The Federal Credit Union July-August 2013 - (Page 8)

inside nafcu Show Me the (New) Benjamins A fter more than a two-year delay, the Federal Reserve Board will begin circulating the redesigned $100 bill on Oct. 8. The new bill will include additional security features, such as a 3-D security ribbon, a color-shifting bell in an inkwell, and a portrait watermark of Benjamin Franklin. The new note was originally introduced in 2010, but an unexpected production delay caused the Treasury to postpone the release. More information, as well as training and education materials, can be found at Storm the Hill for Regulatory Relief W ith tax reform up for discussion and the everexpanding burden of Dodd-Frank regulations mounting, NAFCU’s Congressional Caucus, Sept. 8–11 in Washington, D.C., is the ideal opportunity for credit unions to be heard by lawmakers. From visits to Capitol Hill to a full slate of influential speakers, including members of Congress, regulators and renowned political analyst Paul Begala, Congressional Caucus gives credit union professionals direct insights from those in power — as well as the opportunity to address critical issues, including protection of the federal tax exemption, housing reform and NAFCU’s Five-Point Plan for Regulatory Relief (www.nafcu. org/regreliefissue) — a comprehensive road map for legislators and regulators. 8 Don’t miss this chance to be heard and set the record straight in response to banks that are targeting credit unions’ federal tax exemption. For updates on the growing list of speakers or to register for the Caucus, visit Credit Unions Say … W hile the Consumer Financial Protection Bureau’s new mortgage origination and servicing rules — set to take effect in January — are meant to help consumers, many credit union members may have fewer loan options as a result, according to a recent survey published in NAFCU’s Economic & CU Monitor. Forty-four percent of credit unions said they plan to stop originating nonqualified mortgages as a result of the qualified mortgage rule, and another 44 percent will reduce originations. In 2012, 37.5 percent of respondents originated loans that would not satisfy the criteria of the rule — typically around 5 percent of originations. The rules will also impact members indirectly through the cost of compliance. Three-quarters expect mortgage servicing requirements to cost less than $10,000 in both initial setup and ongoing expenses. Another 11.5 percent expect initial setup costs to exceed $50,000, and 7.1 percent expect ongoing costs to exceed $50,000. So far about half of respondents (51.2 percent) have begun implementing QM and ability-to-pay rules. The new servicing rule has led 10 percent of survey participants to seek a third-party mortgage servicer, while more than half (51.4 percent) of respondents will need to make changes to periodic billing statements due to the rule, and 18.2 percent say that the 120-day waiting period for loss mitigation actions conflicts with a state rule. Stay up to date on the latest CFPB new mortgage rule developments — including scope and applicability charts, NAFCU summaries of the final rules, insightful blog posts, articles, webcasts and more — at The Federal CrediT Union July–August 2013 C M Y CM MY CY CMY K

Table of Contents for the Digital Edition of The Federal Credit Union July-August 2013

Voices and Opinions
From the Chair
Inside NAFCU
Fred Becker Leaves a Lasting Impression; Dan Berger Moves to CEO
Charting a Course
The 2013 NAFCU Award Winners
2013 Exhibitor Directory
Getting to Know...
Management Insight
Inside NAFCU Services
Potomac View

The Federal Credit Union July-August 2013