The National Credit Union Administration (NCUA) will present its guidance on implementing its new corporate credit union stabilization plan in a webinar scheduled for June 24.  The webinar will follow the NCUA's June 18 board meeting, and will give participating credit unions an opportunity to have their questions answered directly by NCUA staff.

 

NCUA Chief Financial Officer Mary Ann Woodson has said that she would analyze the financial impact that the newly enacted provisions would have on the agency.  Once completed, the results of this analysis will be reported to the NCUA board, and will also be released to the public.

 

The corporate stabilization plan, which President Barack Obama signed into law as part of S. 896, increases NCUA's borrowing authority to $6 billion, with a possible further extension to $30 billion under exigent circumstances.  The stabilization plan will also allow credit unions to spread the cost of the National Credit Union Share Insurance Fund (NCUSIF) 1% deposit replenishment over seven years.  Credit unions will also be granted up to eight years to deal with the cost of a premium assessment that has resulted from losses at wholesale corporate credit unions.

 

Additionally, any impairment related to the NCUSIF replenishment may be booked over a seven-year period.

 

The NCUA has provided the Credit Union National Association (CUNA) with further information on estimated credit losses sustained due to WesCorp and U.S. Central's investments in mortgage-backed and asset-backed securities after CUNA submitted a request under the Freedom of Information Act.  CUNA is also filing a follow-up request that would seek more data on the losses.

 

 

For four days in June officials, executives, volunteers and staff members from all over the nation will be in Boston to learn, network and of course celebrate!

 

The Credit Union National Association’s annual America’s Credit Union Conference is in Boston in recognition of our region’s role in the history of the credit union movement. As a result, New Hampshire credit union executives and officials will have access to the over 30 different seminars and programs, numerous special events, and a tremendous exhibit hall that are part of this national event without having to set foot in an airport.

 

There are many ways to enjoy this event. Attendees can book into anyone of the three convention hotels and have easy access to the Hynes Convention Center, where the majority of the events will take place. Or if they prefer they can travel into the city from their homes and take advantage the entire event, the best of both worlds.

 

To learn more about America’s Credit Union Conference or to register please click here. (TO CUNA SITE) This site will provide information about the extensive program and hotel accommodations.

 

And because of a special arrangement made on behalf of New Hampshire Credit Union League member credit unions may register attendees for a single day at the convention if that is all that their schedule permits. This option may be particularly attractive for credit unions that wish to have their middle management staff take advantage of the terrific programs and networking opportunities. Look over the agenda to see which days hold the most appeal and then follow the directions listed below to get signed up!

 

To register for the Day-Hop for only $299 follow these instructions. Click here to go to the registration site then choose the $895 registration option and type the code of the day you want to attend in the box marked "Other": “MDAY” for Monday or “TDAY” for Tuesday.  If you encounter any difficulty, contact the ACUC staff at acuc@cuna.com or call 800-356-9655 Ext. 5700.

 

 

Recently enacted credit card laws overlap with the Federal Reserve's Regulation Z rules and the National Credit Union Administration's (NCUA) unfair and deceptive acts or practices rules (UDAP) that were issued last year.  The Credit Union National Association (CUNA) recommends that credit unions focus on the new law with regard to their efforts to be in compliance with Reg Z amendments and UDAP requirements.

 

Portions of the credit card law, which was signed by President Barack Obama in May, contain requirements that are similar to those set forth by Regulation Z.  Reg Z provides guidelines for the disclosure of the terms and cost of many types of consumer loans, and UDAP, which seeks to govern certain credit card and loan business practices.

 

However, the new law will also push many effective dates forward, with some provisions entering into force in 9 months and others becoming effective within 90 days.

 

Also, the requirements under the new law will be implemented under the Truth in Lending Act, and not under the UDAP statute. "Credit unions should focus now on complying with the new credit card law and follow these provisions to the extent that they differ from the rules that were issued last year, while also keeping in mind the new effective dates," CUNA Senior Assistant General Counsel Jeffrey Bloch has advised. He has noted that the Fed is expected to review and make changes to their new rules as part of the normal rulemaking process.  However, specific guidance is not expected before that time.

 

The Fed, the NCUA, and the Office of the Comptroller of the Currency are holding ongoing discussions on the status of the recent UDAP rules, which may include withdrawing the UDAP rules.  The UDAP rules, if they remain in place, would have to be reworked to ensure consistency with the new laws.  The agencies could work together or work separately to discuss any conflicts within the rules.

 

The Fed has said that they are receptive to any questions or comments that may arise and they will work with CUNA to resolve possible compliance issues for credit unions.

 

CUNA will hold an audio conference call on these issues on June 18.  CUNA is also working on resource materials comparing elements of Reg. Z and UDAP to the new credit card laws, and will present them shortly.

 

 

The New Hampshire Credit Union League was informed about a check signature issue that relates to instruments released by the New Hampshire Department of Employment Security (NHES). NHES contacted the League and requested assistance. The NHES released checks dated May 28^th and May 29^th that may appear fraudulent or invalid due to the placement of the signature of the Commissioner of NHES, Tara Reardon. The signature appears one inch above the signature line to the left of the numeric check amount.

 

Please be advised that these checks are properly payable and are valid. They may be negotiated by your credit union as presented. The drawer bank, Citizens Bank, has also been notified and has agreed to clear the checks upon presentment.

 

A copy of a letter from NHES explaining the issue and detailing the check numbers impacted was sent by e-mail to all New Hampshire credit unions by the League. A sample check was also attached for your review. Honoring the checks will place funds in the hands of the unemployed faster than if NHES has to void and reissue all the impacted checks. Your cooperation in cashing these instruments in a timely manner will also greatly reduce the administrative burden placed on NHES to reissue the checks in the event they are returned.

 

Thank you for your cooperation. Please contact Ruth A. Hobbs, Supervisor Wages Special Programs Unit, NHES, at 603-656-6607 if you have any questions or concerns.

 

 

Many credit unions are experiencing a real estate refinancing boom. With long-term mortgage interest rates under 5%, refinance originations will be high this year. There is also some speculation that the bottom in housing starts may be reached within the next few months. A good number of these loans will be sold into the secondary market.  Fannie Mae (FNMA) requires quality assurance reviews for a percentage of these loans.

 

Quality assurance reviews can be performed in-house, which adds the responsibility of the review to the job description of an employee who is also responsible for other duties. The exceptionally heavy refinancing volume may create a logistical nightmare due to the quality assurance review deadlines and the lost productivity of the employee’s other responsibilities.