Tuesday, September 27, 2016

Wisconsin Governor Announces Major Expansion in UW CU's FOM

Governor Scott Walker joined officials from University of Wisconsin (UW) Credit Union and the Department of Financial Institutions (DFI) to announce a change in the credit union’s field of membership (FOM) eligibility requirements.

The UW Credit Union Board of Directors recently approved a change in membership eligibility. Now, in addition to UW System past or present students, any Wisconsin resident who is currently enrolled or has attended any accredited institution of higher education can do business with the UW Credit Union. The Office of Credit Unions at DFI certified this change on September 8, 2016.

According to the press release, this will provide additional opportunities for the managing educational expenses and refinancing of student loan debt across the state.

Read the press release.

Monday, September 26, 2016

ICBA Lawsuit Prompts Washington CU Regulator to Suspend MBL Rulemaking

Washington Division of Credit Unions has temporarily suspended its member business loan (MBL) rule-making process due to the Independent Community Bankers Association (ICBA) lawsuit challenging the National Credit Union Administration (NCUA) recently adopted final rule related to MBLs.

As a result of the ICBA lawsuit, some Washington state-chartered credit unions requested that the Director of Credit Unions to temporarily suspend the pending rule-making process to update the Washington State MBL Rule.

The Division of Credit Unions concurred with the requests. The state credit union regulator believes temporarily suspending the rule-making will give it time to analyze this lawsuit and its implications for Washington State.

Read the notice.

Thursday, September 22, 2016

BECU's Directors Earn $40,000 to $50,000 in 2016, Up Significantly from 2014

Between 2014 and 2016, Boeing Employees Credit Union (BECU) significantly increased the pay of credit union officials.

In 2013, Washington-state authorized allowing state chartered credit unions to provide reasonable compensation to credit union officials.

Starting in 2014, BECU’s directors and audit committee members could earn annual stipends ranging from $14,000 to $25,000, depending on the position and committee service. The board’s chair received $25,000.

In 2016, annual stipends for directors and committee members will range from $40,000 to $50,0000.

The board's chair would see a doubling in compensation to $50,000 compared $25,000 in 2014.

BECU stated that the compensation of directors and audit committee members will "not exceed the median of compensation paid to directors of a peer group of organizations of similar size and complexity, including organizations such as credit unions, other types of financial institutions, financial services companies, and non-profit organizations."

To review the 2016 quarterly stipend schedule approved by the credit union's board, click here.

Tuesday, September 20, 2016

NYC Medallion Prices Averaged $561,000 for July and August

Taxi medallion prices in New York City averaged almost $561 thousand for the months of July and August. This is slightly higher than the $550 thousand recorded for the months of May and June.

For the months of July and August, there were 7 arm's length transactions, of which 5 were foreclosures.

Six transactions were between $550,000 and $620,000 with three transactions at $620,000. While it appears that taxi medallion values might be stabilizing, taxi medallion pries are significantly below their 2014 values of $1 million.

However, one transaction appears to be an outlier at $350,000. But if New York City taxi medallion prices follow the trends seen in other cities, this $350,000 transaction may become more prevalent in the future.

The evidence indicates that the value of the collateral backing taxi medallion loans have become significantly impaired and the credit unions holding these loans will eventually need to take impairment charges to reflect the decline in the value of the collateral.

Monday, September 19, 2016

UK FCU Extends Partnership with University of Kentucky

University of Kentucky (UK) Federal Credit Union has extended its partnership to be the official credit union of the University of Kentucky.

Under the new 15-year agreement, the UK Federal Credit Union will provide students, faculty and staff with a wide range of financial products and services, as well as continuing financial education programs and outreach.

In addition, UK Federal Credit Union will open a full-service branch in the new University of Kentucky Student Center and will have two ATMs on the main campus.

No details were disclosed on the price of the partnership agreement.

Read the announcement.

Survey: CUs Top Banks in Cross Selling Products

A recent survey found that consumers have more products with credit unions that are their primary bank relationship compared to other depository institutions.

On average, bank customers had 2.71 products at their primary bank, according to data from A.T. Kearney.

Credit union members reported on average 3.06 products.

Customers of the top 3 banks had 2.83 products and customers of the rest of the top 10 banks had 2.57 accounts.

Customers of regional banks had 2.41 products.

Customers of small and midsize banks had on average 2.2 products.

Read the story (subscription required).

Saturday, September 17, 2016

TCPA Settlement Approved in Navy FCU Lawsuit

U.S. District Judge Josephine Staton on September 15 preliminarily approved a $2.75 million Telephone Consumer Protection Act class action settlement with Navy Federal Credit Union.

Ronald Munday sued Navy Federal Credit Union over its practice of using an automated telephone dialing system to reach cellphones without their owners' prior consent — and failing to halt these calls when informed they had reached the wrong person.

Navy Federal Credit Union stated it identified a glitch in its phone filtering system that was supposed to remove wrong numbers from its dialing system and agreed to take remedial measures, according to a joint motion for preliminary approval of settlement submitted in March.

Discovery in the case revealed that between Oct. 9, 2011, and March 14, 2016, Navy Federal employed an automatic phone dialing system to call 90,726 unique telephone numbers that were coded as “wrong numbers.”

Read the article.


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