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CURRENT Newsletter

September 11, 2014
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Headline News

Governmental Affairs News

Financial Services/Marketplace News

Education & Networking Opportunities

News From Credit Unions

Chapter News

Headline News

Fall Compliance Conference Features Session on Remote Deposit Capture, Mobile Banking

How do RDC and Mobile Banking impact your BSA/ALM program? Mary Lou Heighes, of Compliance Plus Inc., will cover the types of risk associated with RDC and Mobile Banking and how to can mitigate those risks, the common types of fraud, as well as the regulations that do and do not apply to RDC and Mobile Banking at next month's Fall Compliance Conference.

Dates: Oct. 8-9. Location: DoubleTree By Hilton (Williamsburg).

[REGISTER]

Latest VACUPAC Golf Sponsor: Thank You UVA Community CU!   

UVA Community Credit Union has signed up to be a hole sponsor at the VACUPAC golf tournament! We thank them for their support of the Virginia Credit Union Political Action Committee. There’s still time to add your name to our distinguished list of sponsors!

Here is what you need to know about the golf tournament and our Legislative Forum: 

Thank You To VACUPAC Golf Sponsors!

  • Tournament Sponsors: CUNA Mutual Group, League Service Corporation, Call Federal Credit Union and Langley Federal Credit Union
  • Beverage Cart Sponsor: Virginia Credit Union
  • Lunch Sponsor: Michael Flanary & Associate
  • Prize: Dominion Credit Union, Martinsville DuPont Credit Union
  • Hole: Dominion Credit Union, Entrust Financial Credit Union, Fort Lee Federal Credit Union, Langley Federal Credit Union, NoVA Chapter, Peoples Advantage Federal Credit Union and UVA Community Credit Union

We have many more sponsorship opportunities available at different levels: Print the sponsorship form. Deadline for sponsorships is Sept. 15.

Compliance/Regulatory Affairs News

NCUA's Metsger Favors Longer Implementation, 2nd Comment Period On RBC

NCUA Board Member Rick Metsger Wednesday said he favors doubling the implementation period and allowing a second comment period on the controversial risk-based capital rule.

Speaking at NAFCU's Congressional Caucus, Metsger said he was "committed to" a longer implementation period, noting that doubling that window from 18 months to three years would give the agency time to re-open the revised rule for comment, "and that's something I think would be an additional benefit."

The longer implementation period would also provide time for CUs to raise additional capital, allow institutions the opportunity to better understand the changes that will need to be made to Call Reports and then to "beta test" those reports to make sure they are user-friendly. (Credit Union Journal, Sept. 10)

Governmental Affairs News

100% for VACUPAC: Thank You Henrico and Baylands!

  • Henrico Federal Credit Union has 100% participation in the Virginia Credit Union Political Action Committee from Board, Supervisory Committee, and staff.
  • Baylands Federal Credit Union has 100% pin level participation (at least $25) from board members.

Your contributions are very much appreciated! And the names of all your donors will be entered into the VACUPAC 500 Credit Union Challenge!

And speaking of the VACUPAC 500 Challenge ... Donate to VACUPAC by Sept. 15 and be entered in a drawing for a $500 gift certificate. If you’re on payroll deduction, make sure an installment is sent in by Sept. 15. Drawing is Oct. 1 at the Legislative Forum. You need not be present to win.
[LEARN MORE]

Cybersecurity Bill May Still Pass This Year, Key Lawmakers Say

Although time is running out for the Senate to take up pending cybersecurity legislation before the end of the year, key lawmakers said they are still hopeful it could be enacted soon in the wake of several prominent breaches.

Sen. Saxby Chambliss, R-Ga., the lead Republican on the Senate Intelligence Committee, said he's "cautiously optimistic" the chamber can take up his information-sharing bill with Chairman Diane Feinstein, D-Calif., in the lame-duck session and then work with House members to reconcile competing legislation.

"They have passed a bill out of the House. If we can get our bill out of the Senate, we're prepared to conference it immediately and get it to the President's desk," Chambliss said at a cybersecurity event on protecting the payments system hosted by the Merchant Financial Cyber Partnership and Bloomberg Government.

Advocates say the Feinstein-Chambliss bill would encourage greater sharing of information between the federal government and the private sector, in part by better protecting participants from lawsuits, though critics continue to warn the legislation does not go far enough to protect individuals' personal information. The bill passed the Senate Intelligence panel by a vote of 12-3 in July.

The House, meanwhile, approved its own information-sharing bill last year, the more controversial Cyber Intelligence Sharing and Protection Act, which some warn contains fewer privacy protections for consumers. (American Banker Online, Sept. 11)

Financial Services/Marketplace News

FIs Prepare for Apple Pay Combo of NFC, Passbook App

On Tuesday, Apple announced Apple Pay, a system that will combine near-field communication with its Passbook app, taking plastic cards out of the point-of-sale environment. 
  
Apple Pay allows consumers to add their card on file for their iTunes account or upload their credit cards to their Apple Passbook by taking a photo of the card, said Apple vice president Eddy Cue ( Payments SourceSept. 9). Apple confirms through the issuing bank that the card belongs to the consumer. 
  
Apple Pay supports credit and debit cards from the three major payment networks--American Express, MasterCard and Visa--that are issued by banks such as Bank of America, Capital One Bank, Chase, Citi and Wells Fargo, which represent 83% of credit card purchase volume in the United States, Apple said. 
  
The Credit Union National Association continues to work with the payment networks and others on the latest payments developments, including providing more information for credit unions interested in Apple Pay. 
  
To become part of Apple Pay, credit unions and other financial institutions will need to enable tokenization with their payment networks. 
[READ MORE]
[RELATED: Apple Pay Could Rock Mobile Payments: Mobility Matters]

Apple Said to Reap Fees From Banks in New Mobile-Payment System

Apple will collect fees from banks when consumers use an iPhone in place of credit and debit cards for purchases, a deal that gives the handset maker a cut of the growing market for mobile payments, according to three people with knowledge of the arrangement.

The iPhone 6 and iPhone 6 Plus, unveiled Tuesday, include a new service called Apple Pay that lets users shop with the tap of a finger on a phone, instead of swiping a card. Banks including JPMorgan Chase, Bank of America and Citigroup agreed to integrate their cards into the system.

Apple and banks individually negotiated the fees in setting up the service, according to the people, who requested anonymity because terms aren't public. Fees will be charged for every transaction, one person said. The people didn't specify the size, which they said could vary, or whether it's tied to the value of purchases. The mobile-payments market will probably more than quadruple to about $90 billion by 2017, according to Forrester Research.

The arrangement builds on the existing fee structure for credit and debit cards in the U.S., according to the people. Merchants there typically pay fees totaling about 2 percent of the purchase price for credit-card transactions. The so-called swipe fees, also known as interchange, help card-issuing banks cover fraud costs and fund reward programs and total more than $40 billion a year. While banks would bear the cost of Apple's share, they're betting it will be offset by an increase in transactions, one person said. (American Banker Online, Sept. 10)
[RELATED: Will Apple Pay kill PayPal?]

Why Banks (and One CU) Are Buying Into Apple Pay

The financial services executives involved don't want to talk about it. But listen closely and read between the lines, and you can see why they might be willing to sacrifice some fees to participate in Apple's mobile payment platform.

Press reports citing anonymous sources said the large financial institutions (including Navy Federal Credit Union) involved in Apple Pay agreed to either deeply discount their interchange fees for transactions initiated on the platform or give the tech giant a cut.

While the parties have not disclosed the terms, in interviews and public statements the financial institutions involved said Apple Pay's enhanced security features, intuitive user experience and brand name made the platform attractive.

Several participants also called the timing fortuitous, as merchants are under pressure to upgrade terminals to the EMV chip-and-PIN standard (which makes them more likely to also retrofit for mobile communication). (Credit Union Journal, Sept. 11)

Obstacles to Making Affordable Mortgages Mount

Providing affordable home loans and broader access to credit is only going to get harder, experts said at a mortgage industry gathering this week.

Home prices are slowly edging up and interest rates are poised to rise, industry observers reminded at the American Mortgage Conference in Raleigh, N.C.

Meanwhile, demographic and economic shifts are creating more need for low-cost financing. Minorities and women are becoming the most likely homebuyers, especially in urban markets, and household incomes are expected to stay flat or even fall.

Add to the mix the challenges of the qualified-mortgage and other new rules, and bankers looking to originate more mortgages are in for some headaches, they said.

David Stevens, the president and chief executive of the Mortgage Bankers Association, spoke about the challenge in blunt terms.

"If we don't figure this out, you can go ahead and shut down your mortgage offices," Stevens told attendees. "We have to have a national dialogue with proposed solutions. [Lenders and Washington policymakers] need to move beyond issues with distrust."

Though some policymakers are working to address the problem, the public sector likely will be limited in the support it can offer lenders. (American Banker Online, Sept. 11)

American Dream Still Alive: Teens Think They'll Own Homes

A new survey found that American teens overwhelmingly think that they will be home owners—a far cry from millennials who were much less sanguine about their fortunes in an earlier study.

The study, conducted for real estate service Better Homes and Gardens Real Estate, found that 97 percent of those ages 13-17 believe they will own a home in the future. Compared with the 40 percent of millennials who said in an earlier Better Homes study that they expected to buy a home in the near term, these new figures prove that the younger generation may be more attached to the notion of home ownership. [READ MORE]

[RELATED: The Surprising Thing Gen Z Wants to Do With Its Money]

Millennials are Saying No to Credit Cards

Debt-fearing Millennials are saying no to credit cards.

More than six-out-of-10 Millennials, or 63%, don't have a single credit card, according to a Bankrate survey of 1,161 respondents. That compares to a mere 35% of Americans who are over the age of 30.

A tanking economy and mounting student loan debt have scared many Millennials away from opening credit cards, says Jeanine Skowronski, an analyst at Bankrate.com.

[READ MORE]

Education & Networking Opportunities

Young CU Professionals Invited to Networking Event in Virginia Beach

WHEN: Wednesday, Sept. 24
5:30 p.m.-7 p.m.
WHERE: Lager Head | 3315 Atlantic Avenue, Virginia Beach

Join us for networking and happy hour (1/2 off on Lager Heads famous Crush beverage, Free appetizers, games, and prize drawings) with Virginia's outstanding young credit union professionals (ages 35 and younger).

RSVP by Sept. 16! Contact Young Professionals Network League Liaison Bethany Scott at bscott@vacul.orgor 800.768.3344, ext. 628 for details.

CUNA Offers 'Must-Know Mondays' for Directors

The Credit Union National Association has announced a new seven-part webinar series that satisfies the yearly training requirements of credit union directors.
 
"Must-know Mondays--Required Training for Directors" will explore topics that credit union directors are required to revisit year after year, each sprinkled with humor and insights from presenter David Reed, a speaker and facilitator who has served as both an outside attorney and an in-house credit union general counsel.
[LEARN MORE: Must-Know Mondays--Required Training for Directors Webinar Series]

Registration Opens for CUNA Mutual's Oct. 15 Discovery Conference

CUNA Mutual Group’s fifth annual, day-long Discovery Conference scheduled for Oct. 15, offers 13 credit union-focused sessions from the convenience of your desk – for free.

The Discovery Conference is the Web-based equivalent of a face-to-face conference without the associated expenses or time away from the office.

[LEARN MORE]

News From Credit Unions

Eight Students Earn Extra Credit from Chartway Federal Credit Union and its Divisions

The $1.9 billion Chartway Federal Credit Union and its divisions of HeritageWest and SouthWest Community proudly announce that eight student members have been awarded a total of $16,000 in academic aid. Now in its 25th year, the Director’s Memorial Scholarship program annually awards $2,000 scholarships to deserving student members pursuing undergraduate or graduate degrees.

[READ MORE]

DCCU Breaks Ground on New Harrisonburg Location

DuPont Community Credit Union (DCCU) recently began the construction of its third Harrisonburg, Virginia location. The approximately 5,200-square-foot facility will be situated on the corner of South High Street and Erickson Avenue. [READ MORE]

Community Invited to DCCU's Upcoming Shred Days

Shredding documents is the best way to prevent personal information from falling into the wrong hands and DuPont Community Credit Union (DCCU) is excited to partner with Shred-it® (formerly Cintas) to host its semi-annual Shred Days! [READ MORE]

Chapter News

Richmond Chapter Offering White House Ornaments as VACUPAC Fundraiser

The Richmond Chapter of Credit Unions will be selling the 2014 White House Ornament to benefit the Virginia Credit Union Political Action Committee (VACUPAC). The cost is $20 for each ornament. To place an order, please send your information to Chris Miller (cmiller@chesterfieldfcu.net ) by Sept. 30.

Ornaments are not returnable or refundable, so only order what you plan to purchase or sell at your credit union. Payment is due by Oct. 31 (checks payable to Chesterfield Federal Credit Union). Each credit union will receive VACUPAC credit for the amount it raises through ornament sales. Help the Richmond Chapter reach its 2014 VACUPAC goal!

This ornament makes a great gift, so get a head start on your holiday shopping! In addition, if your staff (or members) would be interested in completing their collection and purchasing previous year's ornaments, those available for order as well!

[RICHMOND CHAPTER – WHITE HOUSE ORNAMENTS]


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