3 Things You Need to Know
The Next Love Canal?
While the water problems in Flint, Michigan have understandably garnered the national spotlight, the potential that toxic dumping has been taking place in Hoosick Falls, New York is beginning to impact not only the community but lenders.
On Friday, the Albany Business Review reported that Trustco Bank and The Bank of Bennington have temporarily suspended mortgages in the village. The announcement underscores that environmental problems inevitably have a banking component. Obviously, problems like this make it almost impossible for homeowners in affected communities to sell their properties. Less obvious is the fact that lenders could retroactively be made to buy back mortgages on property that is found to be contaminated.
I went back through my archives and as I explained in this blog about the potential risks of fracking, Fannie and Freddie have set up a system where lenders can be forced to buy back mortgage loans years after they were sold to the secondary market. Let’s hope for the best in the case of Hoosick Falls.
CUSO Registration Takes Effect
For years now, our good friends at the NCUA have expressed concern that they don’t have adequate oversight over CUSOs. Starting today, CUSOs, irrespective of whether they are owned by state or federal credit unions, must be registered with the NCUA. As part of this new requirement, all CUSOs must now provide information directly to the agency. I know this has been a real hot button issue for some credit unions, but the final regulation is much less onerous than what was initially proposed and, the more I look into this issue, the more I agree with NCUA. It makes sense to increase its ability to assess the impact of CUSOs on the industry as a whole.
The Most Important Election
The election that will have the most direct and immediate impact on your credit union is not the one for President this November. Governor Cuomo announced Saturday that a special election will be held on April 19 to fill the Senate and Assembly seats of Senator Dean Skelos, Republican and Assemblyman Sheldon Silver, Democrat. Right now, the Republicans hold a one seat majority in the Senate chamber, but a victory by Assemblyman Todd Kaminsky would mean that the continuing control of Republicans is dependent on the continued support of the Independent Democratic Caucus.