CURRENT Newsletter | 1 July 2021 - Virginia Credit Union League

"I'm excited about the opportunity to serve Virginia's credit unions, honored by the trust and confidence the League Board has placed in me and confident that together we can create an environment that ensures the success of the commonwealth's credit unions," says Hunt. "You look to us as your advocate, your partner for best-in-class business solutions, and as the engine that drives far-reaching collaborative initiatives that benefit your credit union and your members."

"I hope you'll take just a few minutes to view this video of my vision for the League and our continued commitment to ensuring a thriving and diverse credit union system here in Virginia."

#ilovemycreditunion Day Coming on July 30

On July 30, the credit union movement will come together across the social media stratosphere to spread inspiring and authentic conversation about our credit unions and system using the common hashtag, #ilovemycreditunion.

We’d love for Virginia-based credit unions to join the effort!

Learn more

Financial Education Boot Camp July 20

Looking to whip your credit union's financial education program into shape? Stumped on where to start? The Virginia Credit Union League's Financial Education Committee is here to get the program at your credit union into tip-top shape!

Date: July 20, 9:30 a.m. – 11:30 a.m.
Format: Virtual Workshop
Cost: $20. $10 of each registration fee will be donated to support the good work of Feed More!

Whether you are new to providing financial education or consider yourself a pro, this low-cost, high-impact workshop is guaranteed to provide tools and tips you can use immediately at your credit union. Now, more than ever, financial education can demonstrate the Credit Union Difference -- building member loyalty and providing an important opportunity to serve your community.

Turnkey Mortgage Solutions: Learn More about Our New Partnership with CUMA During a July 14 Webinar

Looking for a turnkey, customizable mortgage solution for your credit union? Credit Union Mortgage Association (CUMA), your League's newest business partner, boasts a 40-year track record of providing best-in-class mortgage-related services to credit unions of all asset sizes, including origination, processing, underwriting, servicing, closing and secondary market access.

Join us for a July 14 webinar (at noon) to learn about CUMA and what they can help you do for your members!

CONNECT Conference Returns Sept. 27-29

The League’s popular CONNECT Conference is returning Sept. 27-29! Scheduled for the Hilton Downtown Richmond, the conference features keynote speaker Andy Janning, an award-winning speaker, author, photographer and talent development expert.

Andy will share practical skills, advice and insights from his three decades of experience that will help you transform your career!

Stay tuned for registration informationopens a pdf and additional details!
Save The Date Flier

AACUC Annual Conference: League Providing Scholarships

Your League is providing the Lynette Smith Scholarship to the African American Credit Union Coalition (AACUC) Annual Conference, slated for Aug. 16-21.

The virtual AACUC conference has special pricing for the members, small credit unions and young professionals. We’re providing upward of $2,000 in scholarships for the event, so there’s a good chance we’ll be able to accommodate several scholarship requests!

Here’s how you can apply for a scholarship:

Contact the League’s Nicole Widell at nwidell@vacul.org.
Let Nicole know why you want to attend (a short paragraph or two will suffice). Please provide your credit union, phone number and current job title. NOTE: Your credit union must be an affiliate or associate member of the League to qualify.
Note the scholarship for which you’re applying:
- AACUC or National Association of Latino Credit Unions & Professionals (NLCUP) Members - ($200)
- Small Credit Union (less than $100 million in assets) & Minority Depository Institutions – ($99)
- Emerging Leaders / Young Professionals – ($99)
Please apply for a scholarship no later than July 30. We’ll notify scholarship winners beginning Aug. 2. Once you’re notified, register for the conference at https://www.aacuc.org/22nd-annual-conference and we’ll reimburse you for the registration fee.

Learn more about the conference (including full schedule) here.

The Virginia Credit Union League established an AACUC scholarship in honor of Lynette Smith, a tireless credit union advocate and a champion for the credit union movement at both the state and national levels. She is a past chairwoman of the AACUC and has announced her retirement as President/CEO of TruEnergy Federal Credit Union (Springfield, Va.).

IGNITE 2021, League Annual Meeting Registration Now Open!

We’re excited to announce the return of IGNITE, the League Annual Meeting! Now slated for Nov. 10-12, 2021 in Virginia Beach, we’ve secured the new Marriott Virginia Beach Oceanfront as our host hotel.

We’ve now posted an event schedule, information on our educational offering and details on our keynote speakers. Learn more!

Registration for the event is now open! Register here.
Want to book your hotel stay now? You can do so here!

General Assembly to Convene Special Session Aug. 2

The Virginia General Assembly will convene in Richmond on Aug. 2 for a special session to allocate more than $4.3 billion in federal relief funding, Gov. Ralph Northam announced Wednesday in a proclamation.

In May, Northam and Democratic leaders from the Virginia State Senate and the House of Delegates outlined their priorities for the special session, including fully funding the Rebuild Virginia small business recovery program and allocating money for the state’s Unemployment Trust Fund, which ran out of money last October due to record-breaking unemployment claims and relied on loans from the U.S. Department of Labor.

The $4.3 billion windfall comes from the $1.9 trillion American Rescue Plan enacted by Congress earlier this year.

The Virginia Employment Commission, which is under court order to resolve 92,000 unsettled claims by Labor Day, also would receive more funding to build up staffing and upgrade its computer system. Another priority is universal broadband access — this funding would see the state accelerate its broadband expansion goals for the next decade to a window over the next 18 months. Northam also plans to allocate more funding for school buildings, public health services and affordable housing.

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Advocacy / Governmental Affairs

Maloney Reintroduces Bill to Curb Overdraft Fees

In the latest example of pressure on financial institutions to rein in overdraft fees, a senior House Democrat has reintroduced legislation to restrict the charges.

Rep. Carolyn Maloney, D-N.Y., held a press conference Wednesday to tout the Overdraft Protection Act, which would restrict the number of times FIs can collect the fees and is also intended to ensure that charges are reasonable.

The legislation would prohibit FIs from charging a customer more than one overdraft fee per month, and limit the total number per customer to six each year. The bill would also require that any overdraft fees be “reasonable and proportional" to the amount of the overdraft.

Maloney said at the press conference that the legislation would also prevent FIs from reordering customers’ transactions, which would prevent avoidable overdraft fees. (American Banker, June 30)

Young Professionals Advocacy Workshop Scheduled Aug. 4-6

Young credit union professionals will have the opportunity to learn from CUNA and League advocacy experts on the best ways to advocate for the credit union movement at CUNA’s Young Professional Advocacy Workshop. The three-day virtual training will take place Aug. 4-6.

“Learning the ins and outs of effective advocacy is important for any credit union leader, especially early in their careers,” said Adam Engelman, CUNA director, federal grassroots and programs. “Getting young credit union leaders familiar with the advocacy process and the importance of building relationships with policymakers is essential to advancing credit union policies on all levels.”

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Compliance / Regulatory Affairs

NCUA Finalizes CUNA-Backed CECL, Interest Capitalization Rules

NCUA finalized rules on the current expected credit loss (CECL) transition methodology and capitalization of interest Thursday at its board meeting. The board also voted to affirm the 18% interest rate cap on loans made by federal credit unions.

CUNA supported both final rules as proposed and wrote to NCUA last month urging it to finalize them as quickly as possible.

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FHFA Extends COVID-19 Foreclosure, REO Eviction Moratoriums

The Federal Housing Finance Agency (FHFA) announced Thursday that Fannie Mae and Freddie Mac are extending the moratoriums on single-family foreclosures and real estate owned (REO) evictions until July 31, 2021. The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only.

The REO eviction moratorium applies to properties that have been acquired by an Enterprise through foreclosure or deed-in-lieu of foreclosure transactions.

The current moratoriums were set to expire on June 30, 2021.

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OCC’s ‘True Lender’ Rule Voided Via Congressional Review Act

President Joe Biden Wednesday signed a joint resolution passed by both chambers of Congress nullifying the Office of the Comptroller of the Currency’s “true lender” rule. CUNA supported House and Senate efforts to void the rule under the Congressional Review Act.

“Removal of the ‘true lender’ rule is a victory for credit unions, as this rule could have been exploited by any number of actors looking to avoid state laws designed to protect consumers,” said CUNA President/CEO Jim Nussle. “We continue to believe the OCC, and consumers, would be better served if the agency focused efforts on promoting fair and reasonable loan options from credit unions and other community lenders.”

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FinCEN Issues Government-Wide AML/CFT Priorities

The Financial Crimes Enforcement Network (FinCEN) issued the first government-wide priorities for anti-money laundering and countering the financing of terrorism (AML/CFT) policy Wednesday. The priorities identify and describe the most significant AML/CFT threats currently facing the United States.

FinCEN will issue regulations at a later date to specify how financial institutions should incorporate these priorities into risk-based AML programs, as required by the Anti-Money Laundering Act of 2020.

A complete breakdown can be found on CUNA’s CompBlog.

News About Credit Unions

CU Yield-on-Assets Ratio Hits New Low; All Loans But Mortgages, Used Auto See Declines, Surge in Mergers Forecast in New Trends Report

Credit union yield on asset ratios hit a record low, and every real estate loan category reported positive growth while every consumer loan category (except used cars) saw negative growth through April, according to the newest CUNA Mutual Trends Report, which is also predicting a “surge” in CU mergers during 2023-26.

The June Trends Report, which is based on CU community data through April of 2021, also predicts loan growth will “accelerate” in 2022 for a number of reasons.

According to the Trends Report, CU yield on asset ratios fell to 3.04% in the first quarter of 2021, the lowest in credit union history. The report notes the ratio has fallen a full one percentage point from the 4.04% set in 2019, right before the COVID-19 pandemic.

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NCUA Announces $865.5 Million Corporate System Resolution Program Distribution

NCUA, in its role as liquidating agent, announced Monday an $865.5 million distribution to the 1,800 membership capital account holders of the former Members United, Southwest Corporate, and U.S. Central corporate credit unions.

The agency also announced the end of the NCUA Guaranteed Notes program and will continue to effectuate its plan to orderly liquidate the remaining post-securitized assets and make further distributions when possible.

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Overall Auto Sales Show Strong Q2 Finish as CUs Struggle

Analysts said they are expecting a strong finish this week for second-quarter auto sales, but new car loans at credit unions are still in reverse.

Edmunds on Tuesday said their analysts expect new vehicle sales to stay strong in the second quarter. The car-buying analytics company based in Santa Monica, Calif., forecast 4.5 million new cars would be sold in the second quarter, up 14.8% from the first quarter and up 51.6% from the second quarter of 2020.

“New vehicle sales in the second quarter started off with a bang in April thanks to a combination of a speedier-than-anticipated vaccine rollout and many Americans itching to jump into a new vehicle and on the road toward some semblance of normal life,” Jessica Caldwell, Edmunds’ executive director of insights, said.

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Credit Unions Work to Advance LGTBQ+ Communities

As credit unions work to advance the communities they serve, they also look for opportunities to demonstrate they are a part of those same communities. With June marking Pride Month, several credit unions have used CUNA’s Advancing Communities portal to share their stories of service to the LGBTQ+ community.

FirstLight FCU, El Paso, Texas, has dedicated itself to telling the stories of employees, members, and the community, which is why it launched its PRIDE stories video series to highlights LGBTQ+ employees.

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News From Credit Unions

Virginia Beach Schools FCU to Merge With Langley FCU

The Board of Directors and Leadership team of Langley are excited to announce that Virginia Beach Schools Federal Credit Union (VBSFCU) has announced plans to merge with us.

The Board of Directors and Leadership of VBSFCU recognize they can better serve their membership by merging with Langley. As the financial services landscape continues to evolve, merging with Langley allows VBSFCU to enhance what they can offer members, such as access to more branch locations, and the ability to offer more products and services at competitive rates.

Learn more

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