LSCU eSignal Weekly
LSCU eNews Weekly May 3, 2010
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LSCU eNews Weekly
In This Issue
LSCU Headlines
Reg reform debate to continue this week
Senator Nelson co-sponsors S. 2919
NCUA Region III Director reassigned to the central office
NCUA proposes payday loan alternative for CUs
Speakers at LSCU Convention to give perspectives from the left and right
AC&E Silent Auction item deadline is May 28
LSCU and CUNA awards deadline approaching; nominations and entries are due May 7
Governmental Affairs News
America's First CU hosts political candidate
Congress to begin amendment debate on regulatory restructuring
Jax FCU's Pride Committee comes to Tallahassee
Compliance Corner
League InfoSight features a CUNA UBIT summary and a public hearing by the Federal Reserve board
Compliance calendar and training schedule
LSCU Education News
Last call for registration for Regulatory Compliance Update May 4
Register today for upcoming BSA Training in Birmingham
News from You
Insight Credit Union recognizes award winners
North Alabama Educators Credit Union co-sponsors "Education Day" baseball game...
Credit union job postings
Credit union employment opportunities posted online
Calendar
Schedule of events
In This Issue
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LSCU Headlines

Reg reform debate to continue this week

Senate leaders are expecting the reg restructuring debate to last for a couple of weeks as many amendments are being looked at. Sen. Chris Dodd (D-CT), chairman of the Senate Banking Committee, said that as early as Tuesday votes on amendments may begin. 

"The status quo is unacceptable," said Sen. Dodd on the Senate floor last week. "We cannot leave the American people vulnerable to the present construct of our financial regulatory system."

The Washington Post is reporting that Sen. Richard Shelby (R-AL) and other Republicans plan to introduce amendments to scale back the power and scope of the consumer regulator. Meanwhile, Sen. Jack Reed (D-R.I.) plans to push for a standalone consumer agency. To read the complete Washington Post article, click here.

S. 3217 , the Restoring American Financial Stability Act, would affect the credit union system by limiting the National Credit Union Administration's (NCUA) regulatory authority to credit unions with under $10 billion in assets. The regulatory reform package would also address many issues facing the broader financial services industry. CUNA continues to lobby to not limit the NCUA's oversight of credit unions, regardless of asset size. CUNA has also asked legislators to narrow the legislation's definition of remittances.

For a more complete look at S. 3217, check out the Congressional update in the Governmental Affairs section of eSignal.  

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Senator Nelson co-sponsors S. 2919
Sen. Bill Nelson (R-FL) has signed on as a co-sponsor of S. 2919, the Small Businesses Lending Enhancement Act.

S. 2919, introduced by Senator Mark Udall (D-CO), would raise the credit union member business lending cap from 12.25 percent of assets to 25 percent of assets and give credit unions the opportunity to help small businesses. If the business lending cap were lifted, credit unions could provide up to $10 billion of stimulus to America’s small businesses in the first year alone and create 108,00 new jobs at no cost to the taxpayer. Sen. Nelson is one of 11 co-sponsors.


Sen. Bill Nelson

 

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NCUA Region III Director reassigned to the central office

The NCUA announced April 30 that Region III Director Alonzo Swann has been reassigned to the Office of the Executive Director.  As Regional Director, Swann was responsible for the oversight of the chartering program for federal credit unions and the examination and supervision programs for all federally insured credit unions in Alabama, Florida, Georgia, Indiana, Kentucky, Mississippi, North Carolina, Puerto Rico, Ohio, South Carolina, Tennessee and the Virgin Islands. Swann will serve as a Special Assistant to Executive Director Dave Marquis effective May 3rd.

The NCUA also announced Region II Associate Regional Director of Operations Herb Yolles will serve as Acting Region III Director, effective immediately.

Region III Director Alonzo Swann has been assigned to the office of the Executive Director.

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NCUA proposes payday loan alternative for CUs

The number of federal credit unions that provide payday loan alternatives to their membership may increase if the National Credit Union Administration's (NCUA) proposed changes to its general lending rules are adopted.

NCUA Chairman Debbie Matz discusses the short-term loan proposal with NCUA staff
The NCUA proposal, that was approved for 60 days' public comment at Thursday's open board meeting, would allow credit unions to charge a higher interest rate on short-term, small dollar loans. However, those loans, which would be capped at a maximum interest rate of 10 percent above the NCUA's loan ceiling, or 28 percent based on the current ceiling, would also have a maximum amount of $1,000. The minimum amount for these payday alternative loans would be $200. Loans will not roll over.

To read the rest of the article and the details of the proposal, on the NCUA website, click here. [ Return to Top ]

Speakers at LSCU Convention to give perspectives from the left and right

The closing General Session at the League of Southeastern Credit Unions' 1st  Annual Convention and Exposition (AC&E) is scheduled for June 17.


L to R: Paul Begala and Tucker Carlson

There will be a joint presentation from the left and the right with political commentators Paul Begala and Tucker Carlson giving the keynote address on Thursday afternoon. Begala, a political contributor to CNN, provides passionate, insightful, and humorous looks at the state of affairs in Washington. Carlson, a political contributor to Fox News, has an unmatched perspective on politics and the media as he comments on the political season. 

Don't miss this opportunity to hear these accomplished speakers present their points of view.

Also on June 17 at the AC&E, the Opening Ceremonies and Annual Business meeting will be held. The guest speakers at the Thursday morning meetings will be:
  • Dan Mica, President/CEO Credit Union National Association
  • Jeff Post, President/CEO CUNA Mutual Group
  • Al McMorris, Chairman National Credit Union Foundation
  • Pete Crear, President/CEO World Council of Credit Union

Click here to register for the AC&E and see the Convention brochure. Contact LSCU Association Services Support Specialist Becki Payne if you would like more information. [ Return to Top ]

AC&E Silent Auction item deadline is May 28

The deadline to submit items for the AC&E silent auction is coming up May 28. For each dollar raised for Alabama Credit Union Legislative Action Committee (ACULAC) and Florida Credit Union Political Action Committee (CUPAC) will be matched with a donation from LEVERAGE, the LSCU Service Corporation, to Children’s Miracle Network. This is a great way to support state political advocacy while raising funds for charity.

Along with a donation of a silent auction item, the donor's name will be displayed. LSCU asks that all donations have a retail value of $50 or more. A variety of suggested items are listed on the silent auction flyer. If it is preferable, send donation dollars to the League, and we’ll do the shopping.

Fill out the form on the flyer and fax it to 850.558.1011. When submitting donations, make sure to attach a form with each donated item. For questions about the Silent Auction or more information, in Alabama contact LSCU Grassroots and Political Action Coordinator Robbie Gordon at 866.231.0545 ext. 2164 or in Florida LSCU Grassroots and Political Action Coordinator Justin Thames  at ext. 1010. [ Return to Top ]

LSCU and CUNA awards deadline approaching; nominations and entries are due May 7

May 7 is the deadline for entries for the CUNA-sponsored Dora Maxwell Social Responsibility Award and the Louise Herring Award for Philosophy in Action! These programs identify credit unions that demonstrate the credit union philosophy of "People-Helping-People."

The deadline is also May 7 for submissions for the LSCU awards including Professional, Volunteer, and Outstanding Credit Union of the Year Awards. These awards recognize outstanding leadership by a credit union professional or a credit union. Other awards open for entries are: Desjardins, Brothers Keeper, and the Distinguished Service Award.

Your credit union will compete with others in the same asset category when you enter the competition for an award. An individual chapter may enter the Dora Maxwell Award program while there is no chapter category for the Louise Herring Award program.

Submit entries to the League office by May 7. Click here for information about the award programs. State winners in the CUNA award program s will advance to national competition for judging. Winners will be recognized at the LSCU Annual Convention & Exposition in June. [ Return to Top ]

Governmental Affairs News
America's First CU hosts political candidate

Alabama State Representative Earl Hilliard, Jr. visited America’s First Credit Union in Birmingham last Friday. Hilliard, a candidate for the U.S. House of Representatives from the 7th Congressional District, met with CEO David Adcock and Chief Financial Officer Bill Connor. He also took the time to visit with staff and credit union members. 

During their meeting, Adcock explained the history of America's First credit union, its growth over the years, and the importance of the credit union's service to members. Using numbers from Project Zip Code, Adcock pointed out the fact that more than 30,000 members of America’s First live in the 7th District. Rep. Hilliard, a member of two credit unions, discussed his views on the importance of credit unions and how they provide a valuable service especially to people, communities, and small businesses that otherwise may not be served. The discussion turned to how decisions made in Washington have significant consequences for credit unions,  affecting the ability of credit unions to serve their members. Adcock gave Rep.Hilliard a tour of the credit union’s headquarter operations and introduced him to numerous staff members. The meeting ended in the lobby with the Rep. Hilliard introducing himself to members of the credit union.

Alabama U.S. Representative candidate Earl Hilliard, Jr. with America's First CEO David Adcock.

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Congress to begin amendment debate on regulatory restructuring

Congress has a few issues that will take center stage and credit unions could be affected by them. 

Senate Floor Consideration of S. 3217, the Restoring American Financial Stability Act

The focus is clearly on the Senate floor this week as the it resumes debate on S. 3217, the Restoring American Financial Stability Act. When the Senate resumes debate Monday, the Dodd-Lincoln substitute amendment (#3739) and the Boxer amendment (#3737) to the manager's amendment are pending. The Boxer amendment further clarifies that taxpayers will not fund the liquidations of failing companies which are systemically significant. A vote on this amendment, considered non-controversial, is scheduled for Tuesday afternoon. It is not immediately clear which amendment will be offered next.

As of Friday, 32 amendments (including the Dodd- Lincoln manager's amendment) have been filed. While Sen. Dodd has asked Senators to file their amendments by the end of Monday, we expect additional amendments to be filed through the course of the debate; however, it is possible (and quite likely) that not every amendment will ultimately be offered. Some will be offered; others will be incorporated in a manager's amendment; and others will not be taken up at all. Still, the LSCU and CUNA are evaluating each of the amendments and will keep you updated as the process moves along.  

It is worth noting that most of the amendments that have been filed to date do not directly affect credit unions.  However, there are several amendments that could affect credit unions including amendments involving establishing a national usury ceiling, further regulating payday lending, eliminating the section requiring the collection of deposit account data, and eliminating a payday loan alternative program from the bill. It is also  anticipated that an amendment may be offered to expand the scope of the authority of the prudential regulators to review regulations promulgated by the consumer bureau, as well as possibly an amendment to add NCUA to the Financial Stability Oversight Council. Further, while the LSCU anticipates that amendments will be offered related to interchange as well as one which seeks to exempt auto dealers from the scope of the consumer bureau regulation and enforcement, these have not yet been filed. The League has contacted Alabama and Florida Senate offices regarding credit unions' position on these potential amendments    .

For a complete list of amendments filed, click here and go to amendments. This list is updated daily (usually in the morning). As the process becomes more clear, expect additional communications from the LSCU, including analysis of amendments and requests for grassroots action.

House and Committee Schedule

The House returns Monday for pro forma session. Tuesday and Wednesday, the House will consider bills under suspension of the rules. On Thursday, the House will consider H.R. 5019, the Home Star Energy Retrofit Act, also known as the "cash for caulkers" bill.

Tuesday the Senate Finance Committee will hold a full committee hearing on "The President's Proposed Fee on Financial Institutions Regarding TARP (Troubled Asset Relief Program) Part 2."  Treasury Secretary Tim Geithner will be among those to testify.

The only hearing this week in the House Financial Services Committee will be Thursday in the Oversight and Investigations Subcommittee on "The End of Excess (Part One): Reversing Our Addiction to Debt and Leverage."

If you have any questions regarding these or any legislative issues, contact LSCU Vice President, Legislative Affairs Mark Landreth in Florida or LSCU Vice President, Legislative Affairs/Staff Counsel Will McCarty in Alabama.

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Jax FCU's Pride Committee comes to Tallahassee
JAX FCU believes that its employees should do their part to help those who are less fortunate by becoming involved in community service. Through the Pride Committee, the credit union's staff works together to make a significant contribution to improve the quality of life in Jacksonville

One of the focuses of this year's committee is raising funds for CUPAC.  In order to understand how the funds would be utilized, a few Pride Committee members visited LSCU and the Capitol in Tallahassee. At the League office, LSCU Grassroots and Political Action Coordinator Justin Thames spoke to the group about the importance of educating credit union staff and members about being active in local advocacy efforts and how it benefits the credit union and the community. He also spoke about the importance of PAC fundraising, how those political funds are used promote good government and support pro-credit union candidates, and the power that credit union members have as voters.

The group then traveled to the Capitol and met with LSCU VP, Legislative Affairs and Lobbyist Mark Landreth who explained the state legislative issues that the LSCU has been monitoring this Session and how they would affect credit unions. The group was also recognized by Rep. Janet Adkins, one of the LSCU NE Chapter's representatives, on the House floor of the State Legislature during the day’s session.


JAXFCU staff speak to LSCU's Mark Landreth. (l to r) Lisa Rivera, Programmer- Analyst; Jill Thomas-Aviles, Director, Contact Center & eServices; and Angie Coleman-Rao, VP Marketing.

Members of the 2010 Pride Committee not pictured are: Christine Conway, Sr. Card Services Specialist; Christy Curtis, Contact Center Representative; and Aimee Haga, HR Assistant.



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Compliance Corner
League InfoSight features a CUNA UBIT summary and a public hearing by the Federal Reserve board

The latest edition of League InfoSight looks at a series of public hearings the Federal Reserve board will hold beginning in July. The hearings will cover potential revisions to Regulation C, that implements the Home Mortgage Disclosure Act. The act requires mortgage lenders to provide detailed annual reports of their mortgage lending activity to regulators and the public. Consumers, community and consumer organizations, mortgage lenders, and other interested parties will be invited to participate in the hearings.

The hearings will take place at the Federal Reserve Bank in the following cities:

  • Atlanta - July 15
  • San Francisco - August 5
  • Chicago - September 16
  • Washington D.C. - September 24

CUNA submitted a summary of the UBIT ruling in favor of credit unions. According to a recent memo, state-chartered credit unions that are subject to unrelated business income tax (UBIT) may now "have a good defense against civil tax penalties" that the U.S. Internal Revenue Service (IRS) could try to impose on credit unions that do not declare UBIT due on income from the sale of credit life and disability insurance, Guaranteed Asset Protection coverage, and other financial products.

League InfoSight newsletter also has a board responsibility quiz, a home equity conversion fraud scheme alert and an online publication to help with new gift card rules. 

View the League InfoSight enewsletter by clicking here. It is a password protected area. Member credit unions that do not have a password, may click here to sign up for one. An active email account and a password are required. To log in to InfoSight, enter your email and password in the InfoSight login block (see graphic below) located in the upper right of any of the LSCU web pages.

For questions or more information on League InfoSight, contact LSCU Vice President, Regulatory Affairs Bill Berg.

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Compliance calendar and training schedule

May 17
IRS Forms 990 & 990-T (state-chartered credit unions) Due to IRS

May 31
Memorial Day - Federal Holiday

June 1
Identity Theft Red Flags – Effective Date (for state-chartered credit unions)

Regulation GG - Internet Gambling Funding Prohibition - Effective Date

Training

May 5 & 12
Consumer Lending Regulations - Webinar
2:00–4:00 p.m. CT

May 5–July 14
CUNA Regulatory Compliance eSchool: Introduction

May 19 & 26
Mortgage Lending Regulations - Webinar
2:00–4:00 p.m. CT

June 2 & 16
NCUA Requirements & Guidance - Webinar
2:00–4:00 p.m. CT

June 23 & 30
Deposit Account Regulations - Webinar
2:00–4:00 p.m. CT

June 24
Pressing Credit Union Compliance Issues - Audio Conference
1:00–2:30 p.m.CT

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LSCU Education News
Last call for registration for Regulatory Compliance Update May 4

Don't miss out on a wealth of information that will be provided in the Tuesday May 4 Regulatory Update. The workshop will cover the following topics:

TILA/Z: New truth in lending changes/card act/multi-featured open end lending plans; and other changes affecting open-end, closed-end, credit card and HELOC lending. Also new Schumer box disclosures and CARD Act II - including opt-ins on over the credit limit fees. New periodic state requirements for credit cards and OE loans.

RESPA Revisions: Procedural and practical matters; loan procedure issues to address, use of good faith estimate and settlement statement (HUD-1 and HUD-1A) forms.

TISA Revisions: ODP applications/issues; changes to disclosure and advertising obligations of credit unions.

Liability Protection: "Required" steps your credit union needs to understand and assess to insure the credit union, its management team and volunteers are protected to the fullest extent possible.

Prioritizing Compliance: "Required" steps your credit union needs to understand and assess to insure the credit union, its management team and volunteers are protected to the fullest extent possible. Considerations on how to develop compliance plans.

Other topics will include: Regulation E; Fair Credit Reporting; Bank Secrecy; and Privacy Laws.

About the Presenter: Christy Curtis Jones is an attorney and partner with Sherpy & Jones, P.A., a firm that  specializes in servicing credit unions’ needs.

The event is from 8:30 a.m. - 4 p.m. Registration is $259 per attendee with lunch included. Click here to register online. [ Return to Top ]

Register today for upcoming BSA Training in Birmingham

BSA Training, Essentials and Advanced - Birmingham - May 18, 2010

Time:

BSA Essentials Training: 9:30 a.m. - 11:30 a.m.

BSA Advanced Training: 12:30 p.m. - 2:30 p.m. 

Price:

$75.00 per person per session / $150 for both (Lunch is provided for participants)

Location:

League of Southeastern Credit Unions - Alabama Office

BSA Essentials: The BSA Essentials class is appropriate for frontline staff, lenders and officials. The two hour class incorporates a Currency Transaction Report workshop to study completed forms based on several common scenarios. Some of the topics to be discussed include: Bank Secrecy Act program oversight, creation and maintenance, risk assessment, review of currency transaction reports, currency transaction report exemptions.

Instructor: Ashley Mobley, Assistant Vice President of CU-ACE began her career with the League of Southeastern Credit Unions in 2005, serving credit unions in south Alabama. In 2007, she achieved BSACS, Bank Secrecy Act Compliance Specialist, certification and has since conducted BSA independent testing procedures as well as statewide training to assist credit unions in achieving compliance. Click here for registration.

BSA Advanced: Topics discussed in the class include the following:

Bank Secrecy Act Program oversight, creation and maintenance, risk assessment, review of currency transaction reports (common error review), currency transaction report exemptions, filing requirements, technology and the Bank Secrecy Act plus many more areas.

Typically, the BSA Advanced class is appropriate for managers and compliance officers. The two hour BSA Advanced class incorporates a suspicious activity report workshop that looks at completed forms based on several common scenarios (focusing on narrative preparation). Click here for registration. [ Return to Top ]

News from You
Insight Credit Union recognizes award winners

     Jodi Petrzala

Insight Credit Union recently presented the 2009 Mission Leadership Award and the fourth quarter Mission Excellence Award to two employees. Recipients are nominated by their peers for their commitment to the credit union and its members.

Jodi Petrzala received the 2009 Mission Leadership Award, given annually to outstanding leaders within the credit union. She joined Insight in 1993 and serves as Consumer Lending Director.

   Saul Sanchez

Saul Sanchez was presented the 2009 fourth quarter Mission Excellence Award, honoring an employee who demonstrates superior performance and exemplifies the credit union’s organization values. He joined the credit union in 2006 and serves as Insight’s Recovery Coordinator. [ Return to Top ]

North Alabama Educators Credit Union co-sponsors "Education Day" baseball game...

North Alabama Educators Credit Union in Huntsville co-sponsored an "Education Day" baseball game last week. More than 3,000 kids attended. 

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Credit union job postings
Credit union employment opportunities posted online

Click here to view credit union-specific job opportunities in Alabama and Florida. [ Return to Top ]

Calendar
Schedule of events

May and June events:

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