Multi-Featured Open-End Lending: The Past, Present and Future

By Ashley L. Sweeney, Attorney Multi-featured open-end lending (MFOEL) is a practice used for nearly 35 years by over 3,500 credit unions.[1]   However, recent developments and regulations might have credit unions nationwide ushering in a new (and possibly improved) type of lending. Under MFOEL plans, credit unions have a single lending contract with a member…

Credit Union Business Lending Update

By Cheryl D. Cook, Attorney If capital is the fuel that drives business development, then it should stand to reason that the more business lenders in the market, the better.  According to the United States Small Business Administration, small businesses accounted for 65% (or 9.8 million) of the new jobs created between 1993 and 2009. …

Electronic Mortgage Statements

By David A. Wolfe, Attorney Paper billing is a predictable expense and credit unions are understandably eager to go paperless for their member communication, however, many members cling to traditional payment methods.  Online banking and bill pay initiatives require a significant investment, but as credit unions switch to electronic statements, they are experiencing increased traffic…

Photocopying a U.S. Government ID Is a Crime

By Anne M. Smith, Attorney When asking for identification, institutions must be aware of an important federal statute that prohibits photocopying of a U.S. government ID.  Often, in situations such as real estate closings, a lender will make a copy of an ID card for its records, an action which is acceptable with most forms…