Links in “Credit Unions”

The NCUA awarded $12.4 million in contracts  to minority- and women-owned businesses in 2014, which is an increase of 49% over 2013.  Awards to minority- and women-owned businesses represent 29% of the total amount of contracts issued to suppliers last year. [4/2/15]

This article argues that most of the consumers that use payday lenders are truly “unbanked” because they don’t qualify for services from banks and credit unions.  In an interesting twist, the article suggests that rather than looking for alternatives to payday loans, we should be looking at alternatives to the way in which these individuals are paid, perhaps allowing them to access their pay on a daily basis as it is earned. [4/2/15]

The World Council of Credit Unions is speaking out in support of the actions under consideration by the Financial Action Task Force (FATF), which forms the basis for most FFIEC AML guidance,  to address financial institution customer “de-risking.”  Credit unions have reported that they face pressure from examiners not to open accounts for MSBs and that it is becoming increasingly difficult for credit unions to open and maintain bank accounts. [4/2/15]

$520,440 was awarded to 152 low income credit unions in the first round of grants in 2015 from the Community Development Revolving Loan Fund.  Credit unions that had requested grants that were not approved in 2014 received priority funding. [4/2/15]

The NCUA has liquidated the $3 million North Dade Community FCU in Miami Gardens, FL making it the second federally-insured credit union to be liquidated in 2015.  The credit union was fined $300,000 last year for BSA violations resulting from an astounding volume of cash transactions processed for money services businesses. [4/1/15]

There’s no question that using biometric authentication for your mobile apps has a very high “cool” factor.  The bigger question though is does “cool“ translate to more secure?  A few credit unions that have embarked down this path are now sharing their experiences. [4/1/15]

The NCUA issued seven prohibition orders in March, three for former employees of the now-defunct Taupa Lithuanian Credit Union.  All but one of the individuals will be serving prison time. [4/1/15]

CUNA economists predict that rising interest rates in 2015 and 2016 will lead to higher earnings, improved asset quality, and increasing capital.  New auto loans, purchase money mortgages, and credit cards are expected to show very strong growth. [4/1/15]

The FFIEC has issued two statements with guidance on how financial institutions can identify cyber attacks that compromise credentials and employ malware.  The statements  provide specific steps that can be taken to update IT systems in order to enhance internal cyber security. [3/31/15]

CUNA’s comment letter is supportive of the CFPB’s proposal to broaden the definition of a “rural” area, but states that the proposed rule should go farther and provide impact analyses to show how communities, consumers, and creditors would be affected if the yearly loan limit was increased from 2,000 to 2,500, 3,000, 3,500, etc.  In addition, the small creditor asset limit of $2 billion may be arbitrary and CUNA is asking for consideration to be given to raising the limit. [3/31/15]