Four Things You Need To Know To Start Your Credit Union Day

May 12, 2020 at 9:56 am Leave a comment

The pace of life is quickening again, which is a fancy way of saying that there are several new developments you need to know about. Here goes…

Three New York Regions Ready To “Reopen”

In the most upbeat assessment he has given since the outbreak of the pandemic, Governor Cuomo announced that there are three regions in the state which can begin reopening on May 15th. Of course, credit unions have never closed but they would still be well advised to model their policies after state and local mandates.

I have one Big Picture point to make: As you ramp up your workplaces you would be well advised to meet with your HR team including your outside counsel, to prepare for life with the pandemic. Your credit union not only has to take common sense measures, such as creating more distance between employees and insuring an adequate supply of PPEs, it must also have a framework for dealing with a brand new set of HR issues. I’m sure you can’t wait for my future blog on that subject.

Credit Unions And The CLF

The NCUA yesterday released a letter to federally insured credit unions informing them that if they have less than $250 million in assets they are now eligible to participate in the Central Liquidity Facility (CLF). Provisions in the CARES Act made it cheaper for corporate credit unions to become CLF agents meaning they can act as conduits for their members who have emergency liquidity needs. Now let’s hope no credit union need to use to take advantage of this new authority.

Military Personnel Added to Low-Income Designation Criteria

In another important development, the NCUA announced that it was expanding the criteria used to determine if a credit union qualifies for a Low-Income Credit Union designation to include military personnel. Under section 12CFR 701.34, a credit union qualifies for a low income designation if a majority of its membership are members whose family income is 80% or less than the median family income of the metropolitan area where they live. Under existing regulations, low income members also include students enrolled in college, high school or vocational school. Active duty personnel will now be treated the same way.

CFPB Raises Remittance Threshold

Yours truly has not had a chance to read this yet, but I wanted to give you a heads up that the CFPB issued final regulations yesterday under which fewer credit unions will have to comply with the remittance rule. Specifically, entities making 500 or fewer transfers annually in the current and prior calendar years will not be subject to the Rule.

Entry filed under: COVID-19, Economy, HR, New York State, Regulatory. Tags: , , , , , .

Governor Extends Executive Order; IRS Issues Guidance on Checks To Deceased Persons Regulators Turn Spotlight to Consumer Loans

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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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