But, prior to joining the Granholm Administration, Ross served as vice president for regulatory and legal affairs at the Michigan Credit Union League. He also previously worked as an assistant attorney general in the tort defense division of the Michigan Attorney General's Office.

OFIS oversees Blue Cross Blue Shield, 30 HMOs, 141 banks, 169 domestic insurance companies, 239 credit unions, 1,303 foreign insurance companies, 1,484 investment advisors, 2,178 securities broker-dealers, 7,521 consumer finance lenders, 123,486 insurance agents, and 107,991 securities agents.

NCUA Supports 'Reasonable' Efforts To Enhance Consumer Protection

WASHINGTON -- In testimony presented to the House Financial Services Committee last Wednesday, NCUA Chairman JoAnn Johnson noted that while there are consumer advantages to the expanding financial services landscape there are also pitfalls.

"While the availability of new and innovative mortgage products has been beneficial to a large segment of the American public, too often these products have been offered to consumers who are unaware of the totality of the financial terms and conditions involved," her written testimony said. Johnson noted credit unions' financial literacy efforts and agency data showing that credit unions primarily make fixed-rate loans with just 1.8% of the outstanding mortgage portfolio coming from interest only or payment option loans. She pointed out that credit union mortgage delinquencies over 60 days were only 0.44% in the first half of the year.

"NCUA supports any responsible legislative effort that enhances consumer protection while preserving and expanding consumer ability to determine what mortgage products and services best suit them. Congress should concentrate on promoting a legal regime that not only eliminates negative anti-consumer lending practices but also improves upon the understandability and usefulness of consumer protections in such a way that adds to the borrower's understanding of the process, rather than simply adds to the number of pieces of paper in a settlement package."

Johnson said the agency generally supported the goals of H.R. 3915, the Mortgage Reform and Anti-Predatory Lending Act, and, H.R. 3878, the Escrow, Appraisal and Mortgage Servicing Improvements Act, introduced by Congressman Paul Kanjorski and others. She did note the agency had concerns that their appeared to be a technical glitch leaving NCUA without regulatory authority in H.R. 3915. NAFCU backed this point up in a letter to the committee.

However, the trade association opposed requiring licensing of federally regulated institutions, as in H.R. 3915 as another layer of bureaucracy.

The hearing, entitled Legislative Proposals on Reforming Mortgage Practices, included panels of federal regulators, consumer groups, industry, and others.

Agencies Approve Joint FACT Act Regs

WASHINGTON -- Credit unions got an advance preview of what the Fair and Accurate Credit Transactions Act implementing regulations regarding marketing opt-outs and red flags.

All of the federal financial institutions regulators issued the rules jointly, with the NCUA Board taking the lead and approving them by notation vote Oct. 15. The interagency final rule on marketing provides consumers with notice and opportunity to opt out of certain marketing by affiliated financial institutions. It would allow consumers to have more control over how affiliates may use "eligibility information" like account history and other information from consumer reports or applications. The opt-out period must be valid for at least five years. Certain exceptions to the notice and opt-out include marketing to a consumer with whom an entity has a pre-existing business relationship.

The final rule becomes effective Jan. 1 with a compliance deadline of no later than Oct. 1, 2008.

Additionally, the regulators were required to create a rule to permit consumers to "red flag" their credit accounts to prevent potential fraud. The rule requires financial institutions and creditors to establish written identity theft prevention programs, set guidelines to address the policies and procedures, require credit and debit card issuers to assess the validity of a request for a change of address in certain circumstances, and address reasonable policies and procedures that a consumer reports user should employ when a notice of address discrepancy is received from a reporting agency. This rule has a Nov. 1, 2008 compliance date.

In frustration with the four-year regulatory process, House Financial Services Committee Chairman Barney Frank (D-Mass.) had threatened legislation to make the agencies act earlier this year.

New Faith-Based Low-Income FCU Chartered in N.Y.

ALEXANDRIA, Va. -- NCUA recently announced that it had approved a charter for Beulah Federal Credit Union in New York.

The low-income designated credit union was chartered to serve the 933 members of the Beulah Church of the Nazarene in Brooklyn. Because it is designated as low-income by NCUA the credit union to accept nonmember deposits and qualify for low-cost loans and technical assistance from the Community Development Revolving Loan Fund Program.

Credit union organizers worked with church leaders and NCUA staff to obtain the charter. The credit union plans to provide short- and long-term financial counseling to members with the goal of financial stability through savings programs and fair loans.

The Beulah Church of the Nazarene is a community-based church that provides spiritual guidance along with social services to local residents.

NCUA CFO Winans to Retire After 28 Years

ALEXANDRIA, Va. -- NCUA recently announced the retirement of Chief Financial Officer Dennis Winans at yearend after 28 years with the agency.

In total, Winans spent 35 years in government service starting in the Marine Corps during Vietnam to joining NCUA in 1979 through today. He has served an accountant and director of insurance within the Office of Examination and Insurance. He was named CFO in 1995.

"I hate to see you go but I congratulate you on the decision," NCUA Executive Director Len Skiles said in announcing Winans' departure.

NAFCU Chief Economist Tun Wai, staff liaison of the group's Share Insurance Committee, said Winans was always willing to listen and explain and that willingness transferred to his staff as well. "He has a lot of technical abilities one only acquires after many years at the agency," Wai said.

"I think the agency's going to miss a really good employee. Over my 20 years at NAFCU, he was the first person at the agency I got to know," he added.

CUNA Senior Vice President and Deputy General Counsel Mary Dunn said, "I've known Dennis Winans for virtually his entire time at NCUA. He has been a tremendous resource to not only NCUA but to credit unions in general." He really cares that stakeholders understand what is going on at the agency, she said.

CUNA Chief Economist Bill Hampel chimed in, "He's totally straightforward-no agenda, no games."

After retirement, Winans will have more time to spend at home on his 25 acres at the base of Bull Run Mountain in Virginia. Winans is an avid outdoorsman who has said he enjoys hunting, fishing, skiing and scuba diving.