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NEW: Metsger Nomination Vote Moved To Thursday

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WASHINGTON (7/16/13,  UPDATED 12:14 p.m. ET)--Senate Banking Committee staff have confirmed that the panel has moved today's expected vote on the nomination of Richard Metsger to be a member of the National Credit Union Administration to Thursday. 
Also on that day's agenda are the nomination votes for Rep. Mel Watt (D-N.C.) to be director of the Federal Housing Finance Agency, Jason Furman, to be a member and chairman of the Council of Economic Advisers; Kara Stein, Michael Piwowar, and Mary Jo White, to be members of the Securities and Exchange Commission.

Hyland Says Relationships Will Help Build NCUF Success

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WASHINGTON (7/16/13)--When she takes her new position Aug. 26 as executive director of the National Credit Union Foundation, Gigi Hyland says she is eager to leverage her relationships in the financial services, philanthropic and policy arenas to raise awareness of the foundation, its reach, and its great potential.

She said it is the breadth and strength of those relationships that also will help her raise the resources necessary to fuel innovation and disseminate programs that work.

The foundation supports credit unions' shared values and unique philosophy of "people helping people," through such programs as REAL Solutions, Credit Union Development Education (DE), Biz Kid$, grants, and CUAid, for disaster relief. Through NCUF grants and programs, credit unions provide widespread financial education, create greater access to affordable financial services, and empower more consumers to save, build assets, and own homes.

"I could not be more honored to continue serving the credit union system through the foundation," Hyland told News Now Monday. "The program successes--Biz Kid$, REAL Solutions, the DE Program, targeted grants and the April Financial Literacy Campaign--have been tremendous, but there is so much potential to do more.

"Working with a dedicated board and staff, as well as generous donors, together we will lift the foundation to even higher levels of achievement."

Prior to the new post, Hyland was most recently a member of the three-person National Credit Union Administration Board. She served from 2005 until October 2012. Before the NCUA, Hyland was senior vice president and general counsel of Empire Corporate FCU, now Members United Corporate FCU.

National Credit Union Foundation Chairman Laida Garcia said of Hyland, "Gigi brings a wealth of credit union experience and an understanding of the non-profit sector that will serve the Foundation well."           
Credit Union National Association President/CEO Bill Cheney, who also serves as NCUF president, said Monday, "Gigi's extensive insights to the philosophy and mission of credit unions will serve the entire movement well in this position."

Although the job is new, Hyland will find some things familiar as she moves into her new position. She will work from CUNA's Washington, D.C. office, where she has worked previously. Hyland was CUNA's vice president of Corporate Credit Union Relations and executive director of the Association of Corporate Credit Unions from 1997 to 2002.

"The foundation is well-positioned to continue to be a leader in financial literacy and education, which has never been more important for consumers and remains as one of the core missions of the credit union system," Hyland said.

Hyland succeeds Bucky Sebastian, who announced in May that he would retire on June 30 after three years as head of the foundation. At the time of that announcement, both Garcia and Cheney lauded Sebastian for "an outstanding job" of directing the foundation to focus its efforts on financial education and a number of key initiatives to benefit the credit union movement.

NEW: Senate Moves Forward To Place Cordray As Official CFPB Head

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WASHINGTON (7/16/14, UPDATE 11:45 a.m. ET)--The U.S. Senate just voted 71-29 to end the filibuster against Richard Cordray, whose nomination to officially head the Consumer Financial Protection Bureau has been pending since late 2011. 

The vote for final passage is all but certain at this point, and will allow Cordray to officially take on the post he has filled since Elizabeth Warren left the bureau.  Warren is now a U.S. senator from Massachusetts.
Cordray, a former Ohio attorney general, started at the CFPB as its enforcement director. His nomination has drawn strong opposition from many Republicans, who said they would oppose any nominee unless the CFPB's funding and leadership structures were changed.

Lawmakers To Consider NCUA Nomination Today, Monetary Policy This Week

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WASHINGTON (7/16/13)--The Senate Banking Committee is scheduled to vote today on the nominations of Richard Metsger to be a member of the National Credit Union Administration, Rep. Mel Watt (D-N.C.) to be director of the Federal Housing Finance Agency, and several others of interest to the financial services industry (News Now July 2).
The other nominees are Jason Furman, to be a member and chairman of the Council of Economic Advisers; Kara Stein, Michael Piwowar, and Mary Jo White, to be members of the Securities and Exchange Commission.

Also on the week's agenda:
  • The House Financial Services Committee will hold a full committee hearing Wednesday on "Monetary Policy and the State of the Economy."  Federal Reserve Board Chairman Ben Bernanke will testify;
  • Also on Wednesday, the Senate Banking subcommittee on financial institutions and consumer will hold a hearing on "Shining a Light on the Consumer Debt Industry";
  • On Thursday, the House Energy and Commerce subcommittee on commerce, manufacturing, and trade will hold a hearing on "Reporting Data Breaches: Is Federal Legislation Needed to Protect Consumers";
  • The House Oversight and Government Reform subcommittee on economic growth, job creation, and regulatory affairs will conduct a hearing on "Regulatory Burdens: The Impact of Dodd-Frank on Community Banking," also on Thursday. The Credit Union National Association will submit a statement for the record of this hearing;
  • The House Financial Services Committee will hold a hearing on "A Legislative Proposal to Protect American Taxpayers and Homeowners by Creating a Sustainable Housing Finance System." The focus of this session will be the new bill of the committee chairman, Rep. Jeb Hensarling (R-Texas), to reform housing finance. CUNA will submit a statement for the record of this hearing also; and
  • Finally, the Senate Banking Committee will hold a full committee hearing on "The Semiannual Monetary Policy Report to the Congress."  Federal Reserve Board Chairman Ben Bernanke will testify.

Ohio Regulator Closes Taupa Lithuanian CU

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ALEXANDRIA, Va. (7/16/13)--The Ohio Division of Financial Institutions liquidated the Taupa Lithuanian CU of Cleveland Monday and appointed the National Credit Union Administration as liquidating agent.

The Ohio regulator decided to close the $23.6 million-asset credit union and discontinue its operations after determining the credit union had no prospect for restoring viable operations. Member deposits are federally insured by the National Credit Union Share Insurance Fund up to $250,000. 

Taupa Lithuanian had served 1,154 members and was chartered in 1984 to serve the Lithuanian community of Cleveland and Northeast Ohio.

NCUA's Asset Management and Assistance Center will issue correspondence to individuals holding verified share accounts in the credit union within one week. 

Taupa Lithuanian CU is the 11th federally insured credit union liquidation in 2013.

New Senior Staff At CFPB

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WASHINGTON (7/16/13)--There have been several senior staff additions at the Consumer Financial Protection Bureau (CFPB).  The bureau announced Monday that Sartaj Alag is returning to the CFPB and will serve as chief operating officer, and shared the names of those who soon will fill the positions of chief of staff, assistant director for the Office of Older Americans, and the program manager for Servicing and Securitization Markets.

When previously at CFPB, Alag was in charge of starting up and managing the Office of Consumer Response. And prior to his time at the bureau,  he worked at Capital One for nearly 10 years and spent part of his tenure there as president of Capital One's Canadian subsidiary.

Christopher D'Angelo will serve as the CFPB chief of staff. He has been at CFPB since June 2011, serving first as an attorney in the Office of Enforcement and then most recently as senior adviser to Director Richard Cordray.  D'Angelo came to the bureau from the U.S. Treasury Department where he was senior adviser to the undersecretary for Domestic Finance and worked on financial regulation policy.

Also joining the CFPB:
  • Nora Dowd Eisenhower will serve as assistant director for the Office of Older Americans. Prior to joining the CFPB, Eisenhower served on the National Council on Aging, where she was the director of the National Center for Benefits Outreach and Enrollment, then as the senior vice president of Economic Security; and
  • Laurie Maggiano is joining the CFPB as program manager for Servicing and Securitization Markets in the Division of Research, Markets and Regulations.  She also comes from the Treasury Department, where she served as the director of policy in the Office of Homeownership Preservation.

CUNA's Student Loan Working Group Holds Initial Meeting

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WASHINGTON (7/16/13)--As the nation's students look on anxiously to see if the federal government acts to restore the federal student loan rate to 3.4% after it ballooned to 6.8% recently, the Credit Union National Association has formed a student loan working group to explore current issues related to credit unions' offering private student loans to members, CUNA's Regulatory Advocacy Report informs readers this week.

The working group met for the first time last week to discuss current and possible future issues confronting credit union offering private student loans.

The group's focus will be to develop best practices for credit union student loans and to monitor related regulatory activity at the Consumer Financial Protection Bureau (CFPB) and the National Credit Union Administration.

The NCUA has told the CUNA regulatory team that the agency will be releasing examiners' guidance on private student loans in the near future. The guidance will then be shared with credit unions.

To see those named to the student loan working group, CUNA members can use the resource link below to access the RAR.

Also in the newest issue, CUNA takes a look at CFPB's newest clarifications to mortgage rules, NCUA's derivatives proposal, a payments system update, and many more hot regulatory topics.

Biliouris Named Deputy Director Of NCUA's Office Of Consumer Protection

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ALEXANDRIA, Va. (7/16/13)--Matthew Biliouris has been chosen to fill the new National Credit Union Administration position of deputy director of the Office of Consumer Protection, NCUA Chairman Debbie Matz announced Monday. He will assume the post on Aug. 11.

Matz said Biliouris has considerable knowledge of NCUA's operations and the agency's examination program and has solid experience dealing with the policy issues affecting credit unions, and will therefore "hit the ground running to solve problems and produce results.

"He will be an important asset to this consumer-focused office that is central to our mission," Matz added.

Credit Union National Association Deputy General Counsel Mary Dunn said CUNA welcomes the announcement. "CUNA and credit unions appreciate the reasonable approach Matt takes in listening to concerns and we look forward to working with him in this new position," she said.

Biliouris joined NCUA in 1992 as an examiner in Portland, Maine. He also has served as special assistant to NCUA's executive director, where he was charged with handling key policy and strategic matters. Before that he served as a supervision analyst, information systems officer and program officer.

Biliouris is also known to credit unions for completing several other details, notably among them a year-long assignment as special assistant to former NCUA chairman and current board member Michael Fryzel.

Cordray Nomination Is In the Spotlight

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WASHINGTON (7/16/13)--Credit Union National Association Senior Vice President of Legislative Affairs Ryan Donovan Monday alerted credit unions that they may be in for "one of the more significant weeks in recent U.S. Senate history" as that body prepares to move forward on several nominations put forward by the Obama administration--including that of Richard Cordray to formally become director of the Consumer Financial Protection Bureau.
The Cordray nomination is a partisan wrangling point.  While Democrats generally support his appointment, 43 Republicans have demanded changes to the CFPB structure--broadening it to a five-member board rather than a single directorship--meaning it could be all but impossible to get the 60 votes needed to confirm Cordray as CFPB head.
Late last week, Senate Majority Leader Harry Reid (D-Nev.) moved cloture on several nominations, including Cordray's, meaning he invoked a parliamentary procedure that aims to bring a quick end to debate. But more notably the majority leader also announced his intention to pursue a controversial Senate rule change that would limit the filibuster opportunities for certain presidential nominations--the so-called "nuclear option."
Late Monday, the Senate held a rare bi-partisan caucus meeting in the Old Senate Chamber to discuss how to proceed on the issue of presidential nominations.

In addition to the CFPB nomination, the Senate is expected to vote this week on the nominations of:
  • Thomas Perez for secretary of the U.S. Labor Department;
  • Gina McCarthy for administrator of the Environmental Protection Agency;
  • Mark Gaston Pearce, Richard F. Griffin Jr., and Sharon Block for the National Labor Relations Board; and
  • Fred Hochberg for president of the Export-Import Bank of the United States.