Lending club and smaller banks in unlikely partnership06/23/2015Partnering with a Lending Club can be an attractive concept for community banks since they can leverage the Lending Club’s relationships to broaden its reach when it comes to pitching consumer loans. While more than 200 community banks have partnered with Lending Clubs, there are risks associated. According to Mike Schenk, vice president of economics and statistics at the Credit Union National Association, “Cooperation is good but it depends on who you cooperate with” indicating that such pairing it isn’t a magic bullet.
Defund HUD’s enforcement of ‘disparate impact’ rule06/22/2015Senate Democrats aim to block a bill that would prohibit funding for a new HUD rule that would create unfair and costly discrimination liability for home lenders. CUNA sent a letter of support to Congress backing the ban on HUD funding. “Our member companies use facially neutral standards in mortgage underwriting and resident screening because they are nondiscriminatory,” explained CUNA.
Despite delay, TRID continues to bedevil industry06/22/2015TRID has proven to be problematic, and the latest issue with the rule has been found by CUNA. “At its core, this is an issue of transparency,” said Jim Nussle, president and CEO of CUNA. “The CFPB made a change to the Small Entity Compliance Guide that will affect over 700 credit unions and numerous other financial institutions but did not highlight, publicize, or explain this change. Although listed as a ‘miscellaneous administrative change’ by the Bureau, the new rule is a substantial change that may deal a striking blow to anyone making five or fewer mortgages in a calendar year. CUNA urges the CFPB to address our concerns and confirm that creditors making five or fewer mortgages per year, as outlined in the rule’s supplementary information and the September 2014 Small Entity Compliance Guide, are exempt from the TILA-RESPA rule.”
CUNA discovers discrepancy in CFPB’s TRID rule, seeks answers06/19/2015CUNA uncovered a discrepancy in CFPB’s TILA-RESPA Small Entity Compliance Guide on compliance for credit unions that make five or fewer mortgages in a calendar year. “The CFPB made a change to the Small Entity Compliance Guide that will affect over 700 credit unions and numerous other financial institutions but did not highlight, publicize, or explain this change” explains CUNA president/CEO Jim Nussle.
3 potential benefits of getting small-business loans from a credit union06/18/2015Credit unions continue to thrive in member
business loans (MBL) while banks decline. Since the start of the recession,
credit unions have experienced three years of double-digit growth in MBL.
According to Mike Schenk, CUNA vice president of economics and statistics, “That’s a clear indication that credit
unions are, from an underwriting perspective, more flexible, fully engaged in
the market and willing and able to lend money to small business.”
Congress must act against cyber crime06/15/2015Last year alone, more than 12.7 million Americans
experienced identity fraud which amounted to $16 billion in losses.
Approximately two-thirds of all cyber crimes were the result of a data
breach. Senators Roy Blunt and Tom Carper along with House Representatives
Randy Neugebauer and John Carney have proposed legislation to better protect
consumers against hacking and identity fraud by ensuring a secure point of
transaction every step of the way.
How credit-builder loans help rebuild or establish credit06/15/2015Credit union members with low credit scores
should consider the advantages of a credit-builder loan where they are
available. Compare your options when searching for the best loan and always
make payments on time. One of many objectives, according to Michelle
Dosher, CUNA managing editor, is to enable members in this financial
situation "to have a relationship with the credit union and eventually
qualify for a mortgage or an auto loan” – the credit union difference.
Credit unions and the Data Security Act of 201506/11/2015Credit union members receive emails
regarding recent data breaches and explains the costs associated to consumers,
credit unions, and retail merchants. The messages urge members to take action
and tell their representatives to support, the Data Security Act of 2015, a new
data security bill to better protect consumers.
How a credit union save you money06/10/2015Credit
unions save members money because of their not-for-profit co-operative nature.
Credit unions report to members, which means they share their earnings with
them via surcharge-free ATMs, better loan rates, lower fees, etc. Furthermore,
credit unions offer their members dividends into the financial institution.
CUNA estimates credit union members save an average of $72 a year compared to
Retailers need real data security to combat wave of cyberattacks06/08/2015Retailers need to be held at the
same level of responsibility as those who issue cards to consumers when it
comes to data breaches. This is what exactly what Reps. Randy Neugebauer and
John Carney propose in the Data Security Act of 2015. CUNA president and CEO
Jim Nussle voices his support explaining that "with data breaches
continuing to happen left and right, we need a bill that would establish a
national data security standard."
Fed: April credit card balances shoot up06/05/2015According to the Federal Reserve,
credit card balances rose to nearly $9 billion in April and the consumer debt
increased to nearly $3.38 trillion, represented of short-term credit
obligations. This is good news for the future of the credit industry, according
to CUNA vice president of economics and statistics, Mike Schenk. "If you
look back historically, you not only see solid gains but you see an increase in
consumer credit accumulation. It's a pretty consistent picture of the sector
gaining momentum over time."
Jobs report: U.S. added 280,000 jobs in May as unemployment rate ticked up to 5.5%06/05/2015The Bureau of Labor Statistic
reports a better than anticipated projection into the number of jobs added –
280,000 more. Despite the positive outlook, new graduates need higher paying
wages in order to help alleviate student debt, according to CUNA senior
economist Perc Pineda. "We have added 3 million Americans into the labor
market but most are burdened with student debt," added Pineda.
Industry welcomes TRID grace period but congress say it's not enough06/03/2015The Consumer Financial Protection
Bureau announced a grace period for the TILA-RESPA Integrated Disclosure
requirements, beginning August 1. "I thank CFPB Director Cordray for
listening to the requests of CUNA, Congress and others in our call for a safe
harbor period through the end of the year for the enforcement of the TRID
rule," said CUNA president and CEO Jim Nussle. This grace period will
allow credit unions more time to prepare, without any distractions from
CFPB announces 'good faith' grace period for TRID rule compliance06/03/2015CUNA president/CEO Jim Nussle
praises CFPB Director, Richard Cordray, for allowing a grace period with the
TRID requirements set to go into effect Aug. 1. This grace period will help
decrease the chances of these requirements negatively impacting consumers.
"Now credit unions will be allowed the time they need to figure out the
day-to-day aspects of complying with the rule," explained Nussle.
There's no question: credit unions are right for Iowa06/02/2015As a former member of Congress for
Iowa, CUNA president and CEO Jim Nussle knows that credit unions work and
benefit Iowans. Nussle rebuts bank attacks on the credit union tax status and
states that benefits to all – members and nonmembers alike.
What 14% unemployment means for the class for 201505/21/2015While unemployment numbers are at
their lowest point since 2008, young Americans still don't necessarily like
their odds for getting ahead. CUNA's VP of economics and statistics, Mike
Schenk, offers a solution to prospective students - start saving early.
"From a savings perspective, one of the most powerful financial decisions
younger people make is when to contribute to a retirement plan and how much to
contribute," says Schenk. "The sooner you can contribute and the more
you can contribute, the better off you are."
Credit Union difference blindsides bankers05/21/2015CUNA's Jim Nussle responds to ABA's
recent attack on credit unions. "The fact of the matter is Congress
provided credit unions a federal tax-exemption because of their not-for-profit,
member-owned cooperative structure" explains Nussle. The credit union structure
benefits everyone especially to those with a low to moderate income.
Don't punish credit unions for big banks' sins05/11/2015Credit unions need regulatory
relief. CUNA's Jim Nussle says that for far too long, credit unions have been
caught in the mix as regulators target the predatory and profit-driven
practices of Wall Street's mega-banks following the financial crisis.
Best benefit ever: Economic updates for credit union experts05/05/2015Members of the Credit Union National
Association can stay up to date on the economic issues affecting credit unions
with CUNA's new monthly
Economic Update videos. Economics is a vast, complicated field, and
not all of the developments within it trickle down to everyone in the credit
union industry. But with the Economic
Update videos, CUNA members can get the latest news that's most
pertinent to them in a quick, digestible format.
Taking Stock05/04/2015Jim Nussle discussed the economy and
what needs to be done to raise the cap on member business lending. He explained
that credit unions are ready to do more to help small businesses by responsibly
moving more capital into local communities.