SBA: Refocus on Customer Service Following Largest Training Session Ever
WASHINGTON — Credit unions, lenders and small businesses can expect to see more operational reform and accountability, enhanced internal and external communications, and improved customer service as part of the Small Business Administration's agency transformation agenda.
The agency said it recently completed the largest staff training in its history, covering more than 1,300 of its 2,500 permanent employees. The training, which spanned three weeks in August, featured content tracks based on the employee's primary role including contracting, loan processing, customer service, administration, marketing and public affairs. Moving forward, SBA said it will train senior managers and headquarters staff this fall and has institutionalized the next SBA University for 2008.
"We know SBA personnel have long felt over-tasked and lacking necessary tools and training to accomplish their jobs," said SBA Administrator Steven Preston. "August's training is an investment towards refocusing the agency on its core mission, improving employee productivity and enhancing external customer service."
NASCUS Holds Teleconference with DoD on New Military Lending Regulation
ARLINGTON, Va. — The state regulators of NASCUS and the Department of Defense held what NASCUS characterized as "a productive discussion" during a Sept. 13 teleconference on how to implement the departments new military consumer lending rule.
"In our discussion, the DoD recognized that a majority of the regulation's enforcement responsibility would fall under state financial regulators' authority," NASCUS Spokesperson Kate Hartig said. "The DoD expressed their commitment to work closely with state regulators and to rely on their expertise regarding consumer lending to military in their respective states." NASCUS and other credit union groups have worked with DoD throughout the rulemaking process to ensure unintended consequences were limited.
A model information sharing agreement was discussed to help facilitate the partnership between DoD and the state regulators, similar to those with the Financial Crimes Enforcement Network and the Office of Foreign Assets Control. The agreement would outline the responsibilities for each party.
The regulators also talked about creating an examination tool to help both regulators and the institutions.
Oct. 1 is the scheduled enforcement date on the final rule issued Aug. 31.
The DoD added that it will update Congress by April 1, 2008 on the progress, NASCUS said.
Washington League Successfully Protects Secondary Lien Rights
FEDERAL WAY, Wash. — The Washington Credit Union League was part of a successful amicus curiae (friend of the court) brief to protect the rights of second lien creditors.
The state Supreme Court ruled recently that even though under Washington law a lien is wiped out after a non-judicial foreclosure, the underlying debt is not, despite the fact that it can be difficult to collect because it becomes unsecured. "Legal advocacy for credit unions is necessary in our progressive
environment," WCUL President/CEO John Annaloro said, "including the League's persuasion of the Supreme Court."
In a 9-0 decision issued Sept. 13, the Washington State Supreme Court ruled in the case of Beal Bank SSB vs. Steven and Kay Sarich, et al; that second and third liens held by Beal Bank against the Sariches' property–a commercial condominium was not eliminated despite Washington Mutual's–the first lien holder–non-judicial foreclosure. The banks took the case to the state Supreme Court after being denied at the Superior Court level.
"Had the lower court's ruling been allowed to stand, it would have had a distinct chilling effect on Washington's secondary mortgage market," WCUL Senior Vice President and General Counsel Stacy Augustine said. "It may have eliminated the use of second lien deed of trusts, as lenders would have been required to underwrite all loans secured by a deed of trust just like a first lien loan in order to protect themselves. The court's 9-0 decision was decisive and extremely helpful in clearing any ambiguity about the issue."
The case will now be remanded back to King County Superior Court to resolve pending issues.
In addition to the WCUL, the Washington Bankers Association, the Washington Independent Community Bankers Association and the Washington Mortgage Bankers Association were also parties to the amicus brief.
House Hearing Announced on Foreclosure Solutions
WASHINGTON — House Financial Services Committee Chairman Barney Frank (D-Mass.) recently announced that his committee planned to hold a hearing on government intervention in the mortgage foreclosure crisis last week.
The hearing, entitled Legislative and Regulatory Options for Minimizing and Mitigating Mortgage Foreclosures, was slated for Sept. 20, right after press time. It was expected to examine the president's recently announce plan to expand Federal Housing Administration programs and look into other options to assist homeowners facing foreclosure.
Announced presenters included Treasury Secretary Henry Paulson, Department of Housing and Urban Development Secretary Alphonso Jackson, and Federal Reserve Chairman Ben Bernanke. The second scheduled panel included Fannie Mae President/CEO Dan Mudd, Freddie Mac Chairman/CEO Richard Syron, the Massachusetts Law Reform Institute, Mortgage Bankers Association, National Association of Mortgage Brokers, Neighborhood Assistance Corporation of America, and the American Enterprise Institute.
Fed Freshens Up Web Site
WASHINGTON — The Federal Reserve Board updated its Web site with a new look and additional features aimed at making it more user friendly.
The color scheme for the Web site (www.federalreserve.gov) has been enhanced and graphics added while a new layout makes the site easier to navigate. Visitors to the site will find the main categories have moved to the top of the home page, which allowed for the addition of a sub-navigation bar on subsequent pages.
The "Breaking News" section has been renamed "Recent Developments," to more accurately describe the information listed there and the "Features" section has been expanded. To improve functionality, links to statistical releases, financial education resources, and career opportunities are now displayed more prominently.
Additional enhancements will be unveiled in the coming months.
The Fed's Web site averages more than 12 million page views each month.
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