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ICBA Urges NCUA Rule Revision
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ICBA criticized the National Credit Union Administration's
proposed changes to its Chartering and Field of Membership Manual that
would require only a one-page statement by a multiple common bond
credit union applicant to support its assertion that an underserved
area has "significant unmet needs." The association said that
a one-page statement is inadequate and does not meet the statutory
requirement. Instead, multiple common bond credit unions should
complete and submit a detailed study that shows the extent to
which financial services are already available in the proposed
underserved area.
ICBA also said NCUA's proposed test to determine whether areas are
underserved by other depository institutions, which simply measures the
ratio of depository institution facilities to the area's population, is
inadequate and should be changed. Read ICBA Letter.
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FBI Warns Against Mortgage Fraud
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The FBI released tips on how to avoid
mortgage-related fraud, which has increased along with home loan
delinquencies and foreclosures in the housing market. The FBI urged
consumers to get referrals for real estate and mortgage professionals
when buying or selling a home, research what other homes in the
neighborhood have sold for, not let make false statements on loan
applications, and never sign blank documents or documents containing
blank lines. The FBI offers a mortgage fraud Web site, and ICBA provides
a variety of online promotional and consumer education tools for homeowners.
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Inflation Growth Higher Than Expected
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The consumer price index rose 0.8 percent in July,
according to a Labor Department report, higher than
expected. The annual increase of 5.6 percent was the biggest one-year
jump since January 1991. High food and energy prices fueled the growth
in the inflation indicator.
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Fed Proposes Higher Reporting Payments
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The Federal Reserve Board requested public comment on a proposal to increase the
amount of funding banks can recover for producing documents and
financial records for government and law enforcement officials. The
proposed changes to Regulation S (Right to Financial Privacy) would
allow institutions to recover costs for special programming needed to
produce the documents. They also clarify that any request for
documents, even routine administrative requests, must be reimbursed.
ICBA has been a vocal advocate of improved reimbursement policies.
Comments on the Fed proposals are due Sept. 29.
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Study Shows Effects of Financial Literacy Programs
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Low-income consumers who participate in financial literacy
programs tend to go on to earn higher credit scores, according to a new
study. The study by
Operation HOPE, which advocates for financial literacy education, found
an average credit score increase of 68 points for low-income
individuals who received some financial education. Participants in such
courses also generally had lower delinquency rates than those who did
not receive counseling. ICBA is a financial literacy advocate and
offers community bankers an online resource center with
tools to advance consumer education.
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