Links in “Credit Unions”

The White House has announced the creation of a new federal agency, the Cyber Threat Intelligence Integration Center, which will analyze cybersecurity threats and coordinate strategies to address those threats. CUNA CEO Jim Nussle applauds the President’s actions, but points out that credit unions will need to be vigilant to ensure that the new agency’s strategies include a focus on national security standards that apply to both financial institutions and merchants. [2/12/15]

During a town hall meeting organized by NCUA, CFPB Director Richard Cordray admitted that there was disagreement within the agency about whether to amend certain TILA definitions to allow more small and rural lenders to make Qualified Mortgages without having to comply with certain requirements. Cordray also addressed the agency’s focus on disparate impact in auto dealer markups. [2/12/15]

When asked about whether the tax reform should include a measure to preserve the credit union tax exemption, Committee Chair Richard Shelby waffled. He pointed out that he was a member of a credit union, but seemed to imply that everyone should share in the pain caused by changes to tax exemptions. [2/12/15]

Illinois CU League President/CEO Sean Hession says that the league didn’t know that card issuer Continental Finance Company (which was issuing credit cards branded through Services CU, a privately-insured corporate credit union sponsored by the League) was engaged in illegal practices. Hession said the contract with Continental was negotiated in accordance with due diligence standards and that the relationship was established with the intent to provide credit card services to the underbanked and underserved. [2/12/15]

A bill has been introduced in the Senate that would allow financial institutions that do not share personal information with unaffiliated third parties to forego sending annual privacy notices unless there has been a change in policy. The credit union trade associations have argued that sending the annual notice only when changes have occurred will make the notices more meaningful to consumers. [2/11/15]

CNN reported yesterday that buying a home is easier if you’re white. According to a recent report by Zillow and the National Urban League, fewer minorities apply for conventional mortgages. But is this a factor of race or are the wide disparities in homeownership among different ethnic groups really a factor of economics? [2/11/15]

Larry Fazio, director of examination and insurance for NCUA, told the Senate Banking Committee yesterday that the agency is looking at raising the cap for the definition of a small credit union from $50 million to $100 million, which could allow up to 77% of credit unions future regulatory relief. Fazio also urged Congress to give NCUA broader examination and enforcement authority over third party vendors. [2/11/15]

At a town hall meeting with NCUA Chair Debbie Matz, CFPB Director Richard Cordray said that they are not planning to prohibit ODP fees as part of a proposed rule about overdraft protection practices. Cordray added they are still looking at the data and comments in order to determine where further restrictions may be needed in order to protect consumers. [2/11/15]

The CFPB recently issued a proposed rule that would, among other things, expand and modify the definition of a “small creditor.” See how these proposed changes might benefit your credit union. [2/10/15]

Alert employees at Widget Financial Credit Union in Erie, PA, are being credited by federal authorities with helping to break an extensive tax refund scam involving the use of 11,468 stolen identities used to open 3,493 accounts at 443 credit unions and banks. In all, authorities say that the 16 people indicted in the scam sought to obtain more than $38 million in fraudulent tax refunds. [2/10/15]