Links in “Credit Unions”

At the top of the CFPB’s regulatory agenda for the first quarter of 2016 is a proposed rule affecting payday loans, auto title loans and similar products, and a final rule on prepaid access devices. Also on the agenda are a proposed rule on overdraft protection programs and a proposed rule to require financial institutions to report information about loans to women-owned businesses, loans to minority owned businesses, and loans to small businesses. [11/23/15]

The NCUA has liquidated the Helping Other People Excel FCU located in Jackson, NJ. The credit union, with $626,529 in assets and 110 members, was recently in the news after it was discovered that two men, who allegedly controlled the credit union, were involved in an unlicensed bitcoin scheme to launder money. [11/23/15]

Three credit unions have filed suit in federal court against the city of New York and its Taxi and Limousine Commission for causing deliberate and devastating harm to the taxi medallion industry. Melrose Credit Union, Progressive Credit Union and LOMTO Federal Credit Union claim that the city’s failure to require licensing for companies such as Uber and Lyft constitutes disparate regulatory treatment. [11/23/15]

The American Consumer Satisfaction Index survey shows that consumer satisfaction rating has hit a 5-year low for credit unions. In fairness, the ratings for the financial services industry are down across the board. However, the satisfaction rating for credit unions is now only one point higher than the rating for regional and community banks. [11/23/15]

There is general praise for NCUA’s expansion of the definition of a service facility, but criticism for the Board’s decision not to propose expansion of the population limit for MSAs. Trade association representatives are also critical of the Board’s use of the overhead transfer rate to cover all safety/soundness expenses, the approval of a 2-year budget and the lack of action on moving back to an 18-month exam cycle for low-risk credit unions. [11/20/15]

A recent study reveals that 78% of credit unions missed the deadline for the liability shift for cards without EMV chips.  This shows that while many credit unions had good intentions of meeting the deadline, the actual ability to meet the deadline proved to be  much more difficult. [11/20/15]

The NCUA board issued a proposed changes to its FOM rules that would expand the definition of service facility to include transactional websites and mobile platforms that can accept deposits and loan applications and disperse loans.  Currently, a service facility is limited to a branch office or kiosk where these transactions can be conducted. The proposed rule also expands the population limit for rural communities. [11/20/15]

There is a bit or irony in the news that John Barry, former manager of the Portland Maine Police Department FCU, has pled guilty to embezzling $400,000 from the credit union that serves police employees. Barry stole the funds over a 4-year time frame by transferring funds from credit union accounts to his account and to the accounts of his family members. [11/19/15]

A recent study revealed that only 57% of adult Americans are financially literate. Worldwide, the residents of Norway, Sweden and Denmark scored the highest on the test used for the survey. Have your staff take the test.  The results may be surprising. [11/19/15]

The House adopted two bills that could provide some regulatory relief and clarity for credit unions. The Portfolio Lending and Mortgage Access Act would provide a safe harbor from certain QM requirements for residential mortgage loans held in portfolio. The Reforming CFPB Indirect Auto Financing Guidance Act would require the CFPB to replace its onerous 2013 bulletin with specific guidance on indirect lending. [11/19/15]