e-Weekly
January 14, 2009
WMUR to Air PSAs on Availability of Auto Financing
WMUR-TV, working in conjunction with the New Hampshire Automobile Dealers Association, New Hampshire Credit Union League and New Hampshire Bankers Association, will produce and air public service announcements that are designed to inform consumers that the highly publicized credit crunch is not going to prevent them from getting an affordable loan to buy a vehicle.
The 30-second spot will feature representatives from each of the groups who will tell the consumer that it is a great time to get a deal on a new vehicle and that they can also get a good deal on financing. The PSAs will begin airing on WMUR shortly afterward
IRA Distribution Rules Modified for 2009
On December 18, President George W. Bush signed into law a broad pension relief bill that includes a one year moratorium on required minimum distribution (RMD) rules for Individual Retirement Accounts (IRAs). IRA participants who are over 70 ½ and must withdraw a portion of their account each year have received a waiver for the required amount for tax year 2009.
Account holders have until April 15, 2009 to complete their mandatory withdrawal for 2008 which must still be completed and many institutions schedule distributions at this time. Again, this waiver is for the 2009 tax year and will affect members who delay their distribution for as long as possible in early 2010.
If the credit union communicates to a member the amount of the 2009 RMD, it must show “0” or show the regularly calculated amount with an explanation of the waiver option. Remember to always have your IRA participants consult a tax preparation expert for advice. If you have already issued a notice to your IRA owners including the 2009 RMD amount, you have until March 31, 2009 to notify these members of the change.
The link to the IRA notice is here... IRS Notice 2009-09.
NCUA Launches Enhanced Supervisory Effort
The National Credit Union Administration (NCUA) activated its National Examination Team (NET), an effort meant to respond to current market difficulties facing credit unions. The NET was announced in October as part of the NCUA's budget process and is in response to difficulties caused by declining home values, high mortgage delinquency rates, high foreclosure rates, high unemployment rates, and concentrations of real estate loans that have affected credit unions to varying degrees. The agency has also indicated it will utilize a 12-month exam schedule for federal credit unions, beginning this year, and encourage state regulators to follow suit.
The NET is comprised of a director, five problem case officers and the equivalent of one loss-risk analysis officer. In addition, regional subject matter examiners will be detailed to NET on an as needed basis. The team will supervise assigned credit unions until problems are resolved, either returning the credit union to regional supervision or activating merger, conservatorship or closure, according to the NCUA announcement. Additionally, the agency said, the NET will be responsible for examining and supervising approximately ten credit unions, mainly large and more complex institutions.
A side benefit of the program, though not unintended, is that the NET also represents an opportunity to expose NCUA examiners to a broad range of credit unions and varying levels of risk, thereby augmenting the NCUA's succession planning objectives.
NCUA Chairman Michael Fryzel, in launching the new trouble-shooting team, said, "The knowledge, skill, and experience of NET members will enable them to quickly identify complex problems, recommend appropriate corrective actions and thereby improve the overall quality of NCUA supervision during a very volatile period for all financial institutions, including credit unions. The NET is a logical and essential component of our overall NCUA's focus on strong and proactive regulation, and the priority we place on safety and soundness."
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