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CURRENT Newsletter

August 21, 2014

Headline News

News About Credit Unions

Compliance/Regulatory Affairs News

Governmental Affairs News

Financial Services/Marketplace News

Education & Networking Opportunities

News From Credit Unions

Chapter News

Marketing News

Technology News

Human Resource Management

Headline News

Anthem LemonAid – With an Assist From the Credit Unions Care Foundation – Raises $193,339

Many thanks to the credit unions throughout the Richmond/Petersburg metro area and Greater Hampton Roads for helping make last month's Anthem LemonAid campaign such a success.

The funds raised benefit Children's Hospital of Richmond at VCU and Children's Hospital of the King's Daughters (Norfolk), the local Children's Miracle Network Hospitals.

We're proud that the Credit Unions Care Foundation of Virginia, state credit unions' charitable foundation, contributed $10,000 toward the campaign, sponsoring the production of 200,000 cups, which made their way to 1,479 LemonAid stands.

Combined, the campaigns in Richmond and Hampton Roads have to date netted $193,339 for the two CMN Hospitals.

"We're thankful to have had the support of the Credit Unions Care Foundation and the participation of our credit unions," said Amy Dickstein, programs coordinator for Children's Miracle Network Hospitals (Richmond). "You play such a huge role in what we're able to accomplish each year."

The following credit unions in the two areas participated in last month's campaign:

  • Argent Credit Union
  • Baylands Federal Credit Union
  • Bronco Federal Credit Union
  • Call Federal Credit Union
  • Chesterfield Federal Credit Union
  • Connects Federal Credit Union
  • Entrust Financial Credit Union
  • Henrico Federal Credit Union
  • Langley Federal Credit Union
  • New Generations Federal Credit Union
  • Norfolk Municipal Employees Federal Credit Union
  • Old Dominion University Credit Union
  • Peoples Advantage Federal Credit Union
  • Richmond Postal Credit Union
  • Virginia Credit Union (top-grossing stand for the campaign among Richmond/Petersburg businesses with $3,568 raised)

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CUNA Economist Gives ‘Rosiest’ Forecast in Seven Years

The U.S. economy should grow at a 3.5% pace during the second half of 2014, and 3.75% in 2015, says Mike Schenk, CUNA’s interim chief economist. “That’s one of the rosiest outlooks that we’ve put together in more than seven years,” he said during CUNA’s Pressing Economic Issues Series (PEIS) in August.

Also buoying the economy are a lack of inflation pressure and an improving labor market.

“We expect the unemployment rate to drop very close to 5% at the end of next year,” Schenk says. This good news has implications for credit unions, he adds, which should translate into increased loan volume. “There’s a tremendous amount of pent-up demand in the system,” Schenk says. “As the economy improves and more people are put to work, wages and salaries will grow at higher rates than they have in the past,” aiding consumer spending and borrowing going forward.

[READ MORE]

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East Coast Regional Marketing Conference: Final Week for Hotel Discount!

If you’ve been putting off registering for the East Coast Regional Marketing and Business Development Conference, this is the week to spring into action! The conference is being held Sept. 24 through the 26 at the brand new Hilton Garden Inn Oceanfront in Virginia Beach -- the week prior to the fun and fabulous Neptune Festival.  

Sunset Cruise Fun!

A limited-seating sunset cruise on Thursday evening is included in the price of your registration.  (Guests are welcome for an additional $25.) To make things more exciting, CMC Meridian has “jumped on board” as a food sponsor of the cruise and will be holding a drawing for a 4-day, 3-night cruise to the Bahamas on Norwegian Cruise Line. (Only 3 free spots are available at this time.)

Pre-Conference Business Development Add-On!

And for only $69 more, you can take advantage of the Pre-Conference workshop. It’s all about using Financial Education as a Business Development tool. It’s a great prequel for putting best practices in your biz development tool kit. Cost includes lunch and all materials. 

Engaging, Informative Speakers

The main event on Thursday and Friday brings you terrific topics with dynamic speakers like Anne Legg (3rd Degree Advertising), Olivier Raoust (Raoust + Partners),  Jake Foreman (Member Loyalty Group), Greg Brock (Firefli Media), Brian Hoek (Pinstripes Media) and a panel of people who know how to turn a 30-second transaction into win-win business for both you and your members. Take a look at the agenda and registration form here:

http://www.vacul.org/content/download/3334/27539/version/1/file/East_Coast_Mkt-BD_2014.pdf

To register online go here: 

http://www.vacul.org/Events#id=83&cid=573&wid=501 

$229 for the first registrant at your credit union, and then $209 for subsequent attendees from your CU. 

Hotel Info:

Hilton Garden Inn Oceanfront

  • 3315 Atlantic Avenue (Near the Neptune Festival Hub)
  • Reservation Code: VCL (Room rate extends from TUESDAY through SATURDAY night for your convenience)
  • Room Rate:  $149 per night  (Special rate only valid until Aug. 24 or until our block of rooms sells out.)
  • Reservation Phone Number: 757.305.9000, use code VCL

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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 (age 35 and younger).

RSVP by Sept. 16! Contact Young Professionals Network League Liaison Bethany Scott atbscott@vacul.org or 800.768.3344, ext. 628 for details.

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News About Credit Unions

Call Report Focus of New CUNA Survey

The Credit Union National Association has sent a survey to credit union officials asking for opinions on the National Credit Union Administration's 5300 Call Reports. The survey aims to gather information on credit unions' experiences with the call reports and completing and submitting the required data.

The survey was developed by CUNA interim Chief Economist Mike Schenk, and asks respondents to answer on a five-point scale how much they agree or disagree with 21 statements. The statements involve topics from the ease of submission to what changes could reduce your regulatory burden. CUNA interim President/CEO Bill Hampel said in the e-mail to credit unions that the survey will "enable us to better identify the issues and challenges our nation's credit unions may be facing with respect to the Call Report requirements, and how CUNA can best help address credit unions' needs in this area."

The survey, which should take about five minutes to complete, will be analyzed by CUNA staff confidentially, with only the combined results being reported.

[VIEW THE SURVEY]

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Credit Union CEO Confidence Still on Upswing

For the third consecutive quarter, credit union CEOs continued to express confidence about a number of different areas. The Credit Union CEO Confidence Index from the Plano, Texas-based Catalyst Corporate Credit Union now stands at 32.94, up from 30.32 in the first quarter of 2014.

Using a scale ranging from negative 100 to positive 100, respondents registered their confidence levels in six areas to create an overall index, as well as a snapshot of present-day feelings and future expectations.

[READ MORE]

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NCUA Corporate Lawsuits Greenlighted in Denver

The NCUA scored a major victory in the 10th U.S. Circuit Court of Appeals in Denver Aug. 19 in its quest to recover losses from big banks that sold mortgage backed securities to failed corporates. The ruling, which was prompted by a directive from the U.S. Supreme Court in June, sided with the NCUA’s claim that the three-year time frame defendants have to file loss claims began when it seized three failed corporates, not when the corporates purchased the securities.

The NCUA can now move forward with lawsuits filed in Kansas on behalf of U.S. Central Federal Credit Union and Western Corporate Federal Credit Union, seeking damages of more than $1.74 billion in securities the two failed corporates purchased.

[READ MORE]
[RELATED: Bank of America Agrees to Record $17B Settlement in MBS Case]

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Compliance/Regulatory Affairs News

Your Feedback Needed: 2014 League InfoSight Users' Survey 

Your opinion counts, so please take a few minutes to answer our annual League InfoSight users' survey and help us understand:

  • How you use League InfoSight
  • What you like about it
  • What you think could be improved

Past responses have been used to help guide discussions about enhancing InfoSight and we have implemented changes suggested through the survey.

The survey will be available from through Sept. 1. League InfoSight is our online compliance and regulation resource.

Click here for the survey.

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Governmental Affairs News

100% for VACUPAC

Congratulations to Fort Lee Federal Credit Union, which has 100% participation from board members, staff and its management team in the Virginia Credit Union Political Action Committee (VACUPAC) -- all at the pin level (at least $25).

VACUPAC contributions enable us to support lawmakers in Richmond and Washington who are supportive of credit unions and willing to hear us out on the issues that matter most in our service to our members.

[LEARN MORE ABOUT VACUPAC]

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Southside Chapter Reaches VACUPAC Goal

Congratulations to the credit unions of the Southside Chapter on having reached their VACUPAC goal for 2014! An outstanding effort...take a bow!

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Financial Services/Marketplace News

Fed’s July Minutes Show It Inching Toward the Exit

Here's the Federal Reserve's last meeting, in one sentence: Everything is going according to plan, and it might be doing so faster than expected. That's because unemployment has fallen further than the Fed thought it would, and inflation has slowly risen from its too-low level towards its two percent target.

But it's not clear how far and how fast this will continue. So the plan remains the same — for now. The Fed will finish tapering in October, wait a 'considerable time', start raising rates, and then shrink its balance sheet. The question, of course, is how long a 'considerable time' will be — or if it will even be considerable at all. It's possible...that it might not be as long as we think if the labor market keeps improving like it has been."

[READ MORE]

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Existing Home Sales Spike in July

Americans resold their homes in July at the fastest pace in almost a year, a sign the housing market was gaining steam again after a year-long slump. The National Association of Realtors said on Thursday existing home sales increased 2.4 percent to an annual rate of 5.15 million units.

That was above analysts' expectations and marked the fourth straight month the pace of home resales accelerated. Home resales dropped in the summer of 2013 after the Federal Reserve signaled it would dial back its monetary stimulus for the economy, pushing mortgage interest rates higher.

[READ MORE]

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Truth Is, Those Recent Housing Numbers Aren't So Shiny

After plunging in June, housing starts and housing permits recovered in July, printing at 1,093,000 and 1,052,000, respectively. And yes, this is a 15.7% gain in starts and permits. The bad news is that almost all of those gains from June to July in starts and permits are in multi-family rental housing. That’s not the sign of a housing recovery.

That’s the sign of a shift from an ownership society to a rental society. In permits, almost all of the increase was due to multi-family unit construction, which soared by 73,000 to 382,000, a 24% increase, while single-family residential permits were up by just 6,000, or less than 1%. The fact is: the tepid economy and the part-time job market that’s the new norm are to blame.

As CNBC notes, since the recession ended, lower-wage jobs have grown by 2.3 million while medium- and higher-wage jobs actually contracted by 1.2 million. This is in line with the ground-losing 2% wage growth the job market is seeing. Now you see why the big gains in housing starts and permits are pretty much concentrated in apartment construction, not home building.

[READ MORE]

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More Than a Third of Americans Have a Goose Egg for a Nest Egg

For many Americans, their nest egg is just a shell: 36 percent have no retirement savings, new research from Bankrate finds. The problem is particularly acute for adults under the age of 30. Nearly 70 percent don’t have any money saved towards retirement, although this age bracket feels the most financially secure.

“They also feel more secure in their jobs and more optimistic about their current financial situation than any age group,” Bankrate said.

While the minority of people who are saving are getting an earlier start, a significant percentage have lost valuable time for saving: A third of 30- to 49-year-olds have no retirement savings, along with more than a quarter of 50- to 64-year-olds. (NBC News, Aug. 19)

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Late-Payment Rate on US Mortgages Declines in 2Q

Fewer U.S. homeowners are falling behind on their mortgage payments, a trend that has reduced the late-payment rate on home loans to the lowest level in six years, according to credit reporting agency TransUnion.

The percentage of mortgage holders at least two months behind on their payments fell in the April-June period to 3.46 percent, down from 4.32 percent a year earlier, the firm said last Wednesday. The latest mortgage delinquency rate was down from the first quarter of this year, when it stood at 3.61 percent.

[READ MORE]

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Education & Networking Opportunities

Webinar with Live Q&A: Sept. 17 - Don’t Wait to Address Employee Dishonesty, Internal Controls

Complacency often leads to insufficient internal controls and correlating losses from dishonest employees. Join us for the next Credit Union Protection webinar: Don’t Wait to Address Employee Dishonesty and Internal Controls, to be held Wednesday, Sept. 17, 11 a.m., where you’ll learn about the latest employee dishonesty trends and how to better protect your credit union from embezzlement and other types of fraud.

Register today and you'll be entered for a chance to win a new iPad Air!*

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Sept. 10 Seminar: How to Lead a Sales-Focused Culture

You don't have the luxury of 24 months to build a "sales and service" culture. Your members won't wait. If you want a culture that supports top-line growth and stellar performance, then discover your member's vision and speak to his or her aspirations. On Sept. 10, your League will offer a seminar on leading a sales-focused culture at the Double Tree Hilton in Richmond (5501 Eubank Rd., Sandston, 23150).

Speaker Jeff Rendel provides member experience strategies guaranteed to deepen relationships and a how-to on out-marketing, outselling and out-serving your competitors.

[LEARN MORE]

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News From Credit Unions

Belvoir Federal Supports Heroes on the Water

Belvoir Federal Credit Union supported Heroes on the Water (HOW), an organization that serves the nation’s warriors by providing healing and rehabilitating water outings that are physically and mentally therapeutic. The HOWs organization is a non-profit that works with the men and women in Fort Belvoir, VA.

Belvoir Federal Credit Union supported the event with volunteers and bottled water. The excursion allowed supporters and volunteers to kayak with wounded warriors on the Potomac River.

[READ MORE]

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Belvoir Federal Supports 2nd Annual ‘La Leche League’ of Fort Belvoir

Belvoir Federal sponsored the “La Leche League” of Fort Belvoir by donating a gift card and cases of water for Fort Belvoir’s Second Annual Breastfeeding Recognition Ceremony. “La Leche League,” which is the most renowned mother-to-mother breastfeeding support group, had 101 people in attendance.

[READ MORE]

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Chapter News

Roanoke Valley Chapter Hosting VACUPAC Golf Classic Sept. 11

The Roanoke Valley Chapter will host the 12th Annual VACUPAC Golf Classic on Sept. 11 at Hanging Rock Golf Club. Shotgun start at 9 a.m. Golfers and sponsors are needed! Registration is $75 per golfer. Sponsorships start at $100, but any contributions are appreciated. Deadline for sponsorships and golf registrations is Sept. 5.

[LEARN MORE]

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Tidewater Chapter Meets Sept. 11

The Tidewater Chapter will be honoring our local first responders on Patriot Day (Sept. 11). A representative from the American Red Cross will pay tribute to first responders (fire, police and EMTs) from each of our localities.  

  • Location: Greenbrier Country Club (1301 Volvo Parkway, Chesapeake 23320)
    Time: 6 p.m. social; 6:30 p.m. dinner and meeting  
  • Make your reservations by contacting Ginnie Riddle at vriddle@bayportcu.org or 757.873.4047.
  • Cost: $35 for reservations made on or by Sept. 4; $40 thereafter.

[LEARN MORE]

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Marketing News

Millennials Not as CD-Savvy as Rest of Us

Despite a newfound appreciation for saving, thanks to the Great Recession, young Americans are largely ignorant about at least one saving option: certificates of deposit/share certificates. A Bankrate survey in June found that 69 percent of 18- to 29-year-olds aren't very familiar or are not at all familiar with CDs.

That's significantly higher than the 39 percent for 50- to 64-year-olds and 45 percent of the overall population who are unfamiliar or only vaguely familiar with this staid financial product.

[READ MORE

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Technology News

Millennials Say ‘Venmo Me’ to Fuel Mobile-Payment Surge

First, they ditched land telephone lines. Then they cut the cable-TV cord. Now, millennials are chucking their checkbooks and cash. Take Sanket Karuri, a 23-year-old who calls himself the “friend who never has cash at those cash-only places.”

Instead, he uses his smartphone to split restaurant checks and pay rent, using EBay Inc.’s mobile-payment tool called Venmo. Like many of his peers, he’s taken to using the application’s name as a verb -- telling friends to “Venmo me” -- the way predecessors turned “google” and “tweet” into action words. Millennials, people born from the early 1980s to the early 2000s, have been flocking to these technologies, drawn by their ease of use and social features.

Venmo, based in New York, alone handled $314 million in mobile payments in the first quarter of this year, up 62 percent from the prior quarter. Another tool gaining in popularity is Fiserv Inc.’s Popmoney.

[READ MORE]

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Human Resource Management

The Secrets to Successfully Recruiting Millennials

And just as they bring a fresh new approach to the office environment, many Millennials have a very different perspective on how to look for a job than their predecessors who were hired by financial institutions over the last half century. This poses an interesting challenge for search directors who are accustomed to more traditional tactics to find the best candidates.

[READ MORE]

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