Regulatory burden for credit unions has grown in recent years04/28/2016CUNA's regulatory burden study is noted in The Wall Street Journal Pro Financial Regulation section. Please note, a subscription is required to access content.
How NCUA can continue to address credit union concerns04/28/2016Jim Nussle offers advice to the NCUA board during this time of transition. Despite Chairman Debbie Matz stepping down and the impending nomination of board member J. Mark McWatters to the Ex-Im Bank, Nussle believes the agency can and should continue to address the following issues: examination consistency and relief, modernizations to field of membership rules, supplemental capital, and engage with the CFPB to ensure the Bureau's quest truly results in tangible consumer protection.
Report: credit unions paid $7.2 billion because of regulations04/27/2016CUNA's regulatory burden study finds substantial increases in costs associated to regulation. In 2014, America's credit unions lost $1.1 billion in revenue and paid $6.1 billion in regulatory costs, according to a study commissioned by the country's biggest trade group for credit unions. CUNA also introduced a “Regulatory Burden Calculator” for small institutions based on the report's findings.
Compliance for board members: useful need-to-knows04/26/2016It's difficult to keep up with the growing number of credit union compliance issues. That's why CUNA chief compliance officer Jared Ihrig is here to help. Ihrig highlights what credit unions should focus on when dealing with cybersecurity, the bank secrecy act, the flood disaster protection act, and risk areas. Ihrig also points to the numerous compliance training and information resources that are available through CUNA.
Regulators propose new rule on executive pay04/25/2016NCUA issued a revised rule on incentive-based compensation at last week's board meeting. The proposed rule would establish three-tiered systems for all covered financial institutions based on assets. Those with more than $250 billion in assets would be subject to the highest standards. Jim Nussle expressed his disappointment with the new rule by stating, “This is another one-size-fits-all rule from regulators. While the intent is to rein in the bad actors who brought upon the economic crisis, credit unions are yet again being saddled with regulatory burden.”
Financial Literacy04/22/2016Louisiana Credit Union League executive vice president of strategic services Cami Crouchet offers ways to improve financial literacy throughout the state. Crouchet recommends heading to www.aSmarterChoice.org to find your nearest credit union. Unlike banks, promoting financial literacy and member financial education is at the core of the credit union mission.
Credit unions want to be exempt from Consumer Financial Protection Bureau oversight04/22/2016CUNA president/CEO Jim Nussle sends a clear message to CFPB Director Richard Cordray - credit unions should be exempt from the bureau's regulations. "We believe we should be exempt from the CFPB and that we shouldn't have been part of (the agency) to begin with. We were not part of the problem in the financial crisis," explained Nussle. Since the crisis, regulatory costs have drastically risen for credit unions. Of the 86 credit unions in Colorado, regulatory costs have totaled $88.1 million, plus another $19.3 million in reduced revenue. That's an average of $1.25 million per credit union and $67 for the state's 1.6 million members.
Durbin Amendment offers no fairy tale ending for consumers04/18/2016Electronic Payments Coalition executive director Molly Wilkinson points out flaws that impact consumers in the Durbin Amendment. Created by Sen. Durbin (D-IL), the legislation was intended to pass along savings to consumers when price controls were enacted on debit card transactions. Instead, research from the Richmond Federal Reserve and Phoenix Marketing show only retailers have benefitted from this amendment. CUNA is a member of the EPC.
My voice: regulatory burdens impact South Dakotans04/18/2016Credit Union Association of the Dakotas president/CEO Jeff Olson describes the negative impact regulatory burden has on credit unions in the Dakotas. According to CUNA's regulatory burden study, costs have totaled $115 per year for more than 215,000 members in North Dakota and $81 per year for 258,000 South Dakota members. Until the CFPB uses its exemption authority, the “too small to succeed scenario” will continue to exist for America's credit unions and our 105 million members.
The big banks are more equal than others04/13/2016CUNA president/CEO Jim Nussle writes to The Wall Street Journal in response to observations by JPMorgan Chase's top exec about regulatory burden at large and small banks. Nussle asserted that “regulations brought about by actions of banks like Mr. Dimon's are absolutely affecting our ability to serve members and the communities in which we live and work, through no fault of our own.” According to CUNA's regulatory burden study, regulations have cost the credit union industry a total of $7.2 billion.
Types of institutions in the US banking system – credit unions04/08/2016To put it simply, credit unions are about their members, not about profits. CUNA is sourced in this article as defining credit unions as not-for-profit, member-owned financial cooperatives that are democratically run by members and operates to providing the best financial services to members. As cooperatives, credit unions participate in a collaborative nationwide network of offering over 30,000 surcharge free ATMs to their members.
Congress brings knife to CFPB gun fight04/07/2016CUNA expressed concern with CFPB's recent rule makings on the Home Mortgage Disclosure Act in a comment letter in advance of CFPB Director Richard Cordray's semiannual U.S. Senate Banking Committee hearing. CUNA explained how the rule will negatively impact credit unions and their members, and urges the CFPB to offer exemptions for credit unions in these reporting requirements.
The Lori Gall Show04/05/2016CUNA, the Pennsylvania Credit Union Association, and credit unions across the state are teaming up for a 'leave behind' project for Children's Hospital of Philadelphia. Building off their long time partnership with Children's Miracle Network Hospitals, credit unions have committed to a leave behind project, as an investment in the communities of the national conventions. PCUA president/CEO Patrick Conway commented that “this is an opportunity for credit unions in Philadelphia to build something really special for kids and their families to enjoy for years to come.”
Only half of credit unions in Northeast Ohio are recommended (chart)04/01/2016Ohio Credit Union League president/CEO Paul Mercer and CUNA chief policy officer Bill Hampel weigh in on the strength and soundness of credit unions in Northeast Ohio. Hampel said that if you looked at only the Northeast Ohio credit unions that are large enough to be rated or are NCUA-insured, then about 85 percent of that group have a four- or five-star rating, while Mercer pointed out the credit union difference. “The beauty of the member-owner model,” said Mercer, “is that if a member is curious about the financial well-being, they are empowered to inquire with the CEO or a volunteer board member at any time."
Editorial: Invasive government red tape choking institutions03/30/2016America's credit unions are struggling to meet the demands of the regulations imposed by the 2010 Dodd-Frank Act and Durbin Amendment. CUNA's recent regulatory burden study found that the combined effect of increased costs and reduced revenues due to regulation amounted to $51.6 million in total financial impact for credit unions in New Mexico.
Credit unions contest Dodd-Frank03/28/2016Credit Union Association of New Mexico president/CEO Paul Stull and U.S. Eagle FCU president/CEO Marsha Majors detail the costs associated with regulatory burden on the state's forty-six credit unions. CUNA's regulatory burden study found compliance costs associated with Dodd-Frank and Durbin Amendment have totaled $42.4 million and reduced revenue by $9.2 million for credit unions in New Mexico. New Mexico credit unions and their members have joined together to ask the Consumer Financial Protection Bureau to exempt credit unions from regulations intended to rein in big banks.
CORE FCU receives award for promoting youth financial literacy03/25/2016CUNA honored CORE Federal Credit Union as the 2016 Desjardins Award winner at the CUNA GAC in Washington, DC. This is the fifth consecutive year CORE FCU has received the award for promoting youth financial education. CORE FCU provides high school students the opportunity to learn about personal finance by working in a student branch.
Everything you need to know about switching to a credit union03/21/2016Dailyworth begs the questions - should you break up with your big bank? The answer is yes! Credit unions offer the same type of financial services but with lower fees and rates. They exist to serve their members by putting money back into the community, explained Michael Mattone, Municipal Credit Union assistant vice president of public relations and corporate communications. Mattone recommends visiting the site www.asmarterchoice.org to find a credit union nearest you.
Banks, credit unions unite in fight against FASB loan-loss rule03/21/2016CUNA unites with the Independent Community Bankers of America to fight off Financial Accounting Standards Board's proposed Current Expected Credit Loss model. The proposed rule would require lenders to recognize all potential loan losses at origination. CUNA and ICBA urge the FASB to “provide small banks and credit unions - a key change as well as a modification to the new rule.”
2016 CUNA GAC interviews: CUNA Marketing Council’s Andy Reed discusses complexities of today’s CU marketing03/13/2016CUNA Marketing and Business Development Council executive committee member and Texas People Federal Credit Union President/CEO Andy Reed explains the growing complexities of credit union marketing and promotes the council's upcoming annual meeting in Anaheim, Calif.