LSCU eSignal Weekly
LSCU eNews Weekly October 11, 2011
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LSCU eNews Weekly
In This Issue
President's Point
Be hungry, be passionate about your membership
LSCU Top Headlines
This week's top League headlines
Governmental Affairs News
This week in Alabama politics: Special Session looming, first redistricting meeting held
This week in Florida politics: Redistricting, DEO opens for business, news on state budget
News from the Hill: House considering significant bills, including hearing on MBLs
Compliance Corner
League InfoSight highlight: Accounts and Advertising channels updated
League meets with Alabama, Florida, NCUA regulators
2011 InfoSight User Survey
Compliance calendar and training
Cooperative Initiatives News
Help kids in your community with SECUF, CU4Kids Holiday Icon Campaign
Education News
Educate your credit union with LSCU Council webinars
Check out LSCU's educational offerings for 2012
Education Calendar
LEVERAGE News
CUNA Mutual Group CIO: Understand how technology trends can impact your credit union
Online Discovery: Data breaches now number one type of fraud
News from You
Insight CU releases new mobile banking application
EMPLOYMENT
View available credit union jobs
In This Issue
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President's Point

Be hungry, be passionate about your membership

The passing of Apple CEO Steve Jobs last week and the media coverage of his career got me thinking about the importance of leadership. In the tough world of computer programming and design, Apple has defined itself like no other company. When you think of Apple, you think progressive, hip, fun, and always innovating. Apple is about much more than computers, it is about lifestyle choices and seeing what the public wants before they know it. Jobs provided visionary leadership skills we can all learn a thing or two from.

Last year in the U.S., Apple had just a 10-percent market share of computer sales. However in 2011, the iPhone is the most used smartphone on the market accounting for 28 percent of users. The iPad has cornered the market with more than 70 percent of computer tablet sales. The iPod has become standard language to refer to any MP3 player, not just the actual iPod and its operating system. So what can credit unions learn from Apple under Jobs’ leadership?

In 2005, he gave a now famous commencement speech to Stanford graduates. It was an inside look at how he lived his life and built Apple. His message was simple, “You’ve got to find what you love.” As I travel Alabama and Florida and talk to many of you, I see tremendous passion for credit unions and the members we serve. We are doing what we love. Working for credit unions is not just a career - it’s a passion, a way of life. But how can we fully harness this passion to invoke positive change for our industry? Jobs' answer to that question, “Your time is limited, don’t waste it living someone else's life.”

Think about that last quote. Jobs was talking about how death is the one destination we all share. He encouraged Stanford graduates to take hold of their lives now. As credit unions, have we been doing business our way or within the boundaries set for us by others? Our greatest strength is our collaborative nature. We are willing to work together for the greater good and not just for our own self gain. Jobs told the graduates to not let others opinions drown out their voice. Does that sound familiar? As credit union issues hit Washington, Montgomery, or Tallahassee, it’s imperative that we come together and collectively speak about our issues. One of the familiar phrases credit unions hear is that if we don’t speak up, the bankers will talk for us.  

Like Jobs and Apple, can we be innovative and start to see what our members want before they do? You look back in history and members didn’t want an ATM card, but they loved it. They didn’t want a debit card, but now they can’t live without it. What’s next? Is it mobile banking? Is it paying with a smartphone instead of a debit/credit card? Does it make sense to scrap the traditional teller line? These are difficult questions, but they have to be asked and answered by every credit union if it wants to thrive, let alone survive, in the current marketplace. Jobs' leadership shows us that these questions will shape our future if we are not afraid to take chances.

He ended his speech with a phrase from one of his favorite magazines as it published for the last time. On the back it simply stated, “Stay Hungry. Stay Foolish.” Years ago Jobs asked if consumers want a computer in their phone. If we were asked 10 years ago, we would have said no, but he was foolish enough to think we did.  Similarly credit unions need to remain hungry and passionate about what we do for our members and the communities we serve, and stay just foolish enough to think that every consumer out there would want what we have, if they only knew what we know.

I welcome your thoughts and feedback. [ Return to Top ]

LSCU Top Headlines
This week's top League headlines

Action Alert issued on member business lending
The League and CUNA would like credit unions to contact their member of Congress and ask that they support legislation to increase member business lending. Click here for the full article.

Latest edition of Signal magazine available online now
The latest edition of LSCU's quarterly magazine is now available. The cover story looks at drafting the future of the credit union movement. Click here to view.

CUNA website gives those tired of bank fees credit union option
With the news of many banks intending to tack on additional fees for debit cards and other services, consumers can see why credit unions are a better option through CUNA's aSmarterChoice.org website. Click here for more about the website.

NCUF seeks nominations for three board seats
The National Credit Union Foundation (NCUF) is currently seeking nominations for three board seats. The nominations are for an open credit union executive or director seat, a system affiliate seat, and the at-large seat. Click here for the full article.

CUNA Regulatory Advocacy Report
Take a look at this week's CUNA Regulatory Advocacy Report. It covers the report issued recently from NCUA’s Office of Inspector General on Documents of Resolution (DORs), news on the Consumer Financial Protection Bureau (CFPB), and other topics. Click here to read the full report.

New Southeastern Credit Union Foundation website launched
Make sure you visit the new SECUF website to find out how the Foundation can help your credit union. Click here to visit the site.

[ Return to Top ]

Governmental Affairs News
This week in Alabama politics: Special Session looming, first redistricting meeting held

Gov. Robert Bentley is holding out hopes that the Jefferson County delegation of the Alabama Legislature can reach some type of agreement regarding the county’s sewer debt problem and budget woes. Last week members from all corners of the county met at Vulcan Park to discuss the issues and attempt to reach a consensus on what to do. As expected, a consensus was not reached but that isn’t stopping the delegation from meeting again this week. If they can come together, a special session will be called by the governor as early as next month.

The split is over plans for a new county occupational tax, granting the county commission the ability to increase and un-earmark certain taxes already collected, and giving the commission greater control over how those dollars are to be spent. The figures show that the Alabama Legislature would need to authorize an additional $40-$50 million a year to support the already struggling county general fund.

First Redistricting Meetings Held
The first round of redistricting meetings for Alabama’s 140 Senate and House seats began last week in Ft. Payne and ended in Birmingham. All indications show a weak public turnout, somewhat different from identical meetings held earlier this year to discuss the redrawing of Alabama’s Congressional districts. Part of the weak turnout is being blamed on the fact that proposed maps of the new districts have not been made at this point, so the public does not know what to argue for or against. According to legislators on the committee, they want public input before those districts begin to be redrawn.

Meetings will be held for the next two weeks. A schedule of the remaining meetings can be found by clicking here.

Immigration Repeal Legislation Filed
The recent immigration legislation has been all over the news since its passage, and the controversy does not appear to be going away anytime soon. Numerous lawsuits have been filed and even the White House has gotten involved. One Alabama senator has pre-filed legislation for the 2012 Regular Session to repeal the current law. Sen. Billy Beasley (D-Clayton) cited the workforce shortages and problems in Alabama’s schools and courthouses as his reasoning behind the introduced legislation.

Proponents of the passed legislation don’t see much hope for Sen. Beasley’s repeal, and at this point there is no sign that repeal would be passed during the 2012 Regular Session.

For questions regarding legislative affairs issues in Alabama, contact LSCU Director, Legislative Affairs Jason Cochran at 866.231.0545, ext. 2159 [ Return to Top ]

This week in Florida politics: Redistricting, DEO opens for business, news on state budget

LSCU Legislative Issues:

The Florida Legislature will spend this week in their districts as they continue to prepare for the 2012 Legislative Session. Last week, the Legislature was in Tallahassee, with the main focus on Congressional and Legislative redistricting. The Senate appears to have come to an agreement on the districts for the Florida Panhandle, which is likely to be the least controversial area of the state to re-draw. However, nothing is official until it is agreed upon by the House, Senate, courts, and signed by the governor. The LSCU Governmental Affairs team continues to meet with members of both chambers to discuss their legislative priorities. The League will continue to keep you informed on all the relevant issues going forward. The Legislature will return to Tallahassee for the week of Oct. 17. Remaining committee weeks are the weeks of Oct. 17, Oct. 31, Nov. 14, and Dec. 5. The 2012 Legislative Session begins on Jan. 10, and is scheduled to run through March 9.

Grassroots Activity
As the 2012 Legislative Session moves closer, it is increasingly important for grassroots advocates to do their part in helping the credit union movement move forward. Planning Chapter Legislative Nights, in-district meetings with your legislators, emails, letters, or phone calls all make a difference. The Governmental Affairs team is here to help credit unions plan all grassroots activities, and any questions should be directed to LSCU Grassroots and Political Action Coordinator Andy Gonzalez at 866.231.0545, ext. 1010.

Florida Political News:

Economic Opportunity Agency Opens
Last week, Florida's new Department of Economic Opportunity (DEO) opened its doors with the intent to have a new approach to the state's business development efforts, according to Executive Director Doug Darling. Darling is quoted in the Tallahassee Democrat as saying, “the DEO will be the one office ready to help with applications, permitting, infrastructure needs or other essentials,” he said. "Really, it is a whole new way of doing business." It is intended to be a one-stop location for economic and community development, and will work closely with Enterprise Florida Inc., which Darling refers to as “the sales force for Florida.” State officials gathered Wednesday afternoon for the official unveiling of the department, which is housed in the Caldwell Building, 107 E. Madison St. It combines several offices devoted to promoting business and job growth -- the Agency for Workforce Innovation, Department of Community Affairs, and the Governor's Office of Tourism, Trade and Economic Development. The DEO has a total staff of 1,600 people from the various branches that have been merged. The LSCU GA team is working to set up a meeting with Director Darling to discuss how credit unions can be involved in economic development in Florida.

More News on the State Budget
Florida’s economists will once again meet this week to come up with new general revenue estimates, the main building block of the state budget. Taxes that make up the general revenue fund have been dropping the last two months, not a good sign for the previous budget estimate which projected a surplus for the coming year. The economists will meet Oct. 11 at 9 a.m. in room 301 of the Capitol Building. Gov. Rick Scott will be using these estimates when coming up with his 2012-13 budget recommendations.

If you have any questions on any of the legislative issues mentioned above contact LSCU Director, Legislative Affairs Jared Ross at 866.231.0545, ext.1012. [ Return to Top ]

News from the Hill: House considering significant bills, including hearing on MBLs

On Wednesday at 2 p.m., the Subcommittee on Financial Institutions and Consumer Credit will hold a hearing on H.R. 1418, the Small Business Lending Enhancement Act. Jeff York, president/CEO of Coasthills FCU in Lompoc, CA will testify on behalf of CUNA. The League will be closely following this hearing, and will be reaching out to our Congressional delegations to show them the importance of Member Business Lending (MBL). Although this is a hearing only, and there will not be a vote on the bill itself, this is an important step in the progress of increasing MBL for credit unions. The LSCU will have a full report on the outcome of the hearing after Wednesday.

Washington Update

On Tuesday, the House is expected to complete consideration of the EPA Regulatory Relief Act and begin consideration of the trade agreements with Colombia, South Korea, and Panama. On Wednesday and the balance of the week, the House is expected to complete consideration of the trade agreements and then consider H.R. 358, the Protect Life Act, and H.R. 2273, the Coal Residuals and Management Act. When the House completes its business for the week, it will stand in recess until the week of Oct. 24.

The Senate also returns Tuesday and will vote on the Chinese Currency Act and judicial nominations. The Senate is then expected to take a vote on the motion to proceed to consider the president’s jobs package. The legislative program beyond Tuesday is not clear, but debate will likely center around job creation legislation. The Senate will be in session next week and then out of session the week of Oct. 24.

Committee Hearings
The hearings that the League is following this week are all in the House Financial Services Committee, which will hold three hearings on Wednesday, Oct. 12. At 10 a.m., the Subcommittee on Financial Institutions and Consumer Credit will hold a hearing on “Regulatory Impediments to Job Growth.” At 1 p.m., the Subcommittee on Oversight and Investigations will hold a hearing on “Oversight of the Federal Home Loan Banks.” 

For questions about the News from the Hill update, contact LSCU SVP, Governmental Affairs Will McCarty at 866.231.0545, ext. 2137.

[ Return to Top ]

Compliance Corner
League InfoSight highlight: Accounts and Advertising channels updated

The current edition of the League InfoSight newsletter covers the review and updating of the Accounts and Advertising channels. 

For the Accounts channel, the edits include updating links to the laws and regulations throughout the channel. Where necessary, each topic’s summary was updated.

For the Expedited Funds Availability: Regulation CC topic, a new page was created for “Proposed Changes Pending.” Additional edits for this topic include updates to the following:

  • Summary
  • FR Check Processing
  • Charts
  • Checklist
  • FAQs

To find out about the other channel updates and edits visit the latest edition of League InfoSight.

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.

  [ Return to Top ]

League meets with Alabama, Florida, NCUA regulators

(l to r) OFR Bureau Chief Bruce Ricca, OFR Director Linda Charity, LEVERAGAE Director, Compliance Solutions Rosanna Jacobsen, LSCU VP, Cooperative Initiatives Laura Vann and LSCU VP, Regulatory Affairs Bill Berg.

In late September, the LSCU met with Alabama, Florida and NCUA regulators as part of the League’s regular communications with each department. The League meets with the regulators to discuss issues and look ahead to potential issues down the road.

The League met with the Florida Office of Financial Regulation (OFR), The Alabama Credit Union Administration (ACUA) and NCUA Supervisory Examiners in each state. During each meeting, the League talked about upcoming issues and ways the League and LEVERAGE can help credit unions with products and services such as Comply Trac, League scholarships, the SAS Toolkit, InfoSight, Compliance Training, the Compliance Helpline, Custom Performance Reports, and Florida Economic Profiles.

Some of the areas of concern for OFR and ACUA were:

  • Increased scrutiny of BSA
  • Concerns about Interest Rate Risk
  • Concerns about enterprise risk management
  • Flat loan demand/commercial lending
  • Troubled Debt Restructuring (TDR)

LSCU VP, Regulatory Affairs Bill Berg and NCUA Supervisory Examiner Robert Parrish.

Meetings with NCUA Supervisory Examiners brought to light many of the same issues. However, credit unions can expect increased examiner attention to:

  • ALM program and interest rate risk
  • Enterprise wide shocks on credit risk
  • BSA on annual training for staff and volunteers and independent testing
  • TDRs on loan modification
  • Operating expenses for smaller and mid-size credit unions
  • Loan participations – FCUs can purchase (NCUA Rules and Regulations 701.23) where state credit unions must ask permission (NCUA R&R 741.8)
  • Robust documentation when not filing a SAR helps build confidence in your BSA program
  • TDRs are a concern and if your credit union makes an accommodation because a member is experiencing financial difficulty, your credit union should follow accounting guidance and treat this as a TDR

To read a full summary of the meetings, click here. If you have any questions, contact LSCU VP, Regulatory Affairs Bill Berg 866.231.0545 ext. 1028 or Director, Compliance Scott Morris at ext. 2165.  [ Return to Top ]

2011 InfoSight User Survey

As InfoSight continues to grow, the League needs to know how affiliates are using its resources. LSCU also needs to know what you want to see in InfoSight, what you like and don’t like about the site, and what changes you would like to see made to the current content.

Please take a few minutes to complete the 2011 InfoSight survey and help the League make it a more useful tool for you and your credit union.

Click here for the survey or copy and paste the following Web address into your browser:

http://www.zoomerang.com/Survey/WEB22CXYW4EHCH/

The survey will be available to LSCU affiliates through Friday, Oct. 21, 2011. [ Return to Top ]

Compliance calendar and training

Compliance Calendar

October 2011

    For the complete list of calendar dates and compliance trainings, visit the LSCU Compliance Calendar

    *Note - To view InfoSight content, it is required to log in to www.lscu.coop for access.

    [ Return to Top ]

    Cooperative Initiatives News
    Help kids in your community with SECUF, CU4Kids Holiday Icon Campaign

    The Southeastern Credit Union Foundation (SECUF) and the CU4Kids program would invites your credit union to participate in the FREE Credit Union for Kids’ Holiday Icon Campaign. This paper icon campaign is a great way to engage members in your fundraising initiatives. Your credit union can order paper icons in fun, holiday-themed shapes (football, snowflake, snowman, holiday light) for no charge. Then, encourage members to donate a dollar in exchange for writing their name on an icon you can proudly display in your branch.

    Your members want to see you doing good in the community, and they want to be involved as well. The Holiday Icon Campaign is an easy way to help your members feel good personally, and about your credit union!

    Order your FREE icons now to "sell" in your branch Nov. 1 – Dec. 31, or for any length of time you prefer. Click here for more information or contact SECUF Executive Director Amber Tynan at 866.231.0545, ext. 1154. Thank you for supporting the health of kids in your community! [ Return to Top ]

    Education News
    Educate your credit union with LSCU Council webinars

    LSCU Council Webinars
    October 11-13, 2011

    Register now for the LSCU Council webinars, one session is only $99 or attend multiple sessions for $149.

    By offering a webinar series, the councils were able to lower credit union expenses and provide extra opportunities for more staff within the credit unions to take part. Just like in face-to-face classes, LSCU Council webinars allow you to see and hear a presentation, ask questions of the instructor, and refer to handouts. You need only a speakerphone and computer with Internet connection.

    For more information on LSCU Councils webinars, click here, or contact LEVERAGE Director, HR Services/Executive Recruiter Lisa Hammock at 866.231.0545, ext. 1146. [ Return to Top ]

    Check out LSCU's educational offerings for 2012
    The 2012 LSCU Education Calendar at-a-glance is now available. The calendar is highlighted by the League's premier events:

    AL State GAC - April 4 - 5
    FL State GAC - Jan. 24 - 25
    LSCU AC&E - June 13 - 16
    LSCU Supervisory Comm. Conference - Aug. 5 - 9
    LSCU Development Conference - Nov. 7 - 9

    New events include: LSCU/CUES Executive Dialogue, Asset Liability Management Essentials & Advanced Workshops, and Collections & Bankruptcy School Conference.

    In addition to the upcoming year's events, the calendar reflects the prices of each event so credit unions can more easily budget for them. The 2012 webinar listing will be available in November. All webinars are currently priced at $200 per internet connection or $250 per internet connection & archived package. 

    The calendar also provides a listing of system partner events for 2012, such as CUNA GAC, SCUMA, Southeast Regional Director’s Conference, and more.

    Click here to view and print a PDF version of the calendar or check out the LSCU Event Calendar. [ Return to Top ]

    Education Calendar

    Upcoming Events:

    Wednesday, October 12
    Employee Leave: What You Need to Know about Vacation, Sick, Jury Duty, FMLA, Military & More
    3 to 4 p.m. EST -Webinar

    Thursday, October 13
    Mandatory Compliance Training Series: Job-Specific BSA Training for Lenders
    3 to 4 p.m. EST -Webinar

    Click here to view complete calendar of events.

    [ Return to Top ]

    LEVERAGE News
    CUNA Mutual Group CIO: Understand how technology trends can impact your credit union

    CUNA Senior VP/Chief Information Officer Rick Roy.

    Keeping track of technological trends was the core message presented recently, by CUNA Mutual Group Senior Vice President and Chief Information Officer Rick Roy, at the annual CUNA Technology Council Conference.

    Consumerization of IT is the increasing influence consumer products or technologies traditionally used by employees for personal use are having when they are brought into the corporate environment for business use, explained Roy. He identified social media, mobility, cloud computing, and data security/privacy as four key trends credit unions should closely monitor as consumerization evolves.

    “Social networks are changing how we talk, interact, sell, and build brands. The astounding reach social media has had on marketing and sales can create new opportunities for credit unions to reach new demographics, quickly and effectively,” Roy said.

    The same can be said with the explosion of mobility. With millions of mobile devices sold worldwide, smartphones and tablets are inescapable and a consumer-driven revolution. “Mobility is a powerful market differentiator for credit unions,” adds Roy.

    To read the complete CUNA Mutual Group news release, click here.  [ Return to Top ]

    Online Discovery: Data breaches now number one type of fraud

    CUNA Mutual Group Senior Risk Consultant Ken Otsuka presents at the Oct. 4 Online Discovery Conference.

    Data breaches have overtaken theft of physical assets as the number one fraud type, with most data theft occurring in the financial services industry. To avoid crippling financial damage and loss of member trust, credit unions must implement measures to prevent data breaches and have a solid mitigation plan if one occurs.

    Speaking to Online Discovery attendees Tuesday, CUNA Mutual Group Senior Risk Consultant Ken Otsuka cited the 2010 Annual Global Fraud Report by risk management consulting firm, Kroll, indicating the information-rich financial services industry leads the way in data theft incidents among various companies at 42 percent in 2010, increasing from 24 percent in 2009.

    “Data breaches have quickly become a top concern. They are increasing in frequency and severity in terms of number of records breached and recovery costs,” Otsuka said.

    Breaches can involve electronic data or paper and occur in many ways, including:

    • Lost or stolen disks, laptops and other data-bearing devices
    • Dishonest employees
    • System intrusions by hackers
    • Negligent disposal of data
    • Breaches at third-party vendors housing confidential personal member data.

    To read the complete release with more details on risk, click here.

    [ Return to Top ]

    News from You
    Insight CU releases new mobile banking application

    Insight Credit Union has launched a free mobile banking application with convenient, mobile access to the credit union from any device that has internet access including iPhones, iPods, iPads, Android phones, smartphones, or any web enabled phone.

    Through the Insight Credit Union app, members have the ability to access accounts and complete monetary transactions including:

    • View Account Balances
    • View Account History
    • Transfer Funds Between Accounts
    • Search For Branch Locations

    The Insight Credit Union Mobile Banking app is currently available for free through the Apple App Store and the Android Market.

    “Our members have been requesting a mobile app, and we are excited to respond to their needs and improve their access to the credit union. We are looking forward to continued development of the mobile app as we add even more features including Bill Payer and remote deposit capture later this year,” said Insight CU President/CEO George R. Davis. “Mobile banking will offer our members more convenience to conduct their transactions, while continuing to provide the exceptional service that Insight Credit Union is known for.” [ 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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