Links in “Credit Unions”

NAFCU CEO, Dan Berger, has asked NCUA to justify each expense in its 2016/2017 proposed budget. Berger is concerned that the 2-year budget will be “inefficient and ineffective” because projections will likely have to be refined after the first year in order correct inaccuracies. [11/13/15]

Credit unions can now use NCUA’s Consumer Assistance portal to receive correspondence from the Consumer Assistance Center about complaints lodged against them, to send response and complaint information, and to check on the status of complaints. Use of the site is voluntary and the site is not open to the public. [11/13/15]

The Federal Reserve Board is raising the top of the low-reserve tranche (the amount of net transactions subject to the 3% reserve requirement) from $103.6 million to $110.1 million for 2016.  In addition, the limit for the amount of net transactions that will be exempt from Reg. D reserve requirements will increase from $14.5 million to $15.2 million. [11/13/15]

Yes, we’ll soon be in the midst of the holiday season. Unfortunately, we are also entering the holiday fraud season when retailers can expect to lose on average $480,000 per hour as the result of fraud on Cyber Monday alone. Learn about the top four internet scams that typically occur at this time of year. [11/12/15]

There’s no excuse for credit unions not to capture the millennial market as recent surveys show that banks are driving millennials away by charging high fees. Last year credit unions saw a growth rate of just 3% among millennials, while big banks lost 16% of their account holders in the same demographic. [11/12/15]

FASB announced yesterday that the effective date for the new methodology for reporting credit losses will be Dec. 15, 2019 for fiscal years beginning after that date. The new rule will require ALLL accounts to reflect the credit union’s current estimate of the contracted cash flows that it doesn’t expect to collect, based on credit risk, as of the reporting date. Currently, a credit union does not have to recognize a credit loss until it is probable or has been incurred. [11/12/15]

A defense authorization bill that passed the Senate yesterday includes authorization for a study of the reliability of the Manpower Data Center database. NAFCU raised concerns about the database when the DOD was revising the Military Lending Rule. [11/11/15]

According to the agenda for the November 19^th NCUA Board Meeting, a proposed FOM rule will be a prime subject of discussion. The proposed rule is expected to expand the scope of community charters and provide some regulatory relief. The Board will also take up the 2016-2017 budget. [11/11/15]

The Department of Education recently issued a new regulation addressing the fees that can be charged to student accounts receiving federal student aid. However, the regulation does not affect all credit unions that have student members. It affects only those credit unions that engage in specific activities. [11/10/15]

If the new risk-based capital rule is clear as mud to you, a new video posted on the NCUA website may help. The video provides a summary of the rule and the agency’s implementation plan. The new rule is expected to impact 24% of federally-insured credit unions with assets of $100 million or more. [11/10/15]