Regulatory Changes

Discussion

Intellectual Property Issues

Lending Decline

Going mobile

Director Liability

Dodd – Frank

Safe Act

2011

NCUA Regulation Section 701.4

Effective January 27, 2011

Mandatory compliance is July 27, 2011

Directors Affected – ALL

Elected, appointed, serving prior to January 27th must comply by July 27th

Working familiarity with basic finance and accounting practices

Read and understand a federal credit union’s balance sheet

Read and understand a federal credit union’s income statement

NCUA Regulation Section 701.33

Effective January 27, 2011

Mandatory compliance is January 27, 2011

12 – January 2011 to March 2011

27 – April 2011 to June 2011

Deposit Insurance

Permanent $250,000 Coverage

Unlimited Coverage??

Prepayment penalty information

The parcel number and value of the property securing the loan

The loan’s term (in months)

The channel through which the application was received

A SAFE Act unique identifier

“Qualified Mortgage” concept

Yield Spread Premium compensation eliminated

Financial institutions must require employees acting as residential mortgage loan originators to comply with the S.A.F.E. Act's requirements to register and obtain a unique identifier;

Do you offer Risk Based Pricing Loan Programs?

Do you use Credit Scores to determine APR offered to each member?

Internal procedures

Effect – past model forms no longer provide “safe harbor” is used

New model form, if used properly, does provide “safe harbor”

No substantive rights changes

July 2010 Implementation for new members

August 15, 2010 Implementation for existing members

Michigan First Credit Union and First Michigan Bank (service mark for Michigan First)

Patent Troll – law suits filed for infringement of patent on message alerts

2010 – Loan portfolios declined by 1%; first time in 30 years. (CUNA)

2010 – Savings balances increased by 4.5% (CUNA)

iPad Apps?