By The Way
The By The Way newsletter is a great way to keep Kentucky credit unions informed of the latest updates in governmental affairs, compliance and regulations, education and training. In addition, By the Way highlights the difference credit unions are making on a daily basis.
- CUTrend Scan: Trends for Your Credit Union
- CUNA is Packed and Moved!
Credit Union News
- S. 2155 Becomes Law...Key Provisions and Effective Dates for Compliance
Efforts by you and other credit union advocates in Kentucky and the rest of the country helped S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, make its way to the president’s desk.
On May 24th, President Donald Trump signed the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) into law, officially enacting legislation that provides regulatory relief for America’s credit unions.
The Kentucky Credit Union League, along with Credit Union National Association, strongly supported the bill and encouraged grassroots engagement of credit unions with their legislators via CUNA's common-sense regulation campaign.
Please send your representative a message to say Thank You for passing this important piece of common-sense regulation reform. Thank My Representative.
What the Economic Growth, Regulatory Relief, and Consumer Protection Act does:
- Establishes a safe harbor from certain requirements for a loan to be considered a Qualified Mortgage;
- Rescinds the additional data points required under the Home Mortgage Disclosure Act for insured credit unions that originate fewer than 500 closed-end and/or 500 open-end lines of credit;
- Reclassifies one-to-four unit, non-owner occupied residential loans as real estate loans, so the loan would not count against the member business lending cap;
- Clarifies that the same consumer protections in place with respect to mortgage lending are nonexistent for Property Assessed Clean Energy loans;
- Removes the three-day wait period required for the combined TRID mortgage disclosure if a creditor extends to a consumer a second offer of credit with a lower annual percentage rate;
- Requires NCUA to make publicly available a draft of their proposed budget, hold a hearing with public notice during which this draft would be discussed and solicit and consider public comment about the draft budget;
- Provides a safe harbor for properly trained financial employees who report alleged elder financial abuse; and
- Requires the U.S. Department of Treasury to conduct a study on the risks that cyber threats may pose to financial institutions.
TRGroup: Helping Credit Unions Prosper
Seven Leagues joining forces to offer best-of-class services to credit unions.
The Raiffeisen Group, LLC (TRGroup) is a collaboration of seven state leagues utilizing our collective strength to bring the best-of-class products, services and service to credit unions at the lowest possible cost. TRGroup's mission is to empower credit unions to better serve their members, build loyalty, expand market share, realize savings on certain operational functions, and grow revenue. They are committed to providing credit unions with state associations where they have the greatest level of input, ownership and control.
TRGroup was formed by the trade associations serving credit unions in Indiana, Kentucky, Louisiana, Mississippi, Tennessee, Virginia and West Virginia. Affiliated credit unions in those seven states boast a combined 10 million members, $100 billion in assets, and 25,000 employees.
Meet Your Compliance Partner – PolicyWorks
The regulatory compliance challenges confronting credit unions grow and change every year. Your League partners with PolicyWorks to make compliance easier for you.
PolicyWorks has helped hundreds of credit unions manage the complexities of today's regulatory environment. You can rely on the PolicyWorks team to provide the strategy, guidance and advice you need to get and stay in compliance. Our solutions are customized to meet individual credit unions' needs.
Let us advise you toward complete compliance – so you can rest easy. We are trained and experienced in helping credit unions meet the industry's regulatory challenges so that you can focus on what really matters –serving your members.
We are happy to announce the CUNA awards websites are ready and open for your submissions. Nominations are open from now until June 30.
Administered by the Kentucky Credit Union League & Affiliates and CUNA, the Louise Herring, Dora Maxwell and Alphonse Desjardins awards programs are a wonderful way for credit unions to showcase all the great things they do for their members and their communities.
Below you'll find a brief description of each of the programs:
Louise Herring Award
The purpose of this award is to promote credit union philosophy by formally recognizing credit unions that demonstrate in an extraordinary way the practical application of that philosophy for their members.
Dora Maxwell Award
The purpose of this award is to promote social responsibility among credit unions by formally recognizing their community service achievements.
Alphonse Desjardins Award
Alphonse Desjardins was a credit union pioneer who was instrumental in forming the Canadian and U.S. credit union movements. Besides helping to found the first credit unions in Canada and the U.S., Desjardins pioneered youth savings clubs and in-school "banks", known as caisses scolaires. This award honors leadership within the credit union movement on behalf of youth and adult financial literacy.
In an effort to streamline the submission process for our member credit unions and to reduce financial and human resources spent on the submission process, CUNA and the Leagues have collaborated to produce one standardized format and online submission process for our member credit unions.
You will automatically establish an account when you create an application to submit your first project by clicking on the designated link below. You may save your work and return to the submission site as often as needed as long as you complete and submit all parts of the project submission by the due date of June 30, 2018. State winners will advance to national competition for judging.
Each year, your League hosts an Awards Banquet to recognize the achievements of individuals, credit unions, and chapters. Your League sponsors several different awards programs to recognize these achievements.
Click HERE to view each award category.
The deadline to submit nominations for the Kentucky Awards is August 31, 2018.
The world of financial services moves quickly and as credit union professionals, so do we. The Kentucky Credit Union League is proud to partner with CU Solutions Groups to bring you a fresh edition of CU TrendScan for those who want to stay up-to-date on technology, marketing and HR performance in the credit union industry. You can read the publication for free at CUTrendScan.com.
What is inside this issue?
- Credit Union Mobile Banking: Leading Edge or the Latest Example of Marketing Myopia?
- Designing a Website for Maximum Impact
- Responding to a Customer-first Marketing Pivot
- How Storytelling, Education and Video Translates to Brand Authenticity
- Do Great Strategic Plans Really Matter?
- Embracing the Disruption: Performance Management and Analytics
In this publication, you’ll learn what we are hearing and seeing in the marketplace, as well as commentary from our experts and credit union professionals.
You can read current and past issues of CU TrendScan for free at CUTrendScan.com. We hope you enjoy this publication and we welcome your feedback for making it an invaluable resource for your credit union.
July 15-18 | The Breakers in Palm Beach
1 S County Rd
Palm Beach, FL 33480
Attendee Registration: $879
Save the date and make plans to join your peers from credit union boards across the Southeast for the 2018 Southeast Directors Conference, set for July 15 – 18, 2018. This conference features a full range of informative sessions on critical, timely issues, with first-rate speakers to address the economy, lending environment, and much more.
The Southeast Regional Directors Conference is designed for credit union directors and committee members. The conference location rotates among the ten Southeastern states, giving each state an opportunity to host their fellow credit union volunteers and showcase the best of what their state has to offer. This conference features a full range of informative educational sessions that provide a conduit for learning about critical issues important to today’s ever-changing financial industry.
The 2018 program will be hosted by the League of Southeastern Credit Unions and held at The Breakers in West Palm Beach, Florida. One of America’s legendary resort destinations, The Breakers is a modern-classic resort situated on 140 acres on the island of Palm Beach, Florida; conveniently located six miles from Palm Beach International Airport, 42 miles from Fort Lauderdale International Airport and 72 miles from Miami International Airport. Both Interstate 95 and the Florida Turnpike provide easy access to South County Road), which leads to the entrance of The Breakers.
June 28 - July 1 | Boston, MA
John B. Hynes Veteran Memorial Convention Center
900 Boylston Street
Boston, Massachusetts 02115
Some ideas are too big for the classroom
This year at ACUC, attendees will have the opportunity to enhance their learning with new Experiential Sessions. Venture into the heart of Boston to visit companies who aren't afraid to think a little differently.
Meet with organizations like 3D Bean, a startup that makes stunningly realistic 3-D-printed photo figurines. Portraits shouldn't be limited to two dimensions, and neither should your learning.
Plan your 3-D learning with this and other Experiential Sessions here.
Meet the Keynote Speakers
This year's ACUC General Sessions are the cornerstone of the conference. These sessions are highlighted by four keynote speakers who are ready to share their Ideas that Move with you.
- Chef Jeff Henderson inspires with a story that took him from the streets to the stove.
- Daniel Lerner has spent his career seeking the connection between happiness and success.
- Whitney Johnson is an expert in disruption and how individuals handle change.
- Jonathan Mildenhall knows how to blend creative excellence and business strategy.
Meet the full roster of speakers here.
CUNA has recently become aware of a website and social media advertisements that appear to be sponsored by a class action law firm inviting credit union members to contact the firm if they have been charged an overdraft or non-sufficient funds fee in connection with the use of a debit card.
CUNA believes the firm may be investigating possible violations of regulatory requirements, such as disclosures, related to the provision of overdraft services.
CUNA and the Kentucky Credit Union League urge credit unions to ensure their services are fully compliant.
CUNA will be moving into its new office space at 99 M Street SE in Washington, D.C. on Monday, relocating from its Pennsylvania Avenue address, where they have resided for the last 15 years. CUNA remains the only national credit union trade association located in the nation’s capital.
This move is the next step in CUNA’s continued evolution into a more efficient, more effective trade organization and allows them to continue to work close to the Congressional and federal offices where they advocate every day on behalf of credit unions and their 110 million members. The new space will allow staff to collaborate in ways that weren’t possible in the previous space, and the long-term cost savings will allow them to continue to make sure their resources are being put to the best use for the credit union system.
The 22,000 square foot space is on the third-floor of Skanska’s 99M development, a 234,000-square-foot office building in Washington, D.C.’s Capitol Riverfront neighborhood. Their new offices feature an open, modular environment designed to encourage collaboration. Meeting rooms are situated along exterior walls with interior glass partitions to allow as much light into the space as possible. Smaller, private spaces will be available for smaller meetings, private phone calls and quiet workspace.
Please note their new address:
99 M Street SE
Washington, DC 20003-3799
June 6, 2018 | League Office
3615 Newburg Road
Louisville, KY 40218
Educational Investment: $239
(Includes continental breakfast, lunch, breaks and handouts.)
This training session lead by Jeremy Smith, Compliance Manager with PolicyWorks, will focus on the role regulations play within the lending process.
- The regulations that impact Fair Lending
- The regulation lifecycle – How the regulations impact each section of the lending lifecycle
- A refresher on the recent change to the Mortgage Servicing Rule
- A recap on the changes to TRID that go into effect later this year
- Lending compliance hot topics
About Our Presenter, Jeremy Smith
As Compliance Manager, Jeremy Smith oversees compliance services for PolicyWorks' partner Credit Union Leagues. Jeremy provides regulatory compliance guidance and training on current laws and regulations to credit union professionals.
Before coming to PolicyWorks, Jeremy worked in regulatory compliance developing policies, coordinating and communicating with state and federal examiners, developing and monitoring the company’s compliance risk assessment and developing a compliance management system.
Jeremy has an undergraduate degree in Business Administration from Drake University in Des Moines, Iowa.
August 3-5, 2018 | French Lick Springs Hotel
French Lick, IN 47432
As a volunteer, no one is better positioned to affect the future of your credit union than you. Ongoing education is important in overcoming challenges and recognizing opportunities for your credit union.
That’s why Kentucky and Indiana have joined forces to become Partners in Progress for Education.
Join us at the beautiful French Lick Springs Hotel for a weekend of informative learning sessions, valuable networking opportunities, and great fun and entertainment!
Pre-Conference Keynote: Colonel Jill Morgenthaler
From the Battlefield to the Boardroom: Secrets to High-Performance Leadership In her signature keynote address, Colonel Jill shares the secrets to effective leadership through her unique HOOAH method: Heart, Optimism, Opportunity, Abilities, and Hands. This program provides step-by-step guidance so you can increase profits, boost morale, reach a goal, identify challenges, and overcome difficult people and situations. She will engage and enthrall the audience through her stories and her how-to's.
September 25-26, 2018 | Nashville City Club
20th Floor, ServiceSource Building
201 4th Ave N
Nashville, TN 37219
Educational Investment: EARLY BIRD SPECIAL is $699 for TRG Members
Mark your calendar! Your League (as part of the TRGroup) and Woods Rogers Attorneys are teaming up to offer credit union professionals a two-day Human Resources Seminar in exciting Nashville, TN.
Graduate Level Courses
200 Fourth Ave N
Nashville, TN 37219
Registration is not open at this time. Please let us know if you would like to receive a reminder by email when registration opens.
The Raiffeisen Group, LLC (TRGroup) is a collaboration of seven state leagues utilizing our collective strength to bring the best-of-class products, services and service to credit unions at the lowest possible cost. Our mission is to empower credit unions to better serve their members, build loyalty, expand market share, realize savings on certain operational functions, and grow revenue. We are committed to providing credit unions with state associations where they have the greatest level of input, ownership and control.
TRGroup was formed by the trade associations serving credit unions in Indiana, Kentucky, Louisiana, Mississippi, Tennessee, Virginia and West Virginia. Affiliated credit unions in those seven states boast a combined 10 million members, $100 billion in assets, and 25,000 employees.
by Jeff Rendel, Certified Speaking Professional
So went the wisdom from the Chair of one of the nation’s largest credit unions. The other Chairs in the room, all from large credit unions, agreed. As their credit unions grew, they realized they weren’t able to elaborate on every aspect of the financial or operational details, nor should they. Their emphasis – and one not reserved for only the largest credit unions – was to focus on long-term strategy (the “white board,” where ideas are considered and developed) and oversee subsequent results on the balance sheet. Here’s how your Board can do the same as it partners with the CEO and some questions to help your Board along the way.
Concentrate on constant motion in the direction you’re headed. What are your top three strategic priorities for the next several years? How is your business model changing to match your priorities? How will your footprint serve current and future members, and must it change? What markets do you serve, and what markets present opportunity? What new lines of business are you introducing to serve members and expand your reach in local financial services?
Leave a legacy. Your strategic plans often highlight several years; however, uber-strategic foci centers on decades. What significant trends will shape your credit union ten years from now? What scenarios could occur (growth, contraction, demographic, disaster) and how might your credit union respond? What organizational and legal changes might, will, or should occur that affect your credit union’s ability to evolve in financial services?
Seek confirmation of value. The true tests of success for any business are new, repeat, and referred sales. Strategy has a lot to do with those realities. With reasonable, CEO-designed plans in place, are new members joining your credit union? Are they using its products, services, and features? Over time, are members’ relationships with your credit union maturing and becoming more profitable?
Expect sound, tangible, and predictable results. Fiduciary responsibility is part of serving on your credit union’s Board. How stable and sustainable are profit margins? How is accumulated capital supporting planned growth? And, is your Board regularly updated with audits confirming that the credit union is in compliance with applicable, laws, rules, and regulations? Every monthly Board meeting needs an update of financial status and noteworthy operational matters. It’s part of looking after the members’ credit union. Equally significant, your Board can help the CEO work “on” the business, rather than be “in” the business. By investing more time on “white board” items of direction, legacy, and value, your Board helps your CEO lead a credit union that delivers the kind of results that keep your credit union relevant for years – decades – to come.
Jeff Rendel, Certified Speaking Professional and President of Rising Above Enterprises, works with credit unions that want entrepreneurial results in sales, service, and strategy. Each year, he addresses and facilitates for more than 100 credit unions and their business partners. Hear Jeff at this year’s Volunteer Leaders Conference.
Daviess County Teachers Federal Credit Union was voted as the PLATINUM winner for a financial institution in the Owensboro area’s 10th annual Reader’s Choice Awards. The Messenger-Inquirer is a daily newspaper serving Daviess, Hancock, McLean, Muhlenberg and Ohio counties in western Kentucky and they hold a Reader’s Choice Awards each year that allows the community to nominate and vote for their favorite local businesses. Well over 125,000 votes come in from all over these counties voting to acknowledge and spread the word about their favorite places in the community to dine, shop and conduct business. Three businesses are awarded with the title of 1st place Platinum, 2nd place Gold and 3rd place Silver.
“We are humbled and thrilled to be able to represent the credit union community in such an outstanding way and were encouraged by our members’ and community’s enthusiasm as we strive for excellence. When you stand behind a credit union, you are standing behind a financial institution you have ownership in and we are proud to see our community show overwhelming support for the credit union movement.”
For the third consecutive year, L&N Federal CU was recognized by the Kentucky Chamber as a "Best Place to Work" in Kentucky. L&N FCU is incredibly grateful to the employees and members that make L&N a great place to be!
L&N Federal CU is pleased to announce the 2018 Frank Moore Scholarship winners. Each recipient will be awarded $10,000 over a four-year period. L&N would like to commend these students on for their dedication to academic excellence as well as their commitment to stewardship and service in their communities.
- William H. Smith IV - Bullitt East High School
- Sarah G. Gibbs - Corbin High School
For more information about the winners please visit: www.LNFCU.com/pages/2018-frank-moore-winners.html
A unique partnership between Members Choice Credit Union and Ashland Community & Technical College was designed to provide students with valuable real-life work experience in the financial sector.
But when it was over, it provided so much more.
The partnership between Members Choice Credit Union and ACTC brought local ACTC students Ben Hawkey, Blake Justice and Hobert Waugh to the credit union every Wednesday for the last 12 weeks as part of a mentorship program. The young men earned college credits while simultaneously learning what it takes to work in the financial sector.
"It was awesome," said Hawkey. "We handled money. Audited teller drawers. Got a whole bunch of financial literacy booklets. Did a whole bunch...and we learned about how you take care of the members."
Turned out, though, that the ACTC students weren't the only ones to benefit. The credit union and, ultimately the community, benefitted as well.
As part of their experiences, the students noticed one of the challenges the credit union faced was a high volume of phone calls. The three students got together and acted on the idea Members create a small call center to handle the calls. The credit union administration thought it was such a good idea that the trio presented it to the credit union's board of directors, and the call center was approved. This is expected to produce approximately six to eight jobs in the Ashland area in the coming year.
"They planned and developed a six-figure project that they presented to our board of directors last week," said David Deborde, governance, risk & compliance manager at the credit union. "And, it was approved. $120,000 to create anywhere from six to eight jobs in the greater Ashland area. These three young men did that. We are so proud of them and we are so privileged to have the chance to work with them."
The idea for the mentorship program started informally. Credit Union employees often went to ACTC to talk to students about job skills, etc., and through those interactions with instructor Molly Webb, the idea came about to see if a mentorship would work under the guidance of business development for the Ready to Work Program in the state of Kentucky. Almost immediately, students expressed high interest in the program. The first mentorship started 12 weeks ago with each of the three students working every Wednesday. They visited all four Members Choice branches and worked on basically every task found in the financial institution. The students get college credits and also get a $500 stipend upon completion of the mentorship.
"They have dealt with all of the components that are found in a financial institution," Deborde said. "From the front line all the way to the board of directors. They have been to all four of our branches on multiple occasions. They've done lending. They've done collections...in the middle of it, they've done soft skills, professional communication, how to be a good worker. Show up on time, dressing correctly. They had to follow all policies."
Waugh said the experience was very valuable. In addition to working on the job, they read books like Seven Habits of Highly Successful People.
"We kept progressing and progressing," Waugh said. "It was a great experience. Everyone was eager to let us learn."
Justice echoed those sentiments.
"I'd never had people set me up for an actual job in the real world," Justice said. "They are getting us out, getting us in the real world, and it was a great experience. I'm so glad to be a part of it. It will be a great stepping stone for me. This is something I could see a career in and my dream is to own my own business."
Cheryl Deborde, president of the credit union, said one of the most rewarding aspects of the program was to watch the students learn and progress.
"I'm so proud of it, we want to do it again and again," she said. "The thing that meant to most to me is I was sitting talking to one of the boys, Hobert, and he told me...'I would like to start at the bottom and work my way up.' And I told everyone, that is the type of employee you will have for life and they will be dedicated to what we are doing."
New initiative aimed to network those building a 21st Century Appalachia
Members Choice Credit Union has joined the Blueprint Partnership program at Shaping Our Appalachian Region, Inc. (SOAR).
By joining the Blueprint Partnership program, Members Choice Credit Union has formally committed to implementing SOAR’s Regional Blueprint to build a 21st Century Appalachia.
“There are many organizations, businesses and people doing incredible work in Appalachia Kentucky,” said Jared Arnett, executive director of SOAR. “By joining the Blueprint Partnership program, they are part of a collaborative effort to implement our Regional Blueprint across Appalachia Kentucky. We can’t do this alone. Our partners are critical in building the 21st century Appalachia we so desire.”
Members Choice Credit Union is proud to work alongside SOAR in implementing the Regional Blueprint, which is a strategic plan that was created in 2016 to align the passion of people with tangible goals to transform Appalachia Kentucky.
“We are thrilled to join SOAR in their Blueprint Partnership Program,” said David Deborde, Governance, Risk & Compliance Manager at Members Choice CU. “Members Choice is proud to be the financial institution of choice for thousands of members across Eastern Kentucky and we see this partnership as the natural extension of our missions to help our members wherever they may be and to continue our strong commitment to being involved in our communities. SOAR's goals and ours align in many ways and we believe this is a wonderful opportunity for us to join them as they work to transform our part of the Bluegrass and positively shape its future.”
SOAR’s Regional Blueprint has seven goals:
- Increase the availability of affordable, high-speed broadband, through fiber, to businesses and residents; and increase adoption rates throughout the SOAR region;
- Develop our regional workforce to be competitive in the digital economy and emerging industries;
- To create more and expand existing small businesses within the region by taking full advantage of the digital economy;
- To reduce the physical and economic impact of obesity, diabetes and substance abuse;
- Increase the amount of industrial employment, which includes manufacturing, natural resources, processing, and distribution by expanding existing companies and attracting new ones;
- Create a local foods movement by connecting local producers to markets for their product both within and outside the region; and
- Establish Kentucky’s Appalachian region as a tourism destination.
“This is about building a movement that will take root and transform the region,” added Arnett. “The challenges we face are great, but the potential to collaborate with our partners around our Regional Blueprint is greater.”
Benefits of the Blueprint Partnership program include:
- Opportunity to serve on SOAR Advisory Board(s)
- Discounts for SOAR-related events
- Access to specialized communications and updates
- Increased access to resource partners
On May 16, 2018 at 3:30 PM, Park Community Credit Union presented Lexington Habitat for Humanity with a 2017 Chevrolet truck. The presentation took place at Park Community’s Lexington branch, located at 2217 War Admiral Way in Lexington, KY.
Lexington Habitat for Humanity works in partnership with local families to build and preserve decent, affordable housing. The Park Community Credit Union truck donation will allow Habitat to transport donated building materials to its new ReStore location on Winchester Road in Lexington and support its growing salvage and deconstruction program. Together, we will build strength, stability, and self-reliance through shelter.
Park Community Credit Union has made it a mission to help the communities we serve. This vehicle will be co-branded. It will include the Habitat for Humanity logo, Park Community Credit Union logo and the phrase, “Community Passion in Motion.” This phrase captures the credit union’s desire to help the community and to be a driving force for positive change. It also ties back to the industry-wide credit union motto of “People Helping People.”
Over the last four years, Park Community has donated over $288,000 for the benefit of multiple charities. Recently Park Community provided vehicles for two charities located in the Bluegrass area of Kentucky. A Dodge Caravan was presented to Refuge for Women and a truck to Habitat for Humanity of Madison and Clark Counties. In addition, Park Community offers three co-branded debit cards which benefit Kosair Charities, the Kentucky Humane Society, and the Lexington Humane Society.
The headquarters for Habitat for Humanity is located at 700 East Loudon Avenue in Lexington, KY. You can also donate or visit their ReStore location at 451 Southland Drive and this coming June at 817 Winchester Road in Lexington, KY.
The annual Mayor’s Healthy Hometown Movement Worksite Wellness Awards were presented to 49 businesses across the state. Park Community Credit Union was named in the 2018 Gold Level category. Park received the award for its commitment to health and wellness initiatives.
The companies were recognized at the Worksite Wellness Council of Louisville’s Annual Conference and Awards Presentation held at the Gheens Foundation Lodge at Beckley Creek Park on May 1, 2018. Representatives from businesses across the state attended the conference to learn best practices and proven strategies for reducing health risks and improving quality of life for their employees.
The awards recognize small, medium and large businesses that lead the way in implementing evidence-based health interventions and strategies. The awards are based on the nationally recognized CDC Worksite Wellness Scorecard. Points are assigned for proven health promotion strategies in several areas, including tobacco control, nutrition, physical activity, and stress management.
Service One CU Recognized by DepositAccounts.com in 2018 Top 200 Healthiest Credit Unions in America
DepositAccounts.com, a subsidiary of LendingTree, has released its list of the 2018 Top 200 Healthiest Credit Unions in America. Service One CU, 31st on the list, was ranked higher than all other Kentucky-based credit unions and banks.
“It is such an honor to have Service One recognized among the top 200 healthiest in America,” said Service One CEO/President Rebecca Stone. “Being part of this list shows our commitment to excellence.”
DepositAccounts.com evaluates the financial health of over 11,000 banks and credit unions in the United States once per quarter. To determine bank ranking and recognition, DepositAccounts.com grades each institution on a number of factors, including capitalization, deposit growth, and loan-to-reserve ratios.
“We believe it is important to give consumers a way to evaluate the financial health of their institutions,” said Ken Tumin, founder of DepositAccounts.com. “Our list empowers consumers to make informed decisions when selecting a financial institution.”
The Bureau of Consumer Financial Protection and the Financial Crimes Enforcement Network (FinCEN) will host a webinar on the Joint Memorandum to encourage coordination among financial institutions, law enforcement, and adult protective service agencies (APS) to protect older adults from elder financial exploitation (EFE). The webinar will be held on Thursday, June 7, from 2:00 -3:30 PM EDT. Registration is required to attend.
The webinar will focus on the importance of Suspicious Activity Reports (SARs) and the role that they may play in aiding law enforcement's investigation of EFE cases with an emphasis on collaboration.
- Jenefer Duane, Senior Program Analyst, Office for Older Americans, Bureau of Consumer Financial Protection
- Laura Richardson, Section Chief, Intelligence Division, FinCEN, US Department of Treasury
- Peter Gallagher, Deputy Attorney General, New Jersey Department of Justice
- Elaine Dodd, Executive Vice President, Fraud Division, Oklahoma Bankers Association
- Steve Vallejo, Senior Vice President - Corporate Security Director Corporate Security Investigations, Bank of the West
CUNA-requested language requesting the Department of Justice clarify website accessibility standards for the Americans with Disabilities Act was successfully added to a House appropriation bill this week. Credit unions around the country are facing numerous legal challenges due to uncertainty with how the ADA applies to websites, and CUNA has made finding a solution a top advocacy priority.
Rep. John Culberson (R-Texas), chair of the House Appropriations commerce, justice and science (CJS) subcommittee, submitted the amendment to the FY19 House CJS bill full committee markup Thursday.
The amendment inserts the following paragraph into the bill:
“Website Accessibility. – The Committee expects the Department to clarify standards for website accessibility requirements pursuant to the Americans with Disabilities Act in fiscal year 2019. The Committee recognizes the confusion caused by a lack of uniform website accessibility standards. The lack of clear requirements disadvantages small businesses that provide essential services for our communities.”
CUNA has engaged with Congress and the DOJ to find a solution for credit unions facing these lawsuits and offers a number of compliance resources for credit unions as well.
Question – how does your credit union use the term "bank"? If you're a federally chartered credit union you probably don't give a second thought to using terms like banking, mobile banking, online banking, etc., right? Well, NCUA's latest legal opinion letter addresses two Wisconsin laws that attempt to limit the use of these terms by credit unions.
- A provision in Wisconsin Banking Law which prohibits any person who is not subject to supervision and examination by the Wisconsin Division of Banking from referring to itself as a "bank" or otherwise indicating that it is engaged in the business of banking [Wis. Stats §221.0402(1)]
- A provision in the Wisconsin Deceptive Trade Practices Act which prohibits any person firm, corporation, or association, or any agent or employee of the same from making untrue, deceptive, or misleading advertisements [Wis. Stats §100.18 (1)]
Based on those two laws federally-insured credit unions in Wisconsin would not be able to use "bank" or any derivatives of the word bank to generally refer to financial services it provides. So at issue isn't really a credit union using "bank" in its name such as "Main Street Bank, your friendly credit union" but the generic use of bank as a verb or bank, or banking.
It shouldn't be a surprise that bankers claim that the use of the word "bank" by credit unions confuses consumers. The legal opinion was requested by the Wisconsin Credit Union League and in NCUA's response, the agency states in its letter that the two Wisconsin laws are preempted by NCUA's advertising rule and the Federal Credit Union Act and that a credit union's use of "bank" as a verb or derivative terms generally refer to financial services. So no worries credit unions! If interested you can read NCUA's legal opinion here.
Source: CUNA Compliance Blog
More than four years in the making, the General Data Protection Regulation- commonly known as GDPR- takes effect across the European Union on May 25. Those traveling overseas recently may have already seen signs of its rollout, with additional disclosures and click-throughs on web browsers becoming commonplace.
Although GDPR is not specifically targeted at financial institutions, the wealth of sensitive personal data accessible to financial services firms makes them a natural focal point for the regulation. And with fines of up to 20 million euro or 4 percent of annual worldwide revenues for offending parties, it's easy to understand why the rule has garnered such attention.
For now, US chartered credit unions can mostly breathe easy about direct impact. GDPR's requirements extend to companies processing the data of EU residents, a group that may include some credit union members. A gray area also exists for organizations collecting or processing the personal information of persons located inside the EU. This could easily describe traveling US credit union members, although it is unlikely either of the above groups will be an initial focus of EU regulators.
What's more interesting is GDPR's implications for the future direction of US data policy. Although it's highly unlikely lawmakers would take such a far-reaching legislative approach to the issue in this country, it's easy to envision several of GDPR's provisions becoming stateside standards through self-governing industry action. Consider that during his recent appearance before Congress, Facebook CEO unequivocally stated that the consumer owns their data- a premise that is central to GDPR.
Ironically, perhaps the best-known aspect of GDPR- the so-called "right to be forgotten"- turns out to be an urban legend. Although this notion appeared in early drafts, it was replaced in the approved 2014 document by a less onerous "right of erasure" permitting a data subject to request erasure under certain circumstances. Nonetheless, it remains one of GDPR's most contentious provisions, with persistent questions regarding its feasibility.
On Friday, the FFIEC issued new examination procedures on the “Customer Due Diligence Requirements for Financial Institutions” rule finalized by FinCEN on May 11, 2016. The new examination procedures replace those in the current “Customer Due Diligence — Overview and Examination Procedures” section of the FFIEC’s Bank Secrecy Act/Anti-Money Laundering Examination Manual. In addition, a new overview and examination procedures were developed for the beneficial ownership requirements for legal entity customers. The revised procedures were issued on May 11, 2018, the day the rule became effective.
- Customer Due Diligence - Overview and Examination Procedures (PDF)
- Beneficial Ownership for Legal Entity Customers - Overview and Examination Procedures (PDF)
FinCEN circulated a reminder yesterday that "Currency Transaction Reports (CTRs) will no longer be accepted in ACSII format effective June 1, 2018. Financial institutions that batch file must file using the new XML format. If a financial institution is unable, then it must revert to the discrete option to file its reports until it is able to file using the new XML format."
NCUA has finalized a few changes to the agency's "Accuracy in Advertising and Notice of Insured Status" rule that went into effect on May 25th. NCUA's advertising rule requires federally insured credit unions (FICU) to use the agency's "official advertisement statement" in most advertisements. Previously, three versions of the official advertisement statement were permitted:
(1) "This credit union is federally insured by the National Credit Union Association",
(2) Federally insured by NCUA, or
(3) a reproduction of the official sign.
This new rule allows a fourth option: "Insured by NCUA.” This change is expected to enhance advertising flexibility, especially for new social media platforms.
Another important change to the advertising requirements is an exemption for radio and television advertisements that are less than 30 seconds in duration. This is a change from the "less than 15 seconds" exemption that has been in effect since 2011.
Finally, the new rule eliminates the requirement to include the advertising statement on a credit union's statement of condition. The agency agrees this was an unnecessary requirement and eliminating it will restore parity with other financial institutions.
You can review the new rule in the April 25, 2018 Federal Register.
Source: CUNA Compliance Blog
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Credit unions that service mortgage loans saw an increase in their servicing responsibilities in October 2017 and will see additional requirements take effect in April 2018. Click here to register for this recorded webinar.
The CFPB (which is now referring to itself as "The Bureau of Consumer Protection") finalized the July 2017 proposed amendments to the TILA-RESPA rule in an attempt to get rid of what has become known to compliance folks as the "black hole" problem. As I am sure you are aware, the TILA-RESPA Rule requires creditors to provide consumers with good faith estimates of the loan terms and closing costs required to be disclosed on a Loan Estimate. Under the rule, an estimated closing cost is disclosed in good faith if the charge paid by or imposed on the consumer does not exceed the amount originally disclosed, subject to certain exceptions.
If the conditions for using such revised estimates are met, the creditor generally may provide revised estimates on a revised Loan Estimate or, in certain circumstances, on a Closing Disclosure. However, under the current rule, circumstances may arise in which a cost increases but the creditor is unable to use an otherwise permissible revised estimate on either a Loan Estimate or a Closing Disclosure for purposes of determining good faith. This situation, known as the TRID "black hole," often occurs when the lender has already provided the borrower with the Closing Disclosure when it learns of the fee increase. Currently, a creditor may only use a Closing Disclosure to reset tolerances if there are fewer than four business days between the time the creditor is required to provide the Closing Disclosure reflecting the revised estimate (i.e., within three business days of receiving information sufficient to establish a reason for revision) and consummation. This is referred to as the "four-business day limit." As a result, credit unions are often forced to absorb increased costs that would otherwise be rightfully passed on to the member but for this four-day limit.
To address this situation, in July 2017, the Bureau proposed to address the issue by specifically providing that creditors may use Closing Disclosures to reflect changes in costs for purposes of determining if an estimated closing cost was disclosed in good faith, regardless of when the Closing Disclosure is provided. Last week, the Bureau finalized this proposed amendment, thus once it becomes effective 30 days after publication in the Federal Register, there will no longer be a four-day limit for resetting tolerances with revised closing disclosures. Therefore, if a changed circumstance or another triggering event has occurred, the 2018 TILA-RESPA Rule permits a creditor to reset tolerances with either an initial or corrected Closing Disclosure regardless of the number of days between consummation and the date the Closing Disclosure reflecting the revised estimate is required to be provided to the consumer. However, keep in mind that the four-day limit will remain in effect for revised Loan Estimates, just not revised Closing Disclosures.
The text of the final rule is available here, and the Bureau has also provided an executive summary of the rule here. Please reach out to CUNA Compliance with any questions regarding TRID, black holes, and any other compliance inquiries.
This time last week, it seemed like we were in the midst of a long overdue UDAAP hiatus since the change in leadership at the Bureau. Under former Director Cordray, every time we turned around it seemed the Bureau was issuing a new UDAAP consent order, relying on the authority Dodd-Frank gave it to regulate unfair, deceptive, or abusive acts and practices through enforcement actions. This ultimately created a strange and confusing environment where credit unions were expected to read between the lines of these consent orders and adjust their practices accordingly for fear of similar fines or enforcement. And just when we felt like we could finally breathe....
BAM! Last Friday, the CFPB and OCC issued a joint action against their favorite (insert sarcasm font) financial institution, Wells Fargo, for $1 Billion. Yes, you read that right, that's billion with a "B." And it's the CFPB's largest fine to date.
The order alleges that Wells Fargo unfairly charged fees for rate- lock extensions in connection with residential mortgage loans and for force-placing collateral protection insurance on consumer's vehicles for auto loans that it originated or acquired. The CFPB alleged that Wells Fargo unfairly charged consumer's for rate-lock extension fees when the delay causing the lock to expire was the bank's fault, despite an internal policy that the bank would absorb any fees to extend a lock when the bank was the cause of the delay that caused the rate lock to expire. As for the force-placed auto insurance, the bank failed to adequately communicate with borrower's to verify if they had auto insurance, and in many cases, they forced-placed duplicate insurance despite the borrower providing evidence of insurance.
You can read the full text of the consent order here, but for now, the big takeaway is that UDAAP is not going away, and we need to continue to keep a watchful eye on how the Bureau handles these cases moving forward...
Low-income federally insured credit unions interested in becoming certified community development
financial institutions can apply to use the National Credit Union Administration’s streamlined application process beginning June 4.
During the streamlined application period, which runs until June 22, credit unions submit loan origination data to the NCUA’s Office of Credit Union Resources and Expansion.
The agency will perform an analysis to determine each credit union’s likelihood for certification.
CORRECTION: Please note that the link below corrects an error in the date in the last paragraph of the original Administrative Ruling, referring to the Rule's Applicability Date, which was Friday, May 11, 2018.
...For the reasons discussed above, FinCEN grants an exception to covered financial institutions for 90 days, up to and including August 9, 2018, from the Beneficial Ownership Rule's requirements to identify and verify beneficial ownership information for rollover or renewal of certain financial products and services (i.e., CD and loan accounts) that were established before May 11, 2018.
Last week's passage of S. 2155 was a huge victory for credit unions! This landmark regulatory relief bill benefits credit unions in a variety of ways, from increasing the MBL cap by removing 1-to-4 family non-owner occupied residential property from the cap to rolling back the onerous HMDA data points imposed by Dodd-Frank. At CUNA Compliance, the questions about S. 2155 have been rolling in at a steady pace, so they have compiled a summary chart of the provisions most likely to affect credit unions, and when they become effective. Note that these summaries are provided by the Senate Banking Committee and the full version is available here.
Note that the effective date field is blank for the majority of the provisions. This means that the Act was silent and did not specify an effective date for that particular provision. This usually means that the provision is effective upon the date of enactment (which was 5/24/2018). However, from a compliance standpoint, it is not always that simple, as the agency regulation could not contain conflicting information that will need to be revised. We hope that the agencies will work with the industry in facilitating compliance with the Act as quickly as possible and provide us with guidance in the interim. Stay tuned for future updates from CUNA as well will be posting a series of blogs that will dive deeper into the sections of the Act that will be particularly important for Compliance folks. In the meantime, feel free to reach out to CUNA Compliance with any questions you may have.