January 10, 2014
Friday Edition
Target provides update on data breach

As part of Target’s ongoing forensic investigation, it has been determined that certain customer information -- separate from the payment card data previously disclosed -- was taken during the data breach.

This theft is not a new breach, but was uncovered as part of the ongoing investigation. At this time, the investigation has determined that the stolen information includes names, mailing addresses, phone numbers, or email addresses for up to 70 million individuals.

Much of this data is partial in nature, but in cases where Target has an email address, the company will attempt to contact affected customers. This communication will be informational, including tips to guard against consumer scams. Target will not ask those customers to provide any personal information as part of that communication. In addition, customers can find the tips on the Target website.

Customers will have zero liability for the cost of any fraudulent charges arising from the breach. To provide further peace of mind, Target is offering one year of free credit monitoring and identity theft protection to all customers who shopped at U.S. stores. Customers will have three months to enroll in the program. Additional details will be shared next week. To learn more, click here

Credit unions affected by the breach are still encouraged to complete CUNA's Survey on the Target Data Breach. The data collected by this survey will be extremely valuable as CUNA and the leagues represent credit unions to legislators, regulators, and the media.

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QM rules begin today

After much discussion, the Ability-to-Repay(ATR)/ Qualified Mortgage (QM) lending rules go into effect on Jan. 10. The rule covers consumer closed-end mortgage loans including home-purchase loans, refinances, and home equity loans secured by the borrower's dwelling. There are resources available to help in case your credit union is not quite up to compliance.

The new Consumer Financial Protection Bureau (CFPB) rules are written as protections and in response to abusive lending practices that helped undermine the country's housing market and economy. For the most part, credit unions did not engage in such lending practices and have been recognized throughout the housing crisis as being a model for responsible lending.

The rule requires credit unions and others to assess a member's ability to repay based on specific criteria such as current or reasonably expected income or assets, credit history, employment status, current debt, and other related factors that credit unions routinely consider when originating a loan.

Here are some resources to help as you move forward with qualified mortgages:

Visit CUNA's website to read more on qualified mortgages and to access additional resources.
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Cordray and Matz announce town hall webinar

The NCUA announced Wednesday that NCUA Board Chairman Debbie Matz and CFPB Director Richard Cordray will host a town hall webinar on Feb. 12.

The event, starting at 3 p.m. EST, will provide an opportunity for participants to submit questions for Cordray and Matz about any topic related to the credit union industry or the CFPB’s work.

“I am extremely pleased that for the third year Director Cordray will be joining us for a wide-ranging conversation about changes in federal financial consumer protection regulation,” said Matz in a statement. “This webinar will be a great opportunity for credit union leaders and compliance officials to engage their regulators and get answers to important questions, especially on CFPB’s new mortgage rules."

Already have some questions? Submit your questions in advance of the webinar via email.

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CO-OP hits record 2.8B transactions in 2013

CO-OP Financial Services announced that it processed a record 2.8 billion electronic funds transfer (EFT) and shared-branch transactions in 2013, an increase of 10 percent compared with 2012.

The figures were boosted by the last few days of the holiday buying season, with a single-day record of more than nine million transactions recorded Saturday, Dec. 21. Also, records for transactions in a single hour, minute, and second were set Dec. 24, highlighted by a peak of 223 transactions per second.

"The transaction processing records set by CO-OP in 2013 demonstrate that credit unions can compete with anyone in terms of terms of debit, credit, ATM and branch services," said Stan Hollen, CO-OP Financial Services president/CEO.

With transactions increasing at an annual rate of 10 percent, CO-OP Financial Services would surpass three  billion transactions in 2014. In 2004, the company reached one billion in annual transactions, and in 2010 CO-OP Financial Services first topped two billion transactions.

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CU happenings
SCCU rings in the New Year with a challenge to win $2,014
Space Coast Credit Union (SCCU) in Melbourne, FL. rang in the New Year with a contest to win $2,014. The 2014 Watchdog Challenge runs for six weeks from Jan. 2 through Feb. 14. Each week, SCCU will email participants and publish new financial challenges online. Every completed challenge enters participants into a drawing for $2,014.

Northeast Florida credit unions donate $6,000 to local charities

The Northeast Florida Chapter donated $6,000 to four local charities. Each charity received a check for $1,500 from funds raised by the chapter through various fundraising events.

Front L to R: Lindsay Ferguson, Jeff Winkler from Real$ense, Paul Bell - Second Harvest, Dianne Wiles - First Coast No More Homeless Pets, Kim Ward - PACE Center Back L to R:
NEFL Chapter Board: Jocelyn Jones, Paul Numbers, Aaron Logue, Judy Walz, Davis Johnston, and Michelle Troha

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In This Issue
Friday Edition
Target provides update on data breach
QM rules begin today
Cordray and Matz announce town hall webinar
CO-OP hits record 2.8B transactions in 2013
CU happenings
LSCU & Affiliates Media

President's Quarterly Report
LSCU & Affiliates President/CEO Patrick La Pine looks at the League's activities for the fourth quarter which includes an office move in Tallahassee, a new LEVERAGE hire and an update on tax reform.

NCUA Economic Update - December 2013
Fourth-quarter economic trends show positive signs of a stronger economy, but expected changes in the interest rate environment will present challenges to future credit union performance, according to a new economic video analysis released by the National Credit Union Administration.

Upcoming Event Deadlines
Jan. 14  Last day to receive "early bird" rate for BSA Essentials & Advanced Workshop – Jacksonville
Jan. 15  Hotel room group rate cutoff for ACUA State GAC
Jan. 16  Last day to receive "early bird" rate for Security & Robbery Training – Birmingham
Upcoming League Events
Jan. 14 Real Estate Collections/CFPB Servicing
Jan. 15 IRA & HSA Review - DOMA Implications
Jan. 16 Fee Income 2014 Challenges-Issues
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