October 1, 2013
Tuesday's Edition
Washington wire

For the first time in 17 years, the government is experiencing a shut down. The House and the Senate remain in stalemate over the funding resolution for the first few months of fiscal year 2014. The House sent proposals to the Senate on Monday that did not include funding for the Affordable Care Act. The Senate rejected each of those and sent them back to the House. The Act appears to be the biggest sticking point for funding the government. 

Early this morning, the House passed a resolution to have a House and Senate committee meet to resolve the issues between both sides. No time table was announced for the committee. However, the Washington Post  is reporting that an insider thinks the shut down will last about a week. Right now 800,000 government workers are on furlough. On a positive note the Senate approved a House-approved measure Monday to ensure members of the military would continue to get paid during the shutdown.  

As you would imagine, not much legislative business related to matters other than the shut down have been announced in either chamber for this week. It would be reasonable to assume that both chambers will stay at this until they figure it out. Plus, the debt ceiling is also looming. Last week, Treasury Secretary Lew notified Congress that the government will reach the debt ceiling no later than Oct. 17.

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CUs prep for government shutdown

The government shutdown has credit unions looking to step in and help where necessary. Some credit unions have advertised that they will provide financial counseling for those workers that have been furloughed, while some are also advertising a variety of loans to help cover expenses during the shut down. 

If your credit union is helping furloughed government workers or military personnel, let the League know by sending an email. This is a great opportunity to once again show how credit unions are unique and work with their member owners.

The NCUA released a statement that it will not be affected by a government shutdown. As a self-funded agency, the NCUA does not rely on congressional appropriations. Chairman Debbie Matz says she believes credit unions will shine during this time. 

“Members will have questions and they will have needs, so credit unions should have plans to respond if Congress does not pass legislation to keep the government running,” Matz said. “Credit unions that serve federal workers and the military have responded before to members’ financial needs resulting from furloughs, reimbursement delays, suspension of government programs or the closing of federal buildings housing branches. They need to prepare to do that once again.”

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InfoSight spotlight: authentication in Internet banking

The Authentication in an Internet Banking Environment topic on the ACH/Electronic Payments channel of InfoSight provides guidance about the following:

  • Effective controls that may be included in a layered security program
  • Effectiveness of certain authentication techniques
    • Device identification
    • Challenge questions
  • Member awareness and education

Review the information today to help your credit union remain in compliance.

The current issues of the InfoSight eNewsletter for Alabama and Florida are now available on the InfoSight homepage in the left-hand column. Members must login to the League website with username and password in order to access InfoSight. After you are logged in to www.lscu.coop, click on the InfoSight tab. If you do not have access to the League website, click here to sign up.  

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CUNA urges comments on QRM, risk retention proposal

Another round of proposed credit risk retention regulations, including a new definition of “qualified residential mortgage” (QRM) with modifications that the Credit Union National Association had urged, is pending for comments. CUNA has a number of concerns about the 505-page proposal, which will be addressed in a future comment letter to the agencies. Comments are due Oct. 30.

The proposed QRM definition would be identical to the definition adopted by the Consumer Financial Protection Bureau for a “qualified mortgage” (QM). While CUNA noted this is a marked improvement from the original proposal, CUNA continues to seek additional latitude for credit unions under the CFPB’s QM standards. CUNA will press for such flexibility under the QRM proposal.

The agencies are also seeking comments on an alternative definition of QRM that would include underwriting standards.

Under the Dodd-Frank Act, most credit unions would not be directly covered by the QRM proposal. However, CUNA has been weighing in with the various regulators on the QRM issues because there is a concern that the secondary market will conform to QRM standards and that examiners will expect federally insured institutions to meet QRM requirements.

The U.S. Department of Housing and Urban Development, Federal Housing Finance Agency, Office of the Comptroller of the Currency, and the Securities and Exchange Commission joined the Fed and FDIC in releasing the proposed rule; NCUA is not among the agencies that is implementing the rule.

Submit your comments to CUNA by Oct. 2.

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In This Issue
Tuesday's Edition
Washington wire
CUs prep for government shutdown
InfoSight spotlight: authentication in Internet banking
CUNA urges comments on QRM, risk retention proposal
LSCU & Affiliates Media

La Pine and Cheney to visit Alabama Credit Unions

In late October, LSCU & Affiliates CEO Patrick La Pine and CUNA CEO Bill Cheney will visit credit unions all across the state of Alabama. 


Audio Podcast
Alabama Telco CU VP of Marketing Stanton Davis talks to the LSCU about how his credit union has been implementing the Don't Tax My Credit Union program.

Upcoming League Events
Oct. 2  Successful Business Development
Oct. 8 Collections and Bankruptcy School - Orlando
Oct. 9 Strategic Plan Years
Oct.9 Collections and Bankruptcy School - Orlando
Oct. 9 What to Keep/What to Destroy/What Holds Up in Court
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