LSCU eSignal Weekly
LSCU eNews Weekly June 1, 2010
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LSCU eNews Weekly
In This Issue
League Headlines
LSCU making district meetings on interchange
Sen. Durbin warns Visa and Mastercard
Family Security and First Florida among LSCU awards recepients
The LSCU AC&E will feature Compliance Forum; major speakers
CUNA CEO Dan Mica featured in new LSCU audio podcast
LSCU AC&E education speakers' handouts/presentations now available online
The LSCU Compensation Survey getting rave reviews
Governmental Affairs News
Florida Governor considering banning offshore drilling
NCUA's Matz talks up MBL and small business lending
Compliance Corner
Comment call request for proposed rules for short term loans
League InfoSight features board of director liability
Compliance calendar and training schedule
LEVERAGE News
Discovery webinar on health care reform upcoming June 29
News from You
FAIRWINDS credit union launches iPhone app
Alabama Telco awards kids saving champ
Employment
Credit union employment opportunities posted online
Calendar
Schedule of upcoming educational events
In This Issue
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League Headlines

LSCU making district meetings on interchange

Rep. Spencer Bachus

With the interchange amendment being discussed this month in a House and Senate conference on regulatory legislation, credit unions are using the Memorial Day Congressional break to meet their lawmakers in their districts. The LSCU met this morning with House Financial Services Committee Ranking Republican Spencer Bachus (R-AL). Rep. Bachus spent 45 minutes listening to the credit union side of the issue. He understands the credit union position. However, these lawmakers are also hearing the other side. Rep. Bachus met with the Retail Association right before the credit union visit. 

Florida credit unions will meet this week with four of its five members of the House Financial Services Committee. These meetings will coincide with five other lawmaker meetings this week in their respective districts. 

A meeting with Senate Banking Committee Ranking Republican Sen. Richard Shelby (R-AL) will come next week in Washington D.C. during a mini Hike the Hill that has been set up through CUNA. This will allow credit unions to hit the Hill and talk to lawmakers before the Senate and House conference begins. For more information on the Hill visits and to register to go to Washington, click here to access the Political Action Alerts and utilize the resources available. [ Return to Top ]

Sen. Durbin warns Visa and Mastercard

Sen. Dick Durbin (D-IL)

As credit unions in Alabama and Florida begin to speak with their federal lawmakers about interchange legislation, the amendment's author wrote a letter to Visa and Mastercard warning them to not adjust their business to hurt smaller banks and credit unions. Sen. Dick Durbin (D-IL) did not mince words in the letter sent Thursday.

“If your companies were to coordinate such punitive actions in the same way that you appear to have coordinated your messaging tactics, serious concerns would be raised that you are engaging in an unlawful restraint of trade,” Durbin wrote in the letter that was sent to the CEOs of Visa and MasterCard.

Bloomberg news is reporting that Rep. Carolyn Maloney (D-NY), nominated to participate in the talks, said she expects changes in Durbin’s proposal, without elaborating.

Credit unions are asking their staff, board, and members call their lawmakers through a special toll free number through CUNA. Beginning Friday morning at 9am, credit unions can call 877.223.5275. The number will automatically get the caller in touch with their lawmaker. The more calls to Senate and House offices, the more the federal lawmakers will realize the impact on credit union members. Click here for a full resource page on interchange fees, including background material, lobby posters, and a phone script.

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Family Security and First Florida among LSCU awards recepients

Landel Casey of Guardian CU in Alabama and Terry West of Vystar CU in Florida headline the first LSCU awards. Casey, longtime CEO of Guardian, will receive the Distinguished Service Award. Casey began his credit union career in 1958. For 26 years, he basically ran Hall Brothers Dairy Credit Union by himself. For more than 50 years he has been active with the Montgomery Chapter. 

Terry West, current CEO of Vystar and chairman of CUNA's Corporate Credit Union Task Force, will receive the Professional of the Year. West left a career as a junior high math teacher in North Carolina to get into the credit union movement. For the past 19 years, he's been CEO of Vystar. West makes himself available to the national movement by chairing CUNA's Corporate Task Force, but also its Payment Systems Task Force and serving on many local Jacksonville community committees.

The LSCU will hand out five awards, including an Outstanding Credit Union of the Year in Alabama and Florida. The list of winners is below:

  • Distinguished Service Award – Landel Casey, Guardian CU (AL)
  • Professional of the Year – Terry West, VyStar CU (FL)
  • CU Volunteer of the Year – Shannon Weekley, Gulf Coast FCU (AL)
  • Brother’s Keeper Award – Craig CU (AL)
  • Outstanding CU of the Year – Family Security CU, Shane Nobbley (AL) and First Florida CU, Brent Lister  (FL)

These five awards, along with the CUPAC and the Maxwell/Herring and Desjardins awards, will be handed out at the General Closing Session at the AC&E June 17 at 2:30pm.

 


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The LSCU AC&E will feature Compliance Forum; major speakers

The 1st LSCU AC&E, June 16-18, will feature a number of outstanding speakers including political commentators Tucker Carlson and Paul Begala, CUNA CEO Dan Mica, CUNA Mutual Group CEO Jeff Post, WOCCU President Pete Crear, and NCUF Chairman Allan McMorris.

Many of the education sessions and forums will also have high-level speakers. The Compliance Forum will be Wednesday morning and will help kick off the convention. Robert Hayes and Linda Charity from Florida’s Office of Financial Regulation and Glenn Latham from the Alabama Credit Union Administration will be speaking at the forum. This is a must-attend for all affiliated credit unions.

The education sessions will feature CUNA Economist Mike Schenk, Filene Research Institute CEO Mark Meyer, and REAL Solutions' Lois Kitsch as speakers. The LSCU AC&E features a lineup very few conferences in America will feature. There is still time to register. Click here to view the AC&E brochure and to register. A one-day pricing option for either Thursday or Friday is also available. This is a tremendous value considering the lineup of speakers and education sessions.  

 



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CUNA CEO Dan Mica featured in new LSCU audio podcast

CUNA CEO Dan Mica

The LSCU AC&E attendees will be among the final group of credit union members to speak with CUNA CEO Dan Mica before he steps down. Mica spent a few minutes with LSCU Vice President, Communications Mike Bridges to talk about his final month or so in office. Mica says he plans to work 24/7 on the interchange issue and will be working right up until new CEO Bill Cheney takes over July 5. Mica also says he plans to do something when he leaves CUNA, but he's not sure what yet.

Access the LSCU's audio podcasts by clicking on the homepage and looking for the LSCU Audio Podcast box on the left. Also available are AC&E preview podcasts with LSCU President/CEO Patrick La Pine, keynote speaker Tucker Carlson, and REAL Solutions' Lois Kitsch. Later this week, Filene Research Institute CEO Mark Meyer will preview his education session at the AC&E that will feature a look at how credit unions help Filene with its innovation.  [ Return to Top ]

LSCU AC&E education speakers' handouts/presentations now available online

The presentations and handouts provided by the Convention Education Session speakers are now available on the LSCU Convention website for review and printing. Just click on Credit Union Attendees, provide your login information, and then click AC&E Speaker Handouts/Presentations. If you would like a hard copy, print the handouts from the website and bring them with you to Convention.

Make sure all Convention attendees from your credit union are aware of this information so they will be prepared.

For questions, contact LSCU Association Services Support Specialist Becki Payne at 866.231.0545.

See you in Orlando!


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The LSCU Compensation Survey getting rave reviews

The first credit unions that have completed the LSCU Compensation Survey say it's "fairly easy, which I love," "awesome job," and "the information in here is critical during hiring." The LSCU has contracted with HR Value Group to conduct an annual credit union compensation and benefits survey. The survey is designed to encompass a wide range of salaried positions and benefits. As noted above, the early returns are that the survey is meeting its mark, it's easy, and beneficial.  

Every credit union that completes the survey will receive a complimentary PDF copy of the finished LSCU 2010 Compensation and Benefits Report.

The online survey should take about 30 to 45 minutes to complete depending on the size of your credit union. To access the survey online, click here or cut and paste the following link into your browser:https://vovici.com/wsb.dll/s/1d74g44de7. Click here to download a PDF of the survey to work on at your convenience before entering the data into the online survey.

The detailed report summarizing results will be available in September and will outline salaries paid to management and non-management positions, analyze the salaries separately by asset size and chapter, and summarize responses to the benefits questions.

No one outside of HR Value Group will see any individual responses; all information is kept confidential. Surveys must be completed and submitted by June 14, 2010. Every credit union's contribution is very important to the success of this survey as credit unions from both states use this data as one source to help determine how to structure salary and benefits packets.

If you have any questions or problems accessing the survey, contact LSCU HR Manager Liz Aperauch at 866.231.0545, ext. 1142.



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Governmental Affairs News
Florida Governor considering banning offshore drilling

Gov. Charlie Crist

Gov. Charlie Crist is hinting he will not call the Legislature back into session any time soon, but he still wants them to consider a ballot initiative banning offshore oil drilling. He faces a deadline in getting that issue included due to the time it takes to print the November ballots. The governor will have to bring them back in time for the measure to be considered and included, probably before August.

Gov. Crist also faces deadlines on two huge property insurance measures. He must decide by midnight Monday whether to veto SB 2176, the SafeGuard our Seniors Act that, a top priority of Senate President Jeff Atwater (R-25), who is running for CFO, and CFO Alex Sink, who is running for governor. Sink will be a special guest at a CUPAC fundraiser during the AC&E June 16-18.

Among other measures Gov. Crist is considering, he has until midnight Tuesday to decide whether to veto SB 2044, the comprehensive property insurance bill. He has hinted he will veto that legislation.

The Public Service Commission Nominating Council will meet Monday to consider replacements for the two commissioners appointed by Gov. Crist, but not ratified by the Senate.

Friday, June 4, is the deadline for resignations by officials who plan to run for a statewide, county, or legislative seat must turn in a written resignation if the terms of the two offices overlap.

Contact LSCU Vice President, Legislative Affairs Mark Landreth at 866.231.0545 ext. 1012 for any questions regarding Florida legislation.


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NCUA's Matz talks up MBL and small business lending

NCUA Chairman
Debbie Matz

NCUA Chairman Debbie Matz spoke at the end of National Small Business Week by praising small businesses and the role they play in job creation. She also spoke about the need for the member business lending cap for credit unions to be raised.

This past week, the Treasury sent its own proposed legislation that could lift the MBL cap to as high as 27.5 percent of a credit union's assets, and Rep. Barney Frank (D-Mass.), who chairs the House Financial Services Committee, recently said that his committee would soon hold a hearing on MBLs.

"An enhanced ability for credit unions to lend for business purposes – if properly regulated, with appropriate safeguards – can become an even greater spur to job creation in the future," Matz said, adding that the NCUA would "promptly revise" its regulation "to ensure that additional capacity in the credit union system would not result in unintended safety and soundness concerns" if the MBL cap was lifted. [ Return to Top ]

Compliance Corner
Comment call request for proposed rules for short term loans

The LSCU is requesting comments from credit unions on the NCUA's proposed Rules for Short-Term Small Amount Loans. The proposed rules are intended to provide a viable alternative to high-cost payday loans that are offered by other financial service providers. The proposal would apply to closed-end loans of short duration, but would not alter the existing rules that govern these products and would not prohibit open-end loan programs that are currently permissible.

The proposal would also not prohibit FCUs from participating in a closed-end payday loan program that is permissible under current NCUA rules and the Federal Reserve Board's Regulation Z, the rules that implement the Truth in Lending Act. This proposal would permit FCUs to charge an interest rate that is higher than the current usury ceiling in the Federal Credit Union Act, but would impose limitations on the permissible term, amount, and fees for these types of loans.

The rule could potentially benefit members as FCUs report positive payment histories for these loan types to credit bureaus. Members might improve their credit scores and qualify for future loans at lower costs if they successfully pay off a loan. 

The complete proposal for comments can also be found on LSCU's website in the Regulatory Advocacy area. There is a specific page for Comment Calls which is password-protected; so please request a password if you don’t already have one. Comments are due to LSCU by June 21, 2010 and due to NCUA no later than July 6, 2010.

If you have any questions on this comment call or compliance or operational questions, contact LSCU Vice President, Regulatory Affairs Bill Berg 866.231.0545 ext. 1028 or LSCU Director of Compliance Scott Morris at ext. 2165. [ Return to Top ]

League InfoSight features board of director liability

The Memorial Day edition of League InfoSight has an interesting article on the liability of a credit union director. A credit union director (or officer) is referred to as a fiduciary by law. This means a director holds a position of trust. A director has an affirmative duty to care for the property of others and can be held liable for failing to perform that duty. The article points readers to a channel on League InfoSight designed to help credit unions manage the risk held by the director of the board.

League InfoSight also features an article on new resources on consumer credit card agreements and three excellent Q & A's on gift cards, Civil Relief Act, and checks made payable to a trust. The gift card question centers on new gift card regulations on network-branded gift cards. The short answer is yes and the long answer is the Federal Reserve Board amended Reg E to include the gift card provision. The answer provides a more in-depth definition.

View the League InfoSight newsletter 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.

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Compliance calendar and training schedule

Compliance calendar and training schedule for May and June

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

Regulation GG - Internet Gambling Funding Prohibition - Effective Date

June 18
ACH Risk Management and Assessment Rule - Effective Date
ACH Direct Access Registration Rule - Effective Date

June 30
PCI DSS - All WEP Implementations discontinued

Training

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 [ Return to Top ]

LEVERAGE News
Discovery webinar on health care reform upcoming June 29

Health Care Reform: Maneuvering the Compliance Maze

Tuesday, June 29 at 12:15 p.m. CT

The new health care reform law will lead to significant changes in the benefits landscape and compliance requirements for credit unions. The rules and expectations for employers are complex, and can be challenging and risky to navigate. 

CUNA Mutual Group continues its Discovery webinar series June 29, with a comprehensive overview of the expectations this law places on employers, the risks of being out of compliance and practical steps to meet obligations the new law requires.

The free session, “Health Care Reform: Maneuvering the Compliance Maze,” will arm attendees with tools to assure timely compliance, grandfathering provisions and options to consider in this new environment. CUNA Mutual employee benefits experts Brad Pricer and Dale Keener will be presenting the webinar.

To register, visit www.cunamutual.com/discoverywebinar/league 

For more information, contact consult@myleverage.com.

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News from You
FAIRWINDS credit union launches iPhone app

FAIRWINDS has launched a free iPhone application providing members with convenient, mobile access to the credit union from any Apple iPhone, iPad or iPod Touch. Through the FAIRWINDS app, members have the ability to access accounts and complete transactions including:

  • Account Summary & History - view details and history for any FAIRWINDS account
  • Transfers - submit both real-time and scheduled transfers
  • Access Bill Payer  - pay bills with the click of a button
  • FAIRWINDS branch locator - provides branch location and contact information for members on-the-go

The FAIRWINDS iPhone app is currently available for download at the Apple iTunes store. [ Return to Top ]

Alabama Telco awards kids saving champ

Alabama Telco CU recently held a contest titled, Kids Savings School “Sand Dollar.” The contest encouraged Kids Savings School students to visit their local Alabama Telco branch to make deposits into their Kids Savings School accounts. The students received punch cards with five sand dollars. A sand dollar was punched with every deposit. Once the member made five deposits, the card was entered into a drawing to win four passes of their choice to either the Georgia Aquarium or McWane Science Center. Rachel Thompson of Montgomery was the lucky winner.

“We feel it’s important to introduce kids to smart spending and saving habits at an early age, which is the goal of our Kids Savings School Program. We want to do everything we can to encourage kids to save, including developing contests like this one,” states Alabama Telco’s Vice President of Marketing, Stanton Davis.

"Sand Dollar" winner
Rachel Thompson

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Employment
Credit union employment opportunities posted online
Click here to view credit union-specific job opportunities in Florida and Alabama. [ Return to Top ]

Calendar
Schedule of upcoming educational events
[ Return to Top ]

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