Compliance

BIRMINGHAM, Ala. – Alabama Telco CU is the latest credit union to move for dismissal of a new overdraft suit brought, claiming that neither law or its member agreements requires that debit transactions be processed in real-time.

SAN FRANCISCO – A federal court yesterday dismissed separate overdraft suits brought against SchoolsFirst FCU and Kern Schools FCU, two of the nine credit union challenged over their overdraft practices in recent months.

ALEXANDRIA, Va. – NCUA on Friday barred a 19-year-old teller who was convicted of stealing $10,000 in in member funds form Great Falls regional FCU in Lewiston, Me., from the credit union industry.

ALBANY, N.Y. – The state’s highest court will open its fall session today with lawyers for Hudson Valley FCU arguing that federally chartered credit unions should be exempt from the state’s mortgage recording tax, and the federal government defense of the credit union case could prove to be the deciding factor.

CEO of Total Community Credit Union Phillip Matous wants to make sure legislators in his state understand the real "weight" of the regulatory burden credit unions are bearing, so he sent them a 1,099 page document to make his point.

NEW ORLEANS – A serial plaintiff in ATM fee suits has filed 16 new actions over the past four weeks alleging credit unions and banks have violated provisions of the Electronic Funds Transfer Act, just as Congress is closing in on legislation that would make those suits impossible.

MONTPELIER, Vt. – A formal hearing is now scheduled for Oct. 24 between Vermont State Employees CU and the state’s Department of Financial Regulation over the use of the words “bank” and “banking” by the credit union.

ARLINGTON, Va. – The relationship between many CUs and their examiners remains strained, according to a recent NAFCU survey of its membership.

MADISON, Wis. – Credit unions have struggled in their attempts to comply with regulations regarding multi-featured open-end lending the last two years, and one compliance expert believes CUs will have to opt for closed-end lending in most cases.

MONTPELIER, Vt. – A pre-conference hearing is scheduled for today in the legal battle between Vermont State Employees CU and the state’s Department of Financial Regulation over the use of the words “bank” and “banking.”

BIRMINGHAM, Ala. – As the CFPB focuses on overdrafts, former NCUA Chairman Dennis Dollar is hoping the agency does not send the credit union business model back in time.

CHARLESTON, W.Va. – Peoples FCU CEO Tom Brewer on Monday told a congressional panel the growing number of regulations – especially the torrent of rules that continue to result from the Dodd-Frank Act – are burying credit unions under a massive compliance burden that is particularly damaging to smaller credit unions.

The banking lobby remains irate over NCUA's announcement that 1,000 credit unions are immediately eligible for low-income status and thus exempt from the congressionally mandated cap on member business loans.

WASHINGTON – Credit unions are raising concerns over a whirlwind of mortgage regulations that have come out of the Consumer Financial Protection Bureau, which has produced nearly 3,000 pages of proposed new rules in the past six weeks alone.

WASHINGTON – Six federal financial regulators – including NCUA – have issued a proposed rule creating new appraisal requirements for “higher-risk mortgage loans.”

MADISON, Wis. – The World Council of Credit Unions said its analysis has found credit union shares, which are perpetual, nonwithdrawable and available to cover institutional losses, can be considered “common equity” regulatory capital under guidelines offered by the Basel Committee on Banking Supervision’s Basel III document.

WASHINGTON – CUNA said it is pressing the Consumer Financial Protection Bureau to clarify its recent rule on remittances that exempts institutions with 100 or fewer remittance transactions per year from the regulation.

WASHINGTON – The Consumer Financial Protection Bureau has issued a proposal that would require mortgage servicers to provide clear monthly statements, earlier disclosures for interest rate adjustments, and options to help borrowers avoid foreclosures and costly force-placed insurance.

CUNA has made 17 recommendations to NCUA as part of the agencies 2012 Regulatory Review.

The trade group representing state regulators is urging NCUA to make some changes as part of the agency's annual Rule Review.