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CURRENT Newsletter | 4 April 2013

Apr 4, 2013 by Lewis Wood

News and Notes for Virginia's Credit Union System

April 4, 2013

The next edition of CURRENT will be published April 25.

Headline News News About Credit Unions Compliance/Regulatory Affairs News Governmental Affairs News Financial Services/Marketplace News Education & Networking Opportunities Chapter News Financial Education News Marketing News Security/Fraud Prevention

Headline News

Credit Union Cherry Blossom Ten Mile Run® Readies for 41st Running April 7; Celebrates $483,000 Donation to CMN Hospitals   

The 41st running of the Credit Union Cherry Blossom Ten Mile Run® will take place Sunday, April 7. Credit Union Miracle Day (CUMD) is the title sponsor group of the race.

The kick-off press conference, which will be held in the Capitol Visitor Center on Thursday, April 4 and a Kids’ Play Day at Children’s National Medical Center in Washington‚ D.C.‚ on Friday, April 5, will be among the highlights of the weekend for many of the credit union people participating in the events.

CUMD’s 2013 donation of $483,000‚ will bring the 12-year total of funds donated to Children’s Miracle Network Hospitals nationwide to more than $6 million. Approximately $112,000 alone was raised by runners and their families and friends in 2013.

“We are very proud of the way credit unions and their business partners, including our lead partner, PSCU, and runners have all united and collaborated to raise funds for Children’s Miracle Network Hospitals under the umbrella of Credit Unions for Kids,” CUMD Chairman Juri Valdov said.

[read more]

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Annual Meeting 2013: Registration Deadline April 5

The League Annual Meeting registration deadline is April 5, so act now and register! This year's event offers 14 education opportunities, including two keynotes, plus excellent networking opportunities.

Visit our standalone Annual Meeting website for details.
[learn more about the 2013 Annual Meeting]
[register for the Annual Meeting]

8th Annual Awards Celebration April 19

Just a reminder that we're recognizing our 2012 Social Responsibility Award winners at the Annual Meeting Business Session on April 19.

The Business Session is slated to begin at approximately 10:30 a.m., following the keynote by Dr. Neil Goldman. We'll also be presenting a number of governmental affairs/VACUPAC awards. We hope you'll have a representative on hand to accept your award!

> Attending the Annual Meeting? We're Giving You Two Great Opportunities to Do Some Good!

Foundation Charity Golf Tournament April 17; Still Time to Register, Sponsorships Available

The Inaugural Credit Unions Care Foundation of Virginia Golf Classic, presented by CUNA Mutual Group, tees off April 17, at the Roanoke Country Club. Golfer registration fees of $125 per player support the good work of the Foundation, including financial education, community grants and charitable giving. Register by April 12.

Tournament Sponsorships are also still available! See the list below for opportunities. Please consider signing on to help underwrite costs associated with the tournament. This ensures all golfer registration fees can support the Foundation!
Learn more here!

Special thanks to our sponsors!

Tournament Sponsor: ($10,000)
CUNA Mutual Group

Beverage Cart ($700)

  • First Carolina Corporate Credit Union
  • MassMutual/Member Wealth Management
  • Virginia Credit Union
  • Call Federal Credit Union

Lunch($600) (2 sponsorships remaining)

  • Palmetto Cooperative Services & PCSi

Awards Reception ($500) (1 sponsorship remaining)

  • Fiserv
  • Freedom First Credit Union

Prize ($300) (9 remaining sponsorships)

  • John M. Floyd & Associates

Hole Sponsors ($200) (5 remaining sponsorships)

  • Beacon Credit Union
  • Bronco Federal Credit Union
  • Central Virginia Chapter
  • CommonWealth One Federal Credit Union
  • Deluxe Corp.
  • DuPont Community Credit Union
  • Fort Lee Federal Credit Union
  • Goodyear-Danville Family Credit Union
  • Hampton Roads Educators' Credit Union
  • Member Select Mortgage
  • NSWC Federal Credit Union
  • PFD Firefighters Credit Union
  • UVA Community Credit Union

Contact your League's Cathy Baldwin to register as a sponsor. Reach her at cbaldwin@vacul.org or 800.768.3344, ext. 615.

Volunteer at the Food Bank

We're excited to announce a volunteer opportunity at this year's Annual Meeting. On April 17, we have the opportunity to help Feeding America Southwest Virginia, a Roanoke-area food bank, by volunteering for two shifts: 9 a.m. until noon and 1 p.m. until 4 p.m.

They'll put us to work doing inventory, preparing food boxes, and other assorted tasks. If you're interested in participating on one or both shifts, please drop an email to your League's Lewis Wood atlwood@vacul.org. We'll send you the volunteer packet, which you'll need to complete and bring along with you the day of the event.

This is an excellent opportunity to have a positive impact on this year's Annual Meeting host city and a feel-good way to start the Annual Meeting. Learn more about the good work of Feeding America Southwest Virginia online at http://www.faswva.org/.

> Also, we're asking that you consider donating needed items to the Food Bank. (Monetary donations are appreciated as well!) Here is the list of the most-needed items: canned meats, canned meals, rice, peanut butter, canned vegetables, canned fruits, beans and 100% juice.

Bring these along and drop them off at our designated collection point (near the registration area), and we'll take care of delivering them to the Food Bank!

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Statewide Awareness Campaign Webinar Today (April 4); Video to Be Unveiled

Exciting things are happening behind the scenes while your League is putting the final touches on the viral video and our collaborative website, www.QuitTheHit.com. We are excited to share with you the final products.

To ensure the viral video successfully directs the consumer to our website, www.QuitTheHit.com (launching soon!), we are conducting one last round of consumer testing on the video this week. You are invited to our webinar for the unveiling of the video and website on April 4 at 1 p.m.

This webinar will cover:
- Unveiling of the viral video and website
- Logos and other resources for the Campaign
- Specifics on the viral strategy and how your credit union can help make it even more successful

[learn more]

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News About Credit Unions

NCUA Update Of Legacy Asset Information Suggests Expected Losses Will Be Lower: CUNA

The NCUA reported last Thursday that the highest estimated amount credit unions have yet to pay in corporate assessments has declined by $900 million. That leaves between $1.6 billion and $3.9 billion in assessments yet to pay, the NCUA said in a release.

However, the agency said that won’t mean a reduction in the estimated 2013 corporate assessment, which still remains between 8 and 11 basis points. The exact amount will be revealed sometime this summer during an NCUA Board meeting.

Through 2012, federally insured credit unions have paid $4.1 billion in assessments to cover losses incurred by corporate credit union investments into mortgage backed securities. The reduction means should the forecast hold true, credit unions have paid more than half of corporate resolution costs. [read more]

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NCUA In $165 Million Settlement With Bank Of America On Corporate Claims

The National Credit Union Administration this week announced a $165 million settlement with Bank of America over claims that mortgage giant Countrywide, which BofA acquired in 2008, sold faulty mortgage-backed securities to failed corporate credit union giants U.S. Central Federal Credit Union and WesCorp Federal Credit Union. (Credit Union Journal, April 2)

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Compliance/Regulatory Affairs News

TDR Guidance Released For NCUA Examiners

The National Credit Union Administration has shared with credit unions guidance it provided to agency examiners on how to review loan workouts, nonaccrual policies, and regulatory reporting of troubled debt restructurings.

The guidance, which was released in a Tuesday letter to credit unions (13-CU-03), provides additional clarity and consistency related to the review of loan workout programs in credit unions, the agency noted. [read more]

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Governmental Affairs News

DuPont Community is 100% for VACUPAC!

Many thanks to DuPont Community Credit Union for its support of the Virginia Credit Union Political Action Committee. The CU reports 100% participation at the pin level from senior staff.

Contributions to VACUPAC are "career insurance," enabling credit unions to support political candidates willing to hear us out on our issues. Learn more about VACUPAC by contacting your League's Karin Sherbin at 800.768.3344, ext. 626 or ksherbin@vacul.org or visiting our website.

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Financial Services/Marketplace News

One-Fourth of Consumers With Checking Accounts Have Overdrafts

Consumers' use of overdrafts is increasing. More than one-fourth of people with a consumer checking account -- about 38 million people -- are frequent overdrafts users, said a new report. Credit unions provide overdraft services as a service to their members and they charge less for the service than banks.

The survey, by Lake Bluff, Ill.,-based Moebs Services, a financial research firm, found that fees for services were lower at credit unions than at banks. The average charge for an overdrawn account of $40 was $30 at banks, but $27 at credit unions. When depository size is taken into account, "the difference can be significant," said Michael Moebs, author of the study.

Overdraft revenue at banks, credit unions and thrift institutions totaled $32 billion last year, up $400 million or 1.3% from 2011, said the study.  Still, it was less than in 2008, when revenue from overdrafts totaled $35.4 billion, or in 2009, when it was $37.1 billion. Overdraft revenue during the first quarter of last year fell to an 11-year low. [read more]

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CFPB Launches Database Making 90K Consumer Complaints Available

Details on more than 90,000 consumer complaints regarding financial products and services are now publicly available, courtesy of a new database launched last Thursday by the Consumer Financial Protection Bureau.

"The database is good for consumers and it is also good for honest businesses. We believe the marketplace of ideas can do great things with this data," CFPB Director Richard Cordray said at the unveiling. The bureau said its new consumer database is the nation's largest for such complaints. [read more]

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Virginia’s New Tax Refund Card Hits Bumps

Virginia’s new tax refund card is jangling the nerves and wallets of some taxpayers. State refunds are loaded onto the Way2Go cards, which work like debit cards, and taxpayers are supposed to be able to use them for free in some instances. But it is not working out that way, taxpayers say.

They are getting hit with fees that they didn’t expect and they are getting charged for services that are supposed to be free. The Virginia Department of Taxation confirmed Wednesday that incorrect information has been relayed and incorrect fees have been charged. [read more]
[Virginia Department of the Treasury FAQs on Tax Refund Card]

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Delinquencies on Second Mortgages Dropped in 4Q: Report

With green shoots emerging in the U.S. housing market, another encouraging sign arrived Tuesday in a new report from the American Bankers Association: delinquencies on second mortgages, which remain stubbornly high six years after the housing bubble burst, dropped in the fourth quarter.

The percentage of consumers who were late on paying their home equity loans fell to 4.03%, their lowest level in three quarters. For home equity lines of credit, delinquencies dropped to 1.93%, also lower than at any point since the first quarter of 2012. Whether the declines will mark the start of a sustained improvement remains to be seen. (American Banker Online, April 1)

[related: Obama Pushes Banks to Make Home Loans More Available]

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Credit Card Delinquencies Reach 18-Year Low

Credit card users are better at paying their bills on time than they have been in almost two decades. Delinquencies on bank-issued credit cards sankto 2.47% in the fourth quarter -- the lowest level since 1994, according to an American Bankers Association report released Tuesday.

The percentage of credit card accounts that were 30 days or more overdue during the quarter was roughly half the record high of 5.01%set in 2009 and well below the 15-year average of 3.87%. [read more]
[related: Will You Pay More to Use Your Credit Card?

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Scared to Prepared: How the Great Recession Changed Our Spending Habits

The shock of the Great Recession lingers -- and that’s a good thing in terms of how most folks are managing their money. In a new survey from Fidelity, nearly half of respondents say even now they are saving more, reducing debt and building an emergency fund.

A new survey from Principal Financial finds that the number of workers preparing for retirement is on the rise and that most workers who expect a tax refund plan to save or invest it, or pay down debt. [read more
[related: Survey: Frugality Reigns 5 Years After Crisis]

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General Motors, Ford and Chrysler Post Strong March Auto Sales

March looks to have turned out to be one of the biggest months for auto sales in nearly six years. The industry sold almost 1.5 million vehicles in March, about 5% more than the same month a year earlier and likely the most since the 1.6 million sold in May 2007, according to automotive information company Edmunds.com.

General Motors Co. said Tuesday that its U.S. sales rose more than 6% to 245,950 vehicles compared to the same month a year earlier, "thanks to a strengthening economy and new products,” said Kurt McNeil, vice president of U.S. sales operations. Ford Motor Co. said it sold 236,160 vehicles last month, a 6% rise from the same period a year earlier. [read more]

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Education & Networking Opportunities

April 8 Webinar: Escrow Rule Changes for High-Priced Mortgages - Deadline June 1, 2013, Including January 2014 HOEPA Rules

The CFPB has issued a final rule that amends Regulation Z (Truth in Lending) under the Dodd-Frank Act. Although many more mortgage-related changes are expected, the escrow rule change deadline is coming quickly.

Effective June 1, 2013, there will be new requirements for mandatory escrow accounts established for first-lien, higher-priced mortgage loans secured by a principal dwelling.

These amendments extend the length of mandatory escrow, but also exempt certain transactions. Then, effective Jan. 10, 2014, further amendments to Truth in Lending are related to an expansion of the types of mortgage loans that are subject to the protections of the Home Ownership and Equity Protection Act (HOEPA).

This will include additional restrictions on mortgages. Don’t miss this must-attend session on April 8 for details on all these coming regulatory changes. [learn more]

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April 9 Webinar: Mandatory Compliance Series - Compliance Rules the Frontline Must Know

Having knowledgeable frontline employees is imperative to any strong financial institution. They must know how to balance the demands of providing outstanding service with regulatory requirements and prudent operating procedures.

This April 9 webinar is designed to refresh and update the frontline on important regulatory issues, recent or pending changes, and penalties for noncompliance.

Regulation D, CC, TISA, Regulation E, and BSA will be addressed. This will be a fast-paced update that will ensure your financial institution is in compliance with training requirements. [learn more]

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April 10 Webinar: ACH Rules Update 2013

Ensure your credit union knows and understands the new and upcoming NACHA Operating Rules by attending this important April 10 webinar. If it’s new in 2013, you’ll learn about it here.

This webinar will cover enhancements to IAT, healthcare payments, third-party tax payments, and requirements of the ACH Security Framework. You’ll also be updated on the 2012 Expedited Processing and Settlement proposal and get a glimpse of the future with an overview of P2P payments. [learn more]

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League's Spring Compliance Conference May 1-3

Three days of exceptional training are on tap at the upcoming League Spring Compliance Conference, May 1-3, in Richmond.

  • Day 1: When a Member Dies: Dealing with the Legacy that Deceased Members Leave Behind
  • Day 2: Federal Regulatory Update for 2013
  • Day 3: Vendor Due Diligence and Risk Management Panel Discussion

[learn more]

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News From Credit Unions

Beach Municipal Federal Credit Union Receives Diamond Award for Outstanding Marketing, Business Development Achievements

Beach Municipal Federal Credit Union in Virginia Beach, VA, was recently honored with a Diamond Award, which recognizes outstanding marketing and business development achievements in the credit union industry.

The award was presented by the Credit Union National Association (CUNA) Marketing & Business Development Council, a national network comprised of over 1,100 credit union marketing and business development professionals.

Awards are given in each of 33 categories ranging from advertising to community events and beyond. Beach Municipal FCU won the Membership Packets, Brochures, or Booklets category.

[read more]

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Chapter News

'Meet Your League' Event Being Hosted at Tidewater Chapter's April 11 Meeting

Join us at the Tidewater Chapter's April 11 meeting for a "Meet Your League" event. Clark Jefferson, Tim Hesson, Dorshey Coleman, Karin Sherbin, Jeanne Sullivan and Lewis Wood will provide an overview of your League's products, services and programs, with particular focus on new initiatives.

Don't miss this opportunity to hear about what's new and noteworthy at your League! Location: Greenbrier Country Club (1301 Volvo Parkway, Chesapeake, 23320.) Time: 6 p.m. Social; 6:30 p.m. Dinner and Meeting. Make your reservations early!

To RSVP, contact Ginnie Riddle by email at VRiddle@bayportcu.org or by phone at 757.873.4047. Deadline is noon, April 5.

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NoVa Chapter Meets April 11

Financial institutions have an important role to play in helping law enforcement build cases against all sorts of criminals. Kevin Whalen, Senior Special Agent with FinCEN, will be the special guest speaker at the NoVa Chapter's April 11 meeting, offering a program on how law enforcement uses BSA reports, develops mortgage fraud intelligence and pieces together the details of financial crimes.

Location: Marriott Fair Oaks (11787 Lee Jackson Memorial Highway, Fairfax). Time: 5:30 p.m. networking; 6 p.m. meeting; 6:30 dinner and 7:30 p.m. speaker. Please RSVP by April 8 to: pollardj@jfcu.org.

[learn more]

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Financial Education News

New NCUA Online Resources Offers Fin Lit 'Fun For All Ages'

Financial education is often a serious topic, but the National Credit Union Administration on Tuesday announced it is taking a different tack: The agency has developed a new game to help teach youngsters how they can make better financial decisions.

The game, called "Hit the Road," is hosted on the NCUA's financial literacy microsite, Pocket Cents. In the game, participants travel on a cross-country trip to Colorado. They earn and spend money along the way, and learn how to keep track of their funds through their credit union accounts. [read more]
[related: 210 CUs To Participate In Youth Week Saving Challenge]

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Marketing News

Fiserv to Launch Prepaid Card Mobile Deposit Capture

The dirty secret of the prepaid card business is that often it is difficult to load new funds on a card, even a reloadable one, and the difficulties multiply when those funds are in the form of a check. 

That is why Brookfield, Wis.-based Fiserv has announced what it calls Prepaid Source Capture, which leverages the company’s mobile remote deposit capture tools. “Putting a check on a prepaid card had not been that easy to do,” said Gary Brand, director of Source Capture Solutions at Fiserv.

He added that, of course, the headline news is the velocity of growth in prepaid cards, so Fiserv spotted a need that it believes its existing mobile RDC fills. “Reloading with a check just is a neat way to go,” said Brand. [read more]

> Speaking of prepaid cards, your League's partnership with the Illinois Credit Union League Service Corporation offers you a turnkey, web-based prepaid gift card program, supporting both Reloadable and Non-Reloadable cards with the VISA logo. Contact us for details – David Deacon (800.768.3344, ext. 634 orddeacon@vacul.org) or Jeanne Sullivan (ext. 657 or jsullivan@vacul.org).  

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Security/Fraud Prevention

Mobile Banking Usage Rises, But So Do Security Concerns: Survey

Consumers continue to move to mobile banking although security concerns may keep some bank customers from reaching for their devices. Twenty-eight percent of all mobile phone owners have used mobile banking in the past 12 months, up from 21% a year earlier, according to a survey released recently by the Federal Reserve Board that updates findings of a similar survey the Fed fielded in 2011.

Among smartphone users, 48% have banked via their device, compared with 42% a year earlier. Though 87% of consumers who bank via their device use mobile banking to check account balances or recent transactions, 21% of mobile bank users have used their phone to deposit a check, double the occurrence as in December 2011.

[read more]

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