April 25, 2014
Friday Edition
CFPB plans to launch e-closing pilot program later this year

Later this year the Consumer Financial Protection Bureau (CFPB) plans to launch an e-closing pilot aimed at encouraging lenders to put consumers in the driver’s seat of their mortgage closing process. Some of their ideas include using technology to:

  •  Help explain key terms, the closing process, and important documents
  •  Give consumers more time to review the stack of documents
  •  Help find and fix errors in the documents prior to closing

If your credit union would like to learn more about the pilot, or is interested in participating, check out the guidelines and solicitation.

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NCUA passes stress test rules

In a rule that was proposed last October, the NCUA will require federally insured credit unions with assets exceeding $10 billion to develop and maintain capital plans, and undergo annual stress tests.The rule was passed in a 2-1 vote of the NCUA board on Thursday, April 24. Board member Michael Fryzel cast the dissenting vote. Board member Rick Metsger signaled a willingness to consider additional changes to the rule.

Fryzel told the board that "...the time has come for regulators to take a step back and look at what has taken place since Dodd-Frank. To review what new regulations are really necessary and how the burden on financial
institutions can be reduced so credit unions can go back to running their own business, making loans
and providing needed financial services. We are not in a crisis mode."

CUNA had proposed some changes to the rule and they made it in the final version including dropping a provision that would have required public disclosure stress test results and credit unions can apply to have their own stress test results used, instead of the NCUA's, for NCUA's review. Fryzel added "While some changes have been made to the proposed rule, I believe, the final rule to be voted on by the NCUA board is in need of further revision."

The stress test requirements will require covered credit unions to conduct specific capital analyses to evaluate how changes in variables, parameters and inputs used by credit unions in their capital plans could affect their capital. Credit unions would also need to test how interest rate shocks of at least plus or minus 300 basis points would impact their net economic value. The NCUA believes the cost for the planning and testing would be $5 million the first year.

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2014 LSCU board election materials now available

There are a total of five seats up for election this year on the LSCU & Affiliates board. 

There are four seats up for regular election with two seats in each state:

  • Alabama has one Class B seat open and one Class D seat open. To qualify for the Class B seat your credit union must have between 2,000 and 15,000 members. To qualify for the Class D seat your credit union must have over 40,000 members.
  • Florida has one Class B seat open and one Class C seat open. To qualify for the Class C seat your credit union must have between 15,000-40,000 members. 

There is also one seat up for special election in Florida:

  • Florida has one Class A seat open. This seat will serve the remaining two years of a four-year term. To qualify for the Class A seat your credit union must have fewer than 2,000 members.

Nomination packets were sent out Monday and are due back to the League by 5:00 p.m. ET on Friday, May 2. Electronic ballots will then be delivered via email on Monday, May 5. 

If you have any questions regarding the 2014 LSCU & Affiliates board election contact Kate Brady the League's executive assistant to the president at 850.558.1060.

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CU happenings

Alabama Telco gives $5 to every youth account opened in April for Youth Financial Literacy Month
Alabama Telco Credit Union supports financial literacy through its youth savings programs, Kids Savings School (ages 12 and under) and Edge Teen Savings (ages 13-19). Each program offers benefits, fun perks, and interactive tools to teach the value of saving and managing your money. In their efforts to support Youth Financial Literacy Month, Alabama Telco is taking it a step further. For every Kids Savings School or Edge account opened in April, the credit union will give the initial $5 deposit to open it.

“Struggling for economic prosperity is difficult for everyone. It’s especially hard for young people who’ve never learned how to plan to achieve financial security. You can’t rely on someone else to get your child on the right financial path. We want to help educate our children now. The earlier in life you learn how to save, the better off you will be financially, and we’re more than willing to provide the tools to jumpstart a savings plan,” states Stanton Davis, Alabama Telco’s vice president of marketing.

APCO Employees Credit Union holds Mortgage Symposium

On April 22, representatives from APCO Employees Credit Union in Birmingham offered a free mortgage analysis for members and employees of the City of Hoover. The Mortgage Symposium was held at City Hall. Credit union employees helped members and employees determine personalized mortgage options, including pre-approvals for home purchases, cash out refinancing, and no-obligation mortgage analysis.

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In This Issue
Friday Edition
CFPB plans to launch e-closing pilot program later this year
NCUA passes stress test rules
2014 LSCU board election materials now available
CU happenings
LSCU & Affiliates Media

Alabama Credit Union Act Update
LSCU & Affiliates Director of Regulatory Advocacy Scott Morris goes over some of the important parts of the update to the Alabama Credit Union Act.

President's 1Q Video
LSCU president/CEO gives his first quarter video for 2014. He looks at the CUNA GAC, tax reform, and the new Southeast Credit Union Conference. He also talks about the 2014 Dues Rebate.

Upcoming Event Deadlines
May 2 Last Day for Early Bird Rate – SAS Credit Union Conference - Tallahassee, FL
Upcoming League Events
April 25 - Risk Based Capital Meeting in Tallahassee
April 30 - Risk Based Capital Meeting in Mobile
April 29 - Art-Science of Keeping Software Current
April 30 - How Board Can Protect Your CU
May 6 - Call Reports: Interpreting Changes
May 7 ACH Challenges for RDFIs
May 13 - SAS Credit Union Conference
May 13 Board vs Supervisory Responsibilities
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