Links in “Credit Unions”

A second member has filed suit against $602 million Alabama One Credit Union claiming the credit union conned him into committing loan fraud.  The suit alleges that the member was coerced by credit union staff into taking out a large business loan on behalf of another member, claiming the loan would be repaid very shortly, and then pressuring the member to disavow his complaint to authorities. [3/19/15]

An employee of an Alabama credit union allegedly posted on Facebook the names of a couple with a negative balance and uses the hashtags "perks of my new job" and "I know everyone's dirt." Firestorm ensues. Time for some social media training, anyone? [3/19/15]

According to Chip Filson of Callahan and Associates, the NCUA’s recently release 4^th quarter and year-end industry data clearly shows that there is no capital problem or shortfall among credit unions. Credit unions’ balance sheets and investment portfolios demonstrate they are well-positioned for any potential increase in rates. [3/18/15]

Updated information from NCUA shows the current estimated costs of the Corporate Resolution Program range from a negative $2.5 billion to a negative $700 million, meaning it’s very unlikely that credit unions will see any further assessments.  NCUA cites an improving economy and its diligence in recovering losses from faulty securities as major factors in the strong performance. The Stabilization Fund is scheduled to expire in six years. [3/18/16]

The FFIEC has announced that it is developing a cybersecurity self-assessment tool that will allow financial institutions to identify their cybersecurity risks and help them assess their ability to manage those risks.  The tool builds on the results of a pilot program conducted at 500 financial institutions and is scheduled to be released next year. [3/18/15]

In a comment letter to the CFPB, CUNA has asked that the Bureau consider additional regulatory relief from the TILA/RESPA mortgage servicing requirements in the form of adding exceptions to the 120-day delinquency rule, clarifying the process for force-placing insurance, raising the loan limit for “small institutions” from 5,000 to 10,000 loans, and expanding the scope of the successors in interest rule. [3/17/15]

Citing a need for more information about "consumer friendly” practices, NAFCU has filed a Freedom of Information Request to obtain the supporting documentation for the CFPB’s recent report on overdraft practices.  The CFPB’s report focused on findings of deceptive practices, but, according to NAFCU, credit unions want to know what practices the CFPB found to be beneficial to consumers. [3/17/15]

NCUA has received reports that an online phishing scam is using a website with  logo and design similar to NCUA’s website.  Consumers are receiving emails directing them to a site for the “National Credit Union” where they are asked to provide personal information or to transfer large amounts of money. [3/17/15]

The Temporary Corporate Credit Union Stabilization Fund received a clean audit report for 2014 from NCUA’s independent audit firm, KPMG, LLP.  This is the first year in which the fund had a positive net position. [3/17/15]

A Montana credit union recently discovered that the ISIS banner that suddenly appeared on its website was the result of hackers using a vulnerability in their use of the WordPress.  WordPress is a popular content management program on which more than 23% of the world’s websites are built. [3/17/15]