CUNA in the News

December 2013

Credit Unions Oppose Stress Test Rule12/31/2013Instead, the Credit Union National Association (CUNA) thinks that credit unions already have all the incentive they need to make sure the financial institutions have sound plans. In a comment letter submitted to the National Credit Union Administration (NCUA) on Tuesday, the trade group wrote that regulators should issue advice in the form of guidance, not mandatory regulations. The agency could then review results of stress tests credit unions conduct.

CUNA to Tally Target Breach Costs to Credit Unions12/27/2013CUNA said Friday it plans to open a data collection website next week that will allow credit unions to report their costs incurred to replace credit and debit cards compromised in the data breach that involved 40 million payment cards used at Target stores from Nov. 27 to Dec. 15.In the meantime, CUNA is asking credit unions to maintain a tally of those fraud costs so they can record the information when the website opens.

How to Not Suck.. At Saving for the Holidays12/17/2013They're not out of vogue yet. While you may not find availability at every bank, about 70% of credit unions still offer Christmas Club accounts, according to the Credit Union National Association. 

Cheney on Risk-Based Capital: If it Ain't Broke, Don't Fix It'12/16/2013CUNA President/CEO Bill Cheney said CUNA remains greatly concerned about the upcoming risk-based capital rule from the NCUA, arguing that credit unions are operating well under the current system."Particularly since no one outside of NCUA has seen the proposal, it remains of great concern to us. In our view, the current system for net worth standards (written into the law - unlike that of other financials) is flawed, but credit unions have adjusted accordingly and are doing well. In short: If it ain't broke, don't fix it," Cheney wrote in the latest edition of The Cheney Report.

Spend Less and Save More This Holiday Season12/13/2013Last year, the Consumer Federation of America (CFA) and the Credit Union National Association (CUNA) found that 12 percent of people said they were planning to spend more during the holidays than in the previous year. That number was up from 2011, where only 8 percent planned on spending more than in the previous year. This year, help reverse this trend and plan on spending less and saving more. Remember, it's the thought that counts, not the amount you spend. CFA and CUNA offer the following five ways to cut back on your holiday spending this year.

Mortgage Rule Delay12/12/2013The Credit Union National Association (CUNA) said in a release that it suggested that Congress grant a one-year extension of compliance deadlines. The organization also continued: "If such a delay cannot be created, Congress should provide credit unions with a buffer of at least six months as they work to come into compliance with qualified mortgage standards, CUNA has said. CUNA has also recommended that a similar six-month delay should also be applied to legal liability provisions of mortgage regulations."

Expect Strongest Holiday Sales Since '07: Hampel12/12/2013Bill Hampel, chief economist at the Credit Union National Association, discusses what the November retail sales say about the state of the U.S. consumer. He speaks with Mark Crumpton on Bloomberg Television's "Bottom Line." (Source: Bloomberg)

How Our Changing Economy Is Shaping Money12/11/2013While not as far reaching as Dodd-Frank, possible congressional action could deal a blow to another business-lending sector: credit unions. As part of consideration for widespread tax reform, Congress is considering having the nonprofit institutions pay new taxes. If so, the Credit Union National Association estimates that for every $1 in new credit union taxes, the government wipes out $10 in financial benefits to credit union members, including those who own businesses.

Bad Credit12/11/2013Metsger, whose ascent they had gathered to toast, was one of their own, a fellow true believer in credit unions who would now police the industry as one of three board members of the National Credit Union Administration. He is typical of the regulators, lawyers, and lobbyists who make comfortable livings shuttling between overseeing and promoting the credit union industry. Together, they guard its wholesome reputation, forged during the Great Depression, when credit unions were set up to help poor people whom banks refused to serve.

Dispute Rising Over Credit Union Tax Exemption12/10/2013"The credit union system would cease to exist," says Paul Gentile, executive vice president of strategic communications and engagement at the Credit Union National Association. "Without it, there wouldn't be much incentive to be a credit union. It would make more sense if they became banks. You would see a very quick end to the credit union system."

Growth Unlikely to Last12/08/2013"It's generally good news, but nothing that would cause us to alter our baseline forecast all that much," said Mike Schenk, vice president of economics and statistics for the Credit Union National Association. The predictions for job growth are more optimistic. The Labor Department is slated to release its closely watched monthly tally of job creation and unemployment on Friday. Economists expect it will show that the country added 185,000 jobs in November while the jobless rate ticked down to 7.2 percent.

Are You Going To Spend More or Less This Year??12/06/2013I love seeing spending stories like this: "More consumers plan to spend more than last year, and fewer consumers less than last year, according to the 13th annual holiday spending survey conducted by the Consumer Federation of America (CFA) and the Credit Union National Association (CUNA)."

Economy Added 203K Jobs in November, Unemployment Rate Dropped to 7%12/06/2013"It's not all the way back to normal, but it's getting there," said Mike Schenk, vice president of economics and statistics for the Credit Union National Association. "Given the headwinds in the federal government sector, it's pretty impressive overall."

How Washington Could Ruin the Holidays12/06/2013The National Retail Federation projects American shoppers spent $407.02 from Thanksgiving to Sunday, a drop from $423.55 last year. But according to Consumer Federation of America and the Credit Union National Association's annual holiday spending survey, the percentage of people who said they would spend more this year compared to last year rose to 13% from 12%. What's more, the percentage of people planning to spend less declined to 32% from 38%.

Estimate of Third-Quarter Economic Growth Revised Up12/05/2013"It's generally good news, but nothing that would cause us to alter our baseline forecast all that much," said Mike Schenk, vice president of economics and statistics for the Credit Union National Association.

'Patent Trolls' Beware: House Passes CU-Backed Bill12/05/2013The House of Representatives on Thursday passed a bill aimed at curbing abusive practices by "patent trolls" who file frivolous lawsuits - by a 325-to-91 margin with bipartisan support.Also known as "The Innovation Act," HR 3309 is backed by credit unions and other financial institutions seeking relief from serial plaintiffs who file numerous suits alleging patent infringement - typically hoping to force defendants into signing licensing agreements rather than take on the expense and risk of litigation.

Towpath CEO Bartolomucci Testifies Before House Committee12/04/2013Rose Bartolomucci, president and CEO of Towpath Credit Union testified Wednesday before the House Committee on Financial Services on behalf of CUNA to advocate for regulatory relief the credit union community.Bartolomucci, whose $114-million asset credit union is based in Akron, Ohio, is the former deputy superintendent for credit unions for her state's Department of Commerce. (Dublin, Ohio, is also the headquarters of American Share Insurance Inc., the last surviving private insurer of credit union deposits.)

NCUA: Idaho, Iowa, Lead The Way In State- By- State Gains At CUs12/04/2013ALEXANDRIA, Va. - While overall loan growth increased by 6.8% in the year ending in the third quarter of 2013, NCUA is reporting that Idaho and Rhode Island blew past that, with loan growth of 15.2% and 12.6%, respectively.

CUNA Witness Pushes For Regulatory Relief12/04/2013Rose Bartolomucci, president/CEO of the $114 million Towpath Credit Union in Akron, Ohio, urged Congress to pass several pieces of legislation that CUNA has argued would ease regulatory burden on credit unions. Bartolomucci, testifying before the House Committee on Financial Services on behalf of CUNA, said H.R. 3584 would help state-chartered, privately insured credit unions by allowing them to apply for membership in the Federal Home Loan Bank System.

Iowa Credit Union's Patrck Jury Forges National Reputation12/03/2013"Pat's a very active state credit union executive who has built businesses that serve credit unions around the nation, not just in Iowa," said Paul Gentile, executive vice president of the Credit Union National Association. CUNA is a Washington, D.C.-based lobbying group that represents 6,800 credit unions in the U.S.