Links in “Credit Unions”

The omnibus spending agreement passed by lawmakers on Tuesday includes several credit union backed bills in addition to a provision to encourage the sharing of cybersecurity information. The agreement would, among other things, require NCUA to report to Congress on the impact the final RBC rule will have on mortgage servicing assets and on credit unions’ ability to compete. The agreement is expected to pass Congress next week and then head to the President’s desk for his signature. [12/17/15]

The Federal Reserve’s Open Market Committee has increased the Federal Funds rate for the first time in ten years. The target range is now .25% to .50%. Market reaction has been positive and the impact on credit unions is expected to be minimal. [12/17/15]

That is the question on the minds of many this morning as the FDIC announced that is has approved a budget reduction of 4.7%, while the NCUA just approved a budget increase of 4.1%. The FDIC stated that because the economy is improving and the number of bank failures are declining prudent budget management calls for cost reductions. Shouldn’t that be the case for NCUA, as well? [12/16/15]

As a result of a previous ambiguous settlement notice that was sent to financial institutions, U.S. District Court Judge Thomas Thrash has stepped in to dictate the manner of communication for the final settlement offer between Home Depot and Mastercard. Thrash ordered that settlement offers may only be extended after the settlement has been fully negotiated and finalized and that the written offers must contain adequate details, advise the class members of their rights, and advise the class members that the offered recovery may be less than what is recoverable through litigation. [12/16/15]

Not surprisingly, Bankrate found that the differences between credit unions and banks run down to their bones and are based on structure and purpose. However, it found that customer service was more a factor of the size of the institution, than the type of institution. [12/16/15]

NCUA Board Member Mark McWatters says that the low number of exam appeals is because credit unions are concerned about reprisals if they appeal their exams to NCUA headquarters under the current process. McWatters is calling for a new rule to establish an impartial independent tribunal where credit unions could appeal exam reports and where both sides could be represented by counsel. [12/16/15]

Credit unions were successful in achieving a number of regulatory goals this year. CUNA Chief Advocacy Officer Ryan Donovan highlights the legislative and regulatory victories from 2015 and lays out the agenda for 2016. [12/15/15]

It is anticipated that at the end of the two-day meeting of the Federal Open Market Committee meeting, which begins tomorrow, the Committee will announce an increase in the feds fund target rate. The target range has been set between 0.0% and .25% since 2008. Mortgage rates are expected to rise if the fed funds target rates are increase. [12/15/15]

Former credit union board attorney and former state senator, Tommy Robertson, has pleaded guilty to one count of embezzlement. Robertson stole $375,000 from a residential construction loan that he was handling for the $194 million Singing River FCU in Moss Point, MI in order to pay his own debts. [12/15/15]

The first most important defense weapon in combatting online credit card fraud is having well-trained analysts who know how to detect fraud and are armed with advanced detection software. The second most important weapon is in the hands of your members in the form of new technology and common sense. [12/15/15]