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Credit Union Times
SEP TEMBER 2, 2015 | VOL. 26 | NO. 32 | CUTIMES.COM
CREDIT UNION TIMES
In this Focus Report, find out why auto leasing reaps
benefits for both credit unions and their members. Plus,
get the lowdown on e-closing and consumer controlled
lending, which some experts say will soon permeate
lenders’ business processes. Y8
Refresh your credit
union’s image the
right way. Y12
teamwork and data
he $942 million Xceed
Financial Credit Union
is prepared to begin
securitizing the loans it
originates once the NCUA has approved a final securitization rule.
COO Ray Shams said the El Se-
gundo, Calif.-based credit union
has been working with legal and
financial firms for months to help
it prepare for the day when its
will begin issuing
by the credit
“Our goal is to be able to provide better products and services
for our members at a more favorable price,” Shams said. He argued
that securitizing loans for investors would be a more efficient and
cost effective way to handle the
assets than selling them.
In June 2014, the NCUA Board
proposed a securitization rule and
accepted comments on it until
September 2014; however, it has
not yet proposed a final rule.
The Federal Credit
Xceed Preps to Securitize Loans
Y A pending NCUA rule would allow credit
unions to securitize loans.
Y The COO of Xceed Financial in California says his credit union is ready to do it.
Y For credit unions to move forward, the
NCUA will still need to pass a safe harbor rule for any security sales.
Smyth Speaks on Alabama One
Following years of regulatory inspections, allegations of fraud
and lawsuits, John Dee Carruth,
president/CEO of the $598 million, Tuscaloosa, Ala.-based Alabama One Credit Union, said he
has proof of a state government
conspiracy against him, several
of his colleagues and his financial institution.
Carruth shared dozens of
emails, depositions and other documents with CU Times,
which he said is evidence that
attorney Justice D. “Jay” Smyth,
III conspired with his political
friends to force Alabama One
to settle lawsuits for millions of
Fall Brings Phishing Attacks
Back to school also means “back
to fraud” for some cybercriminals looking to spoof domains
and pull off spear phishing attacks. However, credit unions
can take steps to protect their
brands and members from these
threats, which often begin as malicious emails.
John Wilson, field chief technology officer for the San Mateo, Calif.-based email security
solutions provider Agari, said he
expects that as instances of cy-bercrime continue to climb, consumers and businesses will likely
observe elevated levels of malicious emails in their inboxes, especially heading into fall.
“While it may be back-to-school season now, right Y18
he Ashley Madison
hack not only devastated marriages, but also
companies that learned
employees used their work email
addresses and computers to access the site.
Four NCUA email addresses
were discovered among those
posted online from the marital affair website. NCUA Public Affairs
“This is just a strong example
of why a bill is needed,” Breyault
said. “Regardless of the morality
of using a site like Ashley Y14