On Friday, November 6, President Barack Obama signed the CARD Act Technical Corrections Act (H.R. 3606) into law. He also penned his name to the bill extending the homebuyer tax credit.

 

The new CARD Act law fixes a situation that has been plaguing credit unions since the original Credit Card Accountability, Responsibility and Disclosure (CARD) Act was signed in May. That bill incorrectly implied that a 21-day late notice requirement applied to all open-end credit, and the Credit Union National Association (CUNA) has argued that it had always been lawmakers' intent to apply the provision only to credit cards. The corrections bill states clearly that the late-notice provision applies only to credit cards.

 

CUNA worked closely with lawmakers and their staffs warning that the drafting mistake would prevent credit unions from granting biweekly payment plans to their members, from sending members consolidated billing statements, and would force them to change payment due dates for members that had previously chosen due dates based on their specific financial circumstance. The situation was particularly problematic for Home Equity Lines of Credit (HELOC) because the due date of a HELOC is often a contractual term.

 

"Credit unions can continue the practices of sending members consolidated billing statements, changing payment due dates for members who had previously chosen a due date based on their specific financial situation, and continuing bi-weekly payment plans--all essential tools consumers use to manage their finances in the ways that best suit their needs," CUNA CEO Dan Mica noted.

 

Mica also took note of the efforts of "the leagues and the many credit unions" who worked with lawmakers to get the fix into law. "Without their efforts," Mica said, "credit unions would still be reeling from the unintended consequences of this law."

 

The President also signed legislation extending the $8,000 first-time homebuyer tax credit that was set to expire at the end of the month. That bill also creates a new $6,500 tax credit for current homeowners who purchase a new home between December 1, 2009 and April 30, 2010.

 

Use this resource link, News Now 21-day rule compliance for comprehensive compliance information about "un-complying" with the 21-day requirement now that the fix has been enacted.

http://cuna.org/newsnow/archive/list.php?date=103009#43346

 

 

Beautiful weather graced the third annual "Small Credit Union Conference – Sail into the Future" held in beautiful Newport, RI, this past weekend.  Created by the Small Credit Union Task Force, which is chaired this year by Barbara Goodwin of Fitchburg Federal Credit Union and Anabela Pereira of Pioneer Valley Federal Credit Union and produced in collaboration with Fiserv/CUSA Product Line Users Group Meeting, the program’s content was designed to meet the needs that face management, staff, and directors operating small credit unions.  Conference sponsors included Fiserv, Financial Service Centers Cooperative, and the Joseph Fisher Memorial Trust.

 

In addition to timely topics presented by CUSA staffers specific to their data processing product, the Small Credit Union Conference speakers included a talented and diverse roster of presenters.  Keynote speaker, author Harry Paul, presented FISH! in the Workplace, which bridged the gap between CUSA’s content and the Association’s agenda.  Beverly Purtell, VP of human resources at the Association spoke on employment challenges in this economy.

 

Anthony LaCreta of the National Credit Union Administration’s Region 1 explained what to expect from the Administration in the year ahead. Bernie Winne, president and CEO of Boston Firefighters Credit Union presented practical ideas on educating the Directors serving on the Board of a small credit union as well as facilitating a discussion on many challenges facing credit unions today.

 

The challenges presented by the current economic climate was the topic addressed by Mike Hanson, president of the Massachusetts Credit Union Share Insurance Corporation (MSIC) and his associate Dan Murphy described tools available to assist in strategic planning, including their Custom Performance report (CPR).

 

A panel of service providers discussed topics of emerging technologies for members, due diligence of third parties, simplifying loan closings, and the training opportunities available to small credit unions through the Credit Union National Association’s online staff and volunteer development programs.

 

 

Overall consumer credit decreased at an annual rate of 6% during third-quarter 2009, to $2.455 trillion, according to statistics released recently by the Federal Reserve.  Credit unions turned out to be a bright spot in the report, seeing increases in both revolving and non-revolving credit while commercial banks and finance companies experienced decreases.

 

Overall revolving credit during third quarter dropped 10% (at an annual rate) to $889 billion, while non-revolving credit was down 3.8% to nearly $1.566 trillion.

 

For the month of September, consumer credit dropped 7.25% (not seasonally adjusted), while revolving credit plunged 13.3 % and non-revolving credit slipped 3.7%.

 

On a non-seasonally adjusted basis, third quarter consumer credit totaled $2,465.4 billion. Of that, credit unions accounted for $240.5 billion, which was an increase from the $236.1 billion they loaned in third-quarter 2008.

 

Banks lost ground during the year, registering $831.5 billion loaned for third-quarter 2009 compared with $844.1 billion a year earlier. Finance companies also saw decreases--to $522.8 billion for third-quarter 2009 versus $596.3 billion in third-quarter 2008.

 

Credit unions' revolving credit totaled $34.2 billion for third quarter 2009, up from $32.2 billion during the period in 2008. Their non-revolving loans totaled $206 billion for third quarter this year, an increase over $203.9 billion loaned in the same period last year.

 

For more details, click here Federal Reserve's Consumer Credit Statistical Report

http://www.federalreserve.gov/releases/g19/Current/default.htm