Five Thursday Tidbits

September 11, 2014 at 9:13 am Leave a comment

Since I didn’t do a blog yesterday, I have too much to talk about today. So, with the caveat that you may see me expand on anyone of these subjects in the future, here are some tidbits to consider as you start your credit union day.

Greetings Congressman Nussle — I’m sure CUNA is relieved to know that I think they did a great job in hiring former Republican Congressman and Budget Director Jim Nussle. First, the political winds are blowing to the right and if the industry is to get big-ticket items done on a national level it needs a guy who can get Republicans listening. Plus, Nussle knows the budget as well as anyone, and given his bona fides as an advocate of deficit reduction he is well positioned to swat away tiresome complaints about the credit union tax exemption and keep Congress focused on issues that help credit unions help members. Welcome to the fight.

http://www.cutimes.com/2014/09/09/cuna-names-jim-nussle-new-ceo?eNL=5410236b140ba09202dff0dd&utm_source=Daily&utm_medium=eNL&utm_campaign=CUT_eNLs&_LID=127666171

 How much should foreclosure’s cost? Earlier this week, Benjamin Lawsky, the Superintendent of the DFS, sent a letter to Melvin Watt, the head of the FHFA urging him to quash a proposal for Fannie Mae and Freddie Mac to charge more for buying NY mortgages. Specifically, the FHFA is considering increasing the guarantee fee  “g Fees” GSE  charge on New York mortgages as well as those of four other states by 25 basis points to account for increased foreclosure costs. The other impacted states would be Connecticut, Florida and New Jersey. The DFS argues that the FHFA is relying on data that negatively skew the cost of foreclosing in New York and that, by penalizing New York and others, it is penalizing states for providing enhanced protections for homeowners. Here is the thing: the GSEs have a point, as well-intentioned as some of NYs foreclosure laws are, every new procedural hurdle or mediation delay makes owning a house more expensive for everyone. There are real costs involved in keeping someone in a house they can’t afford. Conversely, is it fair to make New York homeowners, the vast majority of whom won’t default, pay an increased burden? The real solution is for the Legislature to reexamine some of the protections it has put in place and see what steps can be taken to make the foreclosure process more efficient. I’m not holding my breath. Here is a link to the letter: http://www.dfs.ny.gov/about/press2014/pr140909-ltr.pdf.

The CFPB announced inflation adjusted thresholds after which Regulation Z will not apply to consumer transactions. Specifically, the Bureau that never sleeps announced, “[t]ruth in Lending Act and the Consumer Leasing Act generally will apply to consumer credit transactions and consumer leases of $54,600 or less in 2015 – an increase of $1,100 from 2014. However, private education loans and loans secured by real property (such as mortgages) are subject to the Truth in Lending Act regardless of the amount of the loan.“ Here is a link to the announcement:

 http://www.consumerfinance.gov/newsroom/agencies-announce-increases-in-dollar-thresholds-in-regulations-z-and-m-for-exempt-consumer-credit-and-lease-transactions/

Here is an earlier blog I did on the topic:

https://newyorksstateofmind.wordpress.com/2013/01/03/do-foreclosures-cost-too-much/

Judging by the interest generated by this topic at yesterday’s Legal and Compliance Conference, many of you are aware that even if your credit union is not unionized, your employers have a right to use social media to complain about workplace conditions where such   employees are deemed to be taking  taking concerted actions against work place conditions. Just how broadly this right can be interpreted is underscored by this blog post from Bond, Shoenick & King. It summarizes a recent administrative ruling by the NLRB in which it held that restaurant employees were wrongly terminated after complaining about sloppy paperwork by the owners that cost employees increased taxes. referring to your boss as an “Ass” on Facebook is not grounds for dismissal so long as other employees join in your complaints For more information on just how much employees can bad mouth their employers with impunity, here is the post.

http://www.nylaborandemploymentlawreport.com/2014/09/articles/national-labor-relations-board/nlrb-holds-that-discharge-of-employees-for-facebook-conversation-was-unlawful/?utm_source=Bond%2C+Schoeneck+%26+King%2C+PLLC+-+New+York+Labor+And+Employment+Law+Report&utm_campaign=5aab769511-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_2ab9a4cab2-5aab769511-70137121

Lost in all the hype about the new Apple product roll out was the tidbit that banks have agreed to pay Apple a fee for every transaction made on its Mobile Systems program. Apple’s technology may not be game changing, but its potential to change the payment system model is. The details are still sketchy. More on this in the future.

http://www.reuters.com/article/2014/09/10/apple-payment-idUSL3N0RB25420140910

 

 

 

 

Entry filed under: Advocacy, Compliance, Mortgage Lending, New York State. Tags: , , , .

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Authored By:

Henry Meier, Esq., General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association.

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