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NCUA: TCCUSF Estimates Down $2.3B

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WASHINGTON (11/25/13)--The upper end of remaining Temporary Corporate Credit Union Stabilization Fund assessment estimates declined by $2.3 billion between December 2012 and July 2013, thanks to a $1.6 billion decrease in expected costs and a $700 million assessment that was collected in October 2013, the National Credit Union Administration announced Friday.

"A great deal of disciplined work and careful planning has kept the Corporate Resolution on-track, and the new estimates are very good news," NCUA Chairman Debbie Matz said. "Our continued recoveries from Wall Street firms responsible for the corporate crisis, now totaling more than $1.75 billion, an improving economy and NCUA's continuing efforts to effectively manage losses are helping reduce future credit union assessments."

The estimates do not include funds from a $1.4 billion settlement that was reached with JP Morgan last week. (See Nov. 20 News Now: NCUA Receives $1.4B In JP Morgan Settlement.)

The agency reported that total future remaining TCCUSF assessments will likely be no higher than $1.6 billion. At the end of 2012, the projected range was $1.6 billion to $3.9 billion, the agency said. There will be no TCCUSF assessment in 2014, and Credit Union National Association Chief Economist Bill Hampel discussed what this news means for credit unions last week. (See Nov. 22 News Now: Inside Exchange Breaks Down NCUA Assessment News.)

"Factoring in both these latest reductions in loss estimates with an estimate of the net proceeds of the JP Morgan settlement, the current assessment range is now between minus $1 billion and plus half a billion dollars." Hampel said. A negative assessment implies a future rebate, he noted. "That means credit unions are more likely to see rebates than more assessment in the future, although the rebates will likely only occur several years in the future," Hampel said.

"The narrower range of projected remaining assessments reflects the actual performance of the failed corporate credit unions' legacy assets to date and NCUA's updated evaluation of the macroeconomic factors used in projecting the future performance of [NCUA Guaranteed Notes]," the agency said.

The NCUA noted that credit unions have paid $4.8 billion in assessments since 2009. "Although the Stabilization Fund will expire in 2021, assessments may end sooner," the agency said in a release.

The range of remaining assessments could be influenced by:
  • Changes in housing prices;
  • Interest rate changes;
  • Unemployment rate variations; and
  • Mortgage prepayments.
For more, use the resource link.

Vet, Servicemember Protections Highlighted In NCUA Video

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ALEXANDRIA, Va. (11/25/13)--The many protections provided by the Servicemembers Civil Relief Act and the Military Lending Act are detailed in a new National Credit Union Administration video.

"Our servicemembers, veterans and their families have made sacrifices for their country, and yet unscrupulous lenders lure them into a cycle of financial chaos," NCUA Chairman Debbie Matz said. "The latest Consumer Protection Update reaffirms NCUA's commitment to ensuring that our nation's servicemembers are educated about their rights and won't have to worry about their finances while defending our nation."

Campaigns such as Military Saves Week and Military Consumer Protection Day are also highlighted in the video.

"Credit unions provide low-cost financial products and services to the military and defense communities worldwide. I encourage all credit unions to share this new video with their members and make sure that those who protect our country are themselves protected from usurious loans and predatory lenders," Matz added.

The video encourages credit unions to take part in the 2014 America Saves campaign and the 2014 Military Saving campaign. The NCUA also highlights servicemember financial resources on its MyCreditUnion.gov and Pocket Cents web sites.

Cheney Report Updates CUs On National, Local Tax Fights

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WASHINGTON (11/25/13)--In this week's edition of The Cheney Report, Credit Union National Association President/CEO Bill Cheney updates credit unions on the status of national tax talk, and details what South Dakota credit unions are doing to repel tax attacks on a local level.

Credit unions were neither the subject--nor were they mentioned--in the first tax reform discussion draft released last week by Sen. Max Baucus (D-Mont.), chairman of the tax-writing Senate Finance Committee. However, Cheney wrote, "we do expect the momentum to pick up in the first part of the New Year." House Ways and Means Chairman Dave Camp (R-Mich.) has said an early 2014 markup of tax legislation is likely. "In the meantime, it's vital that we continue to loudly urge lawmakers 'Don't Tax My Credit Union,' as the content of these early legislative drafts--especially maintaining our tax exemption within them--remains crucial," Cheney added.

One group taking up the 'Don't Tax My Credit Union' fight on a local level is the Credit Union Association of the Dakotas, who, alongside credit unions from that state, has challenged efforts by South Dakota banks to attack the credit union tax exemption at the county level.

Bankers in the state are bringing "tax equity resolutions" for consideration by local county commissions, which call for county support of repeal of the exemption. However, Cheney mentioned, the credit unions are fighting back. One resolution which banks brought before a county commission was tabled, indefinitely, by a vote of 4-0, Cheney reported. "But the bankers are still at it--and we're working with the CUAD to help them in every way we can to push back this latest scheme by bankers to attack our tax status," he wrote.

This week's Cheney Report also includes:
  • Information on how United Educators CU, Apple Valley, Minn., has worked with the Minnesota Department of Commerce to create a program to help parents educate their children about managing their finances;
  • Results from last week's National Credit Union Administration board meeting; and
  • Details on CUNA's regulatory relief letter to the NCUA.
Use the resource link to read the latest in The Cheney Report.

CFA/CUNA To Present 2013 Holiday Spending Survey Wednesday

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WASHINGTON (11/25/13)--For the 14th consecutive year, news media from across the nation will be tuning in Wednesday as the Consumer Federation of America (CFA) and the Credit Union National Association release their latest consumer holiday spending survey.

CUNA Chief Economist Bill Hampel and CFA Executive Director Stephen Brobeck are scheduled to present the findings of the survey, which provides a glimpse into consumer holiday spending plans. Holiday debt concerns and general attitudes about the economy are also addressed by the survey.

CUNA and the CFA also will present tips for managing holiday spending, including low-cost and free ways for families to celebrate the holiday.

The survey is released just ahead of Black Friday and the traditional start of the holiday shopping season.

The release of the survey typically garners heavy media attention from local, national and international news outlets, including ABC News, CNN, National Public Radio, Xinhua, FOX News, Reuters and Business News Americas.

NCUA Sets Dec. 17 Succession Planning Webinar

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ALEXANDRIA, Va. (11/25/13)--Establishing effective succession plans for credit union management and other leadership positions will be the topic of a free Dec. 17 National Credit Union Administration webinar.

The webinar, entitled "Succession Planning," is scheduled to begin at 2 p.m. (ET). The NCUA's Office of Small Credit Union Initiatives will host the webinar. OSCUI Economic Development Specialist John Dock, Holly Herman, a management consultant with the firm Achieving Skills, and Julie Kappenman, Director of Association Compliance Services at the Mountain West Credit Union Association, will present the webinar.

Succession planning processes for emergency CEO succession and the advancement or dismissal of key personnel will be discussed during the webinar.

The NCUA said webinar participants may submit questions in advance by sending an e-mail to WebinarQuestions@ncua.gov. The subject line of the e-mail should read "Succession Planning Webinar."

To register for the NCUA webinar, use the resource link.

Small Ohio CU Serving Polish Veterans Liquidated By NCUA

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ALEXANDRIA, Va. (11/25/13)--Polish Combatants CU, Bedford, Ohio, was shuttered by the Ohio Division of Financial Institutions on Friday, with the National Credit Union Administration serving as liquidating agent.

The NCUA in a release said the credit union was closed after regulators determined the credit union had no prospect for restoring viable operations.

The credit union, which was chartered in 1957 to serve Polish World War II veterans, had 52 members and held $120,450 in assets at the time of its closing. Polish Combatants CU is the 13th federally insured credit union liquidation of 2013, NCUA said.

Member deposits are federally insured by the National Credit Union Share Insurance Fund up to $250,000. NCUA's Asset Management and Assistance Center will issue correspondence to individuals holding verified share accounts in the credit union in the coming days.