LSCU eSignal Weekly
LSCU eNews Weekly February 18, 2013
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LSCU eNews Weekly
In This Issue
President's Point
LEVERAGE hires new VP, looking at healthcare in 2013
LSCU Top Headlines
This week's top League headlines
Governmental Affairs News
This week in Alabama politics: School Flexibility Act debated, Session audio podcast available
This week in Florida politics: Public deposits filed in Senate
Florida State GAC room cut-off date extended until Feb. 22
CUNA GAC webinar on Wednesday
Compliance Corner
League InfoSight highlight: CUNA clarifies small servicer concerns
CUNA Regulatory Advocacy Report - Week of Feb. 18, 2013
Compliance calendar and training
Communications News
Who do you know worthy of recognition? Nominate them for one of the LSCU Awards!
Education News
IRA Essentials & Beyond Essentials training coming up Mar. 13-14 in Birmingham
Cooperative Initiatives News
NCUA to host free webinar on "Net Worth Restoration Plans: A Path to Recovery"
CUNA Committee nominations being accepted
LEVERAGE News
CUNA Mutual Group provides six steps to prepare for a cyber attack
News from You
Redstone opens branch in Guntersville
Tallahassee-Leon puts tree in lobby to kick off youth initiatives
EMPLOYMENT
View available credit union jobs
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President's Point

LEVERAGE hires new VP, looking at healthcare in 2013

In last week’s President’s Point, I updated you on the 10-percent dues rebate coming to our affiliated credit unions at the end of the first quarter. This rebate would not be possible without the good year that LEVERAGE, the League Service Corporation, had in 2012. In this edition, I want to talk more about the direction LEVERAGE is taking in 2013 and a new hire that will help shape our future on the for-profit side of the organization.

Last year, as we went through our normal review process for LEVERAGE, we noticed  some “gaps” in our business development processes. Our LEVERAGE staff has been doing a great job, but identifying new products that credit unions’ need through sound market research and product development was hindering our success. Last week, Kevin Lytle started as the new vice president of Innovation and Business Development. Kevin has worked with credit unions for most of his career.  Most recently, he spent seven years with WesCorp FCU and more than 14 years with CUNA in various marketing and sales roles.

Kevin will oversee LEVERAGE’s product development, marketing, and sales functions. With all three under one umbrella, we feel LEVERAGE can identify needed products, develop them, and get them to market in a more efficient and effective manner. LEVERAGE has a very good suite of products, but there are many more opportunities in the marketplace. A good example is the recent purchase of Credit Union Vendor Management (CUVM) by LEVERAGE and two other league service corporations. Most of CUVM’s customer base is out west, so this allows us to expand our CUVM client footprint while offering credit unions a much-needed product at an affordable price.

One of the new products that LEVERAGE is exploring is a healthcare option for credit unions. With healthcare costs rising yearly and new regulations expected when the Affordable Care Act (Obamacare) kicks in, LEVERAGE has identified a real need for credit unions. Right now we’re researching ways to bring credit unions together and help manage their costs.

This is one example of how LEVERAGE looks to work with credit unions to find solutions they need. Ventelligence and ComplyTrac are two good examples of LEVERAGE products that every credit union needs. Each streamlines processes at the credit union and frees up staff to concentrate more on member services. Ventelligence also includes ePurchasing to help credit unions come together to buy common services like armored car or ATMS, but at a much lower price. Is your credit union still paying full price?

When you purchase a product from LEVERAGE it has a direct correlation with the success of the League and the level of services we can provide credit unions without raising dues. This year’s dues rebate is a good example. Doing business with LEVERAGE is a win-win. You get a best-in-class product which in turn helps the long-term sustainability of the LSCU & Affiliates.

Send me any feedback to this column. [ Return to Top ]

LSCU Top Headlines
This week's top League headlines

Royce introduces MBL legislation again
Rep. Ed Royce (R-CA) re-introduced legislation to raise the member business lending (MBL) cap for credit unions. H.R. 688, if passed, would infuse $13 billion toward small businesses in the first year. Rep. Bill Posey (R-FL) is one of 41 to already co-sponsor the bill. Read more in the LSCU Top Stories

Supplemental capital bill introduced
HR 719 was introduced by Rep. Peter King (R-NY). It would allow credit unions access to alternative forms of capital. It is identical to the bill filed during the 112th Congress by Rep. King. The bill has 14 original co-sponsors including Rep. Bill Posey (R-FL). Read more in the LSCU Top Stories.

Credit unions back privacy bill
HR 749 was filed, which is identical to last year's HR 5817 legislation, and it would eliminate the need to send annual privacy notices should there be no changes from the previous year. This bill, filed by Rep. Blaine Leutkemeyer (R-MO), has 18 original co-sponsors including Rep. Alcee Hastings (D-FL). This bill passed the House last year but died due to lack of a Senate companion bill. Read more in the LSCU Top Stories.

February NCUA Report available
The NCUA has released its February NCUA Report. This month's report documents the raising of the small asset size credit union threshhold to $50 million and a new Consumer Reports video series. Read more by visiting the NCUA's website.   

  [ Return to Top ]

Governmental Affairs News
This week in Alabama politics: School Flexibility Act debated, Session audio podcast available

Legislature Week in Review
Last week the Republican Majority in the House and Senate continued to push their agenda through the legislative process. The House worked on a constitutional amendment strengthening the right to bear arms in Alabama, however the bill was carried over for future debate. Once all the sides get together and agree on the issue of guns and workplaces, this amendment will receive overwhelming support. The House also passed the School Flexibility Act. It was debated for over four hours due to strong opposition from the Alabama Education Association (AEA). In the end, the AEA did not have the votes to stop the measure. This legislation will now go to the Senate for its consideration.

The Senate passed its version of the School Flexibility Act out of committee on Wednesday, but it is a little different than the House approved bill. The Senate's version has an amendment that specifically protects teacher tenure and it is unsure whether they will add that language to the House version or if the House will accept the language. The Senate did pass legislation requiring the payback of the millions borrowed from the Alabama Oil and Gas Trust Fund in 2012. This legislation is expected to be the first passed by both houses of the legislature and signed by Gov. Bentley.

The House and Senate reconvene on Tuesday, Feb. 19 and plan a two day work week with committee meetings being held on Wednesday.

Session Podcast
The LSCU has a new audio podcast available that looks at this year's Alabama Legislative Session. LSCU Director, Governmental Affairs Jason Cochran talks with LSCU, VP, Marketing and Communications Mike Bridges about the session, what to expect, credit union legislation, and the importance of the Alabama State GAC. Cochran says that two pieces of proactive legislation for credit unions is expected this session. Listen to the entire podcast by visiting the LSCU Audio Room.

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: Public deposits filed in Senate

Public Deposits Bill Filed in the Senate
One of the LSCU’s top priorities for the 2013 Session has now been filed in the Senate. Sponsored by Sen. Rene Garcia (R- Hialeah), SB 918 is identical to the House bill already filed and would allow credit unions to become qualified public depositories. The LSCU Governmental Affairs team is working to secure Senate co-sponsors for this important legislation. The bill has yet to be referenced any committee assignments although it should be assigned soon.

2013 Session Outlook: State and Local Administration
State agencies and government employees always have a lot at stake when the Florida Legislature convenes, and although this year's agenda for government operations and state administration won't be as controversial as those Gov. Rick Scott put before lawmakers during his first two sessions, there are some major changes before the House and Senate. Gov. Scott and the Legislature's Republican leadership scored a major victory in the Florida Supreme Court when it upheld the three-percent pension payment that was extracted from employee paychecks by 2011 legislation. Without that, lawmakers would have been facing a budget hole of up to $2 billion. There will be continued pressure for privatization, particularly in prison health care, which has about 2,200 jobs at stake. Read more from The Current by Lobby Tools.

Freshman Lawmakers
Each election cycle a new crop of legislators make their way to Tallahassee. It can be difficult to follow. The League has put together a freshman legislator guide. View it in the LSCU Action Center under Legislative Resources. Download it and get to know who they are before the State GAC, March 19-20.

If you have any questions on any of the legislative issues mentioned above contact LSCU Director, Legislative Affairs, 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 ]

Florida State GAC room cut-off date extended until Feb. 22

The 2013 LSCU Florida State Governmental Affairs Conference (GAC), in Tallahassee on March 19-20, is quickly approaching. For those that are planning to attend and need a room, the cut-off date to secure a room at the State GAC price has been extended until Feb. 22. The rate is $199 at the DoubleTree Hotel. Call today and ask for the League of Southeastern Credit Unions' rate.  

Featured speakers include:

  • Jeff Awater, Florida CFO
  • Darrick McGhee, director of legislative affairs for Governor Scott
  • Marian Johnson, VP of political strategy for the Florida Chamber of Commerce

The State GAC will be at the Governor's Club in downtown Tallahassee. Visit the LSCU Events Calendar for more information and to register for the State GAC.

If you have any questions, contact LSCU VP, Governmental Affairs Jared Ross at 866.231.0545 ext. 1012.

Legislative reception sponsored by Print Resources. [ Return to Top ]

CUNA GAC webinar on Wednesday

The CUNA Governmental Affairs Conference (GAC) begins next week in Washington, D.C. The League wants to make sure that all credit union advocates have the necessary information needed to have a successful and enjoyable trip. The GAC is an opportunity to bring the credit union message to the forefront of the minds of federal lawmakers. It's also a great opportunity to hear from industry experts and great political figures, and to interact and network with other advocates from our two states and around the country.

Before you head to Washington, the League will host a short webinar with helpful information. The webinar is Wednesday, Feb. 20 at 2:30PM EST/1:30PM CST. A brief update on legislative issues and a schedule of events will be discussed on the webinar, plus League staff will answer any questions.

If you are attending the CUNA GAC join the League for the pre-GAC webinar on Feb. 20 at 2:30PM EST/1:30PM CST. Use this link to register for the webinar. Call-in information will be shown once you join. [ Return to Top ]

Compliance Corner
League InfoSight highlight: CUNA clarifies small servicer concerns
The CFPB's exemption for "small" mortgage servicers will not apply to a third-party subservicer if a credit union contracts with a third party that services more than 5,000 mortgages, the agency has clarified.

Under a final mortgage servicing rule released in January, mortgage servicers will need to meet new periodic statement requirements, provide additional notices of rate changes on adjustable-rate mortgage loans to borrowers and help ensure that consumers know their options to prevent foreclosures. The regulations are set to come into effect in January, 2014. The servicing rule contains a number of exemptions for credit unions and other financial institutions that meet the bureau's "small servicer" definition.

Subservicers that service more than 5,000 mortgages will need to comply with all of the regulation's requirements, CUNA Federal Compliance Counsel Colleen Kelly said. "Of course, a credit union needs to make sure that its contract with the subservicer assures compliance."

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 Feb. 18, 2013

Each week CUNA provides credit unions a wealth of information through its Regulatory Advocacy Report. The report for the week of Feb. 18 looks at a comment letter from CUNA to the CFPB for the Card Act, cyber security for financial institutions, and the first meeting of the Financial Literacy and Education Commission.  

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

Compliance calendar and training

February 2013

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 ]

Communications News
Who do you know worthy of recognition? Nominate them for one of the LSCU Awards!

Does anyone you know fit the description of one of the awards below?

  • Distinguished Service: An individual whose lifelong service to the credit union movement reaches beyond the natural person credit union. Their service is substantive and encompasses a productive, voluntary effort exceeding the duties of regular employment.
  • Professional of the Year: A professional that deserves recognition for their contributions to advance the credit union movement in their state and the nation.
  • Volunteer of the Year: A board volunteer (director) who has selflessly contributed time, effort, and talent to the development of the credit union movement in their state.
  • Young Professional of the Year: A professional, age 40 or younger, that has shown proven dedication and enthusiasm for the credit union movement.

If so, submit your nomination today! The deadline for entries is March 26.

Don't forget the three ways to submit an entry:

Visit the LSCU CU Awards Program web page for more information and entry/nomination forms on all listed awards. Questions? Contact LSCU Director, Information Services Amy Jowers at 866.231.0545 ext. 1020. [ Return to Top ]

Education News
IRA Essentials & Beyond Essentials training coming up Mar. 13-14 in Birmingham

IRA Essentials gives attendees a solid foundation of IRA knowledge. Beyond Essentials builds on the attendees’ knowledge of IRA basics to address some of the more complex IRA issues their credit unions may handle.

Location:
America’s First FCU
1200 4th Ave N
Birmingham, AL 35203

Registration Fee: $199 per person/per day | $349 per person/both days

Trainer: Paul Kern, IRA training consultant, Ascensus, Inc.

For more information about the IRA Essentials & Beyond Essentials training, click here. [ Return to Top ]

Cooperative Initiatives News
NCUA to host free webinar on "Net Worth Restoration Plans: A Path to Recovery"

The NCUA will host a webinar on  Wednesday, Feb. 20 at 2 p.m. EST on “Net Worth Restoration Plans: A Path to Recovery.” The agency’s Office of Small Credit Union Initiatives will review capital requirements for credit unions and the net worth restoration plan process. Here are some questions the session will address:

  • What are the most common causes of net worth declines?
  • What are the minimum regulatory requirements for net worth under Prompt and Corrective Action and Part 702 of NCUA's Rules and Regulations?
  • What is required in a net worth restoration plan and what are the timelines for submission?
  • Is there assistance available for credit unions developing a net worth restoration plan?

A staff member from a credit union that has gone through the process also will participate. Registration is free and you can sign up online. Popups need to be permitted.

Questions can be sent in advance to WebinarQuestions@ncua.gov with the subject line "Net Worth Restoration Plan Webinar." [ Return to Top ]

CUNA Committee nominations being accepted

Nominations to serve on a CUNA Committee are now open. Committee members appointed in 2012 will continue serving until new committees members are announced. The deadline for 2013 nominations for committee appointments is Friday, March 1. The 26 committees include audit, ethics, awards, corporate governance, and small credit unions.

Nominating is easy. Fill out this bio-data form so CUNA can gather the information needed to process appointments and to assist in determining areas of interest, expertise and availability. This form will also assist in completing the appointments in a timely manner.  Potential committee members should be knowledgeable, dedicated and familiar with the important issues that must be addressed.  

If you would like to submit a nomination, or need more information, contact LSCU VP, Cooperative Initiatives Laura Vann at 866.231.0545, ext. 2181.

A complete list of committees and members can be found on CUNA's website.
[ Return to Top ]

LEVERAGE News
CUNA Mutual Group provides six steps to prepare for a cyber attack

In 2012, cyber criminals, claiming to be politically motivated, conducted several well-publicized, large-scale attacks on national banks. Two credit unions were recent victims of these attacks. Defense Secretary Leon Panetta said the scale and speed of these attacks was unprecedented.

Criminal groups disrupted online service at the impacted financial institutions, while other criminal groups launched similar attacks which served as smoke screens on customer accounts that diverted funds to accounts held by criminals at other institutions.

Six steps credit unions can take to prepare for a cyber-attack:

  1. Don’t underestimate the threat of cyber-attacks
  2. Mitigate the risk of service interruptions caused by “distributed denial of services” (DDoS)
  3. Perform due diligence on third-party service providers
  4. Be prepared to provide timely and accurate information to members
  5. Check transfers initiated via online banking when an attack occurs
  6. Have a strong multi-factor authentication method in place for online banking systems

To read the full article by CUNA Mutual Group, click here. [ Return to Top ]

News from You
Redstone opens branch in Guntersville

Redstone FCU, based in Huntsville, opened a full-service branch office in Guntersville, AL. The grand opening ceremony and ribbon-cutting was held on Friday, Feb. 15 with local elected officials attending including Guntersville Mayor Leigh Dollar.

The branch offers financial products including loans, deposits, insurance and investments. It officially opened in December, 2012, becoming Redstone’s 23rd branch location.

“I am very excited that Redstone has found a home in the beautiful city of Guntersville,” Redstone FCU President and CEO Joseph H. Newberry said. “We have been building strong relationships with the Lake Guntersville Chamber of Commerce and area small businesses for many years. Establishing a branch in this area of strong growth was a logical next step for us.”

The branch is located in Southgate Plaza at 14218 A US Hwy 431 in Guntersville. [ Return to Top ]

Tallahassee-Leon puts tree in lobby to kick off youth initiatives

Tallahassee-Leon FCU, based in Tallahassee, is celebrating The Year of You. On Feb. 15, The Year of You announced a season of YOUth initiatives that included a 10-foot seasonal tree. The new lobby tree features four sets of interchangeable leaves to accompany the changes of the season. Embedded in the trunk of the tree are interactive games that reinforce age-appropriate concepts of financial literacy. The credit union will also kick off three new youth accounts to reinforce the credit union's emphasis on youth financial education: Seedling (1-6 years), Tree House (7-12 years), and Grow (13-17 years.)

"TLFCU is focused on all the seasons of our members' lives," says Tallahassee-Leon CEO Lisa Brown.  "We want to give the next generation a firm foundation in sound financial habits." [ Return to Top ]

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 CU Jobs Center page to view jobs at the LSCU. [ Return to Top ]

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