The Federal Trade Commission (FTC) announced it will launch a new educational program and further delay enforcement of its identity theft "red flags" rule--to November 1.

This is the third time the compliance date has been pushed backed by the FTC, an action which affects state-chartered credits unions.  Federally chartered credit unions under a similar National Credit Union Administration identity theft rule had to comply by November 1, 2008.

The red flags rule was developed to implement parts of the Fair and Accurate Credit Transactions Act of 2003 (FACTA).  FACTA directed financial regulatory agencies, including the FTC, to promulgate rules requiring those under its supervision that have covered accounts to implement programs to identify, detect, and respond to patterns, practices, or specific activities that could indicate identity theft.

A covered account generally is a consumer account or any other account the institution determines carries a foreseeable risk of identity theft.  The FTC announced this week that, in an attempt to help small businesses and "other entities" with compliance, it will "redouble" its education efforts and provide additional resources and guidance to clarify what businesses are covered by the rule and what must be done to comply.

"Although many covered entities have already developed and implemented appropriate, risk-based programs, some – particularly small businesses and entities with a low risk of identity theft – remain uncertain about their obligations," the FTC noted, explaining its latest delay.

The FTC's additional compliance guidance will include a special link for small and low-risk entities on commission's "Red Flags Rule Website." The agency already has posted FAQs that address how the FTC intends to enforce the Rule and other topics.

The FTC release highlighted that the enforcement FAQ states that commission staff" would be unlikely to recommend bringing a law enforcement action if entities know their customers or clients individually, or if they perform services in or around their customers' homes, or if they operate in sectors where identity theft is rare and they have not themselves been the target of identity theft."

Use this resource link for more information. FTC Red Flags Website   http://www.ftc.gov/redflagsrule

The ongoing recession is taking its toll on credit union lending, according to a Credit Union National Association (CUNA) economist's analysis of CUNA's monthly sample of credit unions for June. "For the first six months of the year, credit union loan balances rose 0.7%, significantly lower than the 3.1% reported for the same period last year," Steve Rick, CUNA senior economist told News Now. "Americans are deleveraging their balance sheets by paying down debt or slowing their debt accumulation.

"Credit unions should expect the loan portfolio to rise 5% this year, below the past five-year average of 8.4%," he added.

Credit union loans outstanding, which totaled $584.5 billion, increased 0.2% during June. It also increased 0.7% during the first six months of 2009, down from a 3% increase during the same period of 2008. Fixed-rate mortgages led June loan growth, rising 1.5%, followed by credit card loans (1.4%), unsecured personal loans (0.9%), used-auto loans (0.7%), and home equity loans (0.2%).

However, during this period, new-auto loans declined (-0.3%), as did other mortgages (-0.6%), other loans (-0.9%) and adjustable-rate mortgages (-1.6%).

Credit union savings balances totaled $754.5 billion for June, declining 0.2%, but grew 8.2% during the first six months of 2009. During this period, money-market accounts led savings growth with a 1.5% increase, followed by regular shares, which increased 1.1%.

Also during this period, one-year certificates essentially remained constant--increasing less than 0.05%--while individual retirement accounts and share drafts declined 1.1% and 5.6% respectively.

"With fears of job losses on the minds of many Americans, the U.S. savings rate rose to 6.9% recently," Rick said. "Credit union savings balances have responded with an 8.2% rise in the first half, up from 6.4% last year."

 

MemberAssistÔ is a member-facing mortgage website that will drive more mortgage relationship opportunities to your credit union.  MemberAssistÔ has been designed to be easily integrated into a credit union’s existing website to provide members and potential members 24/7 access to information on your credit union’s mortgage programs as well as to a wide variety of consumer friendly educational resources.

 

MemberAssistÔ provides a solution for credit unions of every size.  The end result is that members are given the option of “shopping” in a manner that suits them best.  Those that are just “kicking the tires” are able to look at products and rates.  A member that is further down the “buy/refi road” can do everything from requesting more information with a Short Form email link; to completing a “Quick App” that provides a bit more detail regarding what their goal is; to fill out a complete 1003 mortgage application.

MemberAssistÔ will integrate with most loan origination systems providing a seamless transition for mortgage inquiry to loan closing. And it will provide tracking and reporting tools to measure the success of your customized mortgage website.

 

Members Insurance Agency has teamed with OpenClose^Ò, a premier mortgage software company, to promote the benefits of MemberAssistÔ to your credit union. For a detailed look at the features and benefits of MemberAssistÔ click here or call Lisa Costello at 1-888-746-2476.