LSCU eSignal Weekly
LSCU eNews Weekly June 24, 2013
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LSCU eNews Weekly
In This Issue
President's Point
LSCU & Affiliates board discussed major issues at latest meeting
LSCU Top Headlines
This week's top League headlines
Governmental Affairs News
This week in Alabama politics: Hubbard warns against faux Republicans and is a convicted felon running for Congress?
This week in Florida politics: Florida leads nation in vacated foreclosures and more
Washington Update: Congress is back for final week before Independence Day district work period
Compliance Corner
League InfoSight highlight: advertising overdraft programs
CUNA Regulatory Advocacy Report - week of June 24, 2013
CFPB continues review of revised mortgage disclosure comments
NCUA approves loan participation rule
Compliance calendar and training
Education
Supervisory Committee Conference hotel cutoff date is next week!
Communications
LSCU & Affiliates award videos posted
Cooperative Initiatives News
Office of Small Credit Union Initiatives now accepting grant applications
2013 Alabama Asset Building Policy Conference
LEVERAGE News
Continuity Control holds complimentary webinar series
News from You
JetStream Federal CU sponsors DBC Women's Alliance Luncheon
Suncoast Schools Federal Credit Union Foundation awards $80,000 in scholarships
EMPLOYMENT
View available credit union jobs
In This Issue
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President's Point

LSCU & Affiliates board discussed major issues at latest meeting

This year the LSCU & Affiliates board decided to meet six times instead of four to allow for more time for strategic dialogue. Our third meeting of the year was at the front end of the Annual Convention and Exposition (AC&E) in Orlando. We had quite a few major topics to discuss, as well as welcome a new board member.

This was the final LSCU & Affiliates board meeting for Rich Helber, CEO at Tropical Financial CU. He was the last chairman of the Florida Credit Union League and first chairman of the LSCU & Affiliates. He was an integral part of the consolidation of the Alabama and Florida Leagues. We are all indebted to him for his leadership during this stage of our evolution as a trade association. We’re excited to have Kevin Johnson, SVP and Chief Information Officer at Suncoast Schools FCU, join the board. Kevin attended the meeting in Orlando and was officially seated following our Annual Business Meeting. Alvin Cowans, CEO at McCoy FCU, Linda Walker, CEO at Riverdale CU, and Ron Summerall, CEO at Alabama Teachers CU were each re-elected to four-year terms on the board. The officers of the LSCU board were re-elected for another year.

One of the topics that elicited the most discussion at the board meeting was comprehensive tax reform in Washington, D.C. By the time you read this, your credit union should have received an email from me talking about how the league is re-focusing the Cooperative Image Campaign on Don’t Tax My Credit Union. The board talked at length on the merits of a broad awareness campaign on how credit unions might be taxed. Make no mistake, this threat is real and we collectively – CUNA, leagues, and credit unions - have to take it seriously. None of us can afford to stand on the sidelines in a “wait and see” mode – affiliated or non-affiliated credit unions. By transforming the Cooperative Image Campaign into a Cooperative Issues Campaign, we can continue to raise awareness on the value of a credit union and the tax exemption, but also have a call to action. We need our members and consumers who benefit by having a not-for-profit alternative in the marketplace help us with this fight. The campaign will also include collateral material for credit union frontline staff, as well as your websites and branches. If your credit union has not contributed, I hope this new direction will give you cause to re-think taking part. We all need to stand together on this issue.  

Over the next few weeks you will begin to hear more about another major topic of the board meeting. We are always making sure our brand at the League is evolving and accurately reflecting our message. The board agreed that we need a better identity for our state-specific advocacy efforts in Montgomery, Tallahassee, and Washington, D.C. We will be unveiling a brand refresh that helps achieve this effort. The LSCU & Affiliates will be positioned as our parent brand and the one that you will see and hear about in our communications. We’ve been transitioning in this direction during the first part of 2013. So for most of you, it’s no real change at all. These new state-specific brands will resonate much better with lawmakers, candidates, and regulators. Look for an email from me in early July with more specifics.

As you can see, management and the board are working hard to adjust to our ever-changing political environment and league landscape. I hope you will contribute to the Cooperative Issues Campaign. We need full support on this issue. We are also reaching out to non-affiliates, as well. The League is holding a webinar on July 2 to update credit unions on the tax situation and what we need to do this summer to reach our lawmakers ahead of the Cooperative Issues Campaign. Please make sure someone from your credit union is present on the webinar.

Where's Patrick? This week I will be vacationing with my wife's family in Gatlinburg, TN. You can see my schedule for the next two weeks by clicking on Where's Patrick?
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LSCU Top Headlines
This week's top League headlines

Metsger confirmation hearing this week
Richard T. Metsger, former Oregon senator, is the White House nominee to fill the open seat on the NCUA Board vacated by GiGi Hyland. Metsger has a strong credit union background, which was a part of credit unions’ wish list. From 1993 to 2001, Metsger served as a volunteer board member at Portland Teachers CU, now OnPoint Community CU with $3.3 billion in assets. He also has consulted for the Northwest Credit Union Association. On June 27 the Committee on Banking, Housing, and Urban Affairs will hold an open session hearing on his nomination.

Freddie won't impose fees
CUNA learned that Freddie Mac will not impose fees on mortgage sellers and servicers, including credit unions. A $7,500 fee was proposed for those entities that did not meet certain requirements. However, Freddie Mac reversed course saying the fee will only apply to lenders that have Freddie Mac approval, but do not sell or service any of the company's mortgages. Read more at CUNA News Now.

Alabama and Florida credit unions continue to see growth
Alabama and Florida credit unions continue to see increasing numbers across the board from asset growth to the number of CU employees. Additionally, delinquent loans and net charge-offs continue to drop in both states. Read more in the LSCU top stories.

Foley, LSCU donate to charity
LSCU & Affiliates Annual Convention and Exposition (AC&E) keynote speaker John Foley donated a portion of his speaking fee to a charity of the League's choice. On Friday, Foley donated to Children's of Alabama in Birmingham and Shands Hospital in Gainesville. A great way to once again show the credit union difference. 

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Governmental Affairs News
This week in Alabama politics: Hubbard warns against faux Republicans and is a convicted felon running for Congress?

Hubbard Warns Against Faux Republicans
In a speech to the Birmingham Young Republicans, House Speaker Mike Hubbard, (R-Auburn) warned the crowd that there will be a number of people running in the 2014 Republican Primary who are not real Republicans. Hubbard said that groups that had been in power in Montgomery in the past are going to try to regain that power by running candidates sympathetic to their causes not as Democrats, but as Republicans. This effort will attempt to break the lock step super majority that Rep. Hubbard and Senate President Pro Tem Del Marsh have enjoyed over the past three years. 

Seeing this as a major threat, Rep. Hubbard started a couple of PACs to help defend incumbents in their primary elections. Those PACs have nearly $10 million in donations so far.

Convicted Felon Running for Congress?
Last week, former Mobile County Commissioner and convicted felon Stephen Nodine announced that he is considering a run for Alabama’s First Congressional District. The first problem for Nodine will be whether he can successfully mount a campaign from behind bars. Nodine is currently serving a two-year sentence after pleading guilty to perjury and harassment charges. His second problem is that the chairman of the Baldwin County GOP plans to challenge any attempt to qualify with the Republican Party.  

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.
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This week in Florida politics: Florida leads nation in vacated foreclosures and more

Florida leads nation in vacated foreclosures -- and it is not even close
Florida has more vacant homes in foreclosure than any other state, easily beating out other large states with troubled housing markets, according to a report released Thursday by RealtyTrac, a California company that tracks distressed properties. Florida has 33 percent of the 167,680 vacated foreclosures in the country. The vacated properties are a drag on property values because many are left neglected, although some cities in Florida have passed ordinances requiring banks to pay for the upkeep of foreclosed homes. For more, click here.

Foreclosure settlement update
National Mortgage Settlement monitor Joseph Smith released a report showing four of the banks involved in the settlement failed to meet compliance standards for timely collecting documents and providing information to borrowers about loan modifications. Other performance standards could not be measured because the banks did not provide enough information, the report states. Attorney General Pam Bondi has threatened to sue Bank of America, one of the banks in the settlement, over its lengthy loan modification process. She said the banks "still have a long way to go to live up to the commitments they made when they entered this settlement."

New poll shows Crist leading, Scott gaining
The Quinnipiac Poll, a statewide poll released June 18, showed Charlie Crist, leading Gov. Rick Scott by 10 points. But the 47-37 percent gap was an improvement from a Quinnipiac Poll taken in mid-March, which showed Gov. Scott trailing Crist 50-34 percent. Two things have happened since then: after the legislative session adjourned six weeks ago, Scott began touring the state to sign bills and make announcements of new businesses coming to Florida, and the Republican Party of Florida has kept up a daily drumbeat of criticism on Crist to drive down his popularity. For more information please click here.

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.

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Washington Update: Congress is back for final week before Independence Day district work period

Floor Schedule
The House and the Senate are back in Washington for one final week before the Independence Day district work period. The Senate returns Monday to resume consideration of S. 744, the immigration reform bill. The Senate is expected to complete consideration of this bill before recessing. The House comes back tomorrow and will consider several bills under Suspension of the Rules, including H.R. 2383, a bill to designate the new Interstate Route 70 bridge over the Mississippi River connecting St. Louis, MO, and southwestern Illinois as the “Stan Musial Veterans Memorial Bridge”. Later in the week, the House is expected to consider H.R.1613, the "Outer Continental Shelf Transboundary Hydrocarbon Agreements Authorization Act,"  and H.R.2231, the "Offshore Energy and Jobs Act." 

Committee Meetings
View a complete list of committee meetings being followed by governmental affairs this week.

Last Week
Last week, CUNA testified before the House Financial Services Committee Subcommittee on Financial Institutions and Consumer Credit hearing on how the Dodd-Frank Act is hampering home ownership. Jerry Reed, chief lending officer at Alaska USA FCU testified on behalf of CUNA, focusing primarily on the impact that the CFPB’s Ability to Repay rule may have on credit unions. Mr. Reed’s testimony can be found here. A video archive of the hearing can be found here.

For more information or questions on federal legislation, contact LSCU VP of Governmental Affairs Jared Ross at 866.231.0545 ext. 1012. [ Return to Top ]

Compliance Corner
League InfoSight highlight: advertising overdraft programs

The NCUA amended Part 707 to expand the overdraft program disclosure requirements regardless of whether a credit union promotes the payment of overdrafts.
The credit union must separately disclose on each periodic statement:

  • The total dollar amount for all fees or charges imposed on the account for paying checks or other items when there are insufficient funds and the account becomes overdrawn; and
  • The total dollar amount for all fees imposed on the account for returning items unpaid.

For additional details including links to the regulations that all credit unions must follow in order to stay in compliance, visit the Advertising Overdraft Programs topic on the Advertising channel of 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 June 24, 2013

Each week CUNA provides credit unions a wealth of information through its Regulatory Advocacy Report. The report highlights for the week of June 24 include:

  • NCUA Board approves loan participation rule
  • New NCUA member moves closer to confirmation
  • SBA raises “small business” size standard for credit unions
  • CUNA comments on FASB’s private company decision-making framework

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

                CFPB continues review of revised mortgage disclosure comments

                The CFPB is continuing a review of comments received on pending rule changes involving mortgage lending – the combined disclosures. The bureau has completed all required mortgage reform regulations under Dodd-Frank except one: the rule that combines disclosures required under the Truth in Lending Act and Real Estate Settlement Procedures Act on residential mortgage loans. In writing its rule, the CFPB sought to reconcile differences between the two statutes, including the timing for the delivery of disclosures.

                The current CFPB proposal would require that applicants receive the final disclosure within three days before closings, and another three-day waiting period would be added if loan terms or costs change. LSCU and other industry participants voiced concerns about this requirement due to its ability to cause unnecessary delays in loan closings. Industry leaders strongly urged lawmakers to make their opinions known to the Bureau before adoption of the revised disclosure rules.

                A final rule is expected this September. Make sure you read the LSCU Comment Letter.   [ Return to Top ]

                NCUA approves loan participation rule

                The NCUA's final loan participation rule, approved on Friday, implemented a number of changes sought by credit unions and trade associations. The final rule includes a limit on loans from one originator of 100 percent of a credit union's net worth. This is an increase from the proposed 25 percent of net worth cap put forth back in December of 2011. Also highly sought after by credit unions, the NCUA approved an expanded waiver process for the single-originator limit and limits to one borrower.  Also present in the adopted rule, a grandfather provision so that credit unions pushed over the limit by the new rule can move their loans into line: such credit unions would not have to sell loans immediately to attain full compliance.

                The original loan participation proposal contained rigid limitations that would have reduced the ability of credit unions to engage in participations. During the board meeting on June 21, NCUA Chairman Debbie Matz emphasized that the rule focuses on purchasers, not originators. It is meant to protect the credit union system without discouraging credit unions from engaging in loan participations she added. Credit unions will benefit from the NCUA’s decision to consider and apply many of the recommendations put forth by the industry and by their choice to work with LSCU, CUNA, and numerous credit unions to improve the final rule. The rule will go into effect 30 days after its publication in the Federal Register.
                 
                Credit unions are encouraged to read the full NCUA Rule Document. [ Return to Top ]

                Compliance calendar and training
                July 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 ]

                Education
                Supervisory Committee Conference hotel cutoff date is next week!

                If you are attending the Supervisory Committee Conference, August 4-7, be sure to make your hotel reservations before the hotel cutoff date on Friday, July 5. Details below.

                Hilton Sandestin Beach Golf Resort & Spa
                4000 Sandestin Boulevard South
                Destin, FL 32550
                www.sandestinbeachhilton.com

                Reservations: 1-800-559-1805
                Group Rate: $209 per night
                Room Rate Code: LSC
                Room Rate Cutoff: Friday, July 5, 2013

                [ Return to Top ]

                Communications
                LSCU & Affiliates award videos posted

                Each year the LSCU & Affiliates honors individuals that excel within the credit union movement, as well as credit unions in three asset size categories. Each award is accompanied by a video that shows the great works each has done to receive the award. The League has posted each video in the LSCU Video Room.

                Find videos for:

                • Volunteer of the Year - Roger Turnquist, Army Aviation Center FCU
                • Young Professional of the Year - Brooke Covington, Alabama State Employees CU
                • Professional of the Year - Jim Mitchell, Army Aviation Center FCU
                • Distinguished Service - Betty Petree, Pen Air FCU
                • Credit Union of the Year:
                  • Under $100 million in assets - Tallahassee-Leon FCU
                  • Between $100 and $500 million in assets - Five Star CU
                  • Over $500 million in assets - Achieva CU

                For more interaction on each video, visit the LSCU Facebook page. If you have problems viewing the videos, contact LSCU VP, Communications Mike Bridges at 866.231.0545 ext. 1022. [ Return to Top ]

                Cooperative Initiatives News
                Office of Small Credit Union Initiatives now accepting grant applications

                The 2013 Grant Round is now open! Applications are being accepted through July 12, 2013. The Office of Small Credit Union Initiatives (OSCUI) expects to award $1.08 million in grants in this funding round. Low-income designated credit unions (LIDs/LICUs) are eligible to apply. Through the grant program, OSCUI provides grants to LICUs to enhance their ability to provide financial services to their low-income members and communities.

                Need help completing the application? A recorded webinar, "Multi-Initiative Grants for Low Income Credit Unions," is now available.

                The grant program converted to an online application system in 2012. Read the "Grants and Loans" column in this issue for guidance on the new system.

                Not a LICU? Ask OCP to run your numbers to see how close you are to qualifying. Send a request to the OCP.  

                For additional information, visit the Grants and Loans section on the NCUA website. Direct inquiries about the funding programs to the grants and loans staff are encouraged.  [ Return to Top ]

                2013 Alabama Asset Building Policy Conference

                2013 Asset Building Policy Conference
                July 24, 2013
                9:00 a.m. until 3:30 p.m.
                Embassy Suites Hotel
                Lunch is provided.
                Registration Fee is $25.00.

                According to a report from The Center for Enterprise Development, "More than three in five Alabama residents are living on the edge of financial disaster with almost no savings to fall back on in the event of a job loss, health crisis or other income-depleting emergency,"  How do you fix this? Programs help, but in order to make systemic change, existing asset policies must be improved or new ones implemented.

                This conference will give attention to these asset building policy concepts from a philosophical and theoretic point of view, examine issues that affect Alabama, and look at practical opportunities that can employ to help families and communities become economically stable.  

                For additional information please contact: Robert Hanson, program director (AABC) 205.731.4000 or click here to register

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                LEVERAGE News
                Continuity Control holds complimentary webinar series

                The list of regulations impacting vendor management is growing longer ever quarter and most financial institutions are not compliant. The "Get Ready - Higher Stakes for Vendor Management" webinar on June 27 will provide tips for revamping your vendor management programs so they will stand up to examiner scrutiny.

                Discussion topics include how to:

                • Understand which regulations apply to your third party/outsourced vendors
                • Conduct self assessments to proactively identify risks
                • Assess vendor risk potential to prioritize program activities
                • Assign oversight responsibilities to effectively monitor vendor compliance
                • Provide the transparency to meet management, board and examiner needs

                Register today!
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                News from You
                JetStream Federal CU sponsors DBC Women's Alliance Luncheon


                (Pictured L-R: Mio Serrano; Mara Falero; JetStream CEO Jeanne Kucey; Vanessa Ortega; and Dorothy Jaramillo)

                JetStream Federal Credit Union was a table sponsor of the Doral Business Council’s Women’s Alliance Luncheon held in Miami Lakes. The event raised funds for Dress for Success-Miami, a non-profit organization that promotes the economic independence of disadvantaged women by providing professional attire, a network of support, and career development tools to help women thrive in work and in life.

                [ Return to Top ]

                Suncoast Schools Federal Credit Union Foundation awards $80,000 in scholarships

                This year marked Suncoast Schools Federal Credit Union Foundation's largest amount of awarded scholarship money since 1992, when the Foundation began providing need and merit-based scholarships to graduating high school seniors.

                Within the 15 counties served by the credit union, 1,035 high school seniors submitted applications. The scholarships, include a $10,000 renewable scholarship to a senior attending a four-year university, a $6,000 per year scholarship for two years to a senior followed by a $10,000 renewable scholarship for two years, and two $4,000 scholarships to seniors attending a vocational or technical program.

                "Each student stands on impressive merit, and we’re confident they can withstand the demands of further education," says Mary Tlachac, executive director of Suncoast Schools Federal Credit Union Foundation. "We believe they will be leaders in their own right and make positive contributions to the greater community one day and that is the goal." [ 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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