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|The Pulse (10-22-14)|
The Pulse (10-22-2014)
October 22, 2014 ● Volume 03, Issue 42
Credit Union News
The new CFPB Mortgage rules that went into effect in early 2014 amended Regulation Z - Truth in Lending Act (TILA) to impose upon a mortgage loan originator (MLO) certain qualification duties. These duties include either being licensed and registered under the Secure & Fair Enforcement for Mortgage Licensing Act (SAFE Act), or for loan originators who are not required to be licensed and are not licensed, to also be trained on regulations that apply to their loan origination activities.
In addition, the amended TILA broadened the definition of “loan originator” to include those persons who perform loan origination activities, such as:
For those credit unions who have loan originator employees who are not required to be licensed under the SAFE Act, you are generally still required under TILA to provide periodic training covering federal and state law requirements that apply to an individual’s loan origination activities.
The CFPB has said specifically that Nationwide Mortgage Licensing System (NMLS) approved licensed loan originator continuing education training can be used to satisfy the training requirement of the rule, which is being called a “safe harbor.”
In response to these new expansive requirements, the Minnesota Credit Union Network is partnering with the Credit Union National Association (CUNA) to present an NMLS-approved comprehensive mortgage loan originator course to member credit unions at great value. Credit unions can obtain the “safe harbor” training through CUNA’s NMLS-approved comprehensive mortgage loan originator course.*
This course covers the following:
This course was designed to meet the continuing education requirements of the SAFE Act inclusive of (3) hours federal laws & regulations, (3) hours ethics, consumer protection & fair lending, and (2) hours lending standards for the non-traditional mortgage product marketplace.
Class sizes are limited, and locations will fill up quickly. For additional details and online registration, please see the MnCUN Event Calendar.
For additional information regarding the mortgage loan originator rules, see the Network’s CFPB Mortgage Rules – Mortgage Loan Originator compliance guide summary, and the CFPB’s Small Entity Compliance Guide on the 2013 Loan Originator Rule.
*8 Hour Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE) Comprehensive Mortgage Loan Originator Course (NMLS #1405021)
The Consumer Financial Protection Bureau (CFPB) recently issued a proposed rule amending the reporting requirements under the Home Mortgage Disclosure Act (HMDA). Under the proposal, one of the three factors used in determining which financial institutions are covered under HMDA would be amended by increasing the covered loan threshold to financial institutions that originate 25 or more covered loans, excluding open-end lines of credit, in the previous calendar year. In addition, unsecured home improvement loans would no longer be reported; however, home equity lines of credit would be required to be reported instead of on a voluntary basis under the current rule. Additional data would also be reported as required under the Dodd-Frank Act, and additional categories would be added as proposed by the CFPB. Lastly, the proposal would require reporting of mortgage loans with a commercial purpose, which is contrary to the consumer protection intent of HMDA.
Last week, the Minnesota Credit Union Network comment on the CFPB’s proposal. MnCUN’s response – which incorporates input from the Regulatory Review Committee - MnCUN finds that the proposed rule provides regulatory relief by proposing to increase the loan threshold requirement, however, we have a number of over-arching concerns with the proposal.
Credit unions are encouraged to submit their own comment letters and are welcome to use MnCUN's comment letter as a guide. The comment due date for the proposed rule is Wednesday, Oct. 29. MnCUN’s comment letter can be found on the out for comment page of the Network website.
Yesterday, the Minnesota Credit Union Network released an infographic illustrating that credit unions are “Community Connected.” As locally-owned, not-for-profit financial cooperatives, credit unions are dedicated to the communities that they serve. Much of the data included on the infographic was obtained from MnCUN’s “Credit Union Difference” survey conducted in July of 2014.
In recognition of the community connections shared by credit unions and co-ops in general, MnCUN hosted a press event at Heartland Credit Union on Oct. 21 featuring credit unions and CHS, Inc., the largest cooperative in the state of Minnesota. (See related story below.)
Press event: Minn. Credit unions, co-ops emphasize community connections during National Co-op Month
October is National Co-op Month, and the Minnesota Credit Union Network (MnCUN) held a “Community Connected” press event in Inver Grove Heights on Tuesday to recognize the impact cooperative organizations make in communities throughout Minnesota.
Speakers at the press event included:
The speakers highlighted the community-focused initiatives of cooperatives in Minnesota communities. Minnesota was one of the first states to enact a law authorizing cooperatives, and the state also has the highest number of cooperatives and cooperative memberships in the nation.
“The credit union mission goes beyond serving the financial needs of members,” said Cummins. “By providing thousands of volunteer hours and leading community initiatives, member-owned credit unions and cooperatives in Minnesota build better communities for all of us to live in.”
Heartland Credit Union, which hosted the press event, was originally chartered in 1939 as Farmers Union Employees’ Credit Union. Today Heartland serves nearly 10,000 members and holds more than $97 million in assets. Its membership includes employees from cooperatives such as CHS and Land O’Lakes, and the credit union supports a variety of civic organizations.
“Our members are our top priority,” said Harrington. “Heartland Credit Union is proud to commit time and money each year to programs that benefit our members and our communities.”
That commitment is shared by SPIRE Credit Union, which originally began as Twin City Co-op Credit Union in 1934 with a charter that included a focus on helping cooperatives and being a part of the co-op movement. One way that SPIRE continues to live that mission is by offering members the opportunity to earn money for their favorite co-op every time they shop with a cobranded Visa card program.
“This program is a triple win,” said Carlson. “Our members win, our local co-ops win and our communities win overall as well.”
Speaking on behalf of Cooperative Network, an organization that serves cooperatives in a wide variety of industries in Minnesota which, in turn, serve 3.5 million members, Hughes talked about the cooperative movement’s seven core principles.
“Minnesota has deep cooperative roots,” said Hughes. “Today’s event is a great example of two core cooperative principles: cooperation among cooperatives and concern for community.”
Rounding out the slate of speakers, Nelson talked about CHS’s commitment to creating the next generation of leaders through education and scholarships, promoting safety and health in the agriculture industry and building strong rural economies. CHS, the largest cooperative in the country, is owned by farmers, ranchers and cooperatives across the United States.
“Our rural communities and farmer-owners are critical for the future,” said Nelson. “Our members are leaders in their local communities, and we provide the support they need to build their own successful businesses.”
Credit Union Magazine recently published an exclusive list of industry professionals who it has named credit union "Rock Stars.” Minnesota is well-represented among this group with four honorees – Pam Evans assistant vice president of member service, First Alliance Credit Union, Andrea Finn, digital marketing specialist at Royal Credit Union; Amy Forcier-Pabst, vice president of member services at Royal Credit Union; and Tara Graff, director of marketing at SPIRE Credit Union.
These rock stars of the credit union industry from across the country were chosen because they are "unique individuals who demonstrate outstanding innovation in their areas of expertise and by doing so make the credit union movement a better, more interesting place.” A brief synopsis of the articles on Minnesota’s three honorees are listed below. For the full articles, visit the Credit Unions in the News page of the Network website.
The Network’s Credit Unions in the News page features recognition-worthy projects and initiatives from credit unions across the state. Got news of your own? Send stories, pitches, press releases and published articles to MnCUN Director of Communications Connie Kuhn.
Attention shoppers -- with the holidays just around the corner, you now have the ability to shop online and support the Minnesota Credit Union Foundation through AmazonSmile (smile.amazon.com)!
AmazonSmile is a website operated by Amazon that lets customers enjoy the same selection of products, low prices, and convenient shopping features as on Amazon.com. However, when customers shop on AmazonSmile, the AmazonSmile Foundation will donate 0.5 percent of the price of eligible purchases to the charitable organizations selected by customers. There is no cost to charitable organizations or to customers for this benefit.
With questions or feedback, please contact Foundation Executive Director Kristina Wright by email or at (651) 288-5507.
Credit Unions in the News
Follow the links on the stories below to read more about the outstanding programs, new initiatives and well-deserved recognition received by your peers recently. Got news of your own? Send stories, pitches, press releases and published articles to MnCUN Director of Communications Connie Kuhn.
Out for Comment
AmeriCU Mortgage – Building Relationships, Creating Opportunities
AmeriCU is a division of Towne Mortgage Company, a privately held mortgage banking company providing residential and commercial real estate financing since 1982 through the Federal National Mortgage Association (FNMA), The Federal Home Loan Mortgage Corporation (FHLMC), and the Government National Mortgage Association (GNMA), and other private investors.
AmeriCU was created in 1993 to expand Towne's community-based lending through partnerships with credit unions. Since that time, AmeriCU has pursued the purposes its founders:
AmeriCU conducts its business by offering a range of services from the day application is taken until the day the last payment is made on the loan by the member, in the credit union's name. AmeriCU works with credit union personnel to ensure that members realize a benefit from credit union mortgage services.
The company’s mortgage programs include:
AmeriCU Mortgage’s unique service model allows credit unions to choose the level of support that works best for them and their members. With options ranging from correspondent services to complete outsourcing, credit unions can choose their level of involvement in the mortgage financing process.
To learn more about AmeriCU Mortgage and the products, services and expertise it can offer your credit union, contact MnCUN Vice President – Association Services John Ferstl by email or at (651) 288-5505.