Home Info Newsroom CURRENT Newsletter CURRENT Newsletter | March 3, 2020

CURRENT Newsletter | March 3, 2020

We appreciate our loyal readers! Please send your comments and feedback to pr@vacul.org.

Headline News

Compliance / Regulatory Affairs

Economic / Financial Services News

Chapter News

Headline News

League Offering Free Compliance Roundtable March 11 in NoVA

Your League is offering member credit unions four regional peer-to-peer roundtable discussions to help you better manage the complexities of today's regulatory environment. Each session is free-of-charge and will be facilitated by attorney Jay Spruill, the compliance expert managing your League's Compliance Hotline. 

Each event will run from 10 a.m. until 3 p.m. and lunch will be provided. 

Applications for League-Sponsored AACUC Scholarship Being Accepted

The Virginia Credit Union League (VACUL) is proud to announce applications are now being accepted for the Lynette W. Smith Conference Scholarship. The deadline to apply is April 30, 2020. The Scholarship will be granted to one Virginia-domiciled credit union leader to attend the African American Credit Union Coalition (AACUC) Annual Conference. The scholarship covers registration and travel costs, up to $2,000. This year the Conference will be held Aug. 11 – 14, 2020 at TradeWinds Island Resorts on St. Pete Beach, St. Petersburg, Fl.

This scholarship is named for Lynette Smith, past Chairman of AACUC and President/CEO TruEnergy Federal Credit Union. Lynette has been an exemplary advocate and champion for the credit union movement, both within the Commonwealth and nationally. Our hope is that this scholarship will help prepare and inspire credit union leaders to follow in Lynette’s footsteps.

All scholarship applications should be emailed directly to MOutlaw@aacuc.org.

Fraudsters Take Advantage of Coronavirus Fears

Opportunistic fraudsters will exploit anything for personal gain, including the fear, anxiety and the unknown surrounding the coronavirus. Fraud attempts can come via phone calls, texts, emails, websites, and even mail or faxes. Email and phone scams include phishing for personal information by impersonating health officials. Donation requests to fund emergency plans have also been reported. Emails falsely claiming the virus is in the recipient's area encourage clicking a link and entering an email password to read more.

Help your members avoid being victims of a phishing scam. Visit the Federal Trade Commission website for more information on "How to Recognize and Avoid Phishing Scams."


[RELATED: Flu Season. Coronavirus. How Managers Can Handle Sickness, Paranoia at the Office]
[RELATED: NCUA’s Pandemic Preparedness Guidance] (Password required. Register here if you need one.)

Marketers, Biz Dev Staffers Asked to Complete Survey to Aid Planning for Upcoming Conference

Marketers and business development experts: Your opinion matters! The League’s Marketing & Business Development Council has produced a six-question survey to solicit your feedback on your educational needs. This will aid them in planning this year’s East Marketing and Business Development Conference (Sept. 17-18 / Virginia Beach).

Find the survey here: https://www.surveymonkey.com/r/ECMC2020

Medal of Honor Recipient Flo Groberg to Deliver League Annual Meeting Keynote

We’re pleased to bring you two exciting keynote addresses at Ignite2020, the League Annual Meeting!

Florent “Flo” Groberg shares stories of bravery and leadership from combat that inspire audiences to see the opportunity in challenging environments and to find the strength to complete any mission.

On Aug. 8, 2012, Florent was on his second deployment to Afghanistan when he made a split-second decision that prevented greater catastrophe and changed his life forever. His selfless display of courage in tackling a suicide bomber while protecting a command team on that fateful day earned him the Medal of Honor, and the distinction as the 10th living American to receive the nation’s top award for valor in combat since the attacks on Sept. 11, 2001.

Today, as director of veteran’s outreach at Boeing and LinkedIn’s veteran’s program spokesperson, he is a powerful and prominent advocate for veterans’ issues. Florent’s new book, “8 Seconds of Courage,” reveals lessons he learned on leadership, teamwork and overcoming adversity on the battlefield, and their direct application and connection to executives, managers and business situations.

Brandon Farbstein was diagnosed with a rare form of dwarfism at the age of two, Brandon stands at 3’9” – making his life’s journey full of adversity, strength, and impact. After feeling invisible and without a purpose for the first 15 years of his life, he suddenly realized his life’s meaning: to change the lens through which people see their world. Five million people across the globe have been inspired by Brandon. He is a game-changer, a life-changer and an instrument for transformation.


Win Raffle Packages Worth $500+: Get Your Tickets Online!

We’re offering two awesome packages in this year’s Wallet-Palooza fundraiser! One raffle package will benefit the Credit Unions Care Foundation of Virginia, our charitable foundation, and the other will benefit the Virginia Credit Union Political Action Committee (VACUPAC), one of our most-important advocacy tools.

Tickets are $10 each or 3 tickets for $20. On the online ticket ordering form, please carefully note the various $20 bundle options. If you opt for the $20 3-ticket bundle, you have the option of placing all three tickets on one raffle or dividing the three tickets between the two raffles.

Share this with anyone and everyone at your credit union!

[PROMOTIONAL FLIER] (We would be grateful if you’d promote the raffle at your credit union!)


Compliance / Regulatory Affairs

SCOTUS Decision Removes Adverse Precedent in FHA Lawsuit

The U.S. Supreme Court has vacated a district court decision regarding a Fair Housing Act lawsuit, a lawsuit in which CUNA filed an amicus brief. CUNA’s brief asked the U.S. Supreme Court to review Bank of America v. City of Miami and Wells Fargo v. City of Miami in January. 

The City of Miami voluntarily dismissed the suits in February, but the Supreme Court decision eliminates the adverse precedent created by the U.S. Court of Appeals for the Eleventh Circuit’s decision.

The city of Miami sued Wells Fargo, Citigroup and Bank of America, arguing that foreclosures and other events stemming from unfavorable mortgages resulted in lost revenue, due to lower property taxes and other incurred expenses.

CUNA’s brief expressed concerns that a decision in favor of the municipality could set a bad precedent that would allow other entities, such as neighboring residents, municipalities and even local businesses, to maintain suits against financial institutions, even if the entity never had any direct dealings with a credit union or bank.


Will CFPB Be Reined In? Chief Justice Roberts May Hold the Key

When lawyers come before the Supreme Court Tuesday to argue a pivotal case about the Consumer Financial Protection Bureau, many eyes and ears will likely be on Chief Justice John Roberts.

Already seen as the swing vote on the conservative court, Roberts could hold the key to how far the court will go in providing a check on the CFPB's power, several observers say.

Some have speculated he agrees with the Trump administration that the president should have more authority to fire a sitting CFPB director, undercutting a key provision of the Dodd-Frank Act. But experts also say he is unlikely to favor the more dramatic step of invalidating the whole agency.

"It’s a really hard case to predict what is going to happen because the Constitution doesn’t mention removal and we have very few precedents and nothing that deals with this particular situation,” said Andy Hessick, a law professor and associate dean at the University of North Carolina School of Law. “As for Roberts, there is some indication that he thinks agencies have too much power. But on the other hand, he’s not one to want to mess up massive government structures. He’s not a major boat-rocker.” (American Banker, March 2)

[RELATED: Supreme Court looks likely to weaken Consumer Financial Protection Bureau]

CFPB Settles Lawsuit, Agrees to Issue Data Collection Rules

Amid allegations that the agency was stalling, the CFPB last week agreed to speed up the process for issuing rules requiring financial institutions to report certain data in connection with credit applications made by minority-owned, women-owned and small businesses.

The agreement was reached as part of the settlement of a suit filed by groups, including the California Reinvestment Coalition.

In the suit filed in May, in the U.S. District Court for the Northern District of California, the groups charged that the CFPB was violating federal law by failing to issue rules implementing one section of the Dodd-Frank Act. That section included requirements that financial institutions report the race, sex and ethnicity of business owners in connection with the credit applications.


Economic / Financial Services News

Here’s What Economists Say the U.S., Others Should Do to Avoid Coronavirus Recession

Economists and Wall Street investors had high hopes for a big global stimulus Tuesday as top economic leaders from the world’s major economies held a call to discuss how to address the coronavirus, which many say poses the biggest threat to the global economy since the Great Recession. But a statement released after the call did not include any new action, a major disappointment to many.

The world economy is now expected to have its worst year of growth since 2009, according to numerous forecasts, including by the Organization for Economic Cooperation and Development and Capital Economics. As growth slows, it is easier for the U.S. economy to be knocked to its knees. Goldman Sachs is now anticipating no growth in the second quarter (April to June), which would be the worst quarter the nation has experienced in six years. Here’s a rundown of what economists say is needed to avoid deeper economic pain.

Fed interest-rate cut: The Federal Reserve made an emergency interest rate cut Tuesday, slashing the benchmark U.S. interest rate by half a percentage point, the biggest cut since the financial crisis. The U.S. central bank has not made an emergency move like this since late 2008, and Fed leaders said it was done to protect the U.S. economy and financial markets as the coronavirus spreads.

Money for U.S. health care: Congress and the White House are working on an emergency funding package of $7.5 billion

Tax credits and bridge loans to keep companies solvent: An emerging risk to the global economy is the bulge of corporate debt that has built up in the past decade of cheap borrowing costs. Companies, especially airlines, hotels and other travel-related businesses, are likely to see severe hits to their cash flow in the coming weeks, making it difficult to pay debts on time.

The United States and other nations could lift tariffs: There are growing calls for Trump to lift his tariffs on China, the nation hit hardest by the coronavirus, with the most deaths.

Giving Americans checks — or at least temporary sick pay. About half of U.S. workers in the service sector do not have paid sick leave, meaning they will have to choose between staying home to get better with no pay or going to work and possibly catching or spreading the virus. 

[RELATED: Flu Season. Coronavirus. How Managers Can Handle Sickness, Paranoia at the Office]
[RELATED: NCUA’s Pandemic Preparedness Guidance] (Password required. Register here if you need one.)

Chapter News

Tidewater Chapter Meets March 12

1st Advantage FCU’s Robin Lovett will present “Dog Bones and Lollipops: Driving sales through Relationship Building” at the Tidewater Chapter’s March 12 meeting. Location: Newport News Marriott & City Center (740 Town Center Drive, Newport News 23606). Time: 8 a.m. social; 8:30 a.m. breakfast and meeting.


Go to main navigation