LSCU eSignal Weekly
LSCU eNews Weekly December 17, 2012
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LSCU eNews Weekly
In This Issue
President's Point
FDIC reducing its budget for 2013
LSCU Top Headlines
This week's top League headlines
Governmental Affairs News
This week in Alabama politics: State GOP under investigation, special election results
This week in Florida politics: Florida tops foreclosure list, Charlie Crist in 2014?
News from the Hill: Both chambers work hard on legislation prior to end of year
Register now for 2013 Credit Union Quail Hunt
Compliance Corner
League InfoSight highlight: ATM: Americans with Disabilities Act Requirements
CUNA Regulatory Advocacy Report - Week of Dec. 17, 2012
Compliance calendar and training
Education News
Make plans to attend 2013 AC&E, 'accelerate your performance'
Registration now open for January's Regulatory Compliance Update
Education Calendar
Cooperative Initiatives News
Filene Institute brings experiential learning program to CUs
LEVERAGE News
Overcoming vendor management challenges through automating process
News from You
USF FCU donates $300,000 to university foundation
Campus USA CU celebrates retirement of five long-time CU employees
EMPLOYMENT
View available credit union jobs
In This Issue
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President's Point

FDIC reducing its budget for 2013

I would like to start by wishing our Alabama and Florida credit union community, "Happy Holidays." This is the last eSignal before the New Year. Thank you for your affiliation with the League and your continued support for the LSCU & Affiliates. Last week we held LSCU and LEVERAGE board meetings in our Birmingham office. Among the meeting items, the boards approved 2013 budgets and strategic plan updates. More on our meeting in the next edition of eSignal.

You may have missed last week that the FDIC released its budget for 2013. It was pretty interesting contrasting the FDIC’s budget and the NCUA's, which was released in November. The NCUA came under fire for proposing a six-percent budget increase for 2013. This equates out to an increase of $14.5 million with $12.8 million going toward staff pay increases, employee benefits, and full funding for full-time employees that were only partially funded in 2012. The 7.5-percent pay increase portion of the budget is dependent on Congress approving pay raises for federal employees in 2013.  

On the other hand, the FDIC is decreasing its budget by nearly 19 percent. The FDIC is also reducing 687 staff positions with further cuts planned in 2014. The agency says it’s reducing its budget because the banking industry is stabilizing. This is the third straight year for the FDIC’s budget to decrease. To be fair though, the FDIC had increased its budget by 106 percent in 2009 and by 56 percent in 2010. The FDIC says that was due primarily to the failure of financial institutions at the time.

Now comparing the two budgets is difficult because the FDIC’s budget is $2.68 billion, and the NCUA's budget is $254 million. Plus, the NCUA separates out expenses related to credit union failures into the NCUSIF. The FDIC absorbs expenses related to bank failures into its main budget. However, what is interesting is that as the banking industry climbs out of financial hardships, the FDIC recognizes this and has been cutting its budget back.

The push back you hear from credit unions is that examiners are coming into their shops, pushing them to have tighter operational budgets and leaner staffs. To see the NCUA propose a 7.5-percent pay raise for those same examiners is a difficult pill to swallow for many credit unions. The NCUA has increased its budget for four straight years.

To the NCUA’s credit, I do think they have made many strides this year to improve examination practices and communication with the industry. However, we live in a world where perception is reality. The FDIC received much more positive PR for decreasing its budget while the NCUA is receiving criticism for its budget increase. It would be nice for the NCUA to recognize how it’s perceived by credit unions and begin to adjust its budget down as credit unions recover from the recession.

Please have a safe and happy Christmas and New Year.
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LSCU Top Headlines
This week's top League headlines

AL/FL credit unions add members in 3Q
The surge in new members continues for Alabama and Florida credit unions. More than 50,000 new members joined in the third quarter bringing the yearly total to more than 165,000 new members between the two states. Member business lending is up nearly eight percent combined in Alabama and Florida. This is five straight quarters now with positive growth. Read more by clicking here

TAG legislation fails budgetary vote
This week, credit unions got positive news and banks got a little negative news when legislation to extend the Transactional Account Guarantee (TAG) program failed. For more on this story, click here.

LSCU Quarterly Update webinar tomorrow
Join the LSCU for its Quarterly Update webinar on tomorrow at 3 p.m. EST/2 p.m. CDT. The League's Quarterly Update will last just about an hour and provides a greater perspective on the priorities the League is working on for credit unions. Click here for a link to the webinar.

Privacy Notice bill passes House
The U.S. House has passed a piece of legislation that will be helpful to credit unions. To find out more about this legislation, click here.

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Governmental Affairs News
This week in Alabama politics: State GOP under investigation, special election results

Alabama GOP Under Investigation
Last week, Alabama Republican Party Chairman Bill Armistead informed members of the state’s steering committee that the party’s financial records are under investigation by the Alabama Attorney General’s office. The subpoena reads that the records were requested as part of a grand jury investigation into campaign activities during the 2010 election cycle. Attorney General Luther Strange has not commented on the matter.

Much of this stems from recent infighting with the Republican Party over an internal financial audit conducted by Armistead shortly after he took office in 2011. The audit has been a source of contention between the chairman, House Speaker Mike Hubbard (R-Auburn), and Senate President Pro Tem Del Marsh (R-Anniston). Last week Hubbard and many other Republican leaders endorsed Armistead’s opponent in the upcoming election for chairman. Hubbard has not wavered in his defense against speculation of improprieties with the 2010 elections. The audit will be released today and can be viewed at the party’s headquarters in Birmingham.

Special Election Results and Update
Two special elections were held last week to fill vacancies in the Alabama House of Representatives. In House District 30, Republican Mack Butler defeated Democrat Beth McGlaughn 53. 4 percent to 46.6 percent. HD 30 includes parts of Etowah and St. Clair Counties. In House District 34, David Standridge defeated Chris Latta 54.8 percent to 45.2 percent in the Republican Primary Run-off election. There was no Democratic opponent in the HD 34, which includes parts of Blount and Jefferson Counties, race. Both Butler and Standridge will now represent their districts during the 2013 Legislative Session in Montgomery.

Qualifying for Senate District 35, which is Mobile County, is complete and three Republicans will face-off for the seat in the Alabama Legislature. Current Rep. Jim Barton, Bill Hightower, and Nick Matranga will meet in the Republican primary on Jan. 29, 2013. If one of the three receives more than 50 percent of the vote, there will be no run-off, and that person will be the newly elected senator from Mobile. If no one receives a majority, the run-off will be on March 12, 2013.

Follow the GA team legislative updates on Twitter and Facebook.

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

This week in Florida politics: Florida tops foreclosure list, Charlie Crist in 2014?

Florida Tops Foreclosure List
There were 29,612 foreclosure filings in Florida in November – one in every 304 housing units in the state, according to a report released Thursday by the foreclosure tracking company RealtyTrac. It marks the third straight month Florida has held the highest foreclosure rate in the country. Florida’s filings – default notices, scheduled auctions, and bank repossessions – increased 20 percent year over year, and its rate is more than twice the national average. Nationwide, foreclosure activity dropped 19 percent from November 2011. The average foreclosure in Florida still takes more than two years to go through the court system, and state economists project the glut of foreclosures continuing to hit the market to keep home prices flat over the next two years. The LSCU Governmental Affairs team expects legislation to be introduced in the upcoming session that will attempt to further address the foreclosure problem.

Poll: Charlie Crist is Top Democrat in the 2014 Governor’s Race
A poll indicates ex-Florida Gov. Charlie Christ, now a Democrat, leads the party in a potential 2014 run for governor. Republicans are quick to label Crist a flip-flopper;  "Once again, Charlie Crist is showing he has two faces on any issue. When Charlie Crist wanted Republican [and Independent!] support, he took a strong, pro-family stance against legalizing gay marriage. But today, he flipped yet again," the Republican Party of Florida's release stated. The GOP release came on the same day a firm headed by former Florida Democratic Party Executive Director Screven Watson conducted a poll for an unnamed client. The poll of 1,000 Democrats indicated Crist had a huge lead over other Democrats, including a 25 percent advantage over Alex Sink, the party's 2010 gubernatorial nominee. The poll was conducted Dec. 4-9, and has a margin of error of 3.1 percentage points.

Reminder: 2012 CUPAC and Fed PAC Contributions Still Accepted
Although the official deadline has passed, the League is still accepting contributions to both CUPAC and LSCU Fed PAC. It is very close to reaching 100 percent of its goal, and every dollar will make a difference. Consider making a corporate or individual contribution today! Contribution forms and a link do donate can be found at the LSCU Action Center. If you have any questions or need more information please contact LSCU Grassroots and PAC Coordinator Andy Gonzalez at 866.231.0545 ext. 1010.

Should you have any questions on any of the legislative issues mentioned above, contact LSCU VP, Governmental Affairs Jared Ross, 866.231.0545 ext.1012, or LSCU Director, Legislative Affairs - FL Jennifer Martin, 866.231.0545 ext. 1150.

Don't forget to follow developing news and legislation updates from GA on Twitter and Facebook.  [ Return to Top ]

News from the Hill: Both chambers work hard on legislation prior to end of year

Congress has blown past its target adjournment date of Dec. 14, and both chambers will be in session this week. The House leadership has indicated they intend to keep the lower chamber in session until a resolution to the fiscal cliff is reached. It is quite possible Congress will work through the weekend; it is also possible that the chambers will reconvene next week, after Christmas. With Congress still in town, the League continues to seek ways to advance the MBL legislation before adjournment; it is also working to get the privacy notification bill, which was passed by the House last week, through the Senate. Congress faces the expiration of many tax provisions on Jan. 1; sequestration takes effect on Jan. 2; and 112th Congress ends at Noon on Jan. 3. The next two weeks could be interesting.

Floor Schedule
The House returns Monday and considers several bills under suspension of the rules. Tuesday and Wednesday, the House will consider additional bills under suspension of the rules. Later in the week, the House will consider the Conference Report on H.R. 4310, the National Defense Authorization Act for Fiscal Year 2013.
 
The Senate meets Monday to consider judicial nominations. The Senate will begin consideration of H.R. 1, the legislative vehicle for the disaster supplemental appropriations bill. Debate on this measure is expected to continue throughout the week.

Committee Meetings
The Senate Banking Committee will have three hearing this week. On Tuesday, it will have a hearing titled, "Computerized Trading Venues: What Should the Rules of the Road Be?" On Wednesday, it will have a hearing titled, "Making Sense of Consumer Credit Reports." Finally, on Thursday, it will hold a hearing on "Recovering from Superstorm Sandy: Rebuilding Our Infrastructure."
 
TAG Update
As the League stated last week, the bank lobby suffered a major setback as the Transactional Account Guarantee (TAG) program legislation, S. 3637, failed to move forward when the U.S. Senate voted against waiving a budgetary point of order brought forth by Republican Pennsylvania Sen. Pat Toomey. While the TAG legislation appears dead, the League continues to monitor any efforts by the banks to revive the legislation.

Sen. Bill Nelson (D-FL) voted in favor of waiving the point of order while Sens. Marco Rubio (R-FL), Jeff Sessions (R-AL), and Richard Shelby (R-AL) voted against waiving the budgetary point of order. While Sen. Nelson did not vote with credit unions on this issue, he is still a strong supporter of credit unions and voted in favor of allowing the bill to head to the floor, not necessarily in favor of the underlying legislation.

Please take a moment to thank Sens. Rubio, Sessions, and Shelby for not allowing yet another bank bailout by sending a quick email to their offices. Click on the highlighted name to send the email.

For questions regarding the News from the Hill Update, contact LSCU VP, Governmental Affairs Jared Ross at 866.231.0545 ext. 1012 or LSCU Director, Governmental Affairs - AL Jason Cochran at ext. 2159. [ Return to Top ]

Register now for 2013 Credit Union Quail Hunt

The League is proud to present the 2013 Credit Union Quail Hunt for LSCU FEDPAC. It will be held at Doublehead Resort in Town Creek, AL; one of the best spots on the Alabama Quail Trail. There will be three half-day hunts offered (two on Friday and one on Saturday) with a trap shooting competition on Saturday afternoon. There will also be a dinner on Friday, Jan. 18 for all participants and sponsors. This will be a great opportunity for credit union executives, board members, and vendors to network.

Half-day hunts are $290 per hunt with proceeds going to the LSCU FEDPAC. Each hunt includes a Doublehead hat, dogs, snacks, cleaning and packing of your birds, and entry into the Trap Shooting Contest to be held on Saturday afternoon. There will be clays for sale for any hunter who would like to brush up on their shooting skills before or after their hunt.

Join the League at Doublehead Resort on Jan. 18-19 for what is sure to be a great event. Registration ends on Friday, Jan. 4. Click here for more information on registering or contact Alabama PAC & Grassroots Coordinator Blake Westbrook at 866.231.0545 ext. 2164. [ Return to Top ]

Compliance Corner
League InfoSight highlight: ATM: Americans with Disabilities Act Requirements
The Justice Department is responsible for issuing Americans with Disabilities Act (ADA) regulations.

Any credit union with an Automated Teller Machine (ATM) is required to meet the standards defined by the U.S. Access Board's Accessibility Guidelines. These guidelines have specific requirements for ATMs to meet regarding such things as height, input devices, and approach space. Failure to meet these standards can result in civil fines and injunctions requiring compliance.

To find out more about ATM requirements for ADA regulations, visit League InfoSight.

The current issues of the InfoSight eNewsletter for Alabama and Florida are now available on the InfoSight homepage in the left-hand column. Members must login to the League website with username and password in order to access InfoSight. After you are logged in to www.lscu.coop, click on the InfoSight tab. If you do not have access to the League website, click here to sign up.

  [ Return to Top ]

CUNA Regulatory Advocacy Report - Week of Dec. 17, 2012

This week's edition of the CUNA Regulatory Advocacy Report covers issues such as: NCUA launches budget webpage, CFPB may allow financial services companies to float trial disclosures, CUNA plans more outreach to credit unions on CFPB International Remittances Rule, and more.

To read the most recent CUNA Regulatory Advocacy Report, click here. [ Return to Top ]

Compliance calendar and training

December 2012

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

*Note: To view InfoSight content, it is required to log in to www.lscu.coop for access. [ Return to Top ]

Education News
Make plans to attend 2013 AC&E, 'accelerate your performance'

Mark your calendars, save the date, and tell your colleagues! The 2013 LSCU AC&E is scheduled for June 12-15, in Orlando. Themed "Accelerate Your Performance," the AC&E promises education sessions and networking opportunities that will provide credit union staff and directors the resources to enhance credit union performance. 

In January, the League will announce the impressive, high-flying keynote speaker who knows the true meaning of acceleration!

Stay tuned to eSignal and the AC&E website for more information! [ Return to Top ]

Registration now open for January's Regulatory Compliance Update

Registration is now available online for the LSCU Regulatory Compliance Update, January 16, 2013, in Mobile, AL.

Compliance veteran Rob Rutkowski will provide the latest on what you need to know across a wide spectrum of compliance issues for 2013. The Consumer Financial Protection Bureau (CFPB) now has the mandate it needs to dramatically change consumer lending. Much of a typical credit union’s lending forms will need to be changed. Find out which ones and learn about what is happening to Regulation Z.

Click here for more session details and to register. [ Return to Top ]

Education Calendar

Upcoming Events:

Tuesday, Dec. 18
New Reg. E Requirements for Foreign Remittance Transfers
3 to 4:30 p.m. EST - Webinar

Wednesday, Dec. 19
Bankruptcy Today: Reporting, Proof of Claims & Identifying Fraud
3 to 4:30 p.m.

To view the complete LSCU Events Calendar, click here. To view LSCU's 2013 Education Calendar at-a-glance, click here.

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Cooperative Initiatives News
Filene Institute brings experiential learning program to CUs

Traditional financial literacy outreach, especially to large groups like students and SEG employees, often falls short. Filene Research Institute is offering an experiential learning colloquium for credit unions in the form of "learning through doing." The program is Jan. 31, 2013, in Atlanta.

This experiential learning colloquium will explore the foundations of the craft and help you ensure that the money you spend reaching out to members actually helps them to make better decisions.

For more information about the program and speakers, click here. To register for the colloquium, click here.

  [ Return to Top ]

LEVERAGE News
Overcoming vendor management challenges through automating process

With LEVERAGE's contract management solution, Ventelligence, the transfer of contract information can be as easy as sending an email. If vendor contracts and information are stored within a spreadsheet program or can be put into such a format, the team at LEVERAGE can quickly and easily upload the data into the Ventelligence system.

After the contract information is entered into the Ventelligence system, credit unions can:

  • Create additional contract records for any agreements moving forward
  • Attach the scanned contract and other relevant documents to the contract record
  • Receive automated trigger emails for key dates/timeframes
  • Complete vendor risk assessments 
  • Answer NCUA-required due diligence questions about vendors

The Ventelligence system does allow credit unions to enter contract information manually; however, the ability to upload contracts from a spreadsheet makes contract management activities more efficient and powerful.

For more information about this service, contact a LEVERAGE Business Development Consultant.

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News from You
USF FCU donates $300,000 to university foundation

USF FCU announced it is giving $300,000 to the University of South Florida’s USF Foundation to support scholarships and programs within the Morsani College of Medicine and to provide passport scholarships for USF System undergraduates.

The gift will provide support for USF health events and programs, which include the CAMLS Entrepreneurial Leadership Program, Research Day, and USF Health Length of Service. It also will create scholarships for Morsani College of Medicine Students, and will support students within the Scholarly Excellence, Leadership Experiences, Collaborative Training program (SELECT).

The USF FCU gift will support a new passport scholarship fund that will enable undergraduate students throughout the USF system to study abroad. [ Return to Top ]

Campus USA CU celebrates retirement of five long-time CU employees


Pictured: Mary Anderson, Kathy Hunt, Judy Rankin, Glenda Jones, Bud Bridges, Campus USA President/CEO Larry Scott, and Lyle Schreck.

Campus USA CU, based in Gainesville, celebrated the retirement of five employees who have, collectively, more than 130 years of experience at the credit union. The celebrants were given a nice retirement reception and luncheon in their honor at the credit union’s headquarters.

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EMPLOYMENT
View available credit union jobs

To view available jobs posted by credit unions on the LSCU website, visit the LSCU CU Jobs Center. Click the link at the top of the page to view jobs at the LSCU. [ Return to Top ]

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