CURRENT Newsletter | 12 January 2021
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Headline News
- Important State-Level FOM Case Remanded to Hearing Examiner
- League Plans Jan. 26 Webinar on COVID-Related Employment, HR Issues
- League, VBA Ask Health Officials to Prioritize COVID Vaccinations for Frontline Financial Institution Employees
- Help More Members Become Homeowners in 2021
- Three-Part Fundamentals of the Mortgage Process Webinar Series Offered in February
- Employer Options as FFCRA Expires
- Last Call for Credit Unions to Submit 2020 CU Diversity Self Assessments, Due Jan. 15
- Overdraft Services Webinar: 10 High-Risk Issues You Need to Address
- 2021 and Your CU: Why Text Messaging is Essential
- Share Your Story of How You've Helped Members During Pandemic
Compliance / Regulatory Affairs
Financial Services / Economic News
Credit Union News
Headline News
Important State-Level FOM Case Remanded to Hearing Examiner
The State Corporation Commission has remanded Virginia Credit Union’s field-of-membership case back to a hearing examiner for new proceedings -- in which the credit union will be required to prove compliance with the applicable laws governing field-of-membership expansions.
Your League is a party to this case. The hearing examiner has scheduled a pre-hearing conference for Jan. 28.
“This decision by the State Corporation Commission for new proceedings was always a possibility,” notes League Senior Vice President David Miles, who testified in the court case last year, “and we’re fully prepared to move forward in support of our state-chartered credit unions. While this means bankers get another bite at the apple, our case remains strong. Based on the SCC judges’ decision, we’ll simply have to argue our case from a different angle.”
A two-day hearing was held in July 2020, with more than 10 hours of arguments and testimony. We hoped for a speedy resolution in the case when last October the hearing examiner sided strongly with Virginia Credit Union and the League in recommending the Commission judges uphold the Bureau of Financial Institutions’ decision to allow Virginia Credit Union to add the Medical Society of Virginia to its field-of-membership, and dismiss the case brought by the Virginia Bankers Association and several of its member banks. You can view case information here.
“While we’re disappointed with this development, we still expect to win,” notes League President Rick Pillow. “What frustrates us is that this already long journey for Virginia Credit Union and potential credit union members in the Medical Society of Virginia has now become that much longer. We remain deeply concerned an unfavorable decision in this case would establish a precedent that might well have a chilling effect on state-chartered, multiple-common-bond credit unions’ pursuit of charter expansions. It would also weaken the state charter, a grave concern for us as advocates of a dual-chartering system that encourages innovation and flexibility.”
League Plans Jan. 26 Webinar on COVID-Related Employment, HR Issues
Your League will partner with the Woods Rogers law firm for a Jan. 26 (10 a.m.) webinar providing updates on pandemic-related HR and employment law issues.
We know many of you have questions related to health and safety considerations; wage, hour and payroll issues; leave considerations; handling COVID-related accommodation requests, telework, and much more!
Attorneys Dan Summerlin and Leah Stiegler will provide an update on these key issues.
League, VBA Ask Health Officials to Prioritize COVID Vaccinations for Frontline Financial Institution Employees
Your League and the Virginia Bankers Association are calling for frontline credit union and bank employees to be prioritized in upcoming rounds of COVID-19 vaccinations.
In a letter last week to Dr. Danny T.K. Avula, who is coordinating the state’s vaccination effort, and Dr. Norman Oliver, Virginia Health Commissioner, the trade groups thanked officials for designating credit union and bank staffers as “essential” employees, adding that they should be prioritized for vaccination within Phase 1C.
The state is following the phased roll-out proposed by the CDC for vaccinations, which placed those working within the banking sector in Phase 1C, which includes a broad range of groups -- persons aged 65–74 years, persons aged 16–64 years with high-risk medical conditions, and essential workers not recommended for vaccination in Phase 1B. The CDC estimated 24 million Americans fall in Phase 1A, 49 million in 1B and 129 million in 1C.
“We simply asked that frontline credit union and bank employees be prioritized within the 1C category. We know credit unions have implemented important safety measures and procedures across all their operations, with special attention on branch locations, but there remains some risk associated with in-person interactions,” noted League President Rick Pillow. “We recognize the incredible work of frontline employees, including our tellers and loan officers, during the pandemic and want to ensure these employees are able to receive a vaccine as soon as possible so we can safely serve our members and communities.”
Help More Members Become Homeowners in 2021
Homeownership has long been referred to as the American Dream. It provides stability for families and neighborhoods, in addition to a significant impact on generational wealth. So why aren't more of your eligible members homeowners? It could be because they think they need a 20% down payment to qualify for a mortgage. In fact, saving for the down payment is routinely identified as the greatest barrier to owning a home.
CUNA Mutual Group recently partnered with MGIC, a private mortgage insurance (PMI) company and the pioneer of PMI. MGIC helps you offer mortgages to your members with as little as a 3% down payment, while providing protection against default to your CU.
Join us on Jan. 14, 2021, at 11 a.m. for a 60-minute webinar presented by MGIC that will explore how today's economy is impacting potential homebuyers.
- Register here.
- Log-in instructions will be emailed to you after your registration is confirmed. A log-in reminder will be sent 24-hours and 1-hour before the event.
Three-Part Fundamentals of the Mortgage Process Webinar Series Offered in February
- three-part webinar series, presented by CUNA Mutual Group partner MGIC, will provide credit union staff a better understanding of the mortgage cycle and process. Participants will learn how mortgage insurance works, the importance of a well-taken loan application, how to use the "Four Cs" in lending decisions, and the "whys" behind the "how-tos" of the mortgage process. A thorough understanding of the mortgage process will enhance your value to your members and help ensure an efficient, effective member service experience.
Fundamentals of the Mortgage Process Webinar Series schedule & content:
- Wednesday, Feb. 3, 2 p.m.- 3 p.m.: Understanding the Mortgage Cycle and How Mortgage Insurance Works - In the first of our 3-part Fundamentals series, learn about the mortgage cycle, key players, regulatory compliance, mortgage insurance and MI premium plan options.
- Wednesday, Feb. 10, 2 p.m.- 3 p.m.: Taking the Loan Application and Processing the Loan - In the second of our 3-part Fundamentals series, learn about loan types and programs, questions to ask while completing the loan application, the importance of processing and complete documentation.
- Wednesday, Feb. 17, 2 p.m.- 3 p.m.: Evaluating Credit, Capacity, Capital & Collateral - In the third of our 3-part Fundamentals series, learn about evaluating the Four Cs—credit, capacity, capital and collateral —along with risk layering.
Your educational investment is $150 per person for all three sessions. MGIC clients may attend at no charge. The webinar and registration is hosted by our TRGroup partner, the Mississippi Credit Union Association.
Get additional program details or register here!
Employer Options as FFCRA Expires
The Family First Coronavirus Response Act (FFCRA) expired on December 31, 2020; however, eligible employers who voluntarily provide paid leave after this date will continue to receive tax credits thru March 31, 2021.
As was previously determined, the requirement to provide Families First Coronavirus Response Act (FFCRA) leave applied only from April 1, 2020 thru December 31, 2020. The (FFCRA) required certain employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. The only relief related to this as part of Stimulus 2.0 was the continuation of the tax credits thru March 31, 2021.
Last Call for Credit Unions to Submit 2020 CU Diversity Self Assessments, Due Jan. 15
The NCUA’s Office of Minority and Women Inclusion reminds credit unions that they have until this Friday, Jan. 15, to submit their 2020 Credit Union Diversity Self-Assessment (CUDSA).
Overdraft Services Webinar: 10 High-Risk Issues You Need to Address
Join us for a Jan. 13 webinar through TRGroup for a discussion of overdraft-related risks, including:
- Per item per time issues
- Debit Card Pending Issues—what are good funds?
- Timing of disclosures when you open accounts off-premise
- Opt-In and Opt-Out Procedures for one-time debits and ATM transactions
- The Regulations, the guidance, the exam
2021 and Your CU: Why Text Messaging is Essential
An astounding 76% of consumers say they prefer to interact via a channel like texting. So, meet your members where they are looking to be met. Doing so will heighten your member experience and deepen your relationship with them. Join us Jan. 13 at 2:30 p.m. for a TRGroup-sponsored webinar from Eltropy CEO and founder Ashish Garg, who will share how Eltropy’s secure and compliant platform can aid your Credit Union in communicating effectively into 2021 and beyond.
Share Your Story of How You've Helped Members During Pandemic
During one of the recent CUNA-League Small Credit Union webinars, we worked on how to tell your credit union’s story in simple but powerful ways. We’d like you to put that story to important practice this week. We’re asking credit unions to submit simple stories about how they’re helping members during these challenging times via our Advancing Communities advocacy initiative.
Advocacy is what we do as an organization; same for CUNA and our fellow Leagues. And we know that if we can help credit unions share stories with lawmakers, especially as new members of Congress and state legislatures are sworn in, we can preserve the tax status and strengthen the operating environment for the movement.
So, we're asking you to share your story, because people connect with real stories about real people. Simply click on the "share your story link" on the top-right corner of our Advancing Communities homepage and record a brief message that spotlights your credit union's good work on behalf of your members!
Compliance / Regulatory Affairs
Credit Unions Argue Pandemic Bolsters Case to Ease Membership Rules
Some credit union advocates are arguing that the National Credit Union Administration needs to further ease field-of-membership rules to address issues highlighted by the coronavirus.
Last year, a long legal battle over previous changes NCUA made to FOM requirements was settled after the Supreme Court declined to hear an appeal in the case.
But the Credit Union National Association and others are calling for requirements to be loosened even further to ensure the financial viability of credit unions, especially those that currently serve a narrow group of members and may be interested in expanding.
“Field-of-membership changes have been impactful and beneficial,” Mike Schenk, chief economist for CUNA, said during a hearing regarding NCUA’s budget. “And more can and should be done.”
In 2016, NCUA updated FOM requirements to expand how credit unions can define membership eligibility, including across broad rural areas that cross state lines or excluding core-based statistical areas. Credit unions hoping to serve rural districts across a broad geographic area can do so without having to seek permission from multiple state regulators.
But Schenk argued that the pandemic demonstrated that this expansion of FOM wasn’t enough. The economic turmoil related to the outbreak further showed the heightened safety-and-soundness issues for credit unions with concentrations in specific industries. (Credit Union Journal, Jan. 12)
Financial Services / Economic News
Coin Shortage Eases as U.S. Ramps Up Production
To help push more coins into circulation, the U.S. Mint last year boosted production to levels not seen since 2017.
The Mint’s two facilities in Denver and Philadelphia churned out 14.8 billion coins for circulation in 2020, up 26% from less than 12 billion the year before, according to data the agency provided to American Banker.
The effort was part of a plan between the government, coin collection companies, retailers and banks to cure a shortage in tills across the U.S. as in -person spending slowed in the early months of the pandemic and online and card transactions soared. The sudden scarcity of change was one of the unseen economic side-effects of the coronavirus pandemic, but that boost in production, combined with increased economic activity in recent months, means that coin circulation is finally returning to normal, industry officials say. (American Banker, Jan. 10)
Credit Union News
ABNB Announces Michael C. Doland's Retirement
ABNB announces the retirement of Senior Vice President Michael (Mike) C. Doland after 18 years of service at the credit union. His career spanned 46 years in the financial services industry at various credit unions, regional banks and national banks.
Prior to his tenure at ABNB, Doland served as the President & CEO of PortAlliance Federal Credit Union located in the Hampton Roads area of Virginia.
ABNB’s Board of Directors issued an official Resolution of Recognition and Appreciation in December citing Mr. Doland’s longstanding service to the credit union.
Promotions, New Hire at ABNB Federal Credit Union
ABNB is proud to share the new roles Thomas Callan, Melissa Harper, and Charlene Kitchens have taken on.
Callan has been a member of the ABNB team since 2012, starting as a Member Service Representative. He previously served as Loan Center Plastics and Indirect Administrator and has been promoted to Card Services Manager.
Harper joins the ABNB team as a Mortgage Center Supervisor. She comes to us with 14 years of experience as a Real Estate Processor in Virginia Beach, Virginia.
Kitchens has been with ABNB since 1995 as a Relationship Manager. In her new position as Regional Brand Manager, she is responsible for ensuring the sales, service, and operational functions of the Credit Union are being performed efficiently.
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