Links in “Credit Unions”

A House bill sponsored by Scott Tipton (R-CO) and Andy Barr (R-KY) would provide regulatory relief to smaller credit unions and community banks by requiring regulators to tailor their rulemaking to fit the institutions’ business models and risk profiles rather than using the one-size fits-all approach. The bill would also require the NCUA to testify annually before the House Financial Services and Senate Banking Committees on specific actions it has taken to tailor its rulemaking process. [6/29/15]

NCUA Chair Debbie Matz, speaking at the NAFCU Annual Conference, announced that 2015 will be “The Year of Regulatory Relief.” In addition to addressing proposed changes to the MBL Rule and proposed changes to field of membership requirements, Matz added that the NCUA plans to issue a supplemental capital rule at the same time that it issues a final risk-based capital rule. [6/26/15]

Yesterday the public gained access to over 7,700 consumer complaint narratives, which are posted on the CFPB’s Consumer Complaint Website, and concerns include mortgages, credit cards, accounts at financial institutions, and other services. The CFPB has opened a 60-day period for public comment on the new feature. [6/26/15]

By a narrow vote the Supreme Court has ruled that the Fair Housing Act permits plaintiffs and regulators to use evidence of disparate impact to prove discrimination in housing. It is not necessary to show intent in order to prove disparate impact. [6/26/15]

In a letter to the American Banking Association, the NCUA stated that federally-chartered credit unions are not permitted to charge periodic membership fees, but can charge uniform entrance fees and account or service-related fees. The issue arose after $1.4 billion Arizona FCU implemented a $3 monthly membership fee. [6/26/15]

The CFPB has officially proposed that the implementation date for the integrated TILA/RSPA disclosure be delayed until October 3^rd.  The CFPB noted that the proposed implementation date will fall on a Saturday, which they believe will provide financial institutions with additional time over the weekend to test their systems. [6/25/15]

While both trade associations believe that RBC2 is an improvement over the original RBC proposed rule, NAFCU has thrown in its support behind a Congressional bill, known as the “stop and study” bill, which would require NCUA to reevaluate the merits of RBC2 and justify the agency’s authority to impose the rule’s directives before proceeding with a final rule. CUNA believes that the chance of legislative action is remote and  is questioning the costs involved in having the agency reevaluate the proposal. [6/25/15]

The FBI is investigating a third incident where a credit union employee has been kidnapped and forced to assist in a robbery of his/her credit union. On June 8^th  two masked gunmen forced their way into the home of an FAA FCU employee, stole her car, and forced her to open the credit union branch in order to steal cash. The FBI has not made any arrests in this or two similar incidents that occurred in different states over the past five months and is not saying whether there is any connection between the crimes. [6/25/15]

It’s been happening for years; the slow strangling of overdraft programs. Are these programs on their last breath? Should credit unions just go back to returning all NSF checks and forget providing their members with the convenience that overdraft programs afford? Maybe not, but credit unions will likely have to live with additional regulatory oversight and restrictions. [6/25/15]

The Attorney General for the State of New York has filed suit and obtained a temporary restraining order against The College Network, a study prep company for nursing students, claiming that the company has cost the students tens of thousands of dollars in generally worthless study materials and made false claims about affiliation with several universities. Southeast Financial Credit Union, a $453 million asset credit union in Tennessee,  is named as a co-defendant in the suit as a result of the credit union’s partnership with The College Network to provide student loans. [6/24/15]