, AffirmX EVP and Director of Risk Management Ken Agle gives us an idea of how to complete the fair lending picture to discover potential problems or explain misleading numbers. [6/19/14]

Credit unions that have long complained about the high costs of fraud may see a glimmer of hope in a recent case in which an 8th Circuit Appellate Court ruled that a company that declined to participate in the security protections offered by its bank is responsible not only for its $440,000 loss for a fraudulent wire, but also for the bank’s legal fees. The ruling relied on the fact that the bank had a reasonable security program in place as well as additional security features that the company declined to adopt. The ruling applies only to business account owners. [6/19/14]

NCUA issued one Cease and Desist Order in 2013, compared to five in 2012. Letters of Understanding and Agreement were up, with 224 being issued in 2013 compared to 206 in 2012. [6/19/14]

Following a meeting with NCUA Board member Rick Metsger, CUNA Deputy General Counsel Mary Dunn reported that she believes that Mr. Metsger has an open mind to changes to the proposed risk-based capital rule. CUNA will be meeting with NCUA Chair Debbie Matz later this week in an effort to promote revisions to the rule that would include lowering the RBC component for well-capitalized credit unions; revising the risk weightings for certain assets such as business loans, mortgages, mortgage servicing, and CUSO investments; and eliminating the provision that would allow examiners to set higher minimum capital requirements on an individual credit union basis. [6/19/14]

More and more financial institution processes are getting a technological makeover, and privacy is no exception. AffirmX's Jane Pannier describes the proposed privacy notice rule and how to know if it applies to your institution. [6/18/14]

It’s just what credit unions and financial institutions have been saying would happen. Experts now say that research shows that merchants are pocketing the difference resulting from the interchange fee cap instead of passing on the savings to their customers. [6/18/14]

NCUA is hosting the second part of its free webinar series entitled “How to Be in Compliance with OFAC and FinCEN” on Wednesday, June 25^th at 2:00 pm EST. The webinar will feature senior staff members from both OFAC and FinCEN who will discuss real scenarios and case studies. [6/18/14]