LSCU eSignal Weekly
LSCU eNews Weekly June 21, 2010
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LSCU eNews Weekly
In This Issue
LSCU Headlines
NCUA board approves new assessment
Interchange to be discussed Tuesday
Rep. Wasserman Schultz distributes conferee letter on interchange
LSCU Annual Membership Meeting featured blockbuster lineup
The general closing session enlivened by Carlson and Begala
Joe McGee takes over LSCU Board chairman role
Alex Sink speaks at CUPAC fundraiser
LSCU Member Survey will be opened this week
LSCU Annual Report available online
LSCU Compensation Survey closes June 25
NCUF Innovation Grants deadline approaching
Governmental Affairs News
Congress looking at interchange, court nominations this week
Compliance Corner
League InfoSight features credit union investment reporting
CUNA Pressing Compliance Issues audio conference this week
Compliance calendar and training schedule
LEVERAGE News
Major ePurchasing events on the way for credit unions
News from You
Bay Gulf Credit Union announces intent to merge with MIDFLORIDA Credit Union
Teresa Seames of Suncoast Schools FCU awarded CCUE
Employment
Credit union employment opportunities posted online
Calendar
Schedule of upcoming educational events
In This Issue
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LSCU Headlines

NCUA board approves new assessment

The National Credit Union Association (NCUA) last Thursday approved a credit union assessment of $1 billion (0.134 percent of insured shares based on March call reports) for the Corporate Stabilization Fund. The money will be used to pay back the Treasury for money that was borrowed to cover some of the expenses associated with the corporate situation. The billion dollars will be used in conjunction with a $500 million reduction in liquidity assistance that has been provided to the corporate system. 

Notice of the assessment will go to credit unions in July, with the assessment due in August. CUNA directed that credit unions should expense their assessment in June and report the expense on June 2010 call reports.

NCUA Chair Debbie Matz said that this new assessment is only for the Corporate Stabilization Fund. This fall the NCUA will consider an assessment for the National Credit Union Share Insurance Fund.

Click here to go to the Regulatory Resource area of the LSCU website to read the full board action. [ Return to Top ]

Interchange to be discussed Tuesday

The committee that is reconciling the regulatory reform bills from the House and Senate will meet Tuesday to discuss the interchange amendment in the Senate version. This gives credit unions one final shot to let members of Congress know that the language in the interchange amendment will hurt their members. Credit unions have totaled more than 600,000 emails and phone calls to Capitol Hill and placed numerous stories in the media about interchange. More than 130 members of Congress also signed a letter from Debbie Wasserman Schultz (D-FL) letting the committee know they don't feel comfortable with the interchange language.

The LSCU and CUNA are continuing to reach out to lawmakers ahead of Tuesday's conference committee meeting. The LSCU has staff in Washington D.C. this week and will meet with lawmakers and staff. The conference committee is reconciling the differences between the House and Senate versions of regulatory reform. Leadership has maintained that it would like regulatory reform wrapped up before the July 4th holiday break.  [ Return to Top ]

Rep. Wasserman Schultz distributes conferee letter on interchange

Reps. Debbie Wasserman Shultz (D-FL) and Kenny Marchant (R-TX) distributed a letter voicing their displeasure on interchange language in the Senate regulatory reform bill. The letter, signed by 131 members of the House and from both parties, was sent to conferees on the financial regulatory reform legislation. The letter, and the number of lawmakers that signed it, shows the uncertainty that many members in the House feel about the interchange issue.

Florida had a number of lawmakers sign the letter. Here is the list from Florida besides Wasserman Shultz:

  • Rep. John L. Mica (R - 7)
  • Rep. Alcee L Hastings (D - 23)
  • Rep. Jeff Miller (R - 1)
  • Rep. Ileana Ros-Lehtinen (R - 18)
  • Rep. Suzanne Kosmas (D - 24)
  • Rep. Bill Posey (R - 15)
  • Rep. Alan Grayson (D - 8)
  • Rep. Gus M. Bilirakis (R - 9)
Click here to read the letter.
[ Return to Top ]

LSCU Annual Membership Meeting featured blockbuster lineup

LSCU President/CEO Patrick
La Pine.

The LSCU Annual Membership Meeting at the 1st AC&E ran a little longer than planned, however there were not too many complaints from the more than 500 attendees. The meeting featured remarks by LSCU board chair Rich Helber, LSCU President/CEO Patrick La Pine and a blockbuster lineup of system partner speakers. La Pine laid out the foundation of the newly consolidated League and walked the crowd through the priorities of the League, including increased Governmental Affairs presence and the establishment of a brand campaign for 2011. CUNA CEO Dan Mica was able to provide attendees the latest information on the interchange issue and also said MBL is once again on the table.

"Chairman Barney Frank told me that he is ready to being looking at member business lending after the financial reform bill is resolved," said Mica. He also said alternative capital is once again gaining steam in Washington D.C.

Dan Mica, CUNA CEO.

CUNA Mutual Group CEO Jeff Post presented interesting economic numbers. He said the "real unemployment rate right now is 16 to 20 percent." He also pointed out that the Gross Domestic Product (GDP) in the 2000s had dropped to half of what it was in the 90s and that Household Net Worth in the 2000s was negative for the first time. While telling the attendees he felt the worst of the economy was over, Post says CMG is doing all it can to help credit unions succeed.

Pete Crear, President/CEO of WOCCU.

WOCCU's Pete Crear showed photos of the credit unions hardest hit by the earthquake in Haiti. He also said the most difficult part of recovery was trust. "Most people are living in tents right now and they don't trust walking into buildings because they fear it (earthquake) will happen again." Crear also showed an innovative program being implemented in England, where 11,000 credit union branches will open in Post Offices. The kicker of the program is that a special bank tax will pay for it.

National Credit Union Foundation Chairman Allan McMorris showed a Real Solutions video from a woman who finally paid $25 to open an account at a local credit union. She had a low credit score and no real assets. With the help of the credit union, she had raised her credit score 100 points and she was on her way to being able to purchase a home. McMorris asked credit unions to keep looking for new innovations to help members. [ Return to Top ]

The general closing session enlivened by Carlson and Begala

Tucker Carlson speaking at the 1st LSCU AC&E with picture of Paul Begala, who was also featured.

The Thursday General Closing Session at the 1st LSCU AC&E featured political commentators Tucker Carlson and Paul Begala. Each gave their view of the current climate in Washington and their feeling about the current administration. Carlson spoke first and said he was so far to the right "he was considering moving to Idaho and building a bunker." Carlson described former President George Bush's handle on the English language as that of a stunt pilot taking off. He gave animated remarks about how the Obama administration has handled the BP oil spill. Begala, who used to work in the Clinton administration and once lived on James Carville's couch, basically gave a rebuttal. He campaigned for Hillary Clinton, so he says he's also had problems with his party. Begala told the story of how his wife got a $5,000 loan from a credit union in Texas to keep them afloat until his career took off.

Carlson and Begala each gave glowing remarks about credit unions and how they really are one of the only institutions that have not let America down.

Following the keynote address, the LSCU handed out its first awards, handed out the CUNA awards and PAC fundraising awards. NASCUS CEO Mary Martha Fortney kicked off the closing general session by addressing the conferees.

Look for a wrap up video this week that will show the AC&E and feature interviews with presenters. [ Return to Top ]

Joe McGee takes over LSCU Board chairman role

LSCU President/CEO Patrick La Pine presents outgoing Chairman Rich Helber with a commemorative gavel.

At the LSCU board of directors meeting at the 1st LSCU AC&E, outgoing Chairman Rich Helber turned the gavel over to Joe McGee, CEO of Legacy Community FCU of Birmingham. McGee now assumes the chairman's role. With the passing of the gavel, it changed the roles of the LSCU board of directors executive committee. Mary Ott Wood, CEO of Florida West Coast CU of Brandon, FL now moves into the chairman-elect role. The newest member of the executive committee is Brent Lister, CEO of First Florida CU of Jacksonville, FL. Lister is now the Treasurer.

The new LSCU executive committee is below:

  • Joe McGee - Chairman (Legacy Community FCU – Birmingham, AL)
  • Mary Ott Wood - Chairman-elect (Florida West Coast CU – Brandon, FL)
  • Steve Swofford - Vice Chairman (Alabama CU – Tuscaloosa, AL)
  • Tina Williams - Secretary (Mobile Educators CU – Mobile, AL)
  • Brent Lister  - Treasurer (First Florida CU – Jacksonville, FL)

[ Return to Top ]

Alex Sink speaks at CUPAC fundraiser
Alex Sink talking with AC&E attendees.

The LSCU Governmental Affairs staff held a CUPAC fundraiser Thursday evening at the AC&E in Orlando. Florida Gubernatorial candidate and current state CFO Alex Sink was a featured speaker. A number of Alabama and Florida credit union staff were in attendance. Sink spoke to the crowd for a few minutes, and the fundraiser gave the credit unions a chance to network and talk about the upcoming primary elections. [ Return to Top ]

LSCU Member Survey will be opened this week

The link to the LSCU Member Survey will be emailed to credit unions this week. The LSCU highly recommends taking a few minutes to fill out the survey.  It is designed to take just a few minutes to complete. There are a couple of open-ended questions that give credit unions an opportunity to provide feedback on services and products. 

“We have worked hard over the past year to consolidate the two leagues into one and reposition our resources where we believe will have the greatest impact on helping our credit unions succeed," says LSCU President/CEO Patrick La Pine." The LSCU Member Survey is designed to gauge where we’re at as it relates to meeting the needs of our member credit unions. We will use the results from the survey in our management and board planning process for 2011. High participation will ensure we have a good picture of how our credit unions feel about the job we’re doing and what changes still need to be made.”


[ Return to Top ]

LSCU Annual Report available online

The first LSCU Annual Report is appropriately themed "Strong roots for future growth." The report looks at the consolidation efforts of 2009 and the roots laid for the future. If you look closely at the cover, you will see the Alabama and Florida League's logos at the base of the tree. Out of those two leagues grew this new, strong tree. The report has four pages of "growing forth" by the LSCU and LEVERAGE. These pages lay out the vision of the new League and Service Corporation and the steps taken to ensure the needs of credit unions are being met. Future growth comes from the strides taken in the first year and how the roots are already supporting a strong tree that is beginning to bear fruit. 

Click here to read the report online. [ Return to Top ]

LSCU Compensation Survey closes June 25

In order to have the completed LSCU Compensation Report to credit unions by the time budget planning comes around, the LSCU Compensation Survey will need to close Friday June 25.

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. So far, credit unions that have filled out the survey say its 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. 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.
[ Return to Top ]

NCUF Innovation Grants deadline approaching

Credit unions and credit union organizations have until June 30 to apply for new Innovation Grants from the National Credit Union Foundation (NCUF). Innovation Grants are aligned with NCUF’s signature program, REAL Solutions®. However, participation in REAL Solutions is not required to apply for a grant. The NCUF is seeking grant applications in any of REAL Solutions’ five service areas:

Education

Innovation Grants assist credit union organizations participating in national financial education programs including Biz Kid$ and the National Endowment for Financial Education (NEFE). Innovation Grants also support other initiatives consistent with the education components of REAL Solutions: financial counseling, product awareness, and staff training.

Transaction Services

Innovation Grants support transaction services that help credit unions attract underserved consumers. Examples include check cashing, money orders, pre-paid stored value cards, remittances, second chance/fresh start checking, and tax preparation.

Savings

Innovation Grants support programs that help credit union members with low wealth establish and maintain savings. Examples include prize-based savings, safe accounts, savings challenges, and step-up CDs.

Credit

Innovation Grants support initiatives that help non-prime borrowers build and improve credit through credit unions. Examples include alternative credit reports, citizenship loans, first and last rent loans, flexible loan policies, non-prime used car loans, score builder loans, and thin-file loans.

Homeownership

Innovation Grants support responsible programs that help credit union members with lower credit scores qualify as first-time homebuyers. Examples include foreclosure assistance loans, green loans, Home Loan Payment Relief (HLPR) mortgages, Individual Taxpayer ID Number (ITIN) loans, and timely repayment rewards.

Eligible applicants include credit unions, CUSOs, state credit union associations, state credit union foundations, and any other organizations owned or controlled by credit unions.

How many grant dollars are available depends on how much credit union organizations invest in the Community Investment Fund (CIF). [ Return to Top ]

Governmental Affairs News
Congress looking at interchange, court nominations this week

There are two weeks until the Independence Day District Work Period. The Senate returns Monday and will consider three court nominations.  Tuesday, and the remainder of the week, the Senate is expected to resume consideration of the tax extenders bill. 

The House comes back Tuesday and will consider bills under suspension of the rules. Wednesday, the House will consider additional bills under suspension of the rules. The schedule for the remainder of the week is uncertain:  the supplemental appropriations bill, a campaign finance reform bill and the Iran sanctions bill are all listed for possible consideration.

Credit unions' attention will be on the conference committee resolving the differences between the House and Senate passed versions of H.R. 4173, the Wall Street Reform and Consumer Protection Act. Tuesday, the Conference Committee is expected to consider several issues of interest to credit unions including the resolution of pending offers and counter offers from the first week of deliberations. The House Conferees will then consider an offer to the Senate Conferees on the consumer protection title, the predatory lending title, the risk retention language, the interchange provisions, and access issues. 

The draft of the House offer is expected to be available by noon Monday. In terms of process, when the Committee convenes the first thing we expect is that the Senate will make counter offers to titles that were considered by the Conference Committee last week. Once that has been completed, the House Conferees will debate the House Offer on the remaining titles on Tuesday's schedule. 

Last week, House Conferee debate on their offers took several hours; it is quite possible that the House debate on Tuesday's issues could last much of the day. Following the House Conferee debate, the Senate Conferees may debate the House Offer and a potential Senate Counter Offer. 

It is not entirely clear that the items on the Conference Committee's schedule for Tuesday will be completed on Tuesday; nevertheless, the LSCU expects to have a very good sense of how the interchange issue will be resolved by then. The LSCU will keep credit unions updated on Tuesday's conference session, especially as it relates to the interchange issue. 

If you have any questions regarding these or any legislative issues, please contact LSCU Vice President, Legislative Affairs/Staff Counsel Will McCarty at 866.231.0545 ext. 2137 or LSCU Vice President, Legislative Affairs Mark Landreth at ext. 1012. [ Return to Top ]

Compliance Corner
League InfoSight features credit union investment reporting

League InfoSight has a story this week that helps credit unions with their investment monitoring and reporting. The article looks at the specifics of credit union investments and the rules that contain requirements for each FCU to prepare specific monthly and quarterly written reports. Among the requirements: ensure that credit unions establish and maintain an ongoing monitoring and reporting system for credit union investments and provide the credit union's board of directors with accurate and specific information that can impact the credit union's capital and financial position.

This week's newsletter also has a story about the Federal Reserve Board issuing final rules to protect credit card users from certain practices including unreasonable late payment and other penalty fees, and to require credit card issuers to reconsider interest rate increases imposed since the beginning of last year. The final rule represents the third stage of the Federal Reserve's implementation of the Credit Card Accountability Responsibility and Disclosure Act of 2009, which was enacted in May 2009. The provisions of the Act addressed in this rule will generally go into effect on August 22, 2010.

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.


[ Return to Top ]

CUNA Pressing Compliance Issues audio conference this week

The status of compliance with Interagency Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act regulations that require residential loan originators to register with the Nationwide Mortgage Licensing System and Registry will be among the pressing compliance issues featured in a June 24 CUNA audio conference.

The session also will address compliance challenges associated with the following rules:

  • Regulation Z (Reg Z) open-end credit rules that go into effect on July 1
  • Reg Z credit card rules that go into effect on Aug. 22
  • Regulation E overdraft rules for ATM and one-time debit card transactions, effective July 1 (or Aug. 15 for accounts in existence before July 1)
  • Fair and Accurate Credit Transactions Act (FACTA) accuracy and direct dispute rule, effective July 1)
  • The Credit Card Accountability, Responsibility and Disclosure (CARD) Act's credit card and gift card rules, effective Aug. 22
  • Federal Financial Institutions Examination Council's (FFIEC) revised "Bank Secrecy Act/Anti-Money Laundering Examination Manual"
  • Status of the National Flood Insurance Program (NFIP)
  • A brief update on provisions of interest to credit unions in the financial regulatory reform bill, which currently being hammered out by a House-Senate conference committee

The Pressing Compliance Issues Audio Conference is offered by CUNA on a quarterly basis. In addition to CUNA compliance staff, the June 24 session will feature a special presentation on the SAFE Act regulations by NCUA attorney Regina Metz. Click here to register for the event, which costs $89.


[ Return to Top ]

Compliance calendar and training schedule

Calendar

June 30
PCI DSS - All WEP Implementations discontinued

July 1
NCUA Regulation Part 706 - Unfair or Deceptive Credit Card Practices - Effective Date

Regulation Z - Open-End Credit Rule - Effective Date

Regulation E - Overdraft Protection Rule - Effective Date

FACTA Section 312 (Accuracy and Integrity) Effective Date

Training

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.

July 7 & 14
General Operations Regulations – Webinar
2:00–4:00 p.m. CT

July 13 & 20
Bank Secrecy Act 101 – Webinar
2:00–3:30 p.m. CT

  [ Return to Top ]

LEVERAGE News
Major ePurchasing events on the way for credit unions

A number of ePurchasing events will take place in the upcoming months. LEVERAGE is in the process of setting up specifications within the RFPs, and will request vendors to compete against one another in a Live Event during the months of June, July and August for the following commodities:

  • Enterprise Risk Management Software
  • Computers, Software, Support Services
  • Janitorial Services
  • Security Services (ADT)
  • Armored Car Services
  • ATM Machine and/or ATM Maintenance Services

For each commodity listed above, at least one credit union, and in some cases several credit unions, have already elected to participate in the process. This includes the collection of due diligence from all competing vendors, as well as strategies that encourage vendors to reduce their pricing in a competitive environment.

There is no long-term contract commitment required to participate in any of these ePurchasing events. Purchasing details do not need to be identical to those of other participants, only specific to credit union needs and credit unions remain in charge of making all decisions throughout every step of the process.  Typically, participation in a collaborative event yields much stronger savings results than an individual credit union making a single purchase.

Contact LEVERAGE, if you would like the opportunity to participate in a collaborative event to reduce your costs. [ Return to Top ]

News from You
Bay Gulf Credit Union announces intent to merge with MIDFLORIDA Credit Union

Bay Gulf Credit Union announced last week its intent to merge with MIDFLORIDA Credit Union, subject to a due diligence review that is currently underway.

Bay Gulf's President/CEO Bill DeMare explained, "The decision to merge was not an easy one but our board felt like the products, services and stellar customer service offered by MIDFLORIDA would benefit Bay Gulf's membership."

MIDFLORIDA has 25 branches and approximately 128,000 members and is located in central Florida. Bay Gulf, located in the west central part of the state, brings eight branches and 20,000 members to the merger. The combined credit union will result in $1.55 billion in assets, nearly 150,000 members and will serve all or portions of 14 central Florida counties. Both boards of directors voted unanimously to approve the merger.

Kevin Jones, president/CEO of MIDFLORIDA stated, "We are excited about this merger and the option to expand into the West Central area of Florida. We feel this merger is like two puzzle pieces coming together - it's a perfect fit and will allow the members of both credit unions to be more fully served throughout the bay area." [ Return to Top ]

Teresa Seames of Suncoast Schools FCU awarded CCUE

Teresa Seames of Suncoast Schools FCU in Tampa was recently awarded the Certified Credit Union Executive (CCUE) designation by CUNA. Seames was one of 18 to receive the designation this past April.

CCUE, instituted in 1975, is the hallmark of professional credit union achievement. Designed for managers and those aspiring to credit union leadership, the program teaches advanced credit union management and operations techniques.

CUNA and the LSCU congratulate Seames who has continued her education and training to earn designee standing. [ Return to Top ]

Employment
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 upcoming educational events
[ Return to Top ]

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