Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

Washington Archive

Washington

Inside Washington (10/08/2010)

 Permanent link
* WASHINGTON (10/11/10)--Sen. Tim Johnson (R-S.D.), who is expected to be chairman of the Senate Banking Committee after Christopher Dodd (D-Conn.) retires, said that he plans to “cautiously” reform housing finance, said American Banker (Oct. 8). Johnson told the publication that he is planning hearings to look at different housing finance models in other countries. Any legislation, however, would need a wide consensus for approval, he said. Johnson is expected to take a more moderate approach to banking than Dodd. South Dakota is home to many community banks and Citigroup credit card operations. Johnson voted against credit card reform, which was approved last year. He supported federal preemption for national banks, which was an amendment by Sen. Tom Carper (D-Del.) in the regulatory reform bill ... * WASHINGTON (10/11/10)--Senate Majority Leader Harry Reid (D-Nev.) welcomed a decision by Bank of America to suspend foreclosures in all states. Reid wrote a letter to Nevada’s mortgage-servicing divisions of Bank of America, JP Morgan Chase, Wells Fargo and Ally, asking them to suspend foreclosures until reports regarding improper actions are resolved. “It is only fair to Nevada home owners to suspend foreclosures until a thorough review of foreclosure processes is completed and home owners can be assured that their documents are being analyzed properly,” Reid said on his website ... * WASHINGTON (10/11/10)--President Barack Obama will not sign a foreclosure notarization bill, according to White House Press Secretary Robert Gibbs (American Banker Oct. 8). Obama is not planning to sign because of foreclosure proceeding problems, Gibbs said. The president will exercise a pocket veto, sending the measure back to Congress to iron out some “unintended consequences” of the bill. The measure, the Interstate Recognition of Notarization Act, by Rep. Robert Aderholt (R-Ala.), was approved by the Senate in September and the House in April ...

HUD plans guidance on Lender Insurance process

 Permanent link
WASHINGTON (10/11/10)--The U.S. Department of Housing and Urban Development (HUD) keeps working on improvements to the risk management activities of its Federal Housing Administration (FHA) and recently proposed changes to update the Lender Insurance process. Most FHA-insured mortgages are endorsed for the insurance process and the proposed rule, most significantly, would provide new guidance on requirements for mortgagee indemnification to HUD of insurance claims in the case of fraud, misrepresentation, or noncompliance with applicable loan origination requirements. The plan also clarifies that, in order to retain Lender Insurance authority, mortgagees must continually maintain the acceptable claim and default rate required for the initial delegation of eligibility. Comments are due Dec. 7. For more use the resource link.

Foreclosures still a topic for Fed consumer advisers

 Permanent link
WASHINGTON (10/11/10)-The Federal Reserve Board announced Thursday that its Consumer Advisory Council (CAC) intends to take up foreclosure issues again at its next meeting, on Oct. 21. Not surprisingly, the front-page grabbing topic was on the last CAC agenda as well, when the advisory panel discussed loss-mitigation efforts, including the Administration's Making Home Affordable program, neighborhood stabilization initiatives and challenges, and other issues related to foreclosures. Also on the October agenda:
* Proposed Rules Regarding Home Mortgage Transactions: CAC members will discuss the Fed board’s proposal to enhance Regulation Z (Truth in Lending Act) rules that address consumer protections and to improve disclosures for reverse mortgage transactions and other home mortgage loans; * Home Mortgage Disclosure Act (HMDA): Also on the discussion agenda, CAC members will debate the advantages of suggested changes to Regulation C, addressing the importance or utility of particular information in light of the purposes of HMDA and the burdens and possible privacy risks associated with collecting and reporting that information; and * Community Reinvestment Act (CRA): CAC will focus on key insights from recent hearings on modernizing regulations that implement CRA, and consider issues such as how to update the regulations to reflect changes in the financial services industry, changes in how banking services are delivered to consumers today, and current housing and community development needs.
The CAC advises the Fed on its responsibilities under the Consumer Credit Protection Act and on other matters in the area of consumer financial services. The group meets three times a year in Washington, D.C. and meetings are open to the public. Alan Cameron, president/CEO of the Idaho Credit Union League, is a representative on the council. His term runs through 2010.

CDFI initiative enlists federation

 Permanent link
WASHINGTON (10/11/10)--The National Federation of Community Development Credit Unions is among those selected to aid the Community Development Financial Institutions (CDFI) Fund as it works to “expand technical assistance and training opportunities for CDFIs nationwide,” the CDFI Fund announced on Friday. The CDFI Fund’s capacity-building initiative aims to “provide specialized training and technical assistance designed to significantly increase the ability of CDFIs to deliver financial products and services to underserved communities.” The training will cover “affordable housing and business lending, portfolio management, risk assessment, foreclosure prevention, training in CDFI business processes, and assistance with liquidity and capitalization challenges,” according to the CDFI Fund. Federation President/CEO Cliff Rosenthal in a release said his group was “pleased to be selected” for participation in the CDFI Fund’s capacity-building initiative. NeighborWorks America, Deloitte, The Opportunity Finance Network and Reznick Group P.C. will also aid the CDFI Fund. In a Friday release, CDFI Fund Director Donna Gambrell said that her group will work with the providers “to offer high quality training resources, on-site technical assistance and individualized capacity-building assistance to help CDFIs extend and expand their coverage.” The CDFI Fund last week announced the beginning of the 2011 round of funding, through which $135 million will be made available to eligible credit unions. Applications for the CDFI funds must be received by Nov. 19. (See related story: CDFI to provide up to $135 mil in 2011 round, Oct. 6) For the full CDFI Fund release, use the resource link.

NCUA continues nationwide town halls

 Permanent link
ALEXANDRIA, Va. (10/11/10)--The National Credit Union Administration (NCUA) this week will continue its series of corporate credit union resolution town halls with meetings set to take place in Atlanta, Detroit, and Columbus, Ohio. The meetings, which give the NCUA an opportunity to explain and gather input on its recently passed corporate credit union and legacy asset plans, were held in Portland, Ore., Boston, and Dallas last week. The NCUA has scheduled five other meetings through Oct. 29. NCUA Chairman Debbie Matz recently said that the NCUA scheduled at least two meetings in each region "to make sure that credit union officials have an opportunity to be personally briefed and ask questions." Matz in a release said that “the Town Hall format has proven to be valuable for all participants.” “From NCUA’s perspective, we always garner significant insights and information from the credit union stakeholders in attendance… I hope that the credit union industry takes full advantage of these opportunities to hear and be heard,” Matz added.

SBA officially increases 504 7a loan limits

 Permanent link
WASHINGTON (10/11/10)--The U.S. Small Business Administration (SBA) on Friday announced higher maximum 7(a) and 504 program loan limits. The increased loan sizes, which were authorized by the Small Business Jobs Act, are effective as of Friday. Under the legislation, SBA 7(a) loan limits will be increased to $5 million from $2 million, 504 loan limits will increase to $5.5 million from $1.5 million, and 7(a) "Express Loans" will increase to $1 million from $300,000. The bill also ups the definition of microloans from $35,000 to $50,000. Credit unions may participate in 7(a) and 504 SBA loans. “Across the country, there are small businesses owners who are in a position to take that next step to grow and create jobs, and these larger loan sizes provide another tool to help them do just that,” SBA Administrator Karen Mills said in a release.