Links in “Credit Unions”

Total mortgage originations declined by 31% from 2013 to 2014. Among the 7,062 financial institutions that reported data in 2014, home purchase loans increased slightly, while mortgage refinances declined by 55%. Black and Hispanic white applicants are still being declined at a higher rate than Non-Hispanic white applicants. [9/23/15]

CUNA has sent a letter to NCUA in response to its annual Economic Growth and Paperwork Reduction Act review that encourages that agency to revisit regulations concerning corporate credit unions, reimbursements to credit union volunteers and employees, and Bank Secrecy Act requirements. Specifically, CUNA requests that NCUA reconsider provisions relating to vote recordation and audit and reporting requirements for corporate credit unions. For natural person credit unions, CUNA recommends taking a closer look at reimbursements, insurance coverage, golden parachutes and indemnification requirements. [9/23/15]

The CFPB has finalized its proposed rule that increases the total loan threshold from 500 to 2,000 for the small creditor exemption to the ability-to-repay rule/qualified mortgage rule. The intent of the increase is to expand lending opportunities for small lenders, particularly in rural and underserved areas. [9/23/15]

Originally CUNA opposed the bill that would have required NCUA to stop and reconsider the merits of its proposed risk-based capital rule, as the association didn’t believe that the bill had any chance of being adopted. Now CUNA is concerned that NCUA is not moving towards making the kinds of significant changes that had been hoped for and believes that more time and thought is necessary before a final bill is announced. [9/23/15]

Credit unions accounted for more than 9% of all mortgage originations in 2014. [9/23/15]

The ever-increasing importance of a robust BSA/AML monitoring system has become more than clear in recent years. However, an all-encompassing monitoring system often feels beyond the reach of the smaller financial institution. Resources are finite, and some institutions are left floundering when attempting to cover all their bases. What must your small financial institution do to determine whether its BSA/AML monitoring system is as sound as those applied by their far larger counterparts? In this two-part blog post, we’ll break down two essential elements that smaller financials must have in their BSA/AML monitoring systems. [9/22/15]

The CFPB has finalized several changes to mortgage rules; the most important change for credit unions is the increase of the small creditor exemption from qualified mortgage rules from 500 total loans per year to 2,000. [9/22/15]

Los Angeles FCU has been hit with a proposed class action for failure to properly obtain consent before charging overdraft fees. [9/22/15]

Thursday’s decision by the NCUA Board to increase the asset limit for the definition of a small credit union from $50 million to $100 million came on the heels of a healthy debate regarding where the appropriate limit should lie. NCUA Board member Mark McWatters recommended that the limit be set at $550 million in keeping with the level set for banks. In the alternative, NCUA could adopt a 3-tier system where credit unions under $100 million could be exempted from certain regulations and credit unions with assets between $100 million to $550 million could be subject to a lighter version of the regulatory requirements. NCUA Chair Debbie Matz replied that the limit for credit unions must be based on an economic analysis and legal rationale specific to credit unions. [9/21/15]

Both CUNA and NAFCU are urging NCUA to make use of the FFIEC’s new cybersecurity assessment tool voluntary. While the FFIEC estimated that it should only take financial institutions about 80 hours to complete the assessment, both trades say the it will likely take credit unions hundreds of hours to complete the 55-page assessment. NCUA is expected to address the issue in a soon-to-be released Letter to Credit Unions. [9/21/15]