Posts tagged ‘Veteran’s Day’

The Credit Union Movement and Veterans

Veteran’s Day got me thinking about the bond between credit unions and the military. A recent survey demonstrates how that bond is alive and well, and, if you look at the history of our movement, all credit unions owe a debt of gratitude to service members. 

The survey to which I am referring underscores that credit unions are still living up to their reputation for helping members of the military. Specifically, of the 20 top lenders which provide government VA loans, Navy Federal offers the best rates. Based on analysis of HMDA data, of the VA lenders examined in 2019, 10 had a rate spread that was above the average prime offer rate. In fact, there was more than a 1.25% spread between the lowest annual percentage rate offered by Navy FCU and the highest rate offered by New Day Financial. 

You would think from the comments of some of our Congress members that the CFPB had stopped taking enforcement actions. In fact, one of its most recent settlements involved Low VA Rates, LLC. The settlement demonstrates that the substantial rate spread reflects more than the complexity of offering VA loans. Guess what? The rates weren’t quite as low as advertised. In fact, the Bureau accused the company of engaging in classic bait and switch tactics, in which it advertised low rates on VA backed mortgage products that it did not make available or in which it placed conditions which were not clearly advertised. More generally, the movement is inexorably linked to the armed forces. It is not a coincidence that so many credit unions, such as AmeriCU in Rome, NY, were founded on military bases. Once again, we owe a debt of gratitude to the Greatest Generation. The federal credit union charter was less than a decade old when the Japanese bombed Pearl Harbor. As the NCUA commented in its 1948 report, federal credit unions were encouraged to give “sympathetic consideration to borrowers who entered the military during the war.” Not all of these loans worked out well. In 1944, for example, there were 20,000 military loans “with unpaid balances totaling $1.6 million, which was nearly 5 percent of the total amount of loans outstanding.” But by 1948, almost all of these loans were repaid, and the NCUA explained that “the experience of Federal credit unions with military loans is highly gratifying, and a new chapter in the history of credit union service has been written.”

November 16, 2020 at 10:13 am Leave a comment

Is Tomorrow A Business Day?

Image result for veterans dayToday I am going to get down in the weeds a little. So, grab some extra coffee before you find out about the joys of how to define a “business day” for purposes of the Truth In Lending Act and RESPA.

There are of course, a plethora of timed notice requirements in the byzantine world of mortgage finance such as the three-day right of rescission and the receipt of TRID disclosures within 3 business days of receiving an application and at least 3 business days before a closing. A business day is generally all calendar days except Sundays and federal legal holidays specified in 5 U.S.C.A §6103.

Federal law recognizes 11 days as National holidays (5 U.S.C.A §6103). 4 of those holidays specify specific dates on which they are to be celebrated (New Year’s Day, Independence Day, Veteran’s Day, and Christmas). So what do we do in those cases where a holiday celebrated on a specific date is celebrated on a day other than the day on which it falls? As luck would have it, the official interpretation to the definition of business day tells us exactly how to handle this. “When one of these holidays (July 4, for example) falls on a Saturday, Federal offices and other entities might observe the holiday on the preceding Friday (July 3). In cases where the more precise rule applies, the observed holiday (in the example, July 3) is a business day.” 12 C.F.R. § Pt. 1026, Supp. I, Part 1, §1026.2(a)(5)

Since we’re on the subject, what should you do if your member’s credit card payment are due on the 10th of each month? The answer is more complicated than you might think. If your credit union is closed tomorrow because it celebrates Veteran’s Day on the 10th, then it must accept payment as timely if the payment is received on the next business day which could be as late as Monday.

Here’s where it gets even trickier: Even though your credit union knows well in advance what days it will not be open for business, you are still obligated to disclose the 10th as the date the payments are due on your periodic statements. Take a look at the official commentary; See 12 C.F.R. §1026.7 (b)(11)(9) for further explanation.

Incidentally, throughout this blog I am providing links from the CFPB’s eRegulations. This is the easiest way of easily sifting through the regulations and their accompanying commentary.

On that note, yours truly is taking a floater tomorrow. I’m actually headed down to God’s Country (aka Long Island) to see how the family is doing and to take a train ride into the city. Maybe we will run into each other.

 

November 9, 2017 at 9:57 am Leave a comment


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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