June 24, 2014
Tuesday Edition
CUNA rebuts the recent "Credit Unions Ramp Up Risk" article in WSJ

Interim President/CEO Bill Hampel underscored that credit unions have always taken a conservative stance in their stewardship of member assets in managing interest-rate and credit risk. The letter was penned in response to a June 6 Wall Street Journal article focusing on interest-rate risk at credit unions, and included comments by NCUA Chairman Debbie Matz.

Hampel reminded, "Credit unions' exposure to long-term assets is well-managed and poses no undue risk to the federal insurance fund protecting credit union members' savings. Further, the lending of these consumer-owned financial institutions remains prudent. Although long-term assets stand at 35 percent of total assets, they are dwarfed by the 51 percent of total funds from long-term sources: net worth and core deposits."

That mix, Hampel explained, means that when interest rates do rise, credit unions' interest costs will increase by much less. The CUNA leader also reiterated that credit unions' moderate approach to credit standards is borne out by their loss record.

"Credit-union loan losses were less than half those at for-profit banking institutions throughout the recession and have since returned to very low pre-recession levels," Hampel said.

Click here to read Hampel's Op-ed.

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Kidnapped member rescued at Tinker FCU branch

In Oklahoma City, a Tinker FCU member was rescued from kidnappers Saturday by an off-duty police officer who was working security at the credit union.

According to police, the credit union member, whose identity has not been released, was picked up by a group of men Friday after the member's car broke down.

The men allegedly held the member against his will overnight, and on Saturday morning the victim told the men he had money at the credit union.

Authorities reported that the men took the victim at gunpoint to the credit union.

The victim was able to tell the off-duty officer what was going on. The suspects were arrested, according to police, who have not released any names.

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Washington wire

This is the last week Congress is in session before Independence Day. At the conclusion of this week’s session, the House and the Senate will both be in recess until the week of July 7.

 Here is what you need to know about credit unions on Capitol Hill this week:

  • House Financial Services Committee Chairman Jeb Hensarling (R-TX) and Financial Institutions Subcommittee Chairman Shelley Moore Capitol (R-WV) sent a letter to NCUA regarding the risk-based capital proposal. Additional Congressional letters are expected in the coming weeks.

  • The Financial Services and General Government Appropriations bills will be marked-up in both the Senate and House Committees. This legislation includes funding for the NCUA’s Community Development Revolving Loan Fund Program, as well as the Community Development Financial Institution Fund at the Treasury Department.

For more on the above topics, plus this week's floor schedules click here.

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InfoSight spotlight: FRB Regulation D

The Federal Reserve Board’s (FRB) Regulation D was established in 1980. It contains these four primary provisions that affect depository institutions, including natural person credit unions with more than $11.5 million in net transaction accounts:

  1. Credit unions may be required to maintain reserves.
  2. Credit unions may have to place limits on certain deposit accounts in order to avoid having to reserve against those accounts.
  3. Credit unions are required to impose certain penalties for early withdrawal from time deposit accounts in order to avoid having to reserve against the time deposit.
  4. Credit unions may be required to report account information to the Federal Reserve.

Regulation D controls how credit unions define certain terms and conditions of deposit accounts, since the characteristics of the accounts determine whether the credit union must reserve against the accounts.

Visit the Reserve Requirements: Regulation D topic on the Accounts channel of InfoSight to read more.

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Important dates for Southeast Supervisory Committee Conference approaching!

The Southeast Supervisory Committee Conference is right around the corner, Aug. 3-6, at the Grand Hotel Marriott Resort, Golf Club & Spa. And the dates to register for the conference at the earlybird rate and to reserve a hotel room at the group rate are approaching fast. By registering for the conference and reserving your hotel room by the dates listed below, you can save up to 13 percent off the normal cost.

The conference has a full agenda of the latest information and updates regarding credit union auditing, compliance, and fraud.

Important dates:

  • July 1, 2014: Register by this date to take advantage of earlybird registration savings for attendees and guests.

  • July 3, 2014: Reserve your hotel room by this date to receive the hotel group rate.

To learn more about the topics, speakers, and registration, visit the Southeast Supervisory Committee Conference event page. There you will find hotel information, conference details, and the agenda.

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NCUA hosts webinar on mobile apps

Attend NCUA's free webinar,  “Mobile Applications – The Next Step,” on Wednesday, July 9 at 2 p.m. EST and learn more about the growing use of mobile applications and the risk/rewards associated with their usage.

Webinar participants will learn how consumers are using mobile technology and mobile applications to meet their financial needs. In addition, participants will hear from credit unions that have successfully developed and implemented their own mobile strategies.

Click here to register. Participants will also use this link to log into the webinar. Registrants should allow pop-ups from this website.

Click here to submit questions in advance and here to submit technical questions.

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In This Issue
Tuesday Edition
CUNA rebuts the recent "Credit Unions Ramp Up Risk" article in WSJ
Kidnapped member rescued at Tinker FCU branch
Washington wire
InfoSight spotlight: FRB Regulation D
Important dates for Southeast Supervisory Committee Conference approaching!
NCUA hosts webinar on mobile apps
LSCU & Affiliates Media

Contract Management
LEVERAGE has a contract management solution that is web based and easy for your credit union to stay on top of all of the credit union's various contracts.

Southeastern Credit Union Foundation
The Southeastern Credit Union Foundation works hard for Alabama and Florida credit unions. The foundation offers five pillars: financial education, professional development, disaster relief, fundraising, and the credit union philosophy. This video gives a better explanation to what the foundation offers credit unions.

Upcoming Event Deadlines
July 1 Last Day for Early Bird Rate – Southeast Supervisory Committee Conference – Point Clear, AL
July 15 Last Day to Register - LSCU BSA Essentials & Advanced Workshops - Mobile, AL
July 16 Last Day to Register - LSCU BSA Essentials & Advanced Workshops - Huntsville, AL
Aug. 1 Last Day to Register - Southeast Supervisory Committee Conference - Point Clear, AL
Aug. 5 Last Day for Early Bird Rate – LSCU Fall Regulatory Compliance Update – Tallahassee, FL
Aug. 7 Last Day for Early Bird Rate -  LSCU Fall Regulatory Compliance Update – Birmingham, AL
Upcoming League Events
TODAY - Reg E & Debt Card Error Resolution
June 25 - Mobile Remote Deposit Capture
June 28 - July 2 - America's Credit Union Conference
July 1 -  Will AML/BSA/OFAC Meet Examiner Scrutiny?
July 2 - Consumer Loan Documentation
July 8 - Analysis of Financials & Ratios
July 9 - SAR Report Line by Line
July 13-16 - SE Regional Director's Conference
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