Links in “Credit Unions”

Experts are saying that 2015 could be the “perfect storm” of robust investment in financial technology, a wave of innovation, and competition from non-traditional financial companies. What does this mean for your credit union? [1/29/15]

While the proposed changes to the mortgage rules just issued by the CFPB will benefit many credit unions, both NAFCU and CUNA still have concerns that the proposed rule does not go far enough. On the plus side, the small lender exemption limit from ATR/QM requirements could increase from 500 mortgage loan originations per year to 2,000 per year. However, since credit unions didn’t cause the mortgage abuse that led to stricter regulation, the trades continue to argue that all credit unions should be exempt. [1/30/15]

Federal and state regulators have jointly issued guidance for private student lenders concerning loans with graduated payment terms at origination. The guidance addresses the need for prudent underwriting and clear disclosures that ensure that students understand the timing of new payments and avoid payment shock. [1/30/15]

At yesterday’s hearing, witnesses not representing financial institutions told members of the Senate Homeland Security Committee that new legislations should not include a strict timeline for data breach notifications and should instead use a “reasonable man” standard. They recommended that the triggering event be limited to situations where data is actually stolen and not just events where a system has been infiltrated. [1/29/15]

CUNA has asked NCUA to clarify whether the recently signed bill that expanded share insurance coverage to IOLTA accounts at credit unions would also cover other types of escrow accounts, such as prepaid funeral expenses accounts and realtor escrow accounts. In addition, CUNA has asked for guidance on other issues related to IOLTA accounts, such as recordkeeping requirements and BSA implications. [1/29/15]

Citibank has now joined Capital One Bank in reevaluating how they use ChexSystems in the denial of checking account services. Citibank announced that it will continue to use ChexSystems for anti-fraud purposes, but will stop rejecting applicants for account abuse purposes if the applicant has only minor issues noted on his/her report. [1/29/15]

The error tolerances for the new Loan Estimate disclosure that goes into effect on August 1^st are not the same as the error tolerances for the current Good Faith Estimate. NAFCU’s blog unravels the mystery surrounding these difference and provides a handy reference chart. [1/28/15]

During a hearing before the House subcommittee on commerce, manufacturing, and trade, committee members unanimously affirmed the need for legislation to set a federal standard for data protection and customer notification. [1/28/15]

Wendy Wall, former CEO of the now defunct Pepsi Cola FCU, has been sentenced to 21 months in federal prison and ordered to pay restitution to NCUA in the amount of $480,273. Wall was found guilty of embezzling money through a fraudulent loan scheme. [1/28/15]

Last year a bill to ease the annual privacy notice requirement passed the House, but failed to be introduced in the Senate. It is anticipated that the bill will be re-introduced today to restart the process. [1/28/15]