House Hearing Set On Regulatory Relief Legislation
WASHINGTON-CUNA and NAFCU have been invited to testify at an April 10 hearing by the House Financial Services Committee, which has begun preliminary work to draft a regulatory relief bill. NAFCU is expected to discuss a regulatory relief bill it is working to develop with lawmakers that would include the long-sought increase in the MBL cap and an allowance to raise supplementary capital.
The NAFCU bill would also give NCUA power to grant parity to federal charters on a broader state regulation; give NCUA authority to delay and/or refine CFPB regulations, provided the objectives of the CFPB regulations remain; modify the CLF by removing subscription requirement for membership and permanently removing the CLF borrowing cap; enact a risk-based capital system for credit unions; and waive nominal capital requirements for newly chartered credit unions.
Security Service FCU Case Has Ramifications For P&As
DENVER-In a case with ramifications for future purchase and assumption deals, a federal court here dismissed a suit by San Antonio-based Security Service FCU against First American Mortgage Funding over alleged fraudulent mortgages it made for New Horizons Community FCU. Horizons Community FCU was a Denver-based failure acquired by the Texas credit union giant as part of the "Millionaire University" scandal that claimed three separate CUs.
In dismissing the case, the judge ruled that a 2007 purchase and assumption deal Security Service signed with NCUA to acquire the one-time $300-million credit union did not give it the authority to pursue the failed CU's legal claims and that authority continues to reside with NCUA, which liquidated New Horizons Community.
The court's ruling has broad ramifications for other purchase and assumption deals, with which NCUA often induces healthy CUs to acquire failed credit unions by assigning the right for any subsequent legal claims to the acquiring credit union.
Call For Wegner Nominations
MADISON, Wis.-The National CU Foundation is calling for nominations for its Herb Wegner Memorial Awards. New to the awards process is criteria so that CU supporters who've made a significant impact locally can also be nominated. Nominations are being sought for the Individual Achievement Award, the Outstanding Organization/Program Award, and the Lifetime Achievement Award. Deadline for nominations is June 28.
For info: www.ncuf.coop.
FPDCU Converts To Private Insurance
FRESNO, Calif.-Fresno Police Department CU has become the first credit union this year to convert to private deposit insurance, provided by Ohio's ASI Inc. The $47-million credit union reported a $475,000 loss and net worth of 18% for 2012, after a $710,000 net for 2011. Fresno Police is the first conversion to private insurance since last April's switch of $62-million Commonwealth CU in Bourbonnais, Ill.
Judge Deals Defeat for Theft Victims
PORTLAND, Maine-A federal judge here dealt victims of a 2007 cards breach at Hannaford Bros. a major defeat when he refused to certify the group for class action status in their civil suit against the New England supermarket chain. The judge ruled the cardholders failed to prove the necessary requirements for a class and therefore must sue the company individually if they continue their claims. Millions of cardholders had their personal data stolen in the Hannaford Bros. breach.
Sweeps Offers Payments For A Year
COLLINSVILLE, Ill.-Scott CU is offering to pay for one lucky person's housing costs for 12 months as part of its "We'll Pay Your Mortgage or Rent for a Year!" sweepstakes. Participants can register through April 15 on local NewsChannel 5's Facebook page and can enter once a day. The monthly prize amount will be based on the winner's monthly, verified residential mortgage or rental lease payment obligation in effect as of April 14, 2013, capped at $2,000 per month.
MSUFCU Donates $1 Million
EAST LANSING, Mich.-Michigan State University FCU announced a $1-million gift to the Eli and Edythe Broad Art Museum for a new residency program that will bring internationally known artists to the East Lansing campus. The gift is the second $1-million charitable donation made by MSUFCU in 2013, following January's $1-million pledge to the MSU College of Music to establish a jazz artist-in-residence program.
