Archive May 2009

Credit unions are demonstrating their unique role by providing
funding for mortgage, consumer and student loans at a record pace
despite ongoing economic uncertainty. However, NCUA’s approach to the
Corporate Credit Union Network situation, which requires credit unions
to record expenses based on estimated future losses, imposes an
unnecessary burden on credit unions’ ability to continue meeting the
needs of their members and communities. Imposing such a burden at this
time will only inhibit the economic recovery.Read More

NCUA released U.S. Central’s first quarter financial results last week, which included a revision to the year-end 2008 financials that more than triples the other-than-temporary-impairment (OTTI) charge on the investment portfolio. The comment on the $3.8 billion OTTI charge in the first quarter statements is preceded by a description of continued real estate market deterioration that is impacting pricing of the non-agency mortgage-backed securities (MBS). But is U.S. Central’s situation unique?Read More

Wednesday’s hearing by the House Financial Services Subcommittee on Financial Institutions and Consumer Credit hearing, to discuss H.R. 2351 - the Credit Union Share Insurance Stabilization Act, took place as the bill was scheduled to be signed into law by President Obama that same afternoon. It was a well-timed opportunity for credit unions to have questions answered by the NCUA regarding the new legislation. Here are some key highlights from the hearing:Read More

Two key bills in the House (HR5546) and Senate (S3086) had the potential to limit interchange fees by requiring electronic payment system providers and merchants to jointly negotiate fees and terms for access to the system. They also proposed the creation of a panel of judges to regulate the interchange network fees and terms.Read More