July 15, 2014
Tuesday Edition
Bill to fight patent 'trolls' passes House subcommittee

The House subcommittee on commerce, manufacturing, and trade voted 13-6 Thursday to advance a bill designed to combat abusive patent demand letters. The Targeting Rogue and Opaque Letters (TROL) Act of 2014 would crack down on unfair or deceptive practices in connection with the assertion of a U.S. patent.

The bill would prevent the following:

  • The sending of communications where the sender falsely represents that they have the right to enforce the patent, a civil action has been filed against the recipient for a violation, a civil action has been filed against other recipients, legal action will be taken, the sender is the exclusive licensee of the patent or an investigation into infringement of the patent has occurred.

  • A sender seeking compensation for an unenforceable patent claim, activities undertaken by the recipient after the patent has expired or authorized activity regarding the patent by the recipient.

  • The sender failing to provide the identity of the person asserting the right to the patent, the patent that is alleged to have been infringed upon, an identification of the alleged patent infringement or contact information for a person making the infringement claims.

Violations of the bill would be enforced by the Federal Trade Commission (FTC), under its powers to enforce rules against unfair or deceptive acts or practices.

The bill will now be sent to the full House Energy and Commerce Committee.

To read the full story visit CUNA News Now

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Congressional runoff is today in Alabama

Credit unions in Alabama's 6th district are encouraged to vote in today's Republican runoff election. Alabama Credit Union Association backed Paul DeMarco is opposed by Gary Palmer. DeMarco, a state representative, has been a friend to credit unions during his years in the state legislature. The winner of today's runoff will move on to the November election for the seat currently held by Rep. Spencer Bachus who will retire at the end of this year. 

Polls are open until 7 p.m. Alabama's 6th Congressional District encompasses almost all of Jefferson County and all of  Bibb, Blount, Chilton, Coosa, and Shelby counties.

If you have any questions about the election, contact LSCU Director of Governmental Affairs Jason Cochran at 866.231.0545 ext. 2159.

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Washington wire

It’s a busy week for credit unions on Capitol Hill as the House and the Senate are in session with floor action and committee action of interest to credit unions. Here’s what you need to know:

  • Doug Fecher, president and CEO of Wright-Patt Credit Union in Beavercreek, OH, will testify on behalf of CUNA at a hearing in the House Financial Services Committee Subcommittee on Financial Institutions and Consumer Credit on pending regulatory relief legislation

  • The House will consider the Financial Services and General Government Appropriations bill for fiscal year 2015, which includes funding for the Community Development Revolving Loan Program and the Community Development Financial Institution Fund

  • A CUNA and League supported amendment to the Financial Services and General Government Appropriations bill could be offered to direct funding for a study of the economic impact of the Foreign Account Tax Compliance Act (FATCA)

  • The Senate is expected to consider the reauthorization of the Terrorism Risk Insurance Program Act; the House may also consider similar legislation

For more on the above topics, plus this week's floor schedules click here.

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InfoSight spotlight: Suspicious Activity Reports

An effective Bank Secrecy Act compliance program will be able to recognize that certain transactions are suspicious in nature. A credit union must know its members to be able to make an informed decision as to the suspicious nature of a particular transaction and whether to file a Suspicious Activity Report (SAR).

SARs can be filed on any transaction occurring in any department. SARs must be filed no later than 30 days after the date of initial detection of facts that may constitute a basis for filing a SAR.

Remember that the Financial Crimes Enforcement Network (FinCEN) has mandated that the SAR reports (and Currency Transaction Reports) be filed electronically through the BSA E-Filing System.

For the resources your credit union needs to remain in compliance, visit the Suspicious Activity Reports topic of InfoSight. You will find information about:

  •     Recordkeeping requirements
  •     SARs and elder abuse
  •     Terrorism and suspicious activity
  •     SAR confidentiality and subpoenas
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CUNA seeks feedback on NCUA Appraisals Proposal

CUNA is looking for feedback from credit unions to its Regulatory Call to Action through Aug. 18 on NCUA’s recent proposed rule regarding appraisals and the availability to applicants and requirements for transactions involving an existing extension of credit.

The proposed rule would eliminate the duplicative requirement that federal credit unions (FCUs) make available to any requesting member/ applicant, a copy of an appraisal used in connection with that member’s application for a loan secured by a first lien on a dwelling. The proposal would narrow the scope of this requirement to cover only loans secured by a subordinate lien on a dwelling. FCUs would still be subject to the CFPB’s Reg B requirement that all creditors must automatically provide applicants with free copies of all appraisals and other written evaluations.

Additionally, the proposal would require that the appraisal be available for a period of 25 months after the applicant has received notice from the FCU of the action taken by the credit union on the application for a loan secured by a subordinate lien on a dwelling.

The proposed rule would also amend NCUA’s regulations to exempt transactions that involve an existing extension of credit at the lending federally-insured credit union, provided that: 1) there is no advancement of new monies, other than funds necessary to cover reasonable closing costs; or 2) there has been no obvious and material change in market conditions or physical aspects of the property that threatens the adequacy of the credit union’s real estate collateral protection after the transaction, even with the advancement of new monies.

Further, the proposed rule would align NCUA’s definition of “application” with the CFPB’s definition under Reg B.

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In This Issue
Tuesday Edition
Bill to fight patent 'trolls' passes House subcommittee
Congressional runoff is today in Alabama
Washington wire
InfoSight spotlight: Suspicious Activity Reports
CUNA seeks feedback on NCUA Appraisals Proposal
LSCU & Affiliates Media


2014 Southeast Credit Union Conference and Expo

The LSCU & Affiliates hosted the Southeast Credit Union Conference and Expo. The conference featured former Florida State Football Coach Bobby Bowden, National Credit Union Foundation Executive Director Gigi Hyland, CUNA Mutual Group CEO Bob Trunzo, and Filene Research Institute CEO Mark Meyer.


President's 2Q Video
The LSCU & Affiliates President/CEO Patrick La Pine provides an update from the second quarter and also looks ahead to the rest of the summer.

Upcoming Event Deadlines
TODAY Last Day to Register - LSCU BSA Essentials & Advanced Workshops - Mobile, AL
July 16 Last Day to Register - LSCU BSA Essentials & Advanced Workshops - Huntsville, AL
Aug. 1 Last Day to Register - Southeast Supervisory Committee Conference - Point Clear, AL
Aug. 5 Last Day for Early Bird Rate – LSCU Fall Regulatory Compliance Update – Tallahassee, FL
Aug. 7 Last Day for Early Bird Rate -  LSCU Fall Regulatory Compliance Update – Birmingham, AL

Sept. 8 Last Day to register - LSCU Fall Regulatory compliance Update - Birmingham, AL

Sept. 9 Last Day for Early Bird Rate – LSCU Collections & Bankruptcy School – Birmingham, AL

Sept. 10 Last Day to Register - LSCU Fall Regulatory Compliance Update - Birmingham, AL

Sept. 23 Last Day for Early Bird Rate – LSCU OFAC/BSA Basic & Advanced School – Tallahassee, FL

Sept. 23 Last Day for Early Bird Rate – LSCU Lending School – Birmingham, AL

Upcoming League Events
TODAY-16 - SE Regional Director's Conference
TODAY - New CFPB Income Verification Rules
July 16 - BSA Essentials & Advanced, Mobile
July 16 - Overdraft Protection Review
July 16-17 - Philosophy in Action Workshop Orlando
July 17 - BSA Essentials & Advanced, Huntsville AL
July 22 - Ensuring Data Security
July 23 - Stress Testing for Risk Management 
July 29 - SAFE Act Registration-Renewal- Compliance
July 30 - Avoid HMDA Reporting Mistakes
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