Welcome to the Twenty Twenty Analytics Blog!
I would like to personally welcome you to the Twenty Twenty Analytics Blog. The purpose of our blog is to stay up to date on credit union standards, regulations and hot topics to provide you with the information you need to know to stay current. I would encourage you to click here to subscribe to the blog to receive updates when new information is posted. Subscribing will not opt you in to receive any promotional material from our website.
Have a question? Have you come across information that you would like to know more about? Email me! Your question may be the topic of our next blog.
Thanks for reading!
-Dan Price, CPA
Twenty Twenty Analytics Blogger
National Association of Realtors Q4 2011 Median Sales Summary
On February 9, 2012, the National Association of Realtors (NAR) released their median sales price indices of homes for metropolitan areas. The NAR saw declines from Q3 2011 to Q4 2011 in 131 of 149 major metropolitan areas measured. Below are some statistics from the data:
Regulatory Relief Coming for TDR Reporting
The NCUA has proposed an amendment to its previous TDR policy that would alleviate much of the burden credit union officials face in tracking and reporting their troubled debt restructurings. The matrix below details the original TDR rules and the NCUA proposals.
Lending Links – NCUA Exam Updates and Student Loan Speculation
Without getting too deep into any particular topic, we wanted to share a couple of interesting articles with you.
Included in this week’s Credit Union Times was an article written by NCUA Chairman Debbie Matz titled “Expect More Due Diligence, Risk Management Scrutiny” which lists the areas NCUA examiners plan to look at more closely in 2012. At this point, these should come as no surprise to you. They include Concentration Risk, Long-Term, Fixed-Rate Real Estate Loans, Yield Focus, Indirect Loans and Loan Modifications. Good luck.
An interview with Mark Greene, CEO of FICO also just popped up on my Yahoo! Finance ticker titled “Student Loan Crisis Looms: FICO Risk Survey” where he notes 67% of risk managers believe that student loan delinquencies will rise in the next year. It makes sense. With the poor job market it has become much more acceptable to take more than four years to finish college and students are using loans to fund their lifestyles. The poor job market has not influenced students to focus on jobs that are still in demand in lieu of their dream job of dolphin trainer or archaeologist. The result is kids coming out of school in more debt and less income-producing ability. I think managing these loans may become a challenge in the months (years) to come.
-Dan Price, CPA
Twenty Twenty Blogger
Government Accountability Office Report on the NCUA – Why Credit Unions Fail
The United States Government Accountability Office (GAO) recently released its Report to Congressional Committees on the NCUA titled “Earlier Actions Are Needed to Better Address Troubled Credit Unions.” You can read the full report here.
The GAO’s criticisms focused on the NCUA’s Prompt Corrective Action (PCA) program and recommended “…additional triggers for PCA that would require early and forceful regulatory action…” The GAO’s recommendation was based on research showing that credit unions subject to PCA that did not fail were more likely subject to earlier PCA action. This means the NCUA is going to have to find a way to evaluate when these triggers are hit and supervise the PCA program for a larger pool of credit unions. If you were worried about how they were going to keep all of those new examiners included in the 2012 budget busy, you can rest easy.
Twenty Twenty Analytics 2011 Credit Union Blog Recap
The first year of the Twenty Twenty Analytics Blog is coming to a close. We know some of you joined us mid-year, so in case you missed it, below is a recap of some of our favorite posts from 2011.
Twenty Twenty Analytics Letter in Credit Union Times – TDR Reporting
A letter from Twenty Twenty Analytics was published in the December 7, 2011 issue of Credit Union Times titled “TDR Reporting, Tracking Can be Improved.” The letter is in response to several issues credit unions have had with TDRs including the six month satisfactory payment history required to remove their delinquent classifications and general tracking issues from month to month.
National Association of Realtors Q3 2011 Median Sales Summary
On November 9, 2011, the National Association of Realtors (NAR) released their median sales price indices of homes for states and metropolitan areas. The NAR saw improvements from Q2 2011 to Q3 2011 in 94 of 152 major metropolitan areas measured compared with 21 of 51 states, incl. Washington D.C. Below are some statistics from the data:
Fed Comments on Interest Rates and Interest Rate Risk
On Wednesday (Nov 2), the Fed commented that it plans to keep “exceptionally low” interest rates in place until at least mid-2013. This means that despite continued comments from the NCUA stressing the importance of assessing and managing your interest rate risk, everyone should run out and see how many low, fixed rate 30-year mortgages they can make. Easy money, right?
August 2011 Case-Shiller Home Price Indices and Other Interesting Statistics
On Tuesday the S&P/Case-Shiller Home Price Indices were released for August 2011 and it seems to be mostly good news. The 10- and 20-City Composites of major metropolitan areas improved approximately 0.2%, being led by Chicago (+1.4%), Detroit (+1.4%) and Washington (+1.6%). With the exception of Atlanta (-2.4%), any decline in indices were modest.
The Full Press Release Can Be Found Here.
NCUA Releases 2010 Annual Report
The NCUA recently released their 2010 Annual Report. With the release of the quarterly State of the Credit Union reports, some of the data included in the report may be old news, but nonetheless the report does provide a wealth of information. We took a look at the report to see if we could summarize what happened to the credit union industry from 2009 to 2010 and speculate on where it may be headed.
