Links in “Credit Unions”

This is the question some are asking in light of the first major security threat that has target the mobile banking market. A new Russian malware called Svpeng targets certain mobile banking apps, locks the phone, and them demands money to unlock it. [6/17/14]

The Supreme Court has instructed the 10^th Circuit Court of Appeals to re-examine a ruling that allowed NCUA to sue several banks over deceptive mortgage backed securities they sold to failed corporate credit unions. Under the Court of Appeals ruling, NCUA was allowed to proceed with the suits despite the fact that the suits exceeded the 3-year statute of limitations. A more recent case involving an environmental action has cast a new light on the prior ruling for NCUA. [6/17/14]

Last year $2 billion HarborOne Credit Union in Massachusetts converted to a bank charter and became HarborOne Bank citing a desire to serve a broader geographic area, expand its lending portfolio and seek secondary capital if needed to support growth. However, one year later the bank’s profitability has not risen and the reasons cited for the conversion don’t appear to have occurred. [6/17/14]

Pen Air Federal Credit Union, a $1.2 billion credit union in Pensacola, Florida, thought that providing a 24/7 call center to its members would provide the ultimate in service to its members. After working with two different vendors over a period of seven years, the credit union found that no matter how efficient the third-party vendor is no one knows and understands your members or your products and services as well as your own staff. [6/16/14]

NCUA Chair Debbie Matz told the members of the House Financial Services Committee that concerns about reputation risk alone will not trigger enforcement action. However, she added that while the agency would not force a credit union to change its business practices solely due to a concern about reputation risk, the examiners would address any safety and soundness concerns that may be an underlying factor in causing the reputation risk. [6/16/14]

A government watchdog has given a mixed grade to credit unions that received funding from the Troubled Asset Relief Program (TARP) stating that those credit unions that accepted TARP funds were financially weaker and performed more weakly that credit unions that qualified for the assistance, but elected not to participate. On the positive side, the overall cost of the TARP program has declined from $290 million (Treasury’s first forecast in November 2010) to $80 million. [6/16/14]

Because Know Your Customer (which includes CIP/MIP, CDD/MDD, and EDD) is such a critical part of compliance, we've put together a "Director's Briefing," a high-level overview of important areas of risk presented in 5 minutes or less. Join AffirmX Analyst Cody Knudsen to gain a better understanding of the history and important elements of KYC. [6/13/14]

The NCUA Board will be considering one final rule and three proposed rules at its June 19^th board meeting. The final rule concerns voluntary liquidations, while the proposed rules focus on asset securitization, appraisals and the safe harbor provision under the involuntary liquidations rule. [6/13/14]

The Filene Institute has published a report that looks at the increasing merger trend among US and Canadian credit unions and finds that the primary driving force is the increasing costs of regulatory compliance, particularly for smaller institutions. The report concludes that the increasing burden, especially from the “one size fits all” approach taken by the regulators, will likely result in credit unions being either “fundamentally disadvantaged” or behaving more like commercial banks. [6/13/14]

The House appropriations bill includes an amendment that prohibits the Department of Justice from using funding to enforce disparate impact actions. The bill now moves to the Senate. [6/13/14]