Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

Washington Archive

Washington

CUNA analyzes Fed check-processing consolidation

 Permanent link
WASHINGTON (1/11/10)--The Credit Union National Association (CUNA) has analyzed the Federal Reserve’s consolidation of its check processing operations in a Jan. 6 Final Rule Analysis. The Federal Reserve Board late last year approved amendments to Appendix A of Regulation CC regarding check processing operations, and under those amendments, the Federal Reserve Bank of Atlanta on Feb. 27 will transfer its check-processing operation to the Federal Reserve Bank of Cleveland. The Fed has been restructuring its check processing operations for the past several years, transferring operations from Reserve Banks in the various regions across the country to the Cleveland Reserve Bank, and this latest change will create a single check-processing region for Regulation CC. All checks will be considered local once this change is made. However, credit unions that are located in Alaska and Hawaii will be granted an extended hold period of one day for checks drawn on or payable at out-of-state financial institutions under the amended rule. CUNA has contacted the Fed regarding the consolidation of check-processing operations, and has suggested that the Fed take further action to address Regulation CC “to clarify several issues of concern.” For the full final rule analysis, use the resource link.

Inside Washington (01/08/2010)

 Permanent link
* WASHINGTON (1/11/10)--Advice the government gave to American International Group (AIG) regarding its bailout is being scrutinized by lawyers and policymakers (The New York Times Jan. 8). They question whether the information needed to be disclosed under federal law. Joel Seligman, Securities and Exchange Commission historian, said companies are supposed to disclose all information, but the term is not clearly defined. But, when an organization is troubled, disclosures are more important, observers said. However, others say regulators keep their discussions with struggling institutions private to prevent bank runs. The latest concerns arose after Rep. Darrel Issa (R-Calif.) obtained e-mails from AIG and Timothy Geithner when he was with the Federal Reserve Bank of New York. Geithner is now Treasury secretary ... * WASHINGTON (1/11/10)--The Federal Housing Finance Agency (FHFA) has issued a notice in the Federal Register of proposed rulemaking on Minority and Women Inclusion that implements Section 1116 of the Housing and Economic Recovery Act of 2008. The rule requires Fannie Mae, Freddie Mac, Federal Home Loan Banks and the Federal Home Loan Bank System’s Office of Finance to maintain a diversity program. The rule also would require each entity to report demographic data on diversity in employment and contracting ...

NCUA announces agenda for Dallas town hall meet

 Permanent link
ALEXANDRIA, Va. (1/11/10)--The National Credit Union Administration (NCUA) has announced the agenda for the first of its planned 2010 town hall meetings. The meeting, which will take place in Dallas, Texas on Jan. 22, will include a lengthy question and answer session with NCUA representatives. The meeting will also feature opening and closing remarks from NCUA Chairman Deborah Matz. Background information on the corporate credit union situation and the recently proposed corporate and field of membership rules will also be discussed at the meeting. NCUA staff, including Deputy Executive Director Larry Fazio and NCUA General Counsel Bob Fenner, will also speak during the meeting. NCUA board member Michael Fryzel will also be in attendance. The NCUA will hold a second town hall meeting on Thursday, Feb. 4, in Orlando, Fla. To register for the NCUA town hall meetings, use the resource link.

Fannie Freddie made 405K HAMP mods through Nov.

 Permanent link
WASHINGTON (1/11/10)--The Federal Housing Finance Agency (FHFA) on Friday reported that Fannie Mae and Freddie Mac refinanced four million loans and performed more than 405,000 trial and permanent loan modifications under the administration’s Home Affordable Modification Program (HAMP) as of November. The FHFA’s Foreclosure Prevention & Refinance Report also reported a 15% drop in foreclosure starts on enterprise loans, with a 14% increase in loan modifications related to enterprise loans, excluding HAMP trial loan modifications. Fannie and Freddie “completed 105,500 foreclosure prevention workouts” during the third quarter of 2009, a 22% increase over the amount completed during the previous quarter, and entered into 278,100 trial modifications under HAMP, a 320% increase over the total recorded during the second quarter of 2009. HAMP trial modifications, which “have become the primary modification type” used by Fannie and Freddie, “provide immediate payment relief to borrowers,” the release said. Additionally, “nearly half of loan modifications completed in the third quarter, excluding HAMP trial modifications, resulted in borrowers’ payments decreasing by over 20%,” according to the report. The FHFA reported a 39% increase in short sales and deeds in lieu during the recently completed quarter, with loans that were more than 60 days behind in their payments also increasing by nearly 20%. For the full FHFA report, use the resource link.

Kern Central is 2010s first failed CU

 Permanent link
ALEXANDRIA, Va. (1/11/10)--Kern Central CU of Bakersfield, Calif., became the first failed credit union of the new decade after the National Credit Union Administration (NCUA) on Friday announced that Durham, N.C.-based Self-Help FCU would assume Kern Central’s assets and liabilities. Kern Central’s 8,400 members, who had a total of $34.9 million in assets in the credit union, will “experience no interruption of credit union service” as their memberships are transferred to Self Help. Self Help currently holds $75.2 million in assets from 15,000 members and will operate Kern Central’s three branch locations. Self Help currently has six branch offices in California and also serves members through 5,500 shared branching sites throughout the country. The NCUA liquidated a total of 15 credit unions during 2009.