Links in “Credit Unions”

Yes, that “B” word, “banking.”  A survey by the Missouri Credit Union Association revealed that the primary reason consumers gave for not joining a credit union was a lack of familiarity with what credit unions are all about.  Using the term “banking” or “bank” in marketing and advertising materials helped consumers to understand what credit unions offer by using terminology with which they are familiar. [3/23/15]

The NCUA is continuing its initiative to recover losses resulting from faulty securities sold to corporate credit unions by filing suit against HSBC Bank USA, National Association.  The complaint alleges that HSBC, as trustee, failed to provide required notices, failed to properly monitor loan servicers, and failed to take timely action to force repurchase, substitution, or cure defective mortgage loans. [3/23/15]

If you are looking for information about becoming a Community Development Credit Union (CDFI), NCUA’s new 5-part video series should be your first stop. The 10-minute videos address the benefits of becoming a CDFI and the seven criteria that must be met for certification. [3/23/15]

$1 billion Max Credit Union is now living a social media nightmare after an employee allegedly posted a negative comment about a member on the credit union’s Facebook site generating some significant backlash.  An investigation is underway by the local sheriff’s department to determine whether the employee posted that the member had a negative account balance. [3/23/15]

The CFPB’s new final policy allowing consumers to post their actual complaints on a public website could spread inaccurate, fraudulent or exaggerated information that could cause substantial harm to financial institutions. Will the safeguards the CFPB plans to implement really provide sufficient protection against reputation risk? [3/20/15]

Target has agreed to pay the members of a consumer class action suit a total of $10 million as a result of Target’s massive data breach in 2013.  If approved by the court, members would receive about $10,000 each.  Credit unions are still waiting to recover their estimated $30 million in costs as a result of the breach. [3/20/15]

The FTC has some significant concerns about the draft data security bill released by the House Energy and Commerce Committee. A representative from the FTC stated that the bill is not broad enough and doesn’t provide the agency with authority to draft rules or to update security requirements as needs and technology changes; the authority that the FCC currently has. [3/20/15]

At yesterday’s meeting, the NCUA board voted unanimously to approve a proposed rule to eliminate the 5% cap on investments a federal credit union can make in fixed assets.  The proposed rule also eliminates the 30-month partial occupancy waiver process in favor of just a 6-year occupancy rule.  Comments will be due within 30 days of publication in the Federal Register. [3/20/15]

A new House bill would revise the definition of member business loans to exclude loans for the purchase of one-to-four unit, non-owner occupied residential buildings.  This would create parity with the rule for banks as banks are permitted to classify these types of loans as residential real estate loans. [3/19/15]

A bill reintroduced in the Senate this week would require that financial institutions be provided with the information used by examiners as the basis for their exam decisions, and would create an ombudsman position at the FFIEC to whom financial institutions could voice examination issues. [3/19/15]