LSCU eSignal Weekly
LSCU eNews Weekly February 14, 2011
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LSCU eNews Weekly
In This Issue
LSCU Headlines
President's Point
House subcommittee hearing on interchange fees will feature credit unions
MSNBC's Joe Scarborough to headline LSCU AC&E
Registration now open for LSCU State GACs
CUNA asks the NCUA to address credit union concerns on executive compensation
LSCU holds successful Compliance Call
CUNA, along with other financial institutions, launch Interchange ads
Harper named NCUA Director of Public and Congressional Affairs
Listen to upcoming LSCU Council meeting speakers via audio podcast on www.lscu.coop
Former NCUA Chairman Johnson named to lead the Iowa Division of Credit Unions
New program outreach reduces credit union expenses on office supplies & more
Governmental Affairs News
The CUNA GAC webinar for credit unions coming next week
Alabama roundup: State budget concerns top the list this week
Florida roundup: LSCU legislation update, Gov. Scott releases budget plan
Washington update: Busy week in both houses, President Obama releases budget
Compliance Corner
League InfoSight highlight: Federal Reserve to host free webcast
Compliance calendar and training
Cooperative Initiatives News
Change a Child's Life coin collection update
Save the date for Small Asset Size Credit Union Workshop
Education News
IRA Essentials & Advanced Training
Financial literacy webinar Tuesday Feb. 15
LSCU BSA Training is coming up this week
Education Calendar
LEVERAGE News
Sprint member discount program makes membership more valuable
Up to 57-percent savings for select Office Depot essentials
CUNA Mutual reducing uninsured losses
News from You
Legacy For Good Foundation Awards First Grants
The Key to an Affordable Auto Loan
NAECU donates $10,000 to American Cancer Society
EMPLOYMENT
View available credit union jobs
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LSCU Headlines

President's Point

The LSCU has a new feature in eSignal: President's Point. Each week the LSCU President/CEO Patrick La Pine will write about a timely topic. Credit unions are encouraged to give feedback each week. Just click the link at the bottom of this article. 

Last week, the NCUA issued a Corporate Credit Union Guidance Letter (2011-02) outlining steps corporate credit unions should take when developing business plans under the new regulatory framework. The letter asks the corporates to evaluate potential risks within their business models and to determine their threshold for risk. More than anything, the NCUA is pointing out how each business plan should look for risk and then appropriately put steps in place to mitigate the potential impact.

The letter also made clear that corporates, who are considering establishing CUSOs or have an existing CUSO, need to ensure that the service provider can safely generate adequate income to maintain services, but also fund for risk while ensuring security and stability for the future. Clearly the NCUA plans to watch corporate credit unions closely as well as the types of products and services they will be offering credit unions.

Corporate credit unions across the country are beginning the process of falling in line with the new regulations. In our own backyard, Corporate America CU recently announced its intent to merge with Louisiana Corporate CU. This will likely be the trend as more corporates look to provide services to scale. Southeast Corporate has been holding Town Hall meetings across the region outlining its new business model, which includes an $80 million recapitalization plan.

It’s imperative our corporate partners develop new business models that focus on service both inside the credit union and within credit union service organization (CUSO) structure. The LSCU will continue to look for opportunities to partner with our corporate partners  when it is done in a manner that promotes collaboration and is mutually beneficial to both organizations as well as our member credit unions. Natural person credit unions have always done a great job in collaborating. Let’s leverage our strengths to build a better and sustainable credit union system model for years to come. I welcome your thoughts and feedback.

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House subcommittee hearing on interchange fees will feature credit unions

The House Financial Services Committee's Financial Institutions and Consumer Credit Subcommittee, which is chaired by Rep. Shelley Moore Capito (R-WV), will hold a hearing on the economic impact of interchange fees later this week.

CUNA and member credit unions will be represented at the hearing by Frank Michael, president/CEO of Allied CU, based in Stockton, CA.  Michael has testified before the Senate in recent years, and is also a member of CUNA's Corporate Credit Union Next Steps Working Group. Michael also took part in the LSCU's Corporate Panel discussion at the LSCU AC&E in June, 2010.

Federal Reserve Governor Sarah Raskin and representatives from various financial institutions are set to speak before the subcommittee. Representatives from a small business and from nationwide corner store chain 7-11 will also testify.

The Fed's interchange plan, which seeks to implement provisions enacted by the Dodd-Frank financial regulatory reform package, offers a dual framework for determining what the law calls "reasonable" interchange fees.

To read complete story, click here.

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MSNBC's Joe Scarborough to headline LSCU AC&E

MSNBC Morning Joe host Joe Scarborough

The LSCU's Annual Convention and Exposition (AC&E), which will take place Jun. 16-19 at the JW Marriott in Orlando, will feature one of the most respected political commentators on the air today. Every morning Joe Scarborough, a former member of Congress from Florida,  shares his trusted insights on today's political and policy headlines as host of MSNBC's Morning Joe. Scarborough will be the keynote speaker at the General Session on Saturday Jun. 18. 

The NCUA Chairman Debbie Matz will speak at the League's Annual Business meeting on Friday Jun. 17. Matz's appearance will give credit unions an opportunity to hear directly from her as she speaks on a number of regulatory topics. Also slated to present at the AC&E will be National Credit Union Foundation Director Bucky Sebastian and CUNA Mutual Group Vice President Bob Trunzo.

Credit unions will have a number of breakout sessions to choose from including time with the state regulators, a look at the economic state of credit unions and finding areas for positive media relations for credit unions.

To learn more about the LSCU's AC&E, visit the LSCU Convention and Exposition page. [ Return to Top ]

Registration now open for LSCU State GACs

Registration is now open for the LSCU State Government Affairs Conferences (GAC) coming up Mar. 30-31 in Montgomery and Apr. 13-14 in Tallahassee. Credit unions are encouraged to attend in their respective state. The State GACs are built to inform credit unions of the hot legislative and regulatory issues, as well as put them in front of their lawmakers for short lobby sessions.

The State GACs will feature NCUA Region III Director Herb Yolles, CUNA VP, Legislative Affairs Ryan Donovan and each state's regulators. The State GACs are a great opportunity for credit unions to become involved with the grassroots nature of the credit union movement. A PAC fundraising roundtable, along with PAC Best practices will also be featured. 

To learn more about the Alabama State GAC and to register, visit the LSCU Alabama GAC page. 

To learn more about the Florida State GAC and toregister, visit the LSCU Florida GAC page.

Each State GAC will also feature a pre-conference Financial Literacy training for credit union directors. This will help credit unions come into compliance with the new NCUA rule.

For more information on the State GACs, contact LSCU SVP, Governmental Affairs Will McCarty at 866.231.0545 ext. 2137. [ Return to Top ]

CUNA asks the NCUA to address credit union concerns on executive compensation

As the NCUA prepares to look at executive compensation rules later this week, CUNA is asking the agency to consider credit unions' significant concerns before issuing any proposal. CUNA acknowledged that inaccurate early reports of what is covered by a possible rule may have added confusion to the debate. However, CUNA underscored that there are a series of legitimate issues to be addressed prior to the agency finalizing a draft, which is expected to be considered at this Thursday's open meeting.

As background, the Dodd-Frank Wall Street Reform law requires the federal financial regulators to issue a joint rule or guideline on incentive-based compensation arrangements. The rule or guideline is not meant to address general compensation like salaries, but rather targets such things as commissions paid to certain employees or officials for undertaking investments, making loans or other activities that expose the institution to high risk.

CUNA asked for NCUA Chairman Debbie Matz's leadership to make the limited nature of the proposal clear and to minimize its impact since credit unions generally have not been engaging in the types of practices the law and proposal seek to address.

To read the complete story, click here

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LSCU holds successful Compliance Call

On Feb. 10, the LSCU held its first Compliance Call for 2011. More than 100 credit union staff were on the call that lasted just over an hour. 

The call was hosted by LSCU, VP Regulatory Affairs Bill Berg and featured Val Moss, CUNA’s director of compliance as a guest speaker. Moss spoke on the SAFE Act and ATM ADA requirements. The call featured good conversation between credit unions and Berg and Moss with many questions answered. 

This call was recorded and is now available in the LSCU's S.A.F.E. Act resource area of the website. To access the resource area, credit unions will need to login to the website. If you do not have login information, signing up is very easy. Click here, then click sign up and follow the steps. 

The S.A.F.E. Act resource area also has additional compliance materials. An FAQs document will be placed on the site in the coming weeks. For any questions about the S.A.F.E. Act, contact LSCU VP, Regulatory Affairs Bill Berg at 866.231.0545 ext. 1028 or Director, Compliance Scott Morris at ext. 2165. 

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CUNA, along with other financial institutions, launch Interchange ads

The fight against the Federal Reserve's proposed interchange changes will take to the airwaves this week in the nation's capital as a 30-second television spot airs in the Washington, D.C. television market.

The Credit Union National Association (CUNA) is one of the main sponsors of the ad, which was developed by the Electronic Payments Coalition (EPC). Fellow EPC members the Independent Community Bankers of America, the National Association of Federal Credit Unions, and the American Bankers Association have also sponsored the ad.

The ad buy continues through Mar. 4 in Washington, D.C. – which includes the week of the CUNA Governmental Affairs Conference. Interchange will be a key issue during the conference.

The Fed's interchange provisions could cap debit card interchange fees that are paid by merchants to card issuers at as little as seven cents per transaction. Issuers with under $10 billion in assets would be exempt from the interchange changes. The Fed proposal will remain open for public comment until Feb. 22, and, if approved, could come into effect after April of this year.

To view the television ad, visit the LSCU Video center. 

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Harper named NCUA Director of Public and Congressional Affairs

National Credit Union Administration Chairman Debbie Matz announced last week the appointment of Todd M. Harper as director of Public and Congressional Affairs. Harper will assume his duties at NCUA Feb. 14 and will also serve as Chief Policy Advisor to the Chairman. He replaces outgoing PACA Director John McKechnie, who will leave the NCUA in early March to pursue a private sector opportunity.

Click here to read full media advisory. [ Return to Top ]

Listen to upcoming LSCU Council meeting speakers via audio podcast on www.lscu.coop

Attendees of the CFO, Marketing & Business Development, Lending, and Operations, Sales & Service Council sessions can expect top-notch industry experts to speak on current hot topics. Now you can "listen" to a topic overview by the speaker for specific council sessions.

The line-up of topics and speakers includes:

  • Keynote: The Right Moves for Credit Unions in Today's Economy - Former NCUA board Chairman Dennis Dollar. 
  • CFO: The New Corporate Business Model:  What You Need to Know About Future Services and how to Evaluate what’s Best for Your Credit Union - Brad Miller, CEO, Southeast Corporate and former Executive Director at Association of Corporate Credit Unions (ACCU) 
  • Marketing & Business Development: Membership Growth Recipe: Business Development & Community Relations, Mark Arnold, CCUE, Senior VP, Neighborhood Credit Union

  • Lending: Maximizing Relationships, Julie R. Ferguson, Owner JRF Consulting Services, LLC

  • Operations, Sales & Service: Achieving Operational Efficiencies through Collaborative Efforts, Jason Boles, CEO of Fans Created  

Click here for listen to podcasts of several of the speakers as they preview their session.

Credit union professionals won't want to miss this meeting as the councils offer the best regional opportunity to stay abreast of trends in specific disciplines, hear the timeliest topics from top speakers, and to network with industry peers in Alabama and Florida.

The LSCU Councils are perfect for CFOs, Lending, Marketing and Business Development, and Operations, Sales & Service professionals.

For an overview of each session topic, meeting details, and registeration information, visit the LSCU Education Calendar at www.lscu.coop and click on the event or click here. Contact LEVERAGE Director, HR Services/Executive Recruiter Lisa Hammock 866.231.0545, ext. 1146 with any questions.

To learn more about the LSCU Councils, visit the LSCU Council homepage.

Follow the LSCU Councils on Facebook.

 

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Former NCUA Chairman Johnson named to lead the Iowa Division of Credit Unions

Joanne Johnson has a long public career in the state of Iowa. She has added superintendent of the Division of Credit Unions on her resume. Last week, Iowa Gov. Terry Branstad appointed Johnson, a former NCUA Chairman from 2004-2008, to the states top credit union post through April. Former Superintendent James Forney stepped down, leaving two months remaining on his current term. 

Gov. Branstad has nominated Johnson to keep the superintendent's job once the term comes up for renewal in May, 2011. 

Johnson began her political career in 1994 when she was elected to the Iowa State Senate. She served until 2001. In 2002, she became of member of the NCUA board before becoming chairman in 2002.  


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New program outreach reduces credit union expenses on office supplies & more

In addition to all the existing benefits that the Office Depot Business Solutions program has to offer, LEVERAGE is proud to announce the Printable Store Purchasing Card. Now, shopping at Office Depot is even easier.

This is not a credit card and delayed billing is not available with this card, but you will be able to use it as an identification card for you to receive our special pricing. All you have to do is show your Store Purchasing Program Card when you’re shopping at any of the retail stores. The card will indicate that you are part of the LEVERAGE National Purchasing Group, and you will receive the lowest pricing available.

Plus, anyone you know can save too! Distribute the Store Purchasing Card PDF flyer or print it and make copies, then give it to your colleagues, friends, and family so they can receive our special pricing when they shop at an Office Depot retail store, it’s that easy.

The more volume the program sees, the more savings credit unions and program users will see! Take a look at the Store Purchasing Card PDF flyer with all the terms and conditions listed. And, don’t forget to print a copy for yourself and anyone else you think wants to save some cash the next time they shop in an Office Depot retail store.

Thank you for your support of LEVERAGE and the Office Depot BSD program.

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Governmental Affairs News
The CUNA GAC webinar for credit unions coming next week

For Alabama and Florida credit unions that will be attending the CUNA GAC, Feb. 27 - Mar. 3, the LSCU is offering a webinar to help attendees get the most out of their time at the conference. The webinar will be Feb. 24 at 11 AM EST / 10:00 CST. The League will be going over the GAC schedule, LSCU events, and the most recent legislative information to help prepare you for your meetings with your members of Congress

Individual credit union's commitment to advocacy is the source of the movement's grassroots strength, which is needed now more than ever. The CUNA GAC has a great line-up of speakers including House Financial Services Chairman Spencer Bachus (R-AL) and Rep. Debbie Wasserman Shultz (D-FL). In addition to the speakers, there will be a number of important and informative break-out sessions, networking opportunities, and Hill visits on Wednesday and Thursday.

For credit unions that would like to know more about the CUNA GAC or how they can attend, contact LSCU SVP of Governmental Affairs Will McCarty at 866.231.0545 ext. 2137. You can find more information on the CUNA GAC by visiting the LSCU CUNA GAC resource page.

To participate in the LSCU webinar, click here.

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Alabama roundup: State budget concerns top the list this week

Alabama Budget Concerns

Members of the legislature, including the House and Senate Budget Committees, listened on as presentations were made from Legislative Fiscal Office Director Joyce Bigbee, Finance Director David Perry, Retirement Systems CEO David Bronner, State Employees Insurance Board CEO William Ashmore, and commissioners of various state agencies.  While the numbers might have been slightly different depending on who was the presenter, the message was the same. The State of Alabama is in serious financial trouble and, as of now, it doesn’t look as if the federal government will be here to aid in balancing the budgets.

We can begin by taking a look at what is left of the 2011 fiscal year (FY11) which ends Sep. 30, 2011.  According to LFO estimates, Education Trust Fund receipts will fall $126 million short for FY11 and General Fund receipts will be $132 million less for the same time period.  What does that mean? With the estimates being accurate, state government and Alabama’s schools systems need to cut or find a total of nearly $260 million out of budgeted appropriations just to finish out the fiscal year in the black. Whether this is accomplished through increased proration, layoffs, or other similar cuts, state officials have a tough job ahead of them.

Significant Decreases in Education Trust Fund and General Fund Revenue

The second issue at hand during the hearings was fiscal year 2012, which will see significant decreases in revenue for both the Education Trust Fund and General Fund. The Education Trust Fund could see as much as $688 million shortfall due to declining receipts and loss of one-time federal dollars; the General Fund is in the same situation with a potential $554 million shortfall. It was soon after this revelation that the topic of discussion switched to what Alabama is going to do about these shortfalls. Suggestions were not necessarily made but ideas were given from what other states around the country are doing and the ideas centered mainly on public employee benefits.

RSA CEO David Bronner made it a point to tell everyone at the hearings that Alabama is not in the same situation that a lot of other states, most notably California, New Jersey, and Illinois, are in. So far, the legislature has funded pensions and health care for public employees, unlike the states mentioned above. However, at the same time, changes need to be made in order to maintain this funding and these changes can and will come from a variety of sources, increased retirement age and increased pension and health care contribution were just a few.

The new leadership has said cutting state government spending and creating jobs are priorities number one-A and one-B. Regardless of which side of the fence you may sit when deciding how the budget shortfalls should be addressed, the Alabama Legislature will have their hands full when the session begins at the beginning of March.

For questions about the Alabama Legislature, contact LSCU Director, Legislative Affairs Jason Cochran at 866.231.0545 ext. 2159. [ Return to Top ]

Florida roundup: LSCU legislation update, Gov. Scott releases budget plan

The big news coming out of the Capitol was Gov. Scott’s budget release on Monday. While the release of the governor’s proposed spending plan was the major news out of Tallahassee last week, it wasn’t the only news.

LSCU Legislation Update

The LSCU Governmental Affairs team continues to await the official filing of a bill offered by the Office of Financial Regulation (OFR). The original language of the bill, which was reviewed by the League, would have significantly increased the regulatory burden already placed on financial institutions. The League has been working with OFR to alleviate concerns with the bill and it is hopeful that the filed version will address these concerns.

Gov. Scott Releases Budget Plan

On Monday, Gov. Scott released his proposed spending plan which would cut nearly $5 billion over the current fiscal year’s budget. The $65.9 billion budget has received harsh criticism from both sides of the aisle, as Republicans and Democrats alike questioned his plans to slash spending on everything from schools to health care. Gov. Scott’s plan includes a proposal to require state workers to, for the first time, pay into their pension plans. While not warmly received throughout the Capitol, legislative leadership has vowed to work with the governor to ensure that a fiscally sound budget is passed during this year’s session.

Presidential Preference Primary Moving Again?

In 2008, largely at the behest of then-Speaker of the House Marco Rubio (R-FL), Florida moved its presidential preference primary to the end of January. The Jan. 29 primary was seen as a crucial turning point in the Republican presidential race, as John McCain (R-AZ) won the primary and went on to secure the Republican nomination. However, the Republican and Democratic national parties were highly critical of Florida’s move, with the Democrats even stripping Florida of all its delegates, before relenting some and allowing them each a half-vote. The Republican National Committee has urged Florida to move their election back behind the primaries and caucuses held in New Hampshire, Iowa, South Carolina and Nevada. Senate President Mike Haridopolos (R-Merritt Island) likes the primary where it is, saying that it puts the spotlight on Florida and forces candidates to pay attention to the state. Bills have been filed by two Democrats – Rep. Marty Kiar (D-Parkland) and Sen. Arthenia Joyner (D-Tampa) – which would move the primary date back to March.

Senate Prepares to Unveil Medicaid Overhaul

The Florida Senate is moving forward with its ambitious plan to overhaul the state’s $20 billion Medicaid program. The Senate will hold a meeting on the Senate Floor Tuesday followed by a hearing on Thursday. Sen. Joe Negron (R-Stuart), chairman of the Senate Budget Subcommittee on Health and Human Services said he would spend Feb. 17 looking at the "merits" and "strengths" of the proposed Senate plan. The Senate is expected to unveil a dramatic proposal that will shift Medicaid patients into a managed care environment and is also likely to include lawsuit limitations for Medicaid providers and may even include limits on lawsuits against other types of health care providers.

If you have any questions on the Florida Legislature, contact LSCU Director, Legislative Affairs Jared Ross at 866.231.0545 ext. 1012.

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Washington update: Busy week in both houses, President Obama releases budget

Driving the week on Capitol Hill will be the release of the President’s budget on Monday. While they are not noted below, several committee hearings on various aspects of the President’s budget are expected.

The House comes back Monday and will consider H.R. 514, a bill to extend provisions of the PATRIOT Act. Tuesday and the balance of the week, the House will consider H.R. 1, a full-year continuing appropriations bill.  No votes are expected in the House on Friday.

The Senate also comes back Monday. They will consider two nominations in the afternoon before resuming consideration of the FAA Authorization Act.

Next week is a constituent work period for both chambers.

Committee Schedule

The Governmental Affairs team at the LSCU is following a number of hearings on both chambers this week.

On Tuesday, the House Financial Services Committee will hold a full committee hearing on "Assessing the Regulatory, Economic and Market Implications of the Dodd-Frank Derivatives Title." Also on Tuesday, the House Financial Services Committee Subcommittee on Oversight and Investigation will hold a hearing on "An Analysis of the Post-Conservatorship Legal Expenses of Fannie Mae and Freddie Mac."

On Wednesday, the House Financial Services Committee will hold a full committee hearing on the Financial Crisis Inquiry Commission (FCIC) report.  FCIC Chairman Phil Angelides; FCIC Vice Chairman Bill Thomas; and FCIC Commissioners Brooksley Born, Douglas Holtz-Eakin, Heather Murren and Peter Wallison testify.  Also on Wednesday, the House Financial Services Committee Subcommittee on Insurance and Housing Subcommittee will hold a hearing on "Are There Government Barriers to the Housing Market Recovery?"  It is also worth noting that

The House Small Business Committee will hold a hearing on Wednesday on "Putting Americans Back to Work: The State of the Small Business Economy."

The big day for credit unions is Thursday when the House Financial Services Committee Subcommittee on Financial Institutions and Consumer Credit will hold a hearing on "Understanding the Federal Reserve's Proposed Rule on Interchange Fees: Implications and Consequences of the Durbin Amendment."  Frank Michael, president/CEO of Allied Credit Union in Stockton, California, will testify on behalf of CUNA.  Other witnesses include: Sarah Raskin, member of the Federal Reserve's Board of Governors; Gus Prentzas of Pavilion Florals; David Kemper, chairman, president and CEO of Commerce Bank; Doug Kantor, partner at Steptoe & Johnson; Josh Floum, general counsel for Visa; and David Seltzer, vice president and treasurer of 7-Eleven.

Also on Thursday, Feb. 17, the Senate Banking Committee will hold a full committee hearing on "Oversight of Dodd-Frank Implementation: A Progress Report by the Regulators at the Half-Year Mark."  Federal Reserve Board Chairman Ben Bernanke; Sheila Bair, chairman of the Federal Deposit Insurance Corporation; Mary Schapiro, chairman of the Securities and Exchange Commission; Gary Gensler, chairman of the Commodity Futures Trading Commission; and John Walsh, acting comptroller of the currency, Treasury Department, are expected to testify.

If you have any questions regarding these or any legislative issues, contact LSCU SVP, Governmental Affairs Will McCarty at 866.231.0545 ext. 2137. [ Return to Top ]

Compliance Corner
League InfoSight highlight: Federal Reserve to host free webcast

The League InfoSight newsletter highlights the Federal Reserve System's free webcast on risk-based pricing notices on Feb. 16, from 11:00 a.m. – 12:00 p.m. Pacific Time (2. – 3 p.m. EST). This webinar is part of an ongoing series focused specifically on consumer compliance issues. Click here to register for the webinar on the Outlook Live website.

The mandatory compliance date for the risk-based pricing notice requirements was Jan. 1. The rules generally require creditors to provide a notice to consumers when, based in whole or part on information in a consumer report, the creditor grants credit to the consumer on material terms that are materially less favorable than the most favorable terms available from the creditor to a substantial proportion of other consumers.

The League InfoSight newsletter also looks at a new addition to the Loans and Leasing channel: Student Loans topic.

Effective on Feb. 14, 2010, the Federal Reserve Board (FRB) amended Regulation Z, which implements the Truth in Lending Act (TILA), to implement the provisions of the Higher Education Opportunity Act (HEOA) which was passed on Aug. 14, 2008. Title X of HEOA amends TILA by adding disclosures and timing requirements that apply to creditors making private education loans over $25,000, which are defined as loans made expressly for post-secondary education expenses. 

League InfoSight readers will learn more about Student Loans and how private student loan rules under Regulation Z affect credit unions as well as actions credit unions should take to ensure compliance with Regulation Z.

For more 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.

 

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Compliance calendar and training

Compliance Calendar

February 21
Presidents' Day - Federal Holiday

February 28
IRS Forms Due to IRS/SSA (See the online calendar for a complete list.)

HMDA Reports Due – Home Mortgage Disclosure Act Loan Application Registers (pursuant to Regulation C) due to the Federal Reserve if your credit union is subject to HMDA reporting. The file must be received AND accepted by this date to avoid NCUA sanctions/penalties.

Compliance Training

February 16
Pressing Credit Union Compliance Issues – Audio Conference
1:00–2:30 p.m. CT

March 16–30
CUNA Compliance Fundamentals eSchool

May 10 & 17
Consumer Lending Regulations: Parts 1 & 2 - Webinar
2:00–4:00 p.m. CT

May 10–July 19
CUNA Regulatory Compliance eSchool: Introduction

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Cooperative Initiatives News
Change a Child's Life coin collection update

The coin collection campaign is is the first of the three national initiatives Credit Unions for Kids is promoting for 2011. The hope is that this will be a simple, turnkey campaign and the ease of implementation for credit unions will make it very successful. A special thank you to CO-OP Financial Services’ underwriting of the campaign, there is no cost for credit unions to participate.

Credit Unions in Alabama and Florida can get involved by visiting the LSCU CU4KIDS-CMN page. The page contains all of the resources credit unions will need including a video that highlights some of the kids that have been helped by the program. Also available on the website are marketing materials credit unions can use to engage their employees and members in the campaign (posters, articles, press releases) to make the coin drive as successful as possible for the kids as well as for the credit unions.

For more information on Credit Unions for Kids Change a Child's Life campaign,contact LSCU Director, Credit Union Relations Adena Whitman at 866.231.0545 ext. 2134.

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Save the date for Small Asset Size Credit Union Workshop

The LSCU would like Small Asset Size credit unions to save the date for a workshop coming up in March. Join the League and peer credit unions for the 2011 SAS Credit Union Workshop.

The workshops will be held:

March 22, Orlando, FL
9am – 4:30pm EST @ CFE FCU

March 23, Birmingham, AL
9am – 4:30pm CST @ Legacy Community FCU

For just $79, credit unions will receive the tools needed to be successful this year. Find out more about featured topics and registration information by visiting the LSCU Education Calendar at www.lscu.coop.

Don’t forget, SAS credit unions can use their $400 initiative account to cover registration fees for this workshop. To learn more about this initiative, click here.

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Education News
IRA Essentials & Advanced Training

Each IRA training course will be held at the Birmingham Marriott and run from 8:30 a.m. to 4:30 p.m. CST.

The IRA Essentials Workshop gives attendees a solid foundation of IRA knowledge. Exercises are included throughout the day to help participants apply information to job-related situations. Attendees will leave this session able to work with IRA owners and process basic IRA transactions with confidence. This is a beginner's session; no previous IRA knowledge is assumed.

The IRA Advanced Workshop builds on the learners’ knowledge of IRA basics to help them address some of the more complex IRA issues they handle at the credit union. This is an advanced session; previous IRA knowledge is assumed.

In both sessions, the trainer will utilize real-world exercises to help participants apply information to job-related situations and those attending should bring a hand-held calculator. 

Each course is taught by Paul Kern, who is a training consultant for Ascensus, Inc., a division of Crump Group, Inc. Kern is responsible for conducting IRA training programs to meet the needs of credit unions and leagues nationwide.

Comments from past attendees: “Paul is a fantastic IRA Trainer! Keeps it simple & very interesting. He makes IRA Fun!” 

The cost for each course is $229 per person. For more information, visit the LSCU Education Calendar. [ Return to Top ]

Financial literacy webinar Tuesday Feb. 15

Federal credit unions that continue to struggle with understanding the new NCUA rules that require directors to have training in financial literacy, can become compliant this week. The LSCU has a number of financial literacy webinars, and training sessions ready for credit unions.

LSCU is offering two webinars in the next three months that will help credit unions become compliant:

  • Feb. 15 - Required Financial Literacy Training for Directors Under NCUA Guidelines:  What Regulators Want and What Directors Should Know
  • Mar. 3 - Required Financial Literacy Training for Directors Under NCUA Guidelines: Ratios, Concentration, Investment Evaluations, and More

LSCU will also offer training sessions at the State GACs in March, April and the Annual Convention and Exposition (AC&E) in June. LSCU V.P., Regulatory Affairs Bill Berg and VP, Cooperative Initiatives Laura Vann will facilitate those sessions, plus one in South Florida. Visit the LSCU Educational Calendar to sign up for one of the webinars. More information will be available soon on the training sessions.

For more information on the training, contact LSCU Association Services Support Specialist Becki Payne at 866.231.0545 ext. 2129.

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LSCU BSA Training is coming up this week

Credit unions can still attend the LSCU BSA Training Workshop this week in Jacksonville, FL. Click here to view training flyer for other dates and locations.

February 16, 2011
Location
:
Healthcare’s Cooperative Credit Union
9790 Touchton Road
Jacksonville, FL 32246

Fee: $75/person

Morning session*:
8:30am - 9:00am EST
Registration

9:00am - 11:30am EST
BSA Training Workshop

Afternoon session*:
12:00 p.m. EST
Registration

12:30 p.m. – 3:00 p.m. EST
BSA Training Workshop

*Boxed will be provided to ALL Participants.

Participants in this BSA Training workshop will receive a certification letter upon completion of the 2.5 hour session.  Click here for more information and to register for the event. [ Return to Top ]

Education Calendar

Tuesday, February 15
Financial Literacy Training: Directors
3:00 PM - 4:30 PM EST - webinar

Wednesday, February 16

BSA Training Workshop
Jacksonville, FL
9:00 AM - 11:30 AM EST - workshop

Wednesday, February 16
BSA Training Workshop
Jacksonville, FL
1:00 PM - 3:30 PM EST - workshop

Wednesday February 16
BSA Training for Frontline Staff
3:00 PM - 4:30 PM EST - webinar

Thursday February 17
Preparing for SAFE Act Registration and Compliance
3:00 PM - 4:30 PM EST - webinar

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LEVERAGE News
Sprint member discount program makes membership more valuable

It is not too late for credit unions to become eligible for up to 50 percent of their marketing incentive potential for 2011 through the Sprint Member Discount Program. Credit unions need to sprint ahead by Mar. 1 to secure eligibility for the year.

The program works for credit unions because they receive a monetary marketing incentive in return for advertising services to members. In 2010, more than 55 Florida and Alabama credit unions generated more than $442,000 in non-interest income. Additional benefits include, free marketing materials, added value for members, and little implementation effort required. Members and employees also receive a 10-percent discount on monthly recurring charges.

Don’t forget to sprint ahead by Mar. 1 to become eligible for up to 50 percent of your marketing incentive potential for 2011! For more information and eligibility details, email a LEVERAGE Business Consultant or call 866.231.0545 x1188.

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Up to 57-percent savings for select Office Depot essentials

Prices have been slashed up to 57 percent on Sharpies, Dymo Labels, Pens, and much more, now through Mar. 31. Click here to view the complete offer.

For questions or more information about the program, contact LEVERAGE Product Support Manager Deirdre Rhodes at 866.231-0545x1104. [ Return to Top ]

CUNA Mutual reducing uninsured losses

It can be difficult understanding which types of loss your credit union’s fidelity bond does and does not cover. A legal and risk management concept that can help clarify this is “pure risk” versus “uninsurable risk” (a.k.a. “speculative risk”).

The following two scenarios illustrate the difference between these risk types:

Pure Risk Scenario

A teller withdraws money from his uncle’s savings account and creates a fake statement that he sends to the uncle, showing an incorrect account balance. The crime is discovered and the teller can’t repay the stolen funds. The cost to restore the uncle’s account balance is generally covered under the fidelity bond’s “Employee Dishonesty” coverage.

This example has several characteristics that illustrate pure risk:

  • Although the loss was due to an intentional act by an employee, the loss was unexpected and outside of the credit union’s control
  • The loss was for a definite amount and occurred at a definite time

In addition to the loss characteristics in this scenario, losses that are accidental or fortuitous also generally fall into the pure risk category.

Uninsurable (Speculative) Risk Scenario

A credit union’s V.P. of lending grants several member business loans that default. During the collections process, the credit union discovers that the V.P. unintentionally violated the credit union’s loan policies. Through her negligence, the loans were granted to non-creditworthy borrowers and the credit union was unable to recover some of the funds it lent.

A fidelity bond generally would not cover this loss because the cause was a speculative venture: lending. A bond isn’t intended to cover losses caused by liability for an employee’s negligence. Investments and deposits are other common business risks that fall into the uninsurable risks category. Also, fidelity bonds generally don’t cover third-party or indirect losses, such as those caused by vendors.

These examples offer a glimpse of what may or may not be covered by a fidelity bond. It’s important for credit union management and directors to read the fidelity bond policy carefully and use the expertise and resources of the bond provider to learn what the policy covers

Click here to read the full article and learn four steps to managing uninsurable risk.

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News from You
Legacy For Good Foundation Awards First Grants

The Jimmie Hale Mission, Grace’s Kitchen, and Church of the Reconciler Homeless Ministry were awarded grants to support their ongoing missions in the Birmingham area. Grants varied from monetary donations (Jimmie Hale Mission), item donations (Grace’s Kitchen), as well as coats, hats, scarves, and glove donations (Church of the Reconciler).

The Legacy For Good Foundation awards grants on a quarterly basis. Grant proposals and individual nominations may be submitted at any time on the Foundation’s website, www.dosomethinggoodtoday.com.  The Foundation focuses its efforts within the Greater Birmingham area.

The Legacy For Good Foundation is funded by donations from Legacy Community Federal Credit Union employees, members, and the community. Donations to the Legacy For Good Foundation can be made at any Legacy Credit Union location.

For more information about Legacy For Good Foundation contact Gina Cannady at (205) 930-5076 or marketing@legacycreditunion.com.

Legacy Credit Union staffers Gina Cannady, Kevin McLendon, John King and Michele Willis, came by the Jimmie Hale Mission and presented a check to help the homeless and hurting men, women, and children that stay at our facilities.

Legacy Credit Union staffers from left to right: Gina Cannady, Kevin McLendon, John King & Michele Willis.
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The Key to an Affordable Auto Loan

The best place to start vehicle shopping is at your financial institution. Your credit union or bank can help you determine how much you can afford and how much your loan will cost you. Getting pre-approved for a set amount will help narrow your field of vision. According to industry standards, the total of all your monthly payments should equal less than 40-percent of your gross income. Credit unions offer lower rates than most banks, so check there first.

Look at your financing options. If you’re a homeowner, taking out a home equity line of credit may be cheaper than a traditional auto loan. Use the equity in your home to enjoy a potentially lower rate with a longer term.

Seek out special pricing and promotions at the dealership and/or with your financial institution. In addition, shop around for your auto insurance. Some credit unions offer member discount programs to save you money.

“Even if you’re not in the market to purchase a new vehicle, I encourage car owners to rethink their auto loans,” said Stanton Davis, Alabama Telco Credit Union. “You could refinance your car to a better rate and save money. It never hurts to look.”

For more auto-buying advice, visit Alabama Telco Credit Union’s website, www.alatelco.org.

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NAECU donates $10,000 to American Cancer Society

From left to right: Greg Olmsted, President and CEO of NAECU, and Liz Payne, American Cancer Society.

North Alabama Educators Credit Union (NAECU) donated $10,000 to the American Cancer Society to benefit breast cancer awareness in the Tennessee Valley. The money was collected during 2010 from various fundraisers including a fishing tournament, pictures with Santa, pictures with the Easter Bunny, group yard sale, breast cancer awareness merchandise sales, and other efforts from the employees and membership of North Alabama Educators Credit Union. [ Return to Top ]

EMPLOYMENT
View available credit union jobs

To view the available jobs on the LSCU homepage, visit the LSCU CU Jobs Center. [ Return to Top ]

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