Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

Washington Archive


Inside Washington (02/20/2009)

 Permanent link
* WASHINGTON (2/23/09)--National Credit Union Administration (NCUA) Chairman Michael E. Fryzel commended President Barack Obama’s Homeowner Affordability and Stability plan as a step forward to assist struggling homeowners. “The plan breaks new ground in several important respects, and puts more resources toward helping borrowers with refinancing options,” Fryzel said. “And I am gratified to note its similarities to the CU Homeowners Affordability Relief Program, such as the refinancing feature and focus on owner-occupied, non-speculator mortgage holders.” Fryzel encouraged credit unions to focus on helping their members use the mitigation efforts. “This pro-consumer focus is a natural fit for the credit union industry,” he concluded ... * WASHINGTON (2/23/09)--The National Credit Union Administration issued a regulatory alert stating that the Federal Emergency Management Agency has released a revised Standard Flood Determination Form. The

House could vote this week on cramdowns

 Permanent link
WASHINGTON (2/23/09)—The House is expected to vote on a mortgage “cramdown” bill this week and, though changes are expected, Credit Union National Association (CUNA) Vice President of Legislative Affairs Ryan Donovan said Friday it is likely still be unpalatable to credit unions and other lenders. The House vote would come at the same time more than 4,200 credit union representatives are gathered in Washington, D.C. for the 2009 CUNA Governmental Affairs Conference (GAC). The GAC kicked off Sunday and continues through Thursday. CUNA President/CEO Dan Mica issued a statement Friday following news that the “Helping Families Save their Homes in Bankruptcy Act” would reach the House floor by the middle of this week. The bill would make changes in the Bankruptcy Code, including allowing judges to change the terms of existing mortgages, and action known as a “cramdown.” “CUNA opposes HR 200 – or any similar bill – which forces credit unions to accept a lower principal on a mortgage loan by the bankruptcy court. “This measure is overly broad in its application, scope, and duration as it applies to all mortgage loans, unfairly grouping a loan made with strong underwriting standards – such as those made by credit unions -- with a loan made in an unscrupulous manner,” the CUNA leader said. He added, “Credit unions acknowledge that bankruptcy is a legitimate option for eligible borrowers who have no other way to address their indebtedness. We believe that the Bankruptcy Code must fairly balance the rights of both credit grantors and borrowers, and it must recognize the impact that bankruptcy has on the cost of credit to borrowers who do have the ability and determination to repay their obligations. “This legislation does not meet that test.” CUNA’s Donovan added that the situation surrounding the bill remains fluid, and how this issue will be brought to the House floor, and with what other concerns it may be paired, could change. "There is a very real possibility that the cramdown bill will be combined with our deposit insurance bill [H.R. 786] and other legislation that CUNA supports," Donovan said. Even still, Donovan speculated that CUNA would continue to strongly oppose the legislation unless significant modifications are made. "I am not sure that there are very many folks who would consider the prospect of mortgage cramdown and the opportunity to make permanent the increased deposit insurance coverage as equal in importance," Donovan said. He added, "We will be encouraging opposition to the cramdown bill in the House and asking our legislators to bring the deposit insurance bill up as a stand alone measure."

NCUA alert on HMDA filings

 Permanent link
ALEXANDRIA, Va. (2/23/09)— Credit unions subject to Home Mortgage Disclosure Act requirements for 2008 activity must submit loan/application register (LAR) data to the Federal Reserve Board (Fed) by March 2, 2008. Noting that date in a recent regulatory alert, the National Credit Union Administration (NCUA) also warned of the possible consequences of a late filing. After March 2, the Fed will provide a list of delinquent filers to NCUA. Credit unions appearing on this list could become subject to civil money penalty assessments. A credit union must file HMDA data in 2009 if it meets these three criteria:
* Had total assets as of Dec. 31, 2006 that exceeded $3 7 million, a threshold established by the the Federal Reserve Board; * Has a home or branch office in a metropolitan statistical area (MSA); and * Originated during 2007 at least one home purchase loan or a refinance of a home purchase loan secured by a first lien on a one-to-four-family dwelling.
Credit unions with 25 or fewer entries on their LAR may report and submit the data in paper form. However, all credit unions that have more than 25 entries on the LAR must submit their reports in an automated, machine-readable, form. Use the resource link below to access the NCUA Alert.

Instant online convention coverage--GAC Blog

 Permanent link
WASHINGTON (2/23/09)--Credit unions are encouraged to check in on the Credit Union National Association’s (CUNA’s) GAC Blog to get the latest news on happenings at the 2009 Governmental Affairs Conference Feb. 23-26. More than 4,200 credit union representatives are in town for CUNA’s premier conference featuring addresses by top policymakers, and more. CUNA Editorial Communication Vice President Lisa McCue and Communications Specialist Tiffany Stronghart will provide frequent convention updates. Also, for full coverage, read CUNA’s daily online news service News Now. The CUNA GAC Daily will be distributed to conference attendees and News Now readers will have access to its electronic version. Use the resource links below to access the GAC Blog and to sign up for News Now headlines via email.

GAC launches today Key issues speakers featured

 Permanent link
WASHINGTON (2/23/09)—The National Credit Union Administration’s (NCUA’s) corporate credit union stabilization plan will be among the hot topics getting full attention at the Credit Union National Association (CUNA) Government Affairs Conference (GAC) here this week. CUNA added a special Monday information session on the plan to offer GAC participants an up-to-date and comprehensive view of the agency’s effort, as well as CUNA’s work to lighten the cost burden to credit unions. (See News NowTuesday for coverage of the session.) CUNA also retooled its annual "Hot Exam Issues" GAC breakout session to focus specifically on the NCUA stabilization plan. Moderated by Kathy Thompson, CUNA senior vice president and associate general counsel for regulatory compliance, the Feb. 24 afternoon breakout panel will consist of six key senior staff from NCUA. Also this week, NCUA Chairman Michael Fryzel, Vice Chairman Rodney Hood, and board member Gigi Hyland are scheduled to speak during GAC general sessions. They are expected to address the corporate assistance plan in their remarks. Also on the GAC schedule are key lawmakers, including;
* Senate Banking Committee Chairman Christopher Dodd (D-Conn.); * House Financial Services Committee Chairman Barney Frank (D-Mass.); * House Minority Leader John Boehner (R-Ohio); * Ranking Republican member of the House Financial Services Committee, Rep. Spencer Bachus of Alabama; * Rep. Carolyn Maloney (D-N.Y.), who heads the panel's subcommittee on financial institutions and consumer credit; * Reps. Paul Kanjorski (D-Pa.) and Ed Royce (R-Calif.), key sponsors of credit union legislation; and many more.
More highlights slated for the five-day program include economic commentary from Steve Forbes, editor-in-chief of Forbes magazine, and a political face-off between pundits Paul Begala and Tucker Carlson. Forbes will offer economic outlook and commentary. He attained national visibility in the political arena both 1996 and 2000 when he campaigned for the Republican nomination for President. Carlson and Begala will face off over current developments in national news, politics, and world issues. Carlson is a senior correspondent for MSNBC, and Begala is a CNN political analyst and former top aide to President Bill Clinton. Also, Bob Woodruff of ABC News and his wife, Lee, will provide a poignant start to CUNA's event as they recall the shattering moment when Woodruff was seriously injured by a roadside bomb when assigned to report U.S. and Iraqi security forces near Taji. The 2009 GAC has settled into the Washington Convention for its second year. For 30 years prior, CUNA’s premier conference was held at he Washington Hilton, but burgeoning attendance demanded a larger venue. Even with the economic pressures facing credit unions this year, attendance has reached 4,200, with 458 first-time attendees. The larger space has also enabled CUNA to continue for a second year a free Sunday evening concert, featuring the Lt. Dan Band. The Lt. Dan Band was formed by Chicago composer Kimo Williams and Gary Sinise, actor/musician and star of "CSI New York," a TV show on CBS. "Lieutenant Dan" is the character Sinise played in the 1994 film, "Forrest Gump." The band has completed six tours for the USO and performs regularly for troops. Use the resource link below for more GAC information. Also use the second resource link to view North Carolina CU League first video update on GAC. This installment: Why limit member business lending when there is such a need for what credit unions can provide? Read News Now this week for more. Also, the Michigan Credit Union League will file video reports daily, covering the issues of the day, Hill visits and reaction from CEOs. The reports can be viewed through the league's CUBE TV. Use the link to view the reports.