LSCU eSignal Weekly
LSCU eNews Weekly March 11, 2013
home button press room button contact us button
LSCU eNews Weekly
In This Issue
President's Point
My conversation with CFPB Director Richard Cordray
LSCU Top Headlines
This week's top League headlines
Governmental Affairs News
This week in Alabama politics: Democrats filibustering legislation
This week in Florida politics: Public deposits to have committee hearings this week
Washington Update: Privacy notice legislation could be in the House this week
Alabama State GAC hotel room rate cutoff date extended to March 23
Florida State GAC is next week, still time to register
Compliance Corner
League InfoSight highlight: Collections made easy
Compliance calendar and training
Communications News
Entries being accepted for LSCU/CUNA Awards
AC&E News
Top ten additions to the AC&E to enhance your experience
Education News
Wondering what educational opportunities are coming up? Check them out below.
Cooperative Initiatives News
LSCU's SAS Workshops for CUs under $50 million in assets in Birmingham
Financially Fit day coming April 3
LEVERAGE News
Shared branching reaches 5,000 locations
News from You
ASE EVP and COO to retire
Wiregrass chapter hits the road for charity
Tropical Financial raises $7,000 for Relay for Life
EMPLOYMENT
View available credit union jobs
In This Issue
spacer
eNews Links
Forward to a Friend
Print Version
Unsubscribe from
LSCU eSignal Weekly
Be sure to follow LSCU:
Social Networking Links
Patrick La Pine on Twitter
eNews Links
spacer
President's Point

My conversation with CFPB Director Richard Cordray

I got an interesting call Friday. Consumer Financial Protection Bureau (CFPB) Director Richard Cordray called to chat. He wanted to discuss the CFPB and how credit unions in Alabama and Florida were feeling about the agency. We had a very good talk. Over the past 12 months, we’ve worked hard to get our credit unions in front of the agency.  Alabama and Florida credit unions have met with the agency three times, including once in Washington, D.C. This call is a continuation of our outreach efforts and the relationship we’ve built with the agency.

One thing I let Director Cordray know is that we appreciate how the agency has been including credit unions from the outset in rule making. They set up an advisory group made up of credit unions. I made sure to emphasize that we were disappointed that no one from our states was represented, but he ensured me that when they look to expand the group, we would be included.

An area where credit unions feel the bureau could do a better job is with remittance transfer payments. Right now the proposed regulations have missed the mark. The 100 transfers per year exemption level is too low, even though the agency made a number of changes to lessen disclosure burdens and liability that we asked them to consider. When a credit union or other entity provides a service for free or much less than what other competitors provide it for, the credit union should be subject to less burdensome requirements. Director Cordray agreed that the proposed rule could be better and has delayed its effective date. He said the agency would welcome a legislative fix if lawmakers would be willing to pursue. This is something we will follow-up to CUNA.  

Overdraft fees have been a hot button issue over the past two years. The CFPB announced early on that it was looking into more regulations on overdraft fees. We had a good conversation about them and what an important part it play in credit unions' non-interest income during the recession and still places with low loan demand. He said any action on overdraft fees is not on their radar right now and admitted that members (consumers) seem to understand the product, what they pay, and are OK with it.   

Alabama leads the nation in payday lenders per capita and I expressed my hope that the agency will begin focusing on payday lenders and other abuses in the marketplace. He said we could expect a new rule affecting payday lenders later this year. I also expressed my concern with non-financial institutions like Wal-mart and Target preforming financial services, but without the regulation credit unions and banks are subject to.  He agreed, but I got the sense the agency is not ready to take on Walmart anytime soon.

As we finished up our conversation, my hope is that this will lead to more regular interaction with Director Cordray. The CFPB and the League have worked together quite a bit to get Alabama and Florida credit unions in front of the bureau. I told him that the CFPB is credit unions number one concern and his agency’s “Mission Creep” to CUs under $10 Billion in assets has caused much angst throughout the industry.  I encourage the CFPB to work with Congress to clarify the agency’s exemption authority as it relates to credit unions.

We ended the call agreeing to keep our lines of communication open  He said the agency may be reaching out to us for help on something in Florida next month.  I wished him well on his confirmation hearing, which is scheduled for March 12 before the Senate Banking Committee.

Where’s Patrick?: this week I will be in the Tallahassee office for a couple of days and then in Miami for the LSCU/CUES/MCUL Credit Union Executive Dialogue. You can see my schedule for the next two weeks by clicking on “Where’s Patrick?

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

LSCU Top Headlines
This week's top League headlines

March NCUA Report available
The March issues of the NCUA Report contains the agency's audit information, a final push on Earned Income Tax Credit and new investment options for credit unions. The report is great for CEOs, staff and directors. You can access the issue by visiting the NCUA's website.  

BSA e-filing deadline approaching
Financial Institutions are reminded by the Financial Crimes Enforcement Network (FinCEN) that BSA e-filings are due April 1. Financial institutions must begin using the new FinCEN reports, which are available only electronically through the BSA E-Filing System, by the first of  April. Check out the FinCEN website for more information. 

CUSC of Alabama to pay dividend
Credit union Service Centers (CUSC) of Alabama announced that it would pay its member credit unions a patronage dividend for the third straight year. This year's dividend will be 20-percent higher than in 2012. The amount each credit union receives is based on the number of transactions performed last year. You can read more in the LSCU Top Stories.

Longtime Redstone Chairman passes away
Charles L. Ray, Jr., chairman of the board of directors of Redstone Federal Credit Union, passed away last  week. Mr. Ray had been chairman of Redstone from 1983 until 2011. He began in 1977 as a volunteer on one of Redstone's committees. During his board tenure, Mr. Ray oversaw exponential growth of the credit union and guided its transformation into the largest in Alabama, and one of the 25 largest federal credit unions in the country. You can read more in the LSCU Top Stories.  [ Return to Top ]

Governmental Affairs News
This week in Alabama politics: Democrats filibustering legislation

Legislative Update
The Alabama Legislature returned to work last week to resume the 2013 Legislative Session. The House and Senate continue to gain attention to see what fallout may occur after the controversial vote on The Alabama Accountability Act, HB 84. Last week a circuit judge in Montgomery County placed a restraining order on the legislation preventing it from being transferred to Gov. Robert Bentley’s office. Republican leadership in the House and Senate have appealed the decision to the Supreme Court. They are waiting on arguments and rulings. In the meantime, both chambers of the Alabama Legislature slowed to a crawl due to filibuster’s led by the Democratic Minority. There doesn’t appear to be an end in sight. The Democrats have promised to keep this tactic going until the end of the session.

Credit Union Legislation
The LSCU continues to work on legislation that benefits Alabama’s credit unions. Legislation regarding presentment services, minor accounts for children, electronic lien and title programs, elder abuse, and direct deposits for municipal employees, just to name a few, have been introduced this session. The League has vetted all of the bills to make sure that they do not harm credit unions or put any unnecessary burden on credit union operations. In the coming weeks, the League expects to have bills filed dealing with the Alabama State Credit Union Act and Public Deposits.   

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 to have committee hearings this week

Public deposits legislation to be heard in the House and Senate this week
House Bill 251, legislation that would make credit unions qualified public depositories, will be heard this Wednesday, March 13, in the House Insurance & Banking Subcommittee. The League's Governmental Affairs team is pushing hard for this legislation. A targeted grassroots action alert for certain committee members is being issued and an aggressive media campaign is being waged. An op-ed by LSCU President/CEO Patrick La Pine has been picked up by the Florida Trend, as well as in Tallahassee, Miami and St. Petersburg. Anyone reading this story should contact their legislators, particularly those who sit on the subcommittee. The bankers are fiercely opposed to this legislation and are working tirelessly to defeat it. They have engaged in a strong grassroots campaign and are hosting their annual lobby day in Tallahassee this Wednesday, with over 100 members expected to attend. It's anticipated to be another extremely close vote and the League needs your help and support to move this bill to the next committee.

The Senate version of the bill will be heard Thursday morning in the Senate Banking and Insurance Committee. Go to the LSCU Action Center and click on "My Advocacy" to send a note to your legislator. 

Expedited foreclosure bill moving toward state House approval
House Bill 87, dubbed the mortgage foreclosure bill and sponsored by Rep. Passidomo (R-Naples) received a favorable response from two state House committees and has one more stop before it goes to the full state House for a vote. The bill, which the sponsor says is substantially similar to one proposed during the 2012 legislative session, would shorten the period of time banks can collect losses from five years to one; require banks to produce the note at the time of the foreclosure filing; and allow additional lien holders, like a homeowner association, to initiate the foreclosure process. The proposed legislation, Passidomo said, would allow the judge to enter a final judgment quickly if the lender feels the borrower has no defense. The Naples News has the full story.

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. Get in on the conversation and get developing news and legislation updates from GA on Twitter and Facebook.

[ Return to Top ]

Washington Update: Privacy notice legislation could be in the House this week

Privacy Notices Bill Nears Vote
H.R. 749
, the Eliminate Privacy Notice Confusion Act, is scheduled to be in front of the full  House on Tuesday. Friday the House announced that the item is on its suspension calendar for that day. The bill currently has 48 cosponsors, including five from Florida (Reps. Hastings, Ross, Wasserman Schultz, Nugent and Bilirakis). While there are currently no co-sponsors from Alabama, the League is asking credit unions to contact their lawmakers today to ask for their support on this issue.

CUNA and the League support the bill, which would eliminate repetitive privacy notices by eliminating a requirement that the notices be sent annually. Under the terms of the bill, privacy notices would only be sent when the privacy policy of a financial institution has changed. Citing statistics that showed more consumers would read privacy notices if they were sent only when account terms changed.

A Senate companion bill is expected to be introduced in the near future, perhaps as early as this week.

Floor Schedule

The House will meet at noon tomorrow to consider legislation under suspension of the rules. Two of these bills have financial services implications:  H.R. 749, the Eliminate Privacy Notice Confusion Act and H.R. 1035, which would require a study of voluntary community-based flood insurance options and how such options could be incorporated into the national flood insurance program.  On Wednesday and the balance of the week, the House is expected to consider H.R. 890, the Preserving Work Requirements for Welfare Programs Act of 2013, and H.R. 803, the Supporting Knowledge and Investing in Lifelong Skills (SKILLS) Act.

The Senate begins at 2 p.m. today for confirmation for Richard Gary Taranto, of Maryland, to be U.S Circuit Judge for the Federal Circuit and Andrew Patrick Gordon, of Nevada, to be U.S District Judge for the District of Nevada.  The Senate is also expected to begin consideration of H.R. 933, the continuing appropriations bill passed by the House last week.

Committee Meetings
On Tuesday, the Senate Banking, Housing and Urban Affairs Committee will hold a hearing on the nominations of Richard Cordray, director of the CFPB and Mary Jo White, to be a member of the Securities and Exchange Commission.

On Wednesday, the House Financial Services Committee Housing and Insurance Subcommittee will hold a hearing on "Mortgage Insurance: Comparing Private Sector and Government-Subsidized Approaches."

On Thursday, the House Financial Services Committee Oversight and Investigations Subcommittee will hold a hearing on "Who is Too Big to Fail? GAO's Assessment of the Financial Stability Oversight Council and the Office of Financial Research."  The House Judiciary Committee Courts, Intellectual Property and the Internet Subcommittee will hold a hearing on "Abusive Patent Litigation: The Impact on American Innovation & Jobs, and Potential Solutions."  The Senate Small Business and Entrepreneurship Committee will hold a hearing on small business access to capital and disaster recovery.  Finally, the Joint Economic Committee will hold a hearing on solving the federal debt crisis.

Contact LSCU VP, Governmental Affairs Jared Ross at 866.231.0545 ext. 1012 with any questions.

  [ Return to Top ]

Alabama State GAC hotel room rate cutoff date extended to March 23

March 23 is the new hotel room rate cutoff date for the Alabama State Governmental Affairs Conference, in Montgomery, AL, April 9-10, 2013.

Make your hotel reservations now as the cutoff date is approaching quickly! Rooms are available at the Embassy Suites Hotel.

Location & Hotel Accommodations:
Embassy Suites Montgomery Hotel & Conference Center
300 Tallapoosa Street
Montgomery, Alabama 36104
800.362.2779

Group Room Rate: $129
Group Code: SCU
Cutoff Date:
March 23

Registration Fee: $99/person

Visit the LSCU Events Calendar for more information or click here.
[ Return to Top ]

Florida State GAC is next week, still time to register

The 2013 LSCU Florida State Governmental Affairs Conference (GAC), in Tallahassee on March 19-20, offers credit unions an opportunity to go deeper into the issues facing credit unions while also building relationships with state lawmakers.

The agenda includes Florida CFO Jeff Atwater, Darrick McGhee, director of legislative affairs for the Office of the Governor and Marian Johnson, SVP, Political Strategy for the Florida Chamber of Commerce. There will be a lawmaker reception on March 19.  

Location:
Governor’s Club
202 South Adams St.
Tallahassee, FL 32301

Registration Fee: $99/person

For more information and to register visit the LSCU Events Calendar or click here.

The Tallahassee Chapter of Credit Unions will be holding it's annual golf tournament March 18. Plan to come early to play in the tournament and then attend the Florida GAC. To find out more about the tournament and register, click here. Questions? Contact Allison Tremper at FSU CU.

Florida State GAC lawmaker reception sponsored by Print Resources.  [ Return to Top ]

Compliance Corner
League InfoSight highlight: Collections made easy

Collection calls are one of the most uncomfortable tasks for a financial institution. However, it is a necessity. To help make a calm telephone call, and a more efficient use of your member’s time (and yours), a Collection Practices page was recently added to the Bankruptcy and Collections channel of League InfoSight.

The Collection Practices page provides seven rules that you can follow when you need to make a collection call. Among the rules listed:
  • Always verify that you are speaking with the member. Discussing a member’s finances with a third party violates privacy laws
  • Keep your voice businesslike. This is particularly significant because at times a member will become upset and angry and use defensive tactics
  • Always let members tell their side of the story. The most effective way for a collector to proceed is to hear the member out and then get to the task of bringing the account up-to-date.
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 ]

Compliance calendar and training

March 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
Entries being accepted for LSCU/CUNA Awards
  • Do you know a CU professional or volunteer that has made an outstanding contribution to the CU movement?
  • Has your CU shown excellence in day-to-day operations, community outreach, and financial prowess during 2012?
  • Does your CU demonstrate the credit union "People-Helping-People" philosophy in the community or practice internal programs to improve members' lives?

If you answered yes to one of more of the questions, submit an entry today.

Entries/nominations for the following prestigious LSCU Awards are now being accepted:

  • CEO of the Year
  • Volunteer of the Year
  • Young Professional of the Year
  • Distinguished Service Award
  • CU of the Year Award
  • Brother’s Keeper Award

For more details about each award listed above, click to view the LSCU Awards brochure.

Entries for the CUNA Awards programs are now also being accepted:

  • Dora Maxwell Social Responsibility Community Service Award
  • Louise Herring Philosophy-in-Action Member Service Award
  • Desjardins Youth and Adult Financial Education Award

Information and submission forms for these three awards may also be found on the LSCU CU Awards Program web page.

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

AC&E News
Top ten additions to the AC&E to enhance your experience

The LSCU is always looking for ways to make the next AC&E an even better experience than the year before! Check out ten ways the LSCU is enhancing the AC&E to create the best possible experience for attendees.

  1. Golf  tournament on Wednesday 
  2. CEO Roundtable on Wednesday before the Exhibit Hall CEO reception
  3. LSCU Young Professionals Group meeting
  4. Directors roundtable on Wednesday facilitated by Alabama and Florida credit union directors
  5. New format for the CUES/LSCU Councils
  6. All-day trip to Kennedy Space Center
  7. New 75 minute session with three experts talking back-to-back on three different topics
  8. Additional night of the Kids Zone on Thursday night
  9. Additional hours in the Exhibit Hall on Friday morning that include a Continental breakfast
  10. Three hours of free time Friday afternoon before Annual Dinner, Entertainment, & Silent Auction
Stay tuned for more information about  these exciting new features to be posted on the AC&E website.
[ Return to Top ]

Education News
Wondering what educational opportunities are coming up? Check them out below.

Upcoming Events:

March 12-13:
IRA Essentials & Beyond Essentials Training, Birmingham, AL

March 14-15:
LSCU/CUES CU Executive Dialogue (Large Asset Size CU), Miami, FL

March 19-20:
Florida State GAC, Tallahassee, FL

March 24-27:
CUNA Marketing & Business Development Council Conference, Anaheim California

March 26:
LSCU Small Asset Size CU Conference
, Birmingham, AL

March 26-27:
Asset Liability Management Essentials & Implementation Training, Miami, FL

April 9-10
Alabama State GAC
, Montgomery, AL

April 16
Bank Secrecy Act Training (morning session, afternoon session), Mobile, AL

April 23-24
Credit Union Philosophy in Action & LSCU/CUNA Orientation, Birmingham, AL

May 7-8
Asset Liability Management Essentials & Implementation Training, Birmingham, AL

May 16
Disaster Recovery Conference, Ft. Lauderdale, FL

May 21
Bank Secrecy Act Training, Birmingham, AL

May 23
Disaster Recovery Conference, Mobile, AL

Visit the LSCU Events Calendar for more events.


Upcoming Webinars in March:

All webinars are scheduled from 3 p.m. - 4:30 p.m. EST. 

March 6: Fair Lending Comparative File Review

March 7: The “Anonymous” Bank Hack: Lessons Learned & Actions to Take Now!

March 13: Monitoring the Effectiveness of Your Compliance Program: Quality Assurance Testing & Auditing

March 14: Consumer Financial Protection Bureau Update: What’s in Effect, What’s Imminent & What’s on the Horizon

March 19: Flood Insurance Compliance Update: Requirements, Issues & FAQs

March 20: Fair Credit Reporting & FACT Act Risk-Based Pricing Notices: Clarifying the Confusion

March 26: Head Teller Development: Managing Dual Control & Cash Limits

March 27: Director Series: Enterprise Risk Management for Credit Unions: A Primer

March 28: Opening Minor Accounts: Ownership, Access & Multi-Party

For a complete listing of webinars for 2013, click here.


[ Return to Top ]

Cooperative Initiatives News
LSCU's SAS Workshops for CUs under $50 million in assets in Birmingham

Register today for the 2013 Small Credit Union Workshops on March 26 in Birmingham. There will be an exciting line-up of speakers and topics that deal with the most pressing issues our member credit unions face every day. For more information on the workshop agenda and to register online click below.

Birmingham Small Asset Size Workshop – March 26

Registration is only $89 and SAS credit unions can use their SAS Initiatives Account to cover the registration fee.

Contact LSCU Director, Member Relations Adena Whitman at 866.231.0545 ext. 2134. [ Return to Top ]

Financially Fit day coming April 3

The National Credit Union Foundation (NCUF) and the Southeastern Credit Union Foundation (SECUF) are inviting Alabama and Florida credit unions to hold a “Financially Fit Day” on April 3. This would kick off National Financial Literacy Month. This fundraising day is part of a new campaign, entitled “Credit Unions Support Financial Education: Leading the Way to Financial Freedom.”

Credit unions are encouraged to carry out either (or both) of the following activities to fundraise among staff and members:

  • Hold a “Financially Fit Day” on Wednesday, April 3
  • Fundraise throughout the month of April

Fundraising could be as simple as a jeans or casual day for staff, but additional ideas are included in a toolkit at the "Financial Fit Day website." Also included on the website are other campaign resources such as optional pledge forms, sample newsletter articles, sign-up sheets, stickers, flyer, statement stuffer, wall pin-up templates, a YouTube video, web buttons, and more.

“Financial education is at the heart of the credit union philosophy and the Southeastern Credit Union Foundation has made financial education a primary focus. “Financially Fit Day” is an opportunity for credit unions to play an active role in supporting and promoting the importance of financial literacy,” said Leonard Parkhurst, director of the SECUF.

Learn more at the SECUF website. [ Return to Top ]

LEVERAGE News
Shared branching reaches 5,000 locations

The number of credit union “live teller” branch locations available through the nationwide CO-OP Shared Branching network has reached 5,000 in just over three years. The 5,000 branch locations gives the credit union industry the fourth largest branch network with teller service, trailing only three national banks.

“Shared branching is one of the best examples we can show potential members that credit unions really are different from banks,” said Stan Hollen, President/CEO, CO-OP Financial Services. “Through the cooperative spirit of credit unions we have assembled a network leapfrogging all but the very largest banks in terms of convenient access to a branch almost anywhere in the country.”  

Nearly 1,800 credit unions participate in CO-OP Shared Branching. CO-OP estimates that if all 7,000-plus U.S.-based credit unions participated in shared branching, the industry’s network of shared branching locations would total 20,519 branches. CO-OP Shared Branching is also the only financial services branch network with locations in all 50 states and the District of Columbia. In addition to 5,000 live teller branches, CO-OP Shared Branching includes more than 2,000 self-service locations at Vcom® kiosks and credit unions nationwide.

For more information on CO-OP's shared branching or other innovative products, contact a LEVERAGE Business Development Consultant.

  [ Return to Top ]

News from You
ASE EVP and COO to retire

The Alabama State Employees Credit Union (ASE Credit Union) announced that Dave Brewer, ASE’s Executive Vice President and Chief Operations Officer, has decided to retire after more than 12 years of dedicated service to the credit union. Brewer assisted in leading the credit union through major changes, including opening the credit union’s community charter, expanding the locations to include Wetumpka, Millbrook and Downtown Montgomery, and increasing ASE’s asset size by $131 million.

With Brewer’s retirement, Brooke Covington, CPA, has been named ASE’s new Executive Vice President and Chief Operations Officer. With her position change, ASE Credit Union has promoted Valerie Sharpless to Chief Financial Officer.   

  [ Return to Top ]

Wiregrass chapter hits the road for charity

The Wiregrass Chapter of Credit Unions hosted a unique poker trail ride on Feb. 23 at Camp Alaflo, AL. A total of 15 riders participated in the first annual “Horseback” Poker Trail Ride fundraiser which benefited the Juvenile Diabetes Foundation Research. 

The event raised more than $9,500. Prizes included $250 in cash for the best hand. There was also a 50/50 grand prize along with raffle drawings, face painting and wagon rides.  


[ Return to Top ]

Tropical Financial raises $7,000 for Relay for Life

Tropical Financial Credit Union, based in Miramar, FL, and its members, raised more than $7,000 for the recent Relay For Life event in Pembroke Pines on March 1-2.   

Tropical Financial fielded a team of 27 employees plus their families and friends. At least one person was always walking on the track during the 18-hour time span. The walk is as a way to remember friends and family stricken by cancer. Tropical Financial also sponsored the emotional Lumanaria ceremony on Friday night. The ceremony featured candle lighting along the track and a slide show presentation honoring survivors and remembering loved ones who lost their battle with cancer.   

[ 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 ]

footer
 
Twitter Facebook YouTube