Links in “Credit Unions”

Former Mississippi State Senator Tommy Robertson served as board attorney for $195 million Singing River FCU. Now he’s accused of using that position to embezzle more than $484,000 from loan escrow proceeds. [1/27/15]

If you haven’t already incorporated electronic signatures into your array of services, you’re probably feeling the pressure to do so. However, before you start down this path, there are five factors you need to consider first. [1/27/15]

In a paper released yesterday, the Federal Reserve Board identified its strategies for balancing the changing technology landscape with the evolving data security threat. [1/27/15]

NAFCU staff have sharpened their pencils and have calculated that the real cost of the proposed two-tier risk-based capital proposal is $760 million more than the cost of a one-tier system. NAFCU states that the much lower costs quoted by NCUA do not take into consideration the capital cushion that most credit unions maintain in order avoid prompt and corrective action consequences. [1/26/15]

That’s according to a recent report issued by the Online Trust Alliance that looked at over 1,000 data breaches that occurred in the first half of 2014. The report, which states that only 40% of the breaches were the result of external intrusions, identifies 12 basic security measures that entities should take to protect their data. [1/26/15]

A group of financial trade associations have come together in a letter that urges Congress to enact legislation to establish national data security and consumer notification standards for merchants. The groups are also advocating that the cost of a breach be borne by the entity that incurred the breach. [1/26/15]

It looks like the CFPB is planning to come out with a proposed rule on overdraft protection by summer of this year. It is anticipated that the new rule may include an expansion of opt-out rights to overdrafts created by check and ACH transactions. [1/23/15]

CUNA and NCUA have both obtained legal opinions concerning NCUA’s authority under the Federal Credit Union Act to establish a tiered risk-based capital system. The problem is that the two opinions reach opposite conclusions. In addition, NCUA’s claim that the revised rule will only adversely affect 19 credit unions—versus the 199 credit unions adversely impacted by the original proposed rule—begs the question of whether a risk-based capital rule is really necessary. [1/23/15]

There is nothing new about the RESPA Section 8 prohibition against the payment of kickbacks for referrals of mortgage settlement services. However, if you factor in greed, you have the reason why these violations continue to occur. JPMorgan Chase and Wells Fargo will now be paying $35.7 million in penalties for a kickback scheme under which a title company paid loan officers cash and provided free marketing services in exchange for referrals. [1/23/15]

According to NCUA Chair Debbie Matz, credit volunteer directors are a credit union’s first line of defense against future losses. She added that boards assisted in navigating their credit unions through the recession, but now should be particularly concerned about interest rate risk, cybersecurity, and the importance of maintaining adequate capital. [1/23/15]