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Credit Union Times
NOVEMBER 27, 2013 | VOL. 24 | NO. 46 | CUTIMES.COM
ALEXANDRIA, Va.- In what was
arguably the most important meeting of the year, the NCUA board approved a 6.7% in the 2014 operating budget, no projected corporate
assessment for 2014 and a final
CUSO rule. All items on the agenda received yes votes of approval
from all three board members.
The NCUA’s $268 million op-
erating budget includes a 6% in-
crease in the cost of employee pay
Of the 6% pay and benefits cost
increase, employees will receive an
average merit increase of 4%. Another 1.9% will be associated with
promotions, staff realignments,
and hiring and retention costs.
Travel expenses will increase
by 2.3%, rent, communications
and utilities will increase by 6%,
administrative costs will increase
by 13.1%, and contracted services
costs will increase by 14.8%.
However, no new full time positions will be added next year, leaving the NCUA’s full time count at
1,262.50, the same as in 2013.
Regarding the budget increase,
Chairman Debbie Matz said during the meeting the notion that
fewer credit unions should mean
a lower budget is a fallacy and
a myth. Rather, she said, credit
unions have grown larger and
more sophisticated, and require
more examiners. Additionally,
credit unions have asked
NCUA: Budget Up, Assessments Down
Retailers’ Interchange Brief
The case deciding whether credit
unions will have to reissue their
debit cards inched closer to a
conclusion Nov. 20.
Merchants defending U.S. District Court Judge Richard Leon's
decision overturning the Federal Reserve's Debit Interchange
Regulation filed arguments defending Leon's decision before
U.S. Court of Appeals for the District of Columbia Circuit.
In many ways, the appeal
briefs paralleled the arguments
presented to the lower court, but
significantly, the merchants were
more explicit about not necessarily demanding debit is- Y17
Auto Repo Rates
Credit unions continue to bask
in the glow of their record auto
lending growth, but an increase
in subprime repossessions may
be a cause for pause.
According to Experian Automotive’s latest State of the Automotive Finance Market report, the
repossession rate was 0.62% in the
third quarter, which was a 54.4%
increase from the 0.40% rate during the third quarter in 2012.
The increase in repossessions
was limited entirely to finance
companies, which typically
provide loans to the subprime
market, according to Experian.
Finance companies saw their
repossession rate jump 124.9%,
rising from 1.18% in Q3 2012 to
2.66% in Q3 2013. Mean- Y16
are 2014’s top
Credit unions are
betting they can
banks have failed
in small towns
MICHELLE A. SAMAAD
rom being able to compete with banks to assuring business members that their funds
are insured, there could be several long-term benefits for credit
unions if a bill involving insurance
coverage becomes law.
Introduced Nov. 13, the House
Financial Services Committee approved the bill, the Credit Union
Share Insurance Fund Parity Act
(H.R. 3468), by a voice vote Nov.
14. The legislation would establish
parity with banks for escrow accounts including extending share
insurance coverage to interest on
lawyers trust accounts.
With IOLTAs, attorneys routinely hold funds in trust for clients to
pay costs related to legal services
such as court filings, depositions
and business transactions. Interest from the short-term trust accounts is typically paid to a non-profit foundation for programs to
provide legal services to the poor,
elderly and disabled.
According to iolta.org, more
than 5,500 financial institutions
maintain the accounts, including
roughly 100 credit unions. Those
numbers could significantly increase if H.R. 3468 becomes law.
The $268 million Maine Savings Federal Credit Union is one
of 10 credit unions in the Y15
t may be too early to call it
a trend but at a growing—
albeit small—number of
credit unions are using internal IT staff to develop mobile
apps, rather than buying them
off the shelf.
“We did not see what we wanted off the shelf. We came to the
conclusion that we needed to
build our apps ourselves,” said
Ray Black, vice president of marketing and remote delivery at the
$1.5 billion Genisys Credit Union
in Auburn Hills, Mich.
At $5.6 billion Randolph-Brooks Federal Credit Union
in Live Oak, Texas, senior vice
president Mary O’Rourke
CUs Home Brew