LSCU eSignal Weekly
LSCU eNews Weekly October 25, 2010
home button press room button contact us button
LSCU eNews Weekly
In This Issue
LSCU Headlines
Orlando NCUA Town Hall Meeting solicits good discussion
Government drops Bellco UBIT appeal
RegFlex takes a hit, NGNs get a boost
Bank On Alabama introductory meeting Nov. 2
LSCU Town Hall meetings with CUNA CEO Bill Cheney
LSCU AC&E to stay in Orlando through 2013
Social media tips: how to handle negative comments
FinCEN simplifies structure of its rules & regulations
NCUF celebrates 30 years of investing in CUs
Governmental Affairs
One-percent transaction tax update
Florida Round-Up: final week of campaigning
FL credit union chapters invite candidates to monthly meetings in Oct.
CU executive meets with Congressman Ted Deutch
Birmingham chapter's "Legislative Night"
Compliance Corner
League InfoSight Highlight: Risk-based pricing under the FACT Act
Compliance Calendar and Training
CUNA News
Health care tax credit may benefit small CUs
International Credit Union Day - Celebrations held throughout AL & FL
ICU Day webcast panel agrees CUs play a vital role to economic recovery
Muscle Shoals Chapter of CUs holds annual banquet & celebrates ICU Day
Mayor of Mobile officially proclaims Oct. 21 ICU Day
Tuscaloosa Chapter ICU Banquet features CUNA's Trey Hawkins
Education News
Leadership Council pre-conference workshops led by industry experts; in conjunction with 2010 Development Conference
Last call for registration for next week's LSCU Development Conference
BSA Essentials & Advanced Training held last week in AL
LSCU to offer more webinars in 2011
Education Calendar
Cooperative Initiatives News
Foreclosure recovery forum to be held Oct. 26
Tuscaloosa Chapter of CUs recognizes with awards at recent banquet
Central FL Chapter of CUs donates $5,000 to Children's Miracle Network
LEVERAGE News
Save 15 percent on holiday cards by choosing Office Depot
Donít forget to register for CUNA Mutualís FREE online conference
News from You
Army Aviation Center FCU donates to food programs
Employment
Credit union employment opportunities posted online
In This Issue
spacer
eNews Links
Forward to a Friend
Print Version
Unsubscribe from
LSCU eSignal Weekly
eNews Links
spacer
LSCU Headlines

Orlando NCUA Town Hall Meeting solicits good discussion


(l - r ) Herb Yolles, NCUA
  region III director, Gigi Hyland, NCUA board member, & Gary Kohn, NCUA sr. policy advisor to Hyland.

On October 22, more than sixty credit union executives from the southeast participated in the National Credit Union Administration’s (NCUA) second Town Hall Meeting on the proposed Corporate Regulations.

NCUA board member Gigi Hyland, moderated the meeting and reminded credit unions that the NCUA has prepared four DVDs that can be used to explain the corporate situation to credit union boards. The DVDs and other corporate credit union resources can be found on the LSCU Regulatory Resources page. 

NCUA General Counsel Bob Fenner explained the new corporate credit unions rules, pointing out that only six of the 22 corporates have met two of the new requirements – four percent leverage ratio and two percent Net Economic Value ratio. All corporates needed to be on board with this by Oct. 20, 2011.

Grow Financial FCU CEO Bob Fisher asks a question

NCUA Director of the Office of Examination and Insurance Melinda Love said that $1.3 billion has been assessed and paid by credit unions at this time. The NCUA is looking at future losses in the range between $7 billion and $9.2 billion. That is a large range, but Love pointed out that it had to do with many factors including if homeowners continue to pay their mortgages.  

Credit unions were given an unlimited amount of time to ask questions of the Senior NCUA staff that were on hand. Deputy Director of the Office of Corporate Credit Unions Dave Shetler also spoke.  

The League held a small working lunch prior to the Orlando Town Hall  meeting. Credit unions, the League and the NCUA senior staff used the luncheon as a means to discuss  issues like RegFlex, the corporates and NCUA exams. NCUA Region III Director Herb Yolles said examiners would be more results oriented, more proactive, but also better communicators. Yolles believes examiners can be more effective in communicating the findings of the exam. 

For questions about the NCUA Town Hall meetings in Atlanta or Orlando or the corporate credit union system, contact LSCU VP, Regulatory Affairs Bill Berg at 866.231.0545 ext. 1028 or Director, Compliance Scott Morris at ext. 2165. [ Return to Top ]

Government drops Bellco UBIT appeal
The Department of Justice announced Tuesday that it has decided to withdraw its appeal of the Bellco Credit Union UBIT case. Last November, a district court ruled that the insurance and investment products Bellco Credit Union, based in Denver, sold its members, including credit life and disability insurance and some other products, stocks, bonds, mutual funds and annuities, were “substantially related” to Bellco’s tax exempt purpose that therefore income from those products was exempt from unrelated business income tax (UBIT). Income from sales of accidental death and dismemberment insurance marketed by a third party via Bellco's mailing lists were held to be exempt royalty income.

The district court ruling was a victory for credit unions and a loss for the IRS. In August, the Justice Department indicated it planned to appeal the district court's decision. However, the Justice Department decided not to pursue the appeal and has withdrew the notice of appeal it had filed with the U.S. Court of Appeals for the 10th Circuit

CUNA and the other members of the UBIT Steering Committee (AACUL, CUNA Mutual and NASCUS) will be working on a strategy that they hope will put the UBIT issue to rest with the IRS and others for a long time to come.

Six Alabama credit unions were the first credit unions in the country to be audited by the IRS for UBIT. Over the years, the League has worked closely with the UBIT Steering Committee and the affected credit unions to resolve this issue. [ Return to Top ]

RegFlex takes a hit, NGNs get a boost
Last week The National Credit Union Administration (NCUA) voted to assign a 0-percent risk weight to the NCUA Guaranteed Notes (NGN) that securitize the cash flows on the legacy assets held by the conserved corporates. The board also approved a final version of RegFlex provisions.

The NGNs are being sold in a series of auctions on the open market. NCUA Chairman Debbie Matz said that the NCUA issued the low risk asset rule to help a greater number of credit unions participate in the NGN investment opportunity.

(l - r) NCUA Board Member Michael Fryzel, Chairman Debbie Matz, & Board Member Gigi Hyland (photo courtesy of CUNA)

The NCUA's new RegFlex provisions, which were also approved during the meeting, will require RegFlex credit unions to comply with the general limitation of a federal credit union's investment in fixed assets to no more than five percent of its shares and retained earnings. The provisions also subject RegFlex credit unions to stress test standards for some types of securities and saddle RegFlex credit unions with the same 100-percent net worth limitation on discretionary control of investments that applies to federal credit unions.

Member business lending by credit unions will also be affected, with RegFlex participants soon being required to comply with collateral and security provisions that include obtaining the personal liability and guarantee of the borrower. The NCUA noted that additional changes to its MBL rules will be needed, and hinted that those changes could be made soon.

Matz said that the NCUA elected to move ahead, citing the need for a "proactive approach" and a wish to aggressively protect the National credit Union Share Insurance Fund. Board member Michael Fryzel also backed the final rule, saying that the original RegFlex rules "may have been too flexible." However, board member Gigi Hyland opposed the changes, calling them a "substantial dilution" of the original RegFlex provisions.

The RegFlex changes are substantially similar to the NCUA's original RegFlex proposal, which was released earlier this year. 

Click here for a complete summary of last week's NCUA board meeting.

[ Return to Top ]

Bank On Alabama introductory meeting Nov. 2

LSCU, the FDIC, and the Federal Reserve is extending an invitation to you to attend an introductory meeting scheduled for Tuesday, November 2, 2010 from 10:00 a.m. to 12:00 p.m. to discuss the “Bank On Alabama” initiative. The meeting will be held at the Federal Reserve Bank of Atlanta’s Birmingham’s office, located at 524 Liberty Parkway, Birmingham, Alabama. Additional meetings in Huntsville, Montgomery and Mobile will scheduled in the near future as well.

According to the Center for Enterprise Development’s 2009-2010 Asset & Opportunity Scorecard, 49 percent of Alabama households are unbanked. Learn“Bank On Alabama” is a partnership between Alabama’s credit unions, the League of Southeastern Credit Unions, the Federal Deposit Insurance Corporation (FDIC), Federal Reserve Bank of Atlanta, banks, local governments and community organizations across the state aimed at bring these “unbanked” Alabama families into the financial mainstream.

The Bank on Alabama initiative is modeled after similar successful programs across the country and seeks to engage the Alabama unbanked population with the financial services industry by tailoring bank products to increase accessibility and relevancy to the unbanked market. “Bank On Alabama” will also seek to raise awareness among unbanked consumers about the benefits of transactional account ownership, as well as provide accessible quality financial education to these residents in order to make account ownership the first step to financial security and asset building.

LSCU is currently participating in “Bank On” initiatives in Florida and we have learned that “Bank On” programs work best at the community level, where buy-in and strategies can be obtained from a number of segments of the community.  A “Bank On Birmingham” initiative has already begun and “Bank On Alabama” aims at assisting other “Bank On” initiates in several other communities across the state.

Please feel free to bring members of your staff to the meeting.  RSVP with the number attending by October 29 to Adena Whitman, LSCU Director, Member Relations, at  205.887.1446. Click here for more information. [ Return to Top ]

LSCU Town Hall meetings with CUNA CEO Bill Cheney

The LSCU has seven town hall meetings for credit unions in Alabama and Florida on the calendar. The town hall meetings will give credit unions an opportunity to meet with CUNA President/CEO Bill Cheney. This will be a time to get to know Cheney, hear CUNA's vision for the future and also hear from LSCU President/CEO Patrick La Pine. The first visits will be December 1 in Alabama and December 2 in Florida. A second round of visits will take place in Florida on January 13 and 14.

Each town hall meeting is a separate event. Be sure to register for the one that is most convenient for you so the LSCU will have a good idea of how many to expect. Registration is simple: your name, credit union, phone, and email. Click on an event below to register.

Times and locations for the December meetings:

Alabama:

Dec. 1,  9:00 - 10:30 am CST:  Redstone FCU, Huntsville, AL

Dec. 1,  1:30 - 3:00 pm CST:  America's First FCU, Birmingham, AL

Florida:

Dec. 2,  8:30 - 10:00 am EST:  GTE FCU, Tampa, FL

Dec. 2,  1:00 - 2:30 pm EST:   CFE CU, Orlando, FL

Times and dates for the January meetings:

Florida:

Jan. 13,  11:00 - 12:30 pm CST:  Pen Air FCU, Pensacola, FL

Jan. 13,  5:00 - 6:30 pm EST:  Florida Commerce CU, Tallahassee, FL

Jan. 14, 1:00 - 2:30 pm EST:  BrightStar Credit Union, Ft. Lauderdale, FL

Contact LSCU Executive Assistant to the President Teresa Gray at 866.231.0545 ext. 2110 with any questions or for more information. [ Return to Top ]

LSCU AC&E to stay in Orlando through 2013

The LSCU Annual Convention and Exposition (AC&E) will remain in Orlando through 2013. The League has been looking at ways to hold the AC&E closer to a mid-point between Alabama and Florida, however few properties lend themselves to holding an event as large as the AC&E. 

Given the past relationship between the League and the JW Marriott, the room rate is at least $100 cheaper per night than any other property researched by the LSCU. Plus, the JW Marriott offers an exhibit space that allows for three times as many vendor booths as most other properties. 

"The League is trying to find ways to hold events at a convenient location for both states," said LSCU President/CEO Patrick La Pine.  "The cost savings at the JW Marriott make it difficult to move the next three years. We are looking for ways to make it easier for credit unions that are further away from Orlando to attend the AC&E."

Last year more than 1,100 credit union staff and guests attended the AC&E in Orlando. The JW Marriott is a 10 minute drive from Sea World, 15 minutes from Disney and 20 minutes from great shopping.  

The LSCU will hold the Development Conference in Point Clear, AL the next two years and SanDestin, FL in 2012. [ Return to Top ]

Social media tips: how to handle negative comments
This month's online CU Management magazine features a column written by Mike Lawson about managing critical comments and social media

In the article Lawson discuss a very hot topic that is repeatedly a concern of credit unions thinking of setting up social media channels, such as Facebook wall posts, Twitter replies, or blog comments. 

Lawson says that negative comments from members present a great opportunity and something that should not be feared by credit unions. He says that a disgruntled member is following you probably because they like you and like what your credit union has to offer. Ninety-two percent of those who use Facebook are brand advocates, according to a recent AdWeek story. If Facebook users see something wrong, they’re going to speak up creating a huge opportunity to turn a negative into a positive. A chance to turn that miffed member into an empowered ambassador for your credit union.

He suggests that rather than fret or fear such comments, credit unions should embrace the negativity and fix it.

Following is an excerpt from Lawson's column:
"When you respond to a negative reply, post, or comment in a timely fashion, it not only shows that person, along with everybody else following on whatever network is being used, that you are listening and you are taking action. You are taking the steps to remedy the situation. The key here, however, is to respond as quickly as you can to the negative response and remain in contact with that person, letting them know the steps you are taking to resolve the issue.

If you don’t respond and work with this person, the negativity has an opportunity to take on a life of its own and spread, which will result in a gouging dent to your shiny image. Your credit union will look like a shallow, non- responsive, uncaring business -- even though it’s not. With all that’s happened in the banking/investment industry over the past couple of years, you don’t want that. Those firms still have a long way to go to regain the public’s trust.

That said, you have to be proactive and already listening to your audience to respond. This listening practice allows you to respond to both negative and positive feedback in a timely manner. In this instance, you’ve listened to the negative comment, addressed it and taken the steps to resolve the member’s issue. You joined the conversation and have taken a lead role in controlling the message.

(An important point to remember about social media: The conversation is going to go on with or without you, so you might as well join in.)

Once the issue has been resolved, you obviously let that person know the outcome. As a result, you will most likely have a fan who has a reaffirmed belief in your credit union because you went to great lengths to help them -- listening and willing to take action. That’s fantastic service. And that person will probably go out to his or her circle of friends and talk about it. That’s A+ branding.

As a huge bonus, everybody else who has been following along has seen the actions taken and the issue resolved. Most of those folks -- hundreds, if not thousands -- may talk about what happened with their friends, family and probably spread the word through their social media channels creating a lasting ripple effect throughout their networks. That might be the best marketing possible -- and it all started from a negative comment.

Embrace the negativity and create opportunities for change. It builds trust, leadership and, ultimately, your business.

Before social media’s impact on today’s society, many of these negative comments were handled in a one-on-one situation -- either over the phone, in person or via a letter. There’s nothing wrong with any of these correspondence channels, as long as the issue was resolved and the member was happy. But the point is, if the issue was resolved through stellar member service, who knew about it? Who else knew about this great service besides the now-satisfied member, his or her family and friends, and the credit union?

Back in the day, that was probably it -- just a few people. And along with it was a wasted opportunity to show your members and prospects what you’re made of. Today, with the viral tsunami called social media, everybody knows. Opportunities abound to deliver your message of fantastic service -- even if somebody isn’t totally satisfied. It’s time to show how your credit union can turn a negative into a positive, an unhappy member into a brand advocate.

So don’t fear those critical comments, embrace them." [ Return to Top ]

FinCEN simplifies structure of its rules & regulations

The Financial Crimes Enforcement Network (FinCEN) announced that its streamlined reorganization of its Bank Secrecy Act (BSA) rules will be implemented on March 1, 2011.

FinCEN will move the BSA regulations into a new Chapter X of Title 31 of the Code of Federal Regulations (CFR).

The reorganization splits the regulations "into general and industry-specific parts, ensuring that a financial institution can identify its obligations under the BSA in a more organized and understandable manner." However, FinCEN said that it "has not made any substantive changes to the BSA rules."

The BSA reorganization moves definitions and regulatory obligations that are applicable to all or a number of regulated persons/financial institutions under the header of "General Provisions".

The "General Provisions" section will be divided into the following subparts:

  • Subpart A: General definitions
  • Subpart B: Programs
  • Subpart C: Reports required to be made by financial institutions
  • Subpart D: Records required to be maintained by financial institutions
  • Subpart E: Special information sharing procedures (money laundering and terrorist financing)
  • Subpart F: Special standards of diligence; prohibitions; and special measures
  • Subpart G: Administrative rulings
  • Subpart H: Enforcement; penalties; and forfeiture
  • Subpart I: Summons
  • Subpart J: Miscellaneous

Regulatory obligations that are applicable to particular industries are divided into industry-specific sections. Among these sections are sections covering credit unions/banks, casinos, and other money services businesses.

FinCEN has also created an online citation translator to "provide an automated way for financial institutions to translate a regulatory citation from 31 CFR Part 103 to 31 CFR Chapter X and vice versa."

Click here to read the FinCEN official news release. [ Return to Top ]

NCUF celebrates 30 years of investing in CUs

The National Credit Union Foundation (NCUF), widely recognized as the national charitable arm of America's credit union movement, celebrates its 30th anniversary this month. Originally called the CUNA Foundation, NCUF was incorporated in October of 1980.

In its first 30 years, the Foundation has awarded over $25 million worth of grants to fulfill its mission: “to promote and improve consumer financial independence through credit unions.”

The Foundation’s strategic programs and grants help credit unions provide widespread financial education, create greater access to affordable financial services, and empower more consumers to save, build assets, and own homes. NCUF programs and grants include:

  • REAL Solutions® –helping credit unions offer services that have proven successful for people of modest means and "low wealth" 
  • Credit Union Development Education – Preserving credit unions’ uniqueness through training in credit union philosophy and cooperative principles
  • Financial Education – sponsoring Biz Kid$,the award-winning financial education series on PBS stations underwritten by America’s credit unions
  • CUAid  (www.cuaid.coop)– raising disaster relief funds for credit union employees, volunteers and members
  • Innovation Grants – encouraging credit union innovations through grant-making

“None of the work the Foundation has done over the years would be possible without our generous supporters,” said Bucky Sebastian, NCUF executive director. “Particularly credit unions who invest in the Community Investment Fund, corporate supporters, individual donors, and state credit union leagues and foundations, the Credit Union National Association (CUNA), CUNA Mutual Group, and the Corporate Credit UnionNetwork, who make significant donations and encourage others to follow their lead. Thank you all for helping the Foundation make a real impact in our communities over the years.”

“I’m proud to celebrate the Foundation’s powerful work over the years and am enthusiastic for our future,” said NCUF board Chairman Allan Kemp McMorris, president/CEO of Oakland County Credit Union in Waterford, MI. “The need for consumer financial freedom is as strong as ever. Our grants and programs in the years ahead are vital to helping credit unions make that independence a reality.” [ Return to Top ]

Governmental Affairs
One-percent transaction tax update

The LSCU Governmental Affairs Department has received numerous phone calls and emails regarding HR 4646, “The Debt Free America Act” which calls for a one-percent transaction tax. Many of the emails now circulating around the country state that there will be a vote on the bill during the lame-duck session after the election. 

HR 4646 is a real bill, introduced on February 23, 2010 by Rep. Chakah Fatah (D-PA) and the bill does impose a one-percent tax on all transactions. This is NOT a tax on financial institutions, but rather on the person who conducts the transaction, specifically the purchaser of a product or service. The tax would be collected from the purchaser (the person who wrote the check, used a credit card, transferred their stock, etc.) by the financial institution servicing the transaction. Think of a one-percent sales tax on every financial transaction, which credit unions and other financial institutions would collect and remit.  While not financially liable, this requirement would be a significant compliance for credit unions. 

The LSCU is aware of the bill. Since its introduction, this bill has shown NO signs of advancement. It was introduced with no co-sponsors, and was assigned to four different committees. Generally, when just two committees take jurisdiction over a bill, it is difficult to move. Four committees working on the same bill indicates almost no probability of it going anywhere. However, the LSCU and CUNA are keeping a close eye on the transaction tax provision of the bill, and if that section were to be added to any other legislation, or if the bill were to show signs of life, the LSCU will alert members and take action. 

For more information, contact LSCU SVP, Governmental Affairs Will McCarty at 866.231.0545 ext. 2137 or VP, Legislative Affairs Mark Landreth at ext. 1012. [ Return to Top ]

Florida Round-Up: final week of campaigning

This week marks the last full week of campaigning for the November 2  Florida elections. Throughout the week, GOP candidate Rick Scott is touring the state by bus, while Democratic candidate Alex Sink’s campaign will include a barnstorm tour across the state on Wednesday. After Thursday, candidates may not accept campaign funds so phone calls to Floridians requesting donations may slow down but don't expect them to stop because most campaigns will  use robo-calls to exhort voters to go to the polls next Tuesday.

In a stunning decision, a Leon County Circuit Judge knocked Florida Senate candidate Jim Norman off the ballot for failure to disclose an asset (a lake house in Arkansas) that was titled only in his wife’s name. The suit, brought by his primary opponent, former Rep. Kevin Ambler, will make it’s way to the First District Court of Appeals tomorrow for a 9:00 a.m. hearing. The local Republican Party executive committee selected a former representative, Rob Wallace, as their replacement for Norman, citing Ambler’s rejection by the voters.

The Florida Cabinet meets Tuesday morning. Agency, including the Department of Financial Services, budget presentations will be made Thursday afternoon at the Capitol. [ Return to Top ]

FL credit union chapters invite candidates to monthly meetings in Oct.

 

The Gulf Coast Chapter of Credit Unions met on October 16 for food, fun, and the outdoors at their fall social. More than 30 credit union professionals attended the event at Hard Labor Creek Plantation in Chipley, FL to enjoy oysters on the half shell, slow cooked BBQ, and a roaring bonfire.

Local state Representative Marti Coley (R) stopped by the festivities and was presented with an endorsement from the LSCU PAC Trustees. Coley said she appreciated what credit unions do for the community and was grateful to have their support in her bid for re-election. This was the second year that the chapter has held this event at Hard Labor Creek.



Florida's North Central Chapter of Credit Unions gathered for breakfast with the state House district 22 candidate, Keith Perry (R), last week. During the event, Perry was presented with a contribution from Florida CUPAC and an endorsement from the Florida LSCU PAC Trustees. Following the presentation, Perry took questions from attendees and took time to learn more about issues important to credit unions. Perry participated in the chapter’s legislative forum before the August primary elections, filled out the LSCU Candidate Survey, and participated in the LSCU interview process.



(l - r) Rep Bill Heller, Chapter President/ West Coast FCU CEO Billie Blanchard, Rep Janet Long, LSCU's Justin Thames

The Pinellas Chapter of Credit Unions recently met with local state legislators, Rep. Janet Long (D) and Rep. Bill Heller (D). Both supported by Florida CUPAC, Long and Heller are long time members and supporters of credit unions. 

“There was a time when I didn’t have any money and my local credit union was the only financial institution that would help me,” said Heller.

Both legislators shared updates on their re-election campaign and emphasized the importance of getting out to vote for the November elections. Long's and Heller’s districts each represent more than 50,000 credit union members. [ Return to Top ]

CU executive meets with Congressman Ted Deutch

 

(l - r) Joan Nolan, VP, Operations Support for IBM Southeast EFCU, presents Rep. Ted Deutch (D-19) with a check for his re-election campaign. Deutch serves on the House Foreign Affairs and Judiciary Committees.

Joan Nolan, VP of Operations Support at IBM Southeast EFCU, recently had an opportunity to meet with Congressman Ted Deutch at his campaign office. They discussed several issues of critical interest to credit unions. Deutch averred he had previously been well briefed by LSCU staff, so Nolan’s visit served to reinforce the relationship as well as provide a local, credit union contact, for the Congressman and his district staff. 
[ Return to Top ]

Birmingham chapter's "Legislative Night"

(l to r) Sen. Minority Leader Jabo Waggoner, House Banking Committee Vice Chair Mike Hill, & Merrill Mann of APCO CU

More than 60 credit union staff and board members attended the Birmingham Chapter of Credit Unions’ 2010 Legislative night to socialize with and hear from area state lawmakers. Rep. Mike Hill (R-41) (Vice Chairman of the House Banking Committee), Rep. Jim McClendon (R-50), and Rep. Cam Ward (R-49) (who will be a member of the Senate next year), and Senate Minority Leader Jabo Waggoner (R) all attended this event to meet with credit unions. 

LSCU President/CEO Patrick La Pine gave a report on LSCU activities, focusing on political efforts by the League during the election season, and then introduced the elected officials who each made remarks to the crowd. Sen. Waggoner talked about the election outlook, and encouraged the crowd to vote for candidates who support the business community. Rep. Hill talked about his work on the Banking Committee and working with LSCU Governmental Affairs staff.

Rep. McClendon, an optometrist who served as Chairman of the Alabama Optometric Association, talked about his work with his association, prior to being elected, to change laws governing the practice of optometry.  He conveyed to the group that to be successful, any organized group must focus on the following three areas:

1.  Have a strong lobbying presence in the legislature
2.  Raise money consistently to help supporters get into office
3.  Engage your grassroots ability during the election, and during the session to affect the process to your benefit 


(l to r) Senator Elect Cam Ward, Patrick La Pine, LSCU, & Rep. Jim McClendon

Although hosting legislative events is especially important during the election season, credit unions and chapters hosting lawmakers on the state and federal level is always very valuable and a great tool in an effective advocacy effort.  For information about hosting a Legislative Night at your credit union, contact Grassroots and Political Action Coordinators Robbie Gordon at 866.231.0545 ext. 2164 in Alabama or Justin Thames, ext. 1010, in Florida. [ Return to Top ]

Compliance Corner
League InfoSight Highlight: Risk-based pricing under the FACT Act

Credit unions engaged in risk-based pricing using consumer reports would be required to provide a special notice if a person receives credit on terms materially less favorable than terms offered to most members.

The risk-based pricing notice (RBPN) requirements apply only in connection with credit primarily for personal, household or family purposes.

Both the Federal Reserve Board (FRB) and the Federal Trade Commission (FTC) have provided model notices for all of the required disclosures.

The Fact Act: Section 311(a): Detailed Analysis topic on the Loans and Leasing channel has been updated to include a sidebar section entitled “Regulations”—and this links to the Final Rule, 12 CFR Part 222 and 16 CFR Parts 640, 698.

Review the Fact Act: Section 311(a): Detailed Analysis topic today for additional information about:

  • General Requirements for Risk-Based Pricing Notices
  • Content of Risk-Based Pricing Notices
  • Form and Timing of the Notice
For helpful reminders and tips, 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 ]

Compliance Calendar and Training

Compliance Calendar

November 2
Consumer Credit Card Submission Deadline

November 7
Daylight Savings Time Ends

November 11
Veterans' Day - Federal Holiday

November 25
Thanksgiving Day - Federal Holiday

December 1
ACH Compliance Review Deadline

December 24
Christmas Day - Federal Holiday Observed

December 31
New Year's Day - Federal Holiday Observed

Compliance Training

October 24–27
CUNA Bank Secrecy Act Conference

October 25
Rules Addressing Fraud & Identity Theft
– webinar
2:00–4:00 p.m. CT

November 1
Risk Based Pricing Notices – webinar
2:00–4:00 p.m. CT

November 4
Reg CC & Check Law Issues for Frontline Staff – webinar
1:00–2:30 p.m. CT [ Return to Top ]

CUNA News
Health care tax credit may benefit small CUs

CUNA is advising small credit unions to research the new small business health care provision to determine if they may qualify for a tax credit.

The credit, authorized under the 2010 Patient Protection and Affordable Care Act, is intended to encourage small employers to offer health insurance coverage for the first time or to maintain current coverage for their employees. It is generally available to small employers that contribute at least half the cost of single health insurance for their employees.

The credit is designed to assist small businesses and tax exempt organizations that primarily employ moderate- and lower-income workers.

Small credit unions may be eligible for the tax credit if:

  • The credit union has fewer than 25 full-time equivalent employees for the taxable year
  • The average annual wage of employees for the year is less than $50,000
  • The credit union makes a "nonelective contribution," which is a contribution that is not made in accordance with a salary reduction agreement and that covers at least 50% of the employees' health care premiums--as long as the credit union provides the same percentage of premium contributions to all employees
During tax years 2010 to 2013, eligible tax-exempt employers could receive a maximum tax credit of 25 percent of the employer's premium payments--(nonelective contributions to employee healthcare) notes Nichole Seabron, CUNA federal compliance counsel. Starting in 2014, the maximum tax credit for eligible tax-exempt employers would increase to 35 of the employer's premium payments for two years.

However, the amount of the tax credit a credit union may claim may be less than the permitted amount. For example, a credit union's tax credit could be reduced by "phaseouts" if it has more than 10 employees or if the average compensation of those employees exceeds $25,000. It is unlikely, though, that the tax credit would be reduced by zero unless the credit union has 25 or more employees or if the average annual wages of the employees is $50,000 or more.

Additionally, employee wages would be indexed after 2013 for cost of living. Credit unions may be able to use this tax credit to offset the Medicare "hospital tax" and other payroll taxes. Ultimately, credit unions will have to consult their tax advisors to determine eligibility for this credit.

The IRS posted a draft version of Form 8941, which will be used by tax-exempt organizations to calculate the credit. The final version of Form 8941 should be available later this year. Tax exempt organizations will claim the small business health care tax credit on Form 990-T. Form 990-T is currently used by state-chartered credit unions to report unrelated business income. Federal credit unions aren't currently required to complete Form 990-T.

However, it appears that in order to claim the tax credit, federal credit unions will be required to complete an IRS form. Form 990-T will be revised for the 2011 filing season to enable eligible tax exempt organizations--even those that normally don't report or owe unrelated business income--to claim the small business health care tax credit.

More information about the credit, including a step-by-step guide and answers to frequently asked questions, is available by clicking here.
[ Return to Top ]

International Credit Union Day - Celebrations held throughout AL & FL
ICU Day webcast panel agrees CUs play a vital role to economic recovery
Distinguished webcast panel (Photo courtesy of CUNA)

In celebration of International Credit Union (ICU) Day CUNA set up a special webcast, co-sponsored by U.S. Credit Union Development Educators and the World Council of Credit Unions (WOCCU) that focused on credit union contributions to members and communities worldwide, through good times and bad.

"It doesn't matter where you go around the world, the 'people helping people' philosophy, the cooperative structure, and the one person, one vote [of credit unions] remain constant," said CUNA President/CEO Bil Cheney. "Overall, the U.S. credit union movement remains healthy. Credit unions continue to take care of their members. In most of the country, people still are struggling, but credit unions have persevered and are doing everything they can to help their members."

A panel of credit union and cooperative industry dignitaries gathered this year at the Credit Union House on Washington, D.C.'s Capitol Hill to discuss their collective member service heritage.

This year's panel included Cheney; Paul Hazen, president/CEO of the National Cooperative Business Association; Mark Meyer, CEO of the Filene Research Institute, and Pete Crear, president/CEO of the World Council of Credit Unions (WOCCU). As in past years, the program was moderated by Paul Berry, the voice of CUNA's Home and Family Finance Radio.

Cooperatives worldwide have stepped up in time of need, Crear said. "When there are national disasters, cooperatives--nonprofits--are the ones that get it done. When the lights go back on in Haiti, cooperatives will be there. The common currency we have is people working together."

The panel agreed that credit unions have a vital role in helping to build business in the U.S. Cheney was asked how that role can be increased.

"Credit unions are critical to businesses in this country, " Cheney said. "We're working hard in Washington to allow credit unions to do more. We're working to get additional sources of capital for credit unions.

"Credit unions have distinguished themselves in this financial crisis because, as banks have pulled back from lending, credit unions are doing more," he added.

ICU Day has been celebrated annually on the third Thursday of October since 1948. The event provides a time and opportunity to honor those who have made great contributions to the global financial cooperative movement, to recognize the hard work of staff and volunteer board members working on behalf of credit unions and cooperatives today, and to express appreciation to members of credit unions and cooperatives living at home and abroad.

This year's theme--"Local. Trusted. Serving You."--recognizes credit unions' identity as member-owned financial cooperatives and celebrates the trust members worldwide have in their credit unions. [ Return to Top ]

Muscle Shoals Chapter of CUs holds annual banquet & celebrates ICU Day

LSCU's VP, Education, Joy Breedlove talks with Hillard Sparks, CEO, Valley Credit Union

In Alabama, the Muscle Shoals Chapter of Credit Unions held its Annual Banquet celebrating International Credit Union Day at the Listerhill Credit Union Auditorium.

One hundred and eighty credit union professionals and vendors attended the banquet. LSCU's President & CEO Patrick La Pine was the featured speaker. La Pine highlighted the upcoming elections, CUNA's Town Hall meetings, LSCU's upcoming Development Conference, and the Cooperative Image Campaign. [ Return to Top ]

Mayor of Mobile officially proclaims Oct. 21 ICU Day


Through the energy and efforts of Gulf Coast FCU board member, Pat Maddox, the city of Mobile, AL officially proclaimed October 21 as International Credit Union Day. Pictured above is Mobile Mayor Sam Jones surrounded by area credit union and city officials after the mayor's proclamation ceremony held at City Hall on October 19. [ Return to Top ]

Tuscaloosa Chapter ICU Banquet features CUNA's Trey Hawkins


(l - r) Trey Hawkins, CUNA, Tommy Cobb, Tuscaloosa Chapter President

Trey Hawkins of CUNA was the guest speaker at the Tuscaloosa Chapter Credit Union Day Banquet. As the Vice President of Political Affairs at CUNA, Trey shared some insight into the upcoming November elections as well as the projected legislative year to come for Credit Unions. An Alabama native, now living in Washington D.C., Trey was able to answer questions about particular races in Alabama and around the country. He noted that while it will be a busy year legislatively in the financial industry, credit unions need to stay active to ensure their voices are heard through advocacy. [ Return to Top ]

Education News
Leadership Council pre-conference workshops led by industry experts; in conjunction with 2010 Development Conference

Next week's 2010 LSCU Development Conference promises to provide attendees with relevant knowledge delivered by experts in the field. The pre-conference Leadership Council workshops are perfect examples of sessions, led by the experts, that will provide attendees with relevant information they can take back to their credit union and apply. The LSCU Leadership Councils provide the perfect opportunity for sharing ideas and best practices as well as an opportunity for higher learning and networking with peers.

Purpose & Objectives of Leadership Councils
The councils were developed to provide a higher level of education and training to executives and managers of credit unions. Additionally, their purpose is to facilitate a professional networking group for the sharing of ideas and best practices as well as provide more localized and frequent opportunities for higher learning and networking with peers. Click here for more information on the LSCU Leadership Councils.

Advisory Committees - The foundation of the councils is the Advisory Committee which is made up of executives from credit unions in the state. There are four to five committee members assigned to each council.

The Advisory Committees meet once a year for a joint planning session. They are asked to attend at least one council meeting a year, offer topic ideas, recruit attendees to the meetings and otherwise provide direction for council development and growth.

League of Southeastern Credit Unions Staff Liaisons - Each council also has a LSCU Staff Liaison. This individual is responsible for recruiting Advisory Committee members, soliciting topic and speaker ideas, and recruiting attendees to the meetings. Internal staff with some expertise in the Council’s profession is matched with the Advisory Groups.

Chief Financial Officer Liaisons, Scott Morgan
HR/ Training & Development Liaisons, Laura Vann & Liz Aperauch
Lending Liaisons, Larry Rodriguez & Keith Hopkins
Marketing & Business Development Liaisons, Brandy Norvell & Amber Tynan
Operations, Sales, and Service Liaisons, Dale Goode & Lisa Hammock
Technology Liaisons, Dennis Lee & Richard Abt

Don't miss out on your opportunity to experience a Leadership Council event. Here are highlights from one of the workshops planned in conjunction with the Development Conference on November 3:

It’s time for Credit Unions to Make History!

We are at a pivotal moment in time. Consumer frustration with banks and credit card companies is at an all time high, while members are waking back up to the importance of thrift, community, and trust. How do we capitalize on this critical juncture to advance the ideals of the credit union movement? Parks will share some unique and innovative ideas to capitalize on this extraordinary time. Now is the time to amplify the principles behind our movement to propel us forward.

Presented by Kelley Parks, Vice President of Marketing & Business Development at Call Federal Credit Union. In 2008 Parks was chosen as the CUNA Marketing & Business Development Council’s Marketing Professional of the Year. She is also a member of Filene i3. 

For more details on these workshops and expert speakers, click here. If you haven't registered yet for the Development Conference and would like more information, click here. You will be asked to login to www.lscu.coop. If you have not registered for website access, click here. Sign up is simple and fast. [ Return to Top ]

Last call for registration for next week's LSCU Development Conference
CEOs, executive management, and directors: You do not want to miss this opportunity to network and learn!

The Development Conference will be held NEXT WEEK at the beautiful Grand Hotel Marriott Resort, Golf Club & Spa, and provides a mix of relevant education sessions, motivational speakers, and fun networking activities, including a golf tournament. You will also have the opportunity to interact with industry leaders during the exhibitor showcase. Register and make your reservations TODAY and join us in Point Clear, Alabama for this premier conference!

Here are a couple of the 2010 Development Conference Sessions you will see:

"Rebooting Leadership"

In the closing general session, Richard Hadden will will tackle the tough issues of leading in the new world and provide leaders with practical advice on connecting with workers at all levels to produce value under a rapidly changing set of rules and expectations.

Richard Hadden is a Certified Speaking Professional with a focus on creating a great place to work. He is co-author of Contented Cows Give Better Milk: The Plain Truth, About Employee Relations and Your Bottom Line, and Contented Cows MOOve Faster: How Good Leaders Get People to Put More OOMPH! Into Their Work.

"Protecting Member Information & Your Money"
In this education session, you will learn about the realities of data theft and the latest cyber attacks and fraud schemes designed to steal your members’ information and your money. Learn what keeps security professionals up at night and what actions we can take to prevent becoming a victim. Barry Kouns, VP of Information Security Risk Assessment at Southeast Corporate will facilitate the session. 

Kouns has more than 25 years of experience in information security consulting, risk assessment, and quality management. At Southeast Corporate, Barry is responsible for developing, implementing, and managing Southeast’s information security risk assessment program and service delivery for MemberGuard consulting services.

To register for the development conference, view hotel information, session descriptions, speaker information, and more, click here.

[ Return to Top ]

BSA Essentials & Advanced Training held last week in AL

Last week the LSCU held its final face-to-face BSA Training Workshop of 2010. Thirty-six credit union professionals, representing seven credit unions, met in Muscle Shoals, AL last week at Listerhill Credit Union. 

Angelic Pritchett of CU/ACE, a division of LEVERAGE, led the session. Attendee comments where overwhelmingly positive. One participant said the session included, “a great presentation and knowledge of subject matter, common sense approach with no flashy terminology.”

LSCU's education department is currently working on the 2011 training calendar which will include BSA training opportunities next year in both AL and FL.

Special thanks to Listerhill Credit Union for sponsoring the location of last week's event!

For more information, contact the LSCU education department at 866.231.0545.

[ Return to Top ]

LSCU to offer more webinars in 2011

In 2011, credit unions will notice a richer library of webinars available from the LSCU. The League is partnering with Financial Education and Development Inc. (FED). The 2011 LSCU Education calendar will feature over 70 webinars; offering a variety of timely topics for all levels of the credit union, including directors and volunteers. 

The wide ranging webinars are presented live and then archived. The new on-demand link is an archive of the live event and contains audio/visual recording of the live broadcast, including question and answer periods. There is also a PDF file of handout materials and the speaker’s email address for any follow-up questions.  Within six business days following the live webinar, the web link will be active and can be viewed anytime 24/7 for the next six months. In addition, participants also receive a FREE audio/visual CD ROM that contains the same information as the link. CDs are mailed approximately 10 business days after the date of the webinar.  Many credit unions use the archived version for those that could not attend the live seminar and for future training. The link is particularly beneficial for branches, directors, and other volunteers.

Each webinar will be priced at $200 for the live webinar; $200 for the archived version or $250 for both. The 2011 LSCU Educational Calendar will be set soon. FED has partnerships with 30 state leagues and the District of Columbia to provide timely, professional, relevant webinar training directed solely to credit union employees.    [ Return to Top ]

Education Calendar
October 26, 2010
Regulatory Update II - webinar
1:00 - 3:00 p.m.
[ Return to Top ]

Cooperative Initiatives News
Foreclosure recovery forum to be held Oct. 26

The Federal Reserve Bank of Atlanta, NeighborWorks® America, and the United Way of Central Alabama have organized a Foreclosure Recovery Forum and credit unions are invited to attend.

The forum is scheduled for October 26 and will be from 8:30 a.m. - 2:00 p.m. The featured topics include trends in modifications and foreclosure prevention; counseling for a graceful exit; tenant rights; home affordable foreclosure alternative: short sales & deed in lieu; tax implications; impact on credit & restoring credit; searching for rental housing & restoring basic needs; and connecting with local resources. 

The forum will be held at Shelton State Community College in Tuscaloosa, Alabama.

Registration is limited so please register today at: www.uwca.org and click on Register Foreclosure Recovery Forum. Contact Sibyl Slade at  or 404.498.7242 with any questions. [ Return to Top ]

Tuscaloosa Chapter of CUs recognizes with awards at recent banquet


(l - r) Dusti Monk, Alabama Credit Union, Harold Terry, Tuscaloosa CU, & Lisa Ashcraft, Tuscaloosa CU

The Tuscaloosa  Chapter of Credit Unions recognized several credit union professionals with special awards during a special banquet.  Dusti Monk who works for Alabama Credit Union won the Community Service Award.  Volunteer of the Year was awarded to Harold Terry of Tuscaloosa CU.  Lisa Ashcraft, Tuscaloosa CU, received Employee of the Year award. [ Return to Top ]

Central FL Chapter of CUs donates $5,000 to Children's Miracle Network


(l - r) Cathy Droke, CMN, Eddie Sanabria, Jr. CFE FCU

The Central Florida Chapter of Credit Unions' board of directors presented a check for $5,000 to Children's Miracle Network representative Cathy Droke last week  in honor of International Credit Union day. The money was raised at the chapter's recent golf outing.

[ Return to Top ]

LEVERAGE News
Save 15 percent on holiday cards by choosing Office Depot

With the holidays approaching fast, now is the time to take advantage of an additional 15 percent off already reduced personalized holiday cards from now until October 31, 2010.

Click here to view an Office Depot promotional flyer. Use coupon code 297865881 when placing your order online at business.officedepot.com, by phone at 888.2.Office, or fax at 888.813.7272.

For questions or more information about the Office Depot business solutions division program for credit unions, contact LEVERAGE Sales Development Specialist Deirdre Rhodes at 866.231.0545 x1104. [ Return to Top ]

Donít forget to register for CUNA Mutualís FREE online conference

CUNA Mutual Group’s first-ever, daylong Online Discovery Conference scheduled for Wednesday, Nov. 3, will offer growth opportunities for credit unions – and it’s free.

The online event is designed for CEOs and senior leadership teams of credit unions, but all credit union and league employees will benefit from its future-focused content that will help credit unions solve problems, address opportunities and face challenges.

Online Discovery is the Web-based equivalent of a face-to-face conference without the associated expenses or time away from the office.

A $5,000 Discovery grant will be awarded to one credit union whose attendee fully participates in the conference’s many amenities, including chat rooms, Webinars, exhibit hall booth visits and documents viewed, to name a few. The winner will be announced Nov. 4.

In addition to providing innovative ideas, the online event will offer great networking opportunities that will include chat rooms, an exhibit hall and prizes. Estimated to be a $250 value, Virtual Discovery Conference is free in celebration of CUNA Mutual’s 75th anniversary.

To register visit www.cunamutual.com/discoveryonline/article.
[ Return to Top ]

News from You
Army Aviation Center FCU donates to food programs

 
(l - r) Lisa Hales, AACFCU VP, Marketing, & Spc. Floyd with the Fort Rucker Food Locker

 

Army Aviation Center Federal Credit Union donated to local area emergency food programs and is holding an annual food drive during the month of October to help local food banks.

The credit union has given $1,000 to the Fort Rucker Emergency Food Voucher Program which focuses on helping Army post families who experience emergencies or unexpected financial difficulties. The credit union also donated $1,000 to the Fort Rucker Food Locker, a program that aids in providing food to Army post families in need.

AACFCU  serves more than 105,000 members worldwide with 17 branches throughout Southeast Alabama, Florida’s Emerald Coast, and the Mobile Bay Area.


(l - r) Sue Jackson, Food Voucher Program, Lisa Hales, AACFCU VP of Marketing, & Sharon Cooley,Food Voucher Program

[ 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 ]

footer