Send in the Clowns

June 24, 2016 at 8:36 am Leave a comment

Some divorces are, of course, for the best.  But others leave the divorcees in a temporary state of relief only to realize over time that the grass is not as green as they thought. 

The remarkable decision by the citizens of the United Kingdom to file for divorce with the European Union may very well end up like this.  Britain is the world’s fifth largest economy and by some measures the Capitol of International Finance.  It’s hard to see how breaking away from a free trade zone with which it does a good chunk of its trading is in its long term best interest or that of its citizens. 

Unfortunately for us, Britain’s decision is another in a series of body blows inflicted on the world economy, which help explain why economic growth in this country remains lackluster.  In her prepared testimony before Congress earlier this week, Janet Yellen explained that “One development that could shift investor sentiment is the upcoming referendum in the United Kingdom. A U.K. vote to exit the European Union could have significant economic repercussions. For all of these reasons, the Committee is closely monitoring global economic and financial developments and their implications for domestic economic activity, labor markets, and inflation.”

Governor Signs Abandoned Property Measure

On June 23, Governor Cuomo signed S.8159, the abandoned property bill that I have been talking about in this week’s blog posts.  The Governor’s action means that the law, imposing requirements on mortgage lenders to maintain abandoned property, takes effect in 180 days. 

I’ve also already mentioned the trigger for the threshold for determining whether or not these new requirements apply to your credit union.  You should also be aware that the bill applies prospectively for most impacted credit unions.  Specifically, the bill providers that “for any state or federally chartered banks, savings banks, savings and loan associations, or credit unions which originate, own, service and maintain between three-tenths of one percent and five-tenths of one percent of the total loans in the state which they either originate, own, service, or maintain for the calendar year ending December thirty-first of the calendar year ending two years prior to the current calendar year, the application of this section shall be prospective only.”

The DFS has rule making authority under this law and the sooner it starts explaining what financial institutions are impacted by this bill and to what extent, the better. 

On that note, have a good weekend.  God save the Queen.


Entry filed under: Compliance, Economy, General, 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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