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CURRENT Newsletter

July 2, 2015

We appreciate our loyal readers! Please send your comments and feedback to pr@vacul.org.
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Your League's Richmond and Lynchburg offices will be closed July 3 for Independence Day. Have a safe holiday weekend!

Headline News

News About Credit Unions

Compliance/Regulatory Affairs News

Governmental Affairs

Education & Networking Opportunities

Financial Services/Marketplace News

News From Credit Unions

Chapter News

News About The Competition

Technology News

Human Resource Management

Headline News

League, Virginia-Based Credit Unions Saluted for Work in Helping Implement State's Financial Education Requirements for High School Students

Virginia-based credit unions and the Virginia Credit Union League were among the organizations commended June 25 by the Commonwealth's Board of Education for their assistance in implementing the state's requirements that graduating seniors receive instruction in personal finance and economics.

The graduating class of 2015 is the first to graduate with the economics and personal finance diploma requirement. 

"We're so proud to be recognized by the Board of Education," said Dawn Lindley, the Virginia Credit Union League's Director of Marketing and Financial Education. "Our credit unions have devoted so many resources to educating young people about personal finance and helping our teachers prepare to meet the challenges of teaching this course in the classroom. Our credit unions truly deserve to be honored for the leadership they've shown in helping prepare young adults for the real world. We're working to ensure young people can successfully navigate today's increasingly complex financial services marketplace and avoid financial pitfalls."  

[READ MORE]

President’s Advisory Council Releases Financial Literacy Report

The President’s Advisory Council on Financial Capability for Young Americans (Council) this week published its final report to the President and Secretary of the Treasury on ways to build the financial knowledge and skills of the nation’s young people.

The report includes recommendations for government, individual commitments to action, and best practices for improving financial capability. The report also includes insights on improving the financial capability of youth and identifies a number of areas where progress is needed to improve financial decision making.

Click here to view the Council’s report.

FFIEC Cybersecurity Assessment 'Tool' Goes Live

Federal regulators on Tuesday unveiled a much-anticipated tool meant to help institutions assess their own cybersecurity systems.

The "cybersecurity assessment tool" — released by the Federal Financial Institutions Examination Council — is designed to help financial institutions not only identify their level of risk to a cyber-attack but also to gauge their ability to manage and control their own specific threat levels.

The tool is essentially a user's guide that leads institutions through the self-assessment. It contains two basic parts. The "Inherent Risk Profile" catalogues an institution's technology and connection types, delivery channels, external threats and other facets of its risk characteristics. The second part assesses the institution's cyber risk management, threat intelligence and how it would respond to a cyber-incident, among other capabilities.

(American Banker, July 1)

Report Your Classroom Presentations!

Please ensure you and your staff have reported your classroom presentations and youth financial literacy outreach efforts to the National Youth Involvement Board (NYIB) for the 2014-2015 school year. All reporting must be completed by July 8!

[LEARN MORE]

News About Credit Unions

CUNA, CMG: Expect Double-Digit Loan Growth in '15, '16

After meeting last week, CUNA and CUNA Mutual economists jointly predict loan growth of 11% in 2015 for the U.S. economy, higher than the 10.4% increase in 2014.

The baseline forecast for 2016 is 10% loan growth, CUNA and CUNA Mutual Group economists said.

[READ MORE]

Nominate a Credit Union Rock Star!

Do you know certain credit union professionals with amazing talent and ideas? Colleagues who embody the spirit of "people helping people?" Individuals so creative, so innovative, so passionate that they raise the bar for your entire organization?  

If so, Credit Union Magazine wants to know about them, too. We're looking for Credit Union Rock Stars, those individuals who are leaving their mark on the credit union movement. You can nominate someone from any field, including lending, marketing, compliance, training and board volunteers—credit union professionals of all expertise are welcome.

Credit Union Magazine will profile these winners in a special edition this fall, sharing their achievements with readers nationwide.

Nominations are due July 15, so don't wait; tell us about your Credit Union Rock Star today!

How Same-Sex Couples Should Plan Finances After the Supreme Court Decision

The Supreme Court ruled last Friday that same-sex couples have the right to marry nationwide, freeing gay couples from complicated legal and financial planning.

Before the opinion came down, 37 states and Washington, D.C. recognized gay marriage, according to the Human Rights Campaign, a nonprofit group that works for lesbian, gay, bisexual and transgender rights.

That meant in some states the laws treated same-sex couples as unrelated, forcing partners to go through more legal hoops and paperwork to handle shared property, taxes, estates and more, compared with heterosexual couples.

“For a lot of these couples that have been together for 30 years, they never thought marriage was something they could entertain,” says Tim Bresnahan, head of the national LGBT and nontraditional families practice for Northern Trust, a Chicago-based wealth management firm. “This marriage ruling is a historic decision, and a historic ruling, and a really great opportunity for couples to sit down with their planning team.”

[READ MORE]

Compliance/Regulatory Affairs News

In a First, CFPB Targets Source of Add-Ons It Finds Dubious

The Consumer Financial Protection Bureau is ordering two vendors that sell credit card add-on products to pay nearly $10 million in combined fines and restitution for allegedly charging consumers for services never rendered. The orders would have the force of law only if approved by the courts.

The CFPB has already taken several actions against banks for improper marketing of a third party's add-on products. But the proposed orders against Affinion Group Holdings and Intersections Inc. were the first time the bureau directly hit vendors that provide such services, which include identity theft protection and credit monitoring.

Affinion and its affiliates, which are based in Connecticut and Tennessee, have agreed to pay a $1.9 civil money penalty and $6.8 million in redress to consumers who have not yet received a refund from the company. (American Banker, July 2)

  • To read a copy of CFPB’s complaint filed against Affinion, click here.
  • For a copy of the proposed consent order in the Affinion action, click here.
  • A copy of the CFPB’s complaint filed against Intersections can be found here.
  • A copy of the proposed consent order in the Intersections action can be found here.

CFPB Nears Landmark Victory Against Three Large Auto Lenders

Three of the nation's largest indirect auto lenders are poised to limit discretionary pricing for dealers after regulators accused them of allowing partners to mark up loans at higher rates to minorities, according to confidential documents.

In proposed consent orders obtained by American Banker, the Consumer Financial Protection Bureau is planning to cite American Honda Finance Corp., Toyota Motor Credit Corp. and Nissan Motor Acceptance Corp. beginning as early as July for unintentional discrimination.

If approved and signed, the orders would require all three firms to pay renumeration to affected consumers, but could forgo civil money penalties in return for changing how much flexibility they give dealer partners to mark up the cost of an auto loan. Though the CFPB cannot directly supervise auto dealers, it has been scrutinizing indirect auto lenders' policy of allowing price discretion to partners, arguing it often results in minorities paying more. (American Banker, July 1)

Governmental Affairs

Latest Edition of The Advocate Available Online

The July edition of The Advocate, your League's governmental affairs newsletter, is available online. Features include keynoters for our October Legislative Leadership Forum and a progress report on VACUPAC fundraising.

[READ IT HERE]

Education & Networking Opportunities

League Hosting Leadership Development Training Aug. 12

It's a complex, fast-paced world for today's leaders. Join us Aug. 12 for the League's Leadership Development Institute, designed to aid you in understanding the dynamics of both leadership and management.

This full day of training is ideal for anyone in a management or supervisory role, and will even benefit young professionals who aspire to leadership. Location: Embassy Suites Hotel (2925 Emerywood Parkway, Richmond, 23294). Time: 9 a.m.-3:30 p.m. (Breakfast and registration begin at 8 a.m.). 

[LEARN MORE & REGISTER]

Financial Services/Marketplace News

Consumers Much More Confident This Summer

The Conference Board has released its Consumer Confidence Index for the month of June. Confidence was higher in June, after a moderate improvement in May.

Consumer confidence hit 101.4 in June, a significant gain from the 94.6 reading in May. Another interesting view is that the cutoff date for the preliminary results was June 18.

Whether default risks in Greece and Puerto Rico would be enough to temper the data if the cutoff date were moved to the end of June is something that might need to be considered here. Either way, this shows a far more confident consumer versus expectations.

[READ MORE]

Millennials Demand Single-Family Homes

Young adults prefer single-family homes, and in fact, 25-34 year-old homeowners are found to be more likely to reside in a single-family home today than their predecessors, Fannie Mae’s latest Housing Insight report showed.

The report challenges popular perceptions by showing that today’s young adults, like their predecessors, have a strong preference for single-family homes.

[READ MORE]

Prepaid Cards' Popularity Rises Among Consumers with Bank Accounts: Pew

The use of prepaid cards has skyrocketed, thanks in part to rising popularity among consumers who already have a checking or savings account, according to the Pew Charitable Trusts.

The use of general-purpose, reloadable prepaid cards increased 50% between 2012 and 2014, Pew reported in its Banking on Prepaid study, released on Tuesday. Much of the growth was tied to increased use by consumers who have access to mainstream financial products. The number of adults with a checking account who use prepaid cards grew from 4% to 7% between 2012 and 2014. (American Banker, July 1)

> Your League offers prepaid card options through our partnership with the Illinois-based LSC. Learn more here, or contact your League's David Deacon at 800.768.3344, ext. 634 or ddeacon@vacul.org.

G-Fee Parity Helps Small Mortgage Lenders Gain GSE Market Share

The narrowing gap between what large and small lenders pay in guarantee fees to Fannie Mae and Freddie Mac has helped the industry's smallest originators grow their share of mortgages sold to the government-sponsored enterprises.

G-fees on Fannie and Freddie loans have increased 250% since 2009, with fees averaging 58 basis points in 2014, up from an average of 22 basis points in 2009, according to a new report by the Federal Housing Finance Agency. But during that period, the gap between what small lenders paid in G-fees compared to larger lenders has swung to the point where the pricing advantage is now on the small lender side.

On an equivalent, risk-adjusted basis, "small lenders paid slightly less to guarantee a loan in 2013 and 2014 than did large lenders," according to the FHFA's annual report to Congress on single-family guarantee fees, released Tuesday.

As a result, the percentage of loans purchased from extra-small lenders (those outside the top 100 in volume sold to the GSEs) has grown from a mere 8% in both 2010 and 2011 to 28% in 2014. Meanwhile, the share of loans purchased from the GSEs' five largest lender sellers fell from 60% in 2010 to 39% in 2014.

[READ MORE] (Subscription to American Banker may be required)

News From Credit Unions

ABNB FCU Among First in State to Launch Innovative New Savings Product

ABNB Federal Credit Union is excited to announce that as of July 1, it is one of the first credit unions in Virginia to offer an innovative new savings program called Save to Win.

Save To Win reinvents the way we think about traditional saving products and offers members a new savings concept that offers multiple benefits.

By making a $25 deposit into their Save to Win account, ABNB members will be entered into monthly and quarterly drawings throughout the year, earning them a chance to win up to $5,000 in cash prizes.

[READ MORE]

Jane Watkins, President and CEO of Virginia Credit Union, Plans Retirement for March 2016

Jane G. Watkins, president and chief executive officer of Virginia Credit Union, has announced plans to retire on March 31, 2016 following 33 years of service.

A member-owned financial cooperative with more than 240,000 members, Virginia Credit Union is the largest state-chartered credit union in Virginia.

[READ MORE]

Call Federal’s Chief Financial Officer Named One of Virginia’s Top CFOs

Virginia Business magazine recognized Call Federal’s CFO, George P. Kite III, as Virginia’s top CFO in the category of small nonprofit organization during its 10th Annual Virginia CFO Awards ceremony.

Kite has served as Call Federal’s CFO since 2006. He currently manages the credit union’s $350 million in assets.

[READ MORE]

Northwest Federal Credit Union Foundation Hosts Night of Magic Ball at Inova Children’s Hospital

For more than 150 chronically ill children receiving care at Inova Children’s Hospital in Falls Church, VA, May 29 was a night to remember.

That’s when the charitable arm of Northwest Federal Credit Union, the NWFCU Foundation, sponsored the Night of Magic Ball. The Ball is an annual event that gives hospitalized kids and their families a chance to have a prom-like experience in a safe environment.

[READ MORE]

Northwest Federal’s Harmonie Taddeo Speaks on NAFCU Panel

Harmonie Taddeo, Compliance Manager at Northwest Federal Credit Union, spoke recently at the National Association of Federal Credit Union’s 48th Annual Conference and Solutions Expo, held this year in Montreal, Canada.

The session, titled “Top 5 Benefits of an Integrated Compliance Function” addressed the importance of a credit union’s compliance function keeping executive management abreast of new and changing regulations and how best to do so.

[READ MORE]

Three Virginians Among Those Named Southeast CUNA Management School Graduates

Southeast Regional Credit Union Schools (SRCUS) is pleased to announce that 42 credit union executives, including three Virginians, recently graduated from the Southeast CUNA Management School. 

Since 1971, the Southeast CUNA Management School has equipped graduates with the skills and knowledge to meet the leadership challenges that arise in the credit union industry.

Congrats to our graduating Virginians:
Fondu Conteh, Belvoir FCU
Courtney Rose, Belvoir FCU
Theresa Shifflett, NSWC FCU

[READ MORE]

Belvoir Credit Union Members Receive Mobile Discounts through Member Loyalty Program

Belvoir Federal Credit Union and Larky have partnered to offer a loyalty program, called Belvoir Buck$, that gives discounts from over 50 local and national merchants around metro DC to Belvoir Federal members.

Members are able to download the free app, available through the Apple App Store and Google Play, and automatically  receive mobile alerts whenever they are located near a discount. This geo-targeting technology allows members to receive instant savings from participating merchants.

[READ MORE]

Laura Briggs Promoted to COMPASS 4 CUs Marketing Manager/Compliance Specialist

COMPASS 4 CUs internally promoted Laura Briggs to Marketing Manager/Compliance Specialist. Previously, Laura had been working as a Marketing Specialist for Belvoir Federal Credit Union, while simultaneously managing marketing efforts part-time for COMPASS.

[READ MORE]

Matt Huff Appointed as Associate Board Member at Member One Federal Credit Union

Matt Huff has been appointed as an associate board member at Member One Federal Credit Union in Roanoke. His board appointment began April 2015. 

A Member One FCU associate board member position is designed to provide a meaningful learning environment for potential board members that will allow them to perform successfully and contribute significantly in the future should they be appointed to the Board. 

[READ MORE]

Chapter News

Southside Chapter Hosting 9th Annual Golf Tourney Sept. 11

The Southside Chapter will hold its 9th Annual Golf Tournament on Sept. 11, with CUNA Mutual serving as the tourney's premier sponsor. Proceeds will benefit the Credit Unions Care Foundation of Virginia and the Virginia Credit Union Political Action Committee.

[LEARN MORE]

Tidewater Chapter Hosting 3rd Annual Charity Golf Challenge

Join the Tidewater Chapter Oct. 9 for its 3rd Annual Golf Challenge at Sewells Point Golf Course in Norfolk! Format will be four-man captain’s choice, with an entry fee of $100 per player.

Cost includes a continental breakfast, cart and greens fees, range balls, and cookout lunch. Shotgun start at 8 a.m. Proceeds will benefit Children's Hospital of the King's Daughters, the area's Children’s Miracle Network Hospital. Sponsorships are also available, ranging from $250 to $1,000. Sponsorships are open to credit unions and business partners!

  • Golfers - Register using the form available here:
    Tidewater_Golf2015.docx (200.44 kB)
  • Sponsorship opportunities available: Be a Part of This Exciting Event!
    Click the link below to learn more! 
    Tidewater_Golf2015.docx (200.44 kB)

News About The Competition

Report: Will Fintech Kill Universal Banking

Fintech will be shaking up the banking industry for years to come, according to a report from the World Economic Forum and Deloitte. The wide-ranging report instructs banks to prepare themselves for a state of near-constant disruption as tech firms alter consumers' expectations by making financial services faster and cheaper.

The Wall Street Journal notes the reports' authors also arranged meetings between old-school behemoths like Visa and JPMorgan Chase and upstarts like Lending Club and Coinbase so the former group could get a sense of "where they can compete with the new players, and where they can collaborate."

Bankers will find Reuters' interpretation of the report less reassuring. The publication says the WEF predicts an end to the full-service banking model and the beginning of "an era of growing specialization while relying on online partnerships to deliver non-core services." (American Banker, July 1)

Technology News

Grow Financial FCU Closes 90% of Loans Remotely

As a result of switching to the integrated electronic signature, workflow and document solutions from the Linden, N.J.-based IMM, the $2.08 billion, Tampa, Fla.-based Grow Financial Federal Credit Union now closes 90% of its loans remotely via computer or mobile device.

The credit union elected to shift to IMM’s Document Exchange in August 2014 to allow for faster processes and a seamless user experience. Grow Financial is currently implementing the latest version of Document Exchange, which will improve communication among its branches, enabling employees to view the status of a remote e-signature throughout its lifecycle.

“We are constantly looking at ways to improve our centralized lending environment and reduce the time members spend in the branch,” Jamie Langlois, retail lending development analyst for the credit union, said.

Langlois explained that instead of waiting at the branch to process documents, members typically head home. When ready, the loan processing group sends documents via Document Exchange to members, who, using the remote eSignature option, authorize the forms using a PC, laptop or mobile device.

[READ MORE]

Human Resource Management

Proposal: More Salaried Employees Would Qualify for Overtime

Nearly 5 million more Americans would qualify for overtime pay under new rules proposed Tuesday by the Obama administration, a long-anticipated move expected to affect a broad swath of salaried employees from store managers to social workers to restaurant shift supervisors.

The Department of Labor’s proposal would require most salaried workers earning less than $50,440, or $970 a week, to be paid 1.5 times their normal pay for time worked beyond 40 hours a week. That’s more than double the current threshold of $23,660, or $455 per week, established in 2004.

[READ MORE]


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