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Cheney on Bloomberg: CUs Serve All Americans

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WASHINGTON (7/5/13)--Credit Union National Association President/CEO Bill Cheney Wednesday made it perfectly clear in an interview on Bloomberg Radio's Taking Stock With Pimm Fox that credit unions are here to support Americans of all stripes, from the earliest stages of their work lives until later, and, hopefully, into more financially secure parts of their lives.

Cheney said credit unions are true cooperatives: Every member gets an equal vote and equal influence no matter how much they have deposited at the credit union. The bottom line is that the U.S. Congress created credit unions specifically so that they could compete with banks, because banks were marginalizing people of modest means, Cheney said.

"I was a college student when I joined at credit union and I have stayed with credit unions because they were looking out for my interests," Cheney told hosts Pimm Fox and Carol Maser.

Consumers still deserve a choice: "they should have a choice of a for profit bank if that's what they want to do, but they should also have the choice of a not-for-profit credit union," Cheney said, again noting that for-profit banks have a responsibility to earn money for their stockholders, while credit unions answer to their members.

Also in the interview, Cheney answered questions about the credit union tax status, and addressed what CUNA, the leagues, credit unions and their members are doing now to make sure the credit union tax status is maintained.

Taxing credit unions remove the $8 billion per year in benefits that are provided to credit union members and non-members alike through lower fees and competitive pressures on banks.

"Again, a tax on credit unions is going to be paid by the credit union members," and 96 million of them that don't want to pay another new tax, he emphasized.
To protect the credit union tax status, a large-scale, nationwide grassroots-mobilization campaign led by CUNA and the leagues continues to encourage 96 million credit union members nationwide to present a unified message to members of congress: Don't Tax My Credit Union!

Credit union advocates have delivered the message to members of Congress nearly 250,000 times since mid-May, with the help of CUNA/league communication tools. The innovative campaign also uses newer media vehicles such as Facebook, a Twitter handle @CUNAadvocacy, and hashtag, #DontTaxMyCU, and social media micro-video site Vine. Around 300,000 individuals have used Facebook and Twitter to spread the message through social media.

CUNA has also developed a reformatted version of its tax advocacy toolkit to help credit unions and their members spread this message.

Actively participating in credit union grassroots activities and the political process is one tenet of CUNA's Unite for Good. Through Unite for Good, CUNA has called on credit unions to rally together to help create a nation in which "Americans choose credit unions as their best financial partner."

For the full Bloomberg Radio interview, more CUNA/league advocacy resources, and information on Unite for Good, use the resource links.

NCUA Pushes Back Loan Participation Effective Date

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ALEXANDRIA, Va. (7/8/13)--There is now a new, later effective day for the National Credit Union Administration's final rule on loan participations: Sept. 23. The Credit Union National Association strongly urged the agency to address the effective date to give credit unions flexibility to adequately prepare for the rule's changes. The original effective date was July 25.

"NCUA's effective date change and the numerous key changes in the final rule are important indications that the board is responding to reasonable concerns without sacrificing safety and soundness, which is a commendable approach to regulation," CUNA Deputy General Counsel Mary Dunn noted when the effective date change was announced Wednesday.

The NCUA approved the loan participation rule at last month's open board meeting. The final features many improvements suggested by CUNA even though CUNA did not support any new loan participation rule at this time.

The rule sets a limit on loans from one originator of 100% of a credit union's net worth; and provides an expanded waiver process for the single-originator limit and limits to one borrower.

The NCUA also approved a provision so that credit unions pushed over the limit by new rule can move their loans into line: such credit unions would not have to sell loans immediately to come into compliance but can bring their participation activity into line in the ordinary course of business or seek a waiver.

For more on the loan participations rule, use the resource link.

Regulators Update Census Info For HMDA Reporting

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WASHINGTON (7/5/13)--Financial institutions, including credit unions, that are required to execute reporting requirements under the Home Mortgage Disclosure Act will want to know that regulators have issued updated census data to be used for the reports.
 
The Federal Financial Institutions Examination Council's updated data are also used as input for bank Community Reinvestment Act reporting. In announcing the updated information, the FFIEC noted that census data generally become available in the second quarter of the current year and that data through calendar year 2013 are now available.
 
The FFIEC notice also notes that a financial institution using an outside vendor to identify the tract location of its loan is, itself, responsible for the accuracy of the annual HMDA and CRA submissions, including use of correct geocoding information.
 
The FFIEC is comprised of all federal financial institution regulators, including the National Credit Union Administration and the Consumer Financial Protection Bureau, as well as state regulators.
 
Use the resource link to access the FFIEC information.

CFPB Releases Spring 2013 Rulemaking Update

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WASHINGTON (7/5/13)--Mortgage regulations and nonbank supervision are two of many current Consumer Financial Protection Bureau priorities detailed in the bureau's semi-annual update of its rulemaking agenda.

In a release, the CFPB said it is "now focusing intensely" on supporting the implementation process for mortgage regulations that were released earlier this year, and releasing various amendments to those regulations. Amendments to portions of the 2013 Mortgage Rules Under the Equal Credit Opportunity Act (Regulation B), Real Estate Settlement Procedures Act (Regulation X), and the Truth in Lending Act (Regulation Z) were published in the Federal Register earlier this week.

The bureau is also continuing its work on a rule to integrate and streamline federal mortgage disclosures, and that rule is expected to be released this fall. "We would not expect any implementation work to begin until after the January 2014 effective date for the earlier mortgage rules," the CFPB added in a release.

Rulemakings to implement a supervisory program for certain nonbank entities are also being developed.

The CFPB said it is also considering debt collection actions and could develop a proposed rule to strengthen federal consumer protections for prepaid cards.
The agency also expects to issue a proposal regarding the notices that consumers receive each year from their financial institutions to explain the companies' information sharing practices.

Commenters had suggested that eliminating the annual privacy notices where there has been no change in policies would reduce unwanted paperwork for consumers and unnecessary regulatory burdens, at least where a financial institution limits the sharing of information with third-parties, the CFPB said.

For the full CFPB release, use the resource link.