e-Weekly
September 30, 2009
Small Credit Union Conference in Newport, November 5-7
The third annual Small Credit Union Conference is being held this year in beautiful Newport, RI, November 5-7. Created by the Small Credit Union Task Force, this year’s program, “Sail into the Future,” has been designed to meet the needs that face management, staff and directors operating a small credit union in the current economic environment.
Speakers include Anthony LaCreta, regional director, National Credit Union Administration (NCUA) Region 1; Mike Hansen, president, Massachusetts Credit Union Share Insurance Corporation (MSIC); and Beverly Purtell, League vice president human resource management. Updates in the areas of regulation and the economy will be presented, as well as programs on succession planning and tips for educating boards of directors. Credit Union National Association (CUNA) representative, Courtney Cantwell, will present on training discounts available to small credit unions. Special keynote presentation, “FISH in the Workplace,” will be made by Harry Paul, co-author of FISH! A Remarkable Way to Boost Moral and Improve Results.
This conference is being hosted in collaboration with Fiserv/CUSA Product Line Users Group Meeting, which allows for a two or three day program with plenty of information and lots of ideas on how to address today's challenges. There will also be plenty of time to network. For more information, please click here.
NCUA approves 0.15% NCUSIF assessment
The National Credit Union Administration (NCUA) recently approved a 0.15% of insured shares assessment on federally insured credit unions. The action is intended to help the NCUA return the National Credit Union Share Insurance Fund's (NCUSIF) equity to 1.3% of June 30, 2009 shares and repay $310 million in funds the Stabilization fund has borrowed from the U.S. Treasury.
The assessment would also repay all interest accrued by the NCUSIF as of June 30, 2010. Assessments will be invoiced no later than mid-November of this year, and payments will be due by mid-December.
The NCUA did indicate that additional assessments could be imposed in 2010 or 2011. However, whether or not additional assessments would be charged is dependent on future economic conditions. NCUA Chairman Deborah Matz said that while the board cannot fully predict how much any future assessments, if necessary, would cost credit unions, she did say that the board would try to provide credit unions with a budgetary range for any future assessments at its upcoming October board meeting.
The NCUA did not alter the NCUSIF's operating level of 1.3%, but changes to that level could be proposed in the future. Agency staff indicated they are studying this issue and, if an increase is recommended, the agency would seek public comments on such a move. Opening her first meeting as NCUA Chairman, Matz spoke on her new role as leader of the credit union system, saying that her first priority as a regulator is to protect the deposits of all credit union members.
New bill would advance some CARD Act protections
Representatives Carolyn Maloney (D-NY) and Barney Frank (D-MA) have introduced legislation that would change the effective date of portions of the Credit Card Accountability, Responsibility and Disclosure (CARD) Act.
Aside from generally setting an earlier effective date for the CARD Act, H.R. 3639, the "Expedited CARD Reform for Consumers Act of 2009," would push forward the effective dates for CARD Act provisions addressing gift cards, reviews of past consumer interest rate increases, and requirements addressing the penalties and fees that can be assessed to credit accounts to December 1.
Commenting on the legislation, Maloney said that the "breadth and depth" of interest-rate hikes that credit card companies are imposing ahead of the full imposition of the CARD Act points to the need for "faster consumer protections."
Ryan Donovan, Credit Union National Association (CUNA) vice president of legislative affairs, said the outlook for the legislation is uncertain. "The legislation seeks to move a February effective date up to this December, which is only about 10 weeks from now. In order for the bill to become law in that timeframe, it would seem that the bill would need to move through the legislative process at incredible speed," he noted.
The legislation will not affect the 21-day rule on open-end credit that took effect in August, and CUNA continues to be in contact with the Federal Reserve, the National Credit Union Administration, and key members of Congress to resolve the compliance issues that continue to face credit unions.
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