Links in “Credit Unions”

NACHA approved a same-day ACH rule in May and the Federal Reserve has proposed to change its current optional Fed ACH Same Day Service to a mandatory participation in order to conform with the new NACHA ACH rule. However, concerns are growing over the effect and costs of implementation, particularly for smaller credit unions. [7/2/15]

The Federal Financial Institutions Examination Council (FFIEC) has announced that it has developed a new cybersecurity risk assessment tool that financial institutions can use to assess how prepared they are to address cybersecurity risk. The free tool is available on the FFIEC website here. [7/1/15]

The NCUA issues four prohibition orders for the month of June. One former employee was ordered to pay restitution of over $11 million. [7/1/15]

The federal financial institution regulatory agencies recently issued a final rule that addresses appraisal management companies (AMCs) to ensure that all participants in the mortgage process keep their eyes focused on the same goal—an independent and accurate appraisal. Among other items, the new rule requires state registration and supervision of AMCs. [7/1/15]

CUNA has serious concerns about the FASB’s credit impairment proposal and its impact on credit unions. The proposed change, which would require credit unions to use a current expected loss model for all financial assets and liabilities, would likely cause most credit unions to have to significantly increase their loss reserve accounts. [7/1/15]

CUNA has hired Douglas Kiker to serve as its chief strategic communications officer. Kiker, a former consultant in the strategic corporate communications field, will report directly to CEO Jim Nussle and will be responsible for developing and implementing media and other corporate communications. [6/30/15]

The FASB has issued an exposure draft that proposes two concurrent standards for how prepaid card issuers should recognize the liability for unused portions of cards that don’t expire and are not subject to state escheat laws.  The difference in the two standards relates to whether the issuers expect to be entitled to the breakage amount. [6/30/15

The saga of $602 million Alabama One Credit Union has just become more complex.  Following a threat by the Alabama Credit Union Administration to place the credit union into conservatorship, Alabama One has filed suit against a U.S. Senator, the legal advisor to the Governor, and several local attorneys for conspiracy and abuse of power.  The credit union claims that the defendants attempted to coerce tens of millions of dollars in legal settlements from the credit union despite the fact that the it had been found to be operating in a safe and sound manner by both state and federal regulators. [6/30/15]

HR experts say that the recent Supreme Court ruling should provide a sense of consistency and stability to coverage benefits managers for credit union offer to spouses and partners. Where applicable, HR managers may need to modify enrollment processes and create or modify consent and eligibility forms. [6/29/15]

The NCUA has issued a letter to Federal Credit Unions (15-FCU-20) in which it extends the annual percentage rate ceiling of 18% for most loans and 28% for payday alternative loans for another 18-month period.  The letter adds that the NCUA may revisit the rate ceiling before the new expiration date of March 10, 2017, if interest rates move significantly before that time. [6/29/15