Compliance

WASHINGTON-This week will mark the deadline for compliance with the first-ever rules requiring that board members at federal credit unions demonstrate they are financially literate and can read a balance sheet.

ALEXANDRIA, Va.-The NCUA Board last Thursday proposed requiring that all CU Service Organizations-the credit union subsidiaries that provide everything from card processing to real estate brokerage services-file annual financial reports giving the federal regulator greater monitoring power over some 650 CUSOs.

SAN FRANCISCO-No credit union heads into an exam with enthusiasm, but one person is offering an eight-step process for making the process much easier.

SAN FRANCISCO-Michael E. James of Lending Insights also offered "Five Key Exposures Regulators Will Review."

SAN ANTONIO-Credit unions and their trade groups say their federal regulatory agency is over-reaching and "intruding."

A Small Credit Union Roundtable hosted by NAFCU was marked by pessimistic views regarding the "predatory" intentions of larger credit unions, the overwhelming burden of compliance and regulation, and a conviction most regulators would rather see small CUs merged out of existence than have to continue to examine them.

ALEXANDRIA, Va. - The NCUA Board has approved three new items, and is seeking comment on some of the proposals.

HOLLYWOOD, Calif.-The relationship between credit unions and NCUA examiners has become more strained than usual in the wake of a recession that has led to numerous CU failures and forced mergers.

"I am writing in response to your letter dated June 15, 2011, which makes the very unfortunate, and erroneous, inference that we requested that the agency 'conceal' legal or regulatory violations on the part of credit unions ..."

ALEXANDRIA, Va.-A call by NAFCU for NCUA to be more transparent about its fledgling consumer protection office has led to a "He said, she said" exchange between NAFCU President Fred Becker and NCUA Chairman Debbie Matz.

In a June 16 letter, NCUA Chairman Debbie Matz denied there has been any lack of transparency, writing, "In a series of communications since OCP was created in 2010, NCUA has featured articles addressing why the NCUA Board created OCP, its mission, and specific responsibilities being transferred to OCP.

SAN ANTONIO-Credit unions are being offered some advice and strategies for dealing with the next wave of regulations.

WASHINGTON-The Consumer Financial Protection Bureau released two prototypes for a single, streamlined mortgage disclosure form.

WASHINGTON-The Treasury Department has swapped the carrot for the stick for three of the largest participants in the administration's foreclosure prevention program.

WASHINGTON-With regulators struggling to decide which loans to excuse from risk-retention, Federal Deposit Insurance Corp. Chairman Sheila Bair said the best option would have been to shelve the exemption altogether.

WASHINGTON — CUNA last week sent a letter to NCUA saying the agency's final rule on incentive-based compensation arrangements should distinguish between credit unions that have not rewarded undue risk taking and those financial institutions that have.

ALEXANDRIA, Va.-Credit union executives are worried an accounting proposal by NCUA that would require credit unions deduct "bargain purchase gain" in mergers of troubled credit unions will have the opposite of its desired effect and, instead, discourage such credit union combinations.

WASHINGTON-Republican lawmakers increased their efforts last week to water-down the fledgling Consumer Financial Protection Bureau as they seek to block an expected Obama administration nomination of consumer advocate Elizabeth Warren to head the newly created agency.

A number of industry leaders did not discount the opinion shared by Mike Moebs, CEO and economist of Moebs $ervices, that credit unions will need to meet a higher capital minimum to be considered well-capitalized.

BIRMINGHAM, Ala.-Former NCUA Chairman Dennis Dollar sees little chance capital requirements for credit unions will increase.