January 14, 2014
Tuesday Edition
NCUA supervisory focus for 2014

Credit unions have received a letter from the NCUA spelling out some of the major risks that examiners will be looking for this year. The letter also looks at some of the new requirements from the agency. 

The risks for 2014 include:

  • Interest Rate Risk
  • Cybersecurity Threats
  • Money Services Businesses (MSBs)
  • Private Student Lending

Some of the new requirements for this year include:

  • Loan Participation Rule (effective Sept. 23, 2013)
  • Ability-to-Repay and Qualified Mortgage Standards (effective Jan. 10, 2014)
  • Credit Union Service Organizations (CUSO) Rule (effective June 30, 2014)

Visit the NCUA's website to read the full letter which also includes a section on reallocating resources and SAS exams.  

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Washington wire

G-Fees use for funding
Congress is currently operating under PAYGO (pay-as-you-go) rules which means any legislation that would cost the government money must be offset by an increase in revenue. Given the reluctance on the part of Congress to raise taxes, offset revenue is generally found either by reducing spending elsewhere or raising user fees. One candidate for fee revenue which has been attractive to some policymakers is Fannie Mae and Freddie Mac’s credit risk guarantee fees (G-fees). CUNA and the League have consistently and strongly opposed efforts to use G-fees to offset other spending.

Last week, CUNA and the League joined with the other members of a housing coalition to send a letter to Congressional leadership urging them to oppose the use of G-fees to offset the cost of S. 1845, the Emergency Unemployment Compensation Extension Act. CUNA urged that the utilization of G-fees for any other purpose than to help Fannie and Freddie manage risk places an unnecessary burden on homeowners and prevents Fannie Mae and Freddie Mac from effectively managing their risk.

Cyber Security
Monday, CUNA and the League joined several other trade groups on a letter to leadership of the House Committee on Homeland Security to express appreciation for introducing H.R. 3696, the National Cybersecurity and Critical Infrastructure Protection Act. The bill has several provisions one of which would strengthen the existing mechanisms such as the Financial Services Sector Coordinating Council (FSSCC) and the Financial Services Information Sharing and Analysis Center (FS-ISAC). These organizations help the financial sector identify threats, respond to cyber incidents and coordinate with government partners. Additionally H.R. 3696 seeks to improve the provisioning of security clearances for those involved in cyber security information sharing. Finally, H.R. 3696 expands the existing Support Anti-Terrorism by Fostering Effective Technologies Act (SAFETY Act) to provide important legal liability protections for providers and users of certified cyber security technology in the event of a qualified cyber security incident.

Click here to view the complete legislative update.

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Information update for the 2014 ACUA State GAC

Deadline for hotel group rate discount is this Wed., Jan. 15
The the newly renamed Alabama Credit Union Association State GAC is right around the corner, Feb. 4-5, 2014, in Montgomery. If you are attending and would like save money by utilizing the hotel group rate, the deadline to reserve a room at that rate is THIS Wed., Jan. 15. To reserve a room visit the hotel's webpage specifically for this event or visit the LSCU webpage for the ACUA State GAC.

Yellowhammer president/CEO to be featured speaker
Cliff Sims, president/CEO of Yellowhammer News, will be the featured speaker at the GAC. Yellowhammer News is Alabama's go-to source of news and opinion on politics, faith, and culture. Sims will give his predictions and insights about Alabama's upcoming state elections.

Not just for CEOs!
The ACUA State GAC is for anyone at your credit union—not just the CEO—that wants to learn more about advocacy and build relationships with lawmakers. Register today by visiting the LSCU Events Calendar for more information and to register or click here to go straight to registration. We look forward to seeing you there!

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Carlos Lopez-Cantera will be Florida's lieutenant governor

Lopez-Cantera beat out other Republicans who had been considered, including Hillsborough County Commissioner Sandy Murman. The Florida lieutenant governor position had been vacant since March when Jennifer Carroll resigned after her name was linked  with a federal probe of Internet gambling.

Expecting a tough battle in November, Lopez-Cantera makes sense politically for Gov. Scott in terms of a running mate in November and as the point man for his legislative agenda. While he is a political veteran, Lopez-Cantera is still fairly young for one of the leading politicians in the state, and he has close ties to the current legislative leaders from his time as House majority leader from 2010-2012.

Despite coming up short in 2002 when he ran for the Florida House, Lopez-Cantera has won every election he’s faced. Besides winning his four terms in the Florida House, he won his current post as Miami-Dade property appraiser. Political insiders throughout the GOP ranks claim Lopez-Cantera could help Republicans recapture Hispanic voters, the key block of voters that slipped away in 2012.

To read the full story, click here.

Related News Related News
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InfoSight spotlight: Ability to repay

A new page addressing the new Ability to Repay (ATR) loan requirements has been added to League InfoSight.

Among the information provided in the topic are the eight required factors for ATR, which are:

  1. Current or reasonably expected income or assets that the member relies on to repay the loan (other than the value of the property that secures the loan)
  2. Current employment status
  3. Monthly mortgage payment of the loan under consideration
  4. Monthly payment on other simultaneous loans secured by the same property
  5. Monthly payments for mortgage related obligations that could include (but is not limited to) property taxes, insurance, and homeowners association fees
  6. Debts, alimony, and/or child support obligations
  7. Monthly debt-to-income ratio and/or monthly residual income, calculated using the total of all of the mortgage and non-mortgage obligations as a ratio of gross monthly income
  8. The member’s credit history

For additional information to help your credit union stay in compliance, visit the Ability to Repay topic on the Loans and Leasing channel of InfoSight.
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In This Issue
Tuesday Edition
NCUA supervisory focus for 2014
Washington wire
Information update for the 2014 ACUA State GAC
Carlos Lopez-Cantera will be Florida's lieutenant governor
InfoSight spotlight: Ability to repay
LSCU & Affiliates Media

President's Quarterly Report
LSCU & Affiliates President/CEO Patrick La Pine looks at the League's activities for the fourth quarter which includes an office move in Tallahassee, a new LEVERAGE hire and an update on tax reform.

NCUA Economic Update - December 2013
Fourth-quarter economic trends show positive signs of a stronger economy, but expected changes in the interest rate environment will present challenges to future credit union performance, according to a new economic video analysis released by the National Credit Union Administration.

Upcoming Event Deadlines
TODAY  Last day to receive "early bird" rate for BSA Essentials & Advanced Workshop – Jacksonville
Jan. 15  Hotel room group rate cutoff for ACUA State GAC
Jan. 16  Last day to receive "early bird" rate for Security & Robbery Training – Birmingham
Upcoming League Events
Jan. 14 Real Estate Collections/CFPB Servicing
Jan. 15 IRA & HSA Review - DOMA Implications
Jan. 16 Fee Income 2014 Challenges-Issues
Jan. 22 Loan Member Has Died: Now What?
Jan. 23 Consumer Loan Portfolio Grading
Jan. 28 Reg CC Funds Availability & More
Jan. 29 Compliance & BSA for SR Mgmt-Board
Jan. 30 What is Personal Tax Return Telling Me?
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