Brief History of CUs in OR, WA

Early credit union development in Oregon was hampered by a lack of enabling legislation. The first passage of credit union enabling legislation took place in February, 1915, when the Oregon Legislature passed House Bill 275, which provided for the formation of rural credit unions.

The law was modeled after a Massachusetts statute, but was limited in scope because it only seemed to authorize the chartering of credit unions for farmers.

Although it appeared to be a breakthrough for the credit union movement in Oregon, the majority of the credit unions that were being established at this time in other states were being formed around urban workers, not farmers, and the 1915 law focused on rural credit union cooperatives. Farmers at the time had small, irregular incomes, which made the organization of credit unions difficult, and the few early credit unions chartered under the 1915 law were short-lived.

In the late 1920’s Oregon saw a resurgence in interest concerning the formation of credit unions, and in 1929 a new credit union law was passed that clarified the 1915 law.

The first government interest in forming credit unions in Washington State began under the presidency of William H. Taft in 1912. Following the commission studies authorized by the President, Taft sent copies of the commission report to Washington’s Governor, Marion E. Hay, along with other state governors, inviting them to a meeting on credit unions held at the White House.

The first credit union operating in Washington appears to have been Seattle Postal Employees Credit Union, which was founded in 1925 (significantly before a credit union charter had been enacted in the state) and initially operating out of the Office of the Assistant Postmaster in Seattle.

It wasn’t until 1933 that the credit union legislation, House Bill 240, was passed both houses of the state legislature and was finally signed into law by Governor Clarence D. Martin on March 20, 1933.

Compliance Question of the Week

Do transfers initiated through a mobile device require a receipt with the transaction?

No.

Like transfers and bill payments that are initiated by the member through their online banking, transactions on mobile devices are considered analogous in function to a telephone.  These transactions are considered electronic funds transfers and are covered under Reg E, but are not considered to be initiated at an electronic terminal such as an ATM or POS and do not require a receipt at the time of the transaction.
The transactions will need to be clearly identified on the periodic statement.

Related Links:

12 CFR 1005.2 (h)
Reg E Official Staff Commentary

Legal Briefs

National Credit Union Administration (NCUA)

The NCUA announced that it will host a webinar on Marketing and Social Media on Wednesday, August 10th at 11am.

The NCUA announced that it will host a webinar to discuss IRR supervisions and the timeline and process for consideration of adding an “S” rating to the current CAMEL rating system. The webinar will be held on Thursday, August 18th at 11am.

The NCUA released a video and brochure offering an overview of the Remittance Transfer Rule. The resources are aimed at helping consumers better understand the protections offered under the CFPB’s rule.

Consumer Financial Protection Bureau (CFPB)

Director Cordray delivered prepared remarks to the FINRA Foundation on the National Financial Capability Study Release.

The CFPB announced that it is seeking research on consumer finance for its upcoming conference in December.

THE CFPB released a blog post discussing the unique financial challenges that immigrants face.

The CFPB announced a book club aimed at helping make money conversations between parents and their children easier.

Federal Reserve Board (FRB)

The FRB announced its 2017 check services pricing changes. The changes aim to simplify the services and fees.

The FRB released the minutes from its May and June discount rate meetings.

The FRB released the July edition of its Beige Book.

The FRB, along with the OCC and FDIC, released final revisions to their Q&A regarding the Community Reinvestment Act.

Office of the Comptroller of the Currency (OCC)

The OCC released its Semiannual Risk Perspective for Spring 2016. The report includes information on the reasons why strategic risk remains high, the increase in credit risk and various operational threats.

U.S. Department of the Treasury (Treasury)

The Treasury announced the adoption of a methodology for monitoring the affordability of automobile insurance.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of July 13, 2016. The last update prior to this was July 6, 2016.

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Compliance News, Federal, NCUA, NWCUA.