Dividend Payouts, Housing Reform and Taxi Lending Highlight CU News You Can Use

May 22, 2019 at 9:04 am Leave a comment

Show Me More Money

I figured I’d start with some good news this morning. NCUA announced that it will be paying out dividends totaling $160.1 million. This means that NCUA has been able to issue close to $900 million in equity distributions over the past year. Right now the NCUA has a Share Insurance Fund equity ratio of %1.39 to aggregate credit union assets. Under the law, any money in excess of the ratio must be returned to credit unions. The money is available as a result of NCUA’s decision to end the temporary Credit Union Stabilization Fund which was set up in the aftermath of the corporate crash.

GSE Capital Requirements Emerge As Key Issue In Housing Reform Debate

A key fault-line in the debate over how to reform the GSE’s spilled out into the public yesterday. In a speech before the Mortgage Banker’s Association laying out his view of what the housing industry should look like the future, FHA Director Mark Calabria argued that Fannie and Freddie should exit conservatorship but only after huge capital infusions. He explained that, “I can’t tell you what exactly the new model will look like. But, as a regulator, what I do know is that the future role and structure of Fannie and Freddie will be determined by the amount of private capital they’re able to build up.”

In the meantime, Dan Layton, the CEO of Freddie told lawmakers, albeit in bureaucratic speak, that the capital plans being drawn up by the Trump Administration are crazy. He called plans to have the GSE’s raise $125 billion in capital “unprecedented” and predicted that it would take at least 5 years to raise up to $50 billion. Five years is the length of Calabria’s term at the FHFA and he made it clear yesterday that when he leaves his post he intends the housing market to be a different place than it is today.

Taxi Lending Investigations Keep Piling Up

Now for some bad news. The investigations into taxi medallion lending practice are piling up quicker than presidential tweets. Yesterday evening the Times tweeted out that New York Senator and Minority Leader Chuck Schumer is requesting “a review of the regulation of credit unions in a taxi industry.” A good place to start would be the review of the regulation of credit unions in the taxi industry already conducted and released by NCUA’s Inspector General. New York City Mayor DeBlasio, Assembly Banking Chair Zembrowski and New York Attorney General James have already called for hearings and/or started investigations. As these investigations go forward let’s not forget about two companies called Uber and Lyft.

Entry filed under: General, Regulatory. Tags: , , , , .

AG To Investigate Taxi Lending Who Gets New Disclosures When Your Mortgage Debtor Dies?

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Authored By:

Henry Meier, Esq., Senior Vice President, 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. In addition, although Henry strives to give his readers useful and accurate information on a broad range of subjects, many of which involve legal disputes, his views are not a substitute for legal advise from retained counsel.

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