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Weekly Recap -- NCUA's McWatters says moratorium on new regulation is coming

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Weekly Recap -- NCUA's McWatters says moratorium on new regulation is coming

The weekly recap featuresnews on regulatory actions, mergers and other issues facing the credit unionspace. Send tips, ideas and chatter to kmccarthy@snl.com.

News

*Former Winchester CommunityFederal Credit Union President and CEO Donna Jennings, who hadpleaded guilty in December 2015 to embezzling more than $1 million to buy realestate and pay $600,000 in credit card bills, was to four-and-a-half years in federalprison on April 8, the Credit Union Timesreported. U.S. District Judge Liam O'Grady in Alexandria, Va., also orderedJennings to pay about $1.1 million in restitution, according to the news story.The Winchester, Va.-based credit union had merged into Fairfax, Va.-basedApple Federal CreditUnion in 2015.

*Rome, N.Y.-based AmeriCU CreditUnion, in its annual report for fiscal 2015, noted the of Lisa Malone aschief lending officer and Vincent Schoonmaker as chief information officer.

*Clinton Township, Mich.-based Central Macomb Community Credit Union to ,according to its April newsletter. FreeStar Financial CU President and CEODrema Isaac clarified in the newsletter that the company did not merge withanother credit union. The name change is attributed to the credit union's fieldof membership, which now allows members outside of Macomb County.

*Fitch Ratings affirmed andwithdrew several ratings of Middletown, Pa.-based , whilemaintaining its stable outlook on the ratings, according to an April 7 newsrelease. The rating agency affirmed and withdrew the credit union's A+long-term issuer default rating and F1+ short-term issuer default rating,reflecting Fitch's view that the institution will continue to benefit fromgovernment support and its "exceptionally high capacity" for timelypayments of short-term financial commitments.

*Gail Warren, CEO of Erie, Pa.-based Americo Federal Credit Union, will effective April 8, according tothe credit union's April newsletter. Warren joined Americo Federal Credit Unionin 1985. She was named CEO in 1996 upon the retirement of Francis Catherine.Christine Bennett, who has been with the credit union since 1990, was promotedto CEO from her position as COO. Karen Allessie, who joined Americo FederalCredit Union in 1992, was promoted to COO from lending supervisor.

*Faye Smith, president and CEO of Abilene, Texas-based ,retired, effectiveMarch 31, according to an announcement posted on the credit union's website.Smith has been with the credit union since 1989.

*SIU Credit Union CEODennis Schaefer is retiring, CUToday.info reported April 6. Schaefer'sretirement is effective April 15. William Capie, the Carbondale, Ill.-basedcredit union's board chairman, will take over as interim CEO. The board willalso review its succession criteria and processes as it selects a permanentreplacement, the news outlet added.

*Woodland, Calif.-based YoloFederal Credit Union plans to offer , according to a pressrelease posted April 7 on CUInsight. It has hired Insuritas to launch andmanage the service, using a digital platform to give instant insurance quotesto members taking out a loan.

Regulation/legislation

*The National Credit Union Administration on April 5 six federal credit unions inthe Philadelphia area after determining they were insolvent and had no prospectfor restoring viable operations. The credit unions closed were Bensalem,Pa.-based Cardozo Lodge FederalCredit Union, which served 83 members and had $226,485 in assets;Chester, Pa.-based Chester UplandSchool Employees FCU, which served 593 members and had $827,269 inassets; Bensalem-based ElectricalInspectors FCU, which served 44 members and had $65,894 in assets;Bensalem-based OPS EmployeesFederal Credit Union, which served 85 members and had about $1.2million in assets; Bensalem-based Servco Federal Credit Union which served 795 members andhad about $2.2 million in assets; and Bensalem-based , which served 99 members and had $290,098 in assets.

*While the Consumer Financial Protection Bureau believes needs to be reformed,financial technology, community banks and credit unions could be an alternativeto the lenders, CFPB Director Richard Cordray told the Senate Committee onBanking, Housing and Urban Affairs on April 7. "Nobody wants to cut outpeople's ability to get one or two loans when they need them," he said.The CFPB is expected to issue a payday lending proposal in the coming months.

*NCUA Board Member Mark McWatters said he expects a moratoriumon new regulations from the regulator after Chairman Debbie Matz April 30, CUtoday reported April 7. Speaking atthe annual conference for the National Association of Credit Union ServiceOrganizations, McWatters said he would be "loath" to vote for newregulations in the short term without evidence that there is a danger to thecredit union industry, according to the report. McWatters also said that hedoes not expect the Senate to move on his nomination to the Export-Import Bank.

* Arecent survey by Callahan & Associates found that 96.1% of respondents haveexperienced deal closing delays during the past six months in part due to TRID.The Consumer Financial Protection Bureau's new rule governing mortgagedocuments, known as TILA-RESPA Integrated Disclosure, or TRID, has causedproblems as lenders struggle tocomply. Callahan & Associates surveyed more than 200 creditunion executives from 46 states on the impact of the rule and found that morethan half of respondents reported TRID added five or more days to mortgageclosing.

M&A

* InNorth Carolina, Freedom FederalCredit Union will merge into Raleigh-based ,according to an announcement on Freedom's website. The deal is expected toclose July 1, with full organizational conversion in November. The merger isstill subject to member and regulatory approval. Freedom members' specialmeeting will be held in late May.

*Charlottesville, Va.-based University of Virginia Community CU on Feb. 1 officiallymerged withWarrenton, Va.-based NorthernPiedmont Federal Credit Union, according to a recent post on UVACommunity CU's website. Integration of members' accounts was completed April 1.

*San Francisco-based San FranciscoMunicipal Railway Employees is set to with and into Torrance,Calif.-based UNIFY FinancialFederal Credit Union, according to an April 6 press release postedon CUInsight.com. Regulatory approval has been obtained for the proposedmerger, which will be subject to San Francisco Municipal Railway Employees FCUmember vote.