Federation To Raise $25M For Capital Program
HONOLULU-The National Federation of Community Development Credit Unions (NFCDCU) last week announced plans to raise an additional $25 million for its capitalization program, which would bring the total funds available to $55 million if it meets the goal. The Federation hopes to raise the money over the next two years, and has already $6 million toward the goal following several grants from sources such as the Ford Foundation and TD Bank.
The money will go toward local credit unions and can be used for a number of initiatives, including as non-member deposits, secondary capital, for the CDCU Mortgage Center and more. NFCDCU Executive Director Cliff Rosenthal said $500,000 will be used to assist low-income individuals who have disabilities that can be at least partially alleviated through technology and other assistance. Rosenthal spoke with the Credit Union Journal during NAFCU's annual meeting, at which NFCDCU also unveiled a new blue-and-green logo that employs a stylized bridge, and a program called CU Breakthrough, aimed at leveraging the expertise and experience of credit unions with a history serving low-income communities by sharing that expertise with credit unions that have expanded to such FOMs.
Regulators Issue New BSA/AML Guidance
WASHINGTON-Federal agencies charged with regulating the banking and credit union industries released a joint statement regarding Bank Secrecy Act and Anti Money Laundering efforts last Thursday.
A release said the purpose of the Interagency Statement on Enforcement of Bank Secrecy Act/Anti-Money Laundering Requirements is to "provide greater consistency among the agencies in enforcement decisions in BSA matters and to offer insight into the considerations that form the basis of those decisions."
The statement is intended to make clear that agencies "may take formal or informal enforcement actions to address other concerns related to BSA or anti-money laundering, depending on the facts."
The statement said that the appropriate agency will issue a cease and desist order against a financial institution in case of a "failure to establish and maintain a reasonably designed BSA Compliance Program" or a "failure to correct a previously reported problem with the BSA Compliance Program."
The joint statement also reiterated the government's position that suspicious activity reports (SAR) and their proper record keeping form the "cornerstone" of the BSA reporting system.
House Panel Slates HMDA Hearing
WASHINGTON-The House Financial Services Committee will hold a hearing on the Home Mortgage Disclosure Act July 25. Mortgages and housing, in light of ongoing softening of the real estate market combined with a bevy of adjustable rate mortgages shifting up to higher rates, have been hot issues on Capitol Hill, where the same committee is holding a hearing today on The National Affordable Housing Trust Fund Act.
Fed Reports On Monetary Policy
WASHINGTON-Federal Reserve Chairman Ben Bernanke, in his semi-annual Monetary Policy Report to Congress, discussed some of the ways the Fed intends to tackle several economic issues, including housing and mortgage lending issues and inflation.
In addition to looking at increased disclosures as part of the Truth In Lending Act, Bernanke said the Fed is working with the Office of Thrift Supervision, the Federal trade Commission, state regulators and others As a result of that review and following discussions with the Office of Thrift Supervision, the Federal Trade Commission, and state regulators and others to launch a cooperative pilot project aimed at expanding consumer protection compliance reviews at selected non-depository lenders with subprime mortgage operations.
The reviews are slated to begin in the fourth quarter of this year. Bernanke testified before the House Financial Services Committee last Wednesday and to the Senate Banking Committee last Thursday.
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