CURRENT Newsletter | 16 March 2021 - Virginia Credit Union League

Join AdvantEdge Analytics’ Sarah Randle, Sales Analyst, as she talks about what to do – and not do – when it comes to working with partners and what to look for in a good partner.

During the 45-minute session, you will:

Learn why easy-to-use technology creates speed-to-value
Experience what good data visualizations look like and why that's important in making data-driven decisions
See examples of tools that can help you improve efficiency, accelerate growth and harness new technology across your organization

You will walk away feeling more confident working with technology partners, armed with real examples of what data technology partners can do for you.

Webinar Dates, Time & Links:

To accommodate busy schedules, the same webinar is being presented on three different days:

Tuesday, March 23, 4 p.m. – Register now
Wednesday, March 24, 2 p.m. – Register now
Thursday, March 25, 11 a.m. – Register now

League Compliance Webinar to Be Rescheduled

We apologize, but owing to unforeseen circumstances we will reschedule the Compliance/Regulatory Update webinar which we planned to hold this Wednesday (March 17). We haven't yet set a makeup date, but stay tuned.

Everyone who registered for the event has been emailed about our need to reschedule. Again, we apologize for any inconvenience and hope you'll be able to join us for the rescheduled event.

Online Training for Supervisory Committees

Over the past two decades, credit union supervisory committees have faced a daunting reality: ever-increasing responsibilities coupled with limited time and resources to fulfill their duties.

Popular credit union consultant Ancin Cooley has created a web-based course for supervisory committee members, offering the most comprehensive overview of the role, duties, responsibilities and resources available to committee members. The five modules offer you a fun, interactive learning experience with bonus content and even quizzes to test your content retention.

Learn more
Register Now (Your League is offering volume discounts for multiple registrations from the same credit union. Use our registration to ensure you receive the discount.)

Learn more about this course:
https://youtu.be/LEv7JaamUzI
FAQs About the Online Supervisory Committee Course
https://youtu.be/w3B0dQXPJCw

Contact your League’s Mary Amyx for additional information – mamyx@vacul.org.

CU PolicyPro’s New Look!

CU PolicyPro can help your credit union manage today’s ongoing compliance and operational challenges thanks to its more than 230 detailed model policies. Together with InfoSight, you have at your disposal a comprehensive suite of policies and regulatory compliance guidance written especially for credit unions by legal and financial experts.

And, coming soon, are some major updates to CU PolicyPro! The all-new CU PolicyPro will continue to provide the great model policy content you’ve come to expect but will now offer a fully redesigned policy management system!

The new system includes a beautiful, modern, and easy-to-navigate design to help all users easily find, view and print both model policies and the credit union’s own customized policies. System admins and policy editors will now have a whole new toolbox to:

create, maintain and distribute policies,
assign and track policy updates and reviews,
upload and share additional documents,
view and confirm relevant model policy updates, and
manage user access to the policy level.

Click here to watch a short video with more information about the upcoming changes to CU PolicyPro!

Diversity, Equity and Inclusion Webinar March 18

Special Webinar with NCUA Diversity Communications Specialist Marty Raines

Diversity, Equity, and Inclusion, or DEI, have been popping up in conversations, in the media, and on meeting agendas with increasing frequency lately. But beyond buzz words and catchphrases, what do they really mean?

In this March 18 webinar presentation (10 a.m.-11 a.m.), NCUA's Diversity Communications Specialist Marty Raines will define diversity, equity, and inclusion, and more importantly, share what they mean for our credit unions. Join us to learn how DEI contributes to talent, growth, and innovation, and to find out what the NCUA is doing to help you enhance your DEI efforts.

Webinar: Why Text Messaging is Essential for Your Credit Union

Secure, TCPA-compliant Text Messaging with your members is easy with Eltropy's award-winning platform! Eltropy's CEO and co-founder Ashish Garg will share how Eltropy’s secure and compliant platform can help your credit union communicate effectively during the pandemic and beyond. Learn more by joining us for an April 1 webinar (2 p.m.).

Your League is partnering with Eltropy through TRGroup, a partnership we formed with six other Leagues to deliver best-in-class services and educational opportunities!

Financial Education Committee Sharing ‘Message of Hope’ in Thanking Teachers, School Staff

It’s been an especially tough year on our teachers, educators and school staffs. The League’s Financial Education Committee has launched a new initiative called “Message of Hope” to thank those educators for their work in continuing to educate and mentor young people during the pandemic.

They are also reminding educators that credit unions stand ready as a financial education resource, by providing classroom materials and presentations, including virtual or in-person participation.

If you want to thank your local educators for their tremendous work during the pandemic, contact your League’s Mary Amyx for details on recording a short video message via Tribute.

Learn more about the “Message of Hope” initiative!

YPN Hosting March 18 Lunch & Learn

The Young Professionals Network is hosting a virtual Lunch & Learn Meeting March 18 (1 p.m.-2 p.m.). Mark Odom and Bianca Sutterluety (ABNB Federal Credit Union) will be our hosts and facilitate a discussion on “Tips for Growing Your Credit Union Career.”

Virginia Sister Society Hosting March 23 Virtual Event

The Virginia Sister Society of the Global Women’s Leadership Network is offering a free virtual program on March 23, offering participants an opportunity to connect with peers to discuss these five topics:

Managing Remote Employees Effectively
Professional Growth and Development
Transitioning From Crisis Management to Growth Management
Rebuilding Teams and Morale Post Pandemic
Leading With Strength, Even When You May Not Feel Strong

Free Webinar March 25: Boost Interchange Income, Reduce Expenses and Ready Your CU for the Future

Learn how your credit union can maximize its interchange income, reduce expenses and plan for future solutions -- all through a strong network optimization plan! The “Durbin world” has been around for a while, but it’s not always easy to navigate, so let our partners at Fiserv help you!

We’re providing free training on March 25 on “Network Optimization” strategies with Carol Specogna and Patti Bart- Jagodzinski.

March 24 NCUA Webinar Will Cover COVID-19 Credit Risk Issues

NCUA is hosting a webinar on March 24 about potential areas of credit risk resulting from the COVID-19 pandemic.

“COVID-19 has had a significant impact on the economy, credit unions, and their members,” NCUA Chairman Todd M. Harper said, “Going forward, the top priority for the NCUA will be ensuring that credit union members, the credit union system and the Share Insurance Fund are prepared to weather any economic fallout related to the pandemic. I encourage credit unions to take advantage of our webinar to learn more about how they can minimize potential risks to their balance sheets.”

Online registration for the “Pandemic-Related Credit Risks for Credit Unions” webinar is now open. The webinar is scheduled to begin at 2 p.m. Eastern and run approximately for 60 minutes.
Topics that will be covered during the webinar include:

Credit markets’ status;
Current federal regulations;
What NCUA examiners look for;
Suggestions on reporting risk to a credit union’s management and board; and
Advice for proactively managing credit risks.

Learn more

Compliance / Regulatory Affairs

Agencies Release Proposed New Q&As Regarding Private Flood Insurance

Five federal regulatory agencies, including NCUA, requested public comment on 24 proposed Interagency Questions and Answers Regarding Private Flood Insurance.

The proposal is intended to help lenders comply with the agencies' joint rule promulgated in 2019 to implement the private flood insurance provisions of the Biggert-Waters Flood Insurance Reform Act of 2012.

The proposal incorporates new questions and answers in a number of areas including:

Mandatory Acceptance,
Discretionary Acceptance, and
Private Flood Insurance General Compliance.

These Questions and Answers would supplement the 118 Interagency Questions and Answers Regarding Flood Insurance that the agencies proposed on July 6, 2020.

Comments will be accepted for 60 days after publication in the Federal Register.

Learn more

Sherrod Brown Quickly Shifts Senate Banking Panel's Course

Less than two months after becoming chairman of the Senate Banking Committee, Ohio Democrat Sherrod Brown has flipped the panel's script.

In contrast to the more industry-friendly, GOP-led committee between 2015 and last year, Brown is driving a sharp focus on racial inequality in the financial system and other progressive issues that is arguably more to the left than the priorities of past Democratic chairs.

Over a span of less than a month, Brown has gaveled hearings on how to achieve an "equitable recovery" from the pandemic and how the financial system "hurts workers and widens the racial wealth gap." Two additional hearings scheduled for March will focus on affordable housing and financial risks associated with climate change. On Feb. 25, the committee addressed "rebuilding Main Street" during the pandemic.

It is not clear whether the new focus is tied to a legislative agenda or merely to compel regulators to address financial system inequities in bank oversight. Regardless of the intent, observers say the committee's change in emphasis following the Democrats' election sweep is palpable.

The committee "typically has sort of been, What can we do for the banking industry first, and those benefits will then possibly trickle down to other people?” said Graham Steele, a former adviser to Brown and director of the corporations and society initiative at the Stanford Graduate School of Business. “And Sen. Brown sort of flips that on its head and says, 'What do people need? And how can the banking system facilitate that?'” (American Banker, March 15)

GAO Again Calls for Consolidation of Fed Agencies Supervising FIs

Dozens of federal programs – including several affecting financial services – are vulnerable to waste, fraud and abuse because of poor oversight by agencies or neglect from Congress, the Government Accountability Office said in an annual report this month.

As it has in the past, the GAO said that Congress should consider consolidating the number of federal agencies involved in supervising the safety and soundness of financial institutions. The GAO did not name which agencies might be consolidated, so it is unclear whether the agency is including the NCUA in the mix.

“The current structure introduces significant challenges for efficient and effective oversight of financial institutions and activities,” the GAO said, noting that in the years leading up to the 2007-2009 financial crisis, the regulatory system had not adapted to significant changes in the marketplace.

For instance, the GAO said entities that played critical roles in the financial markets were not being regulated effectively.

Again, the GAO was vague about the changes it believes should be adopted, but did say that Congress should consider changes to ensure the consistency of consumer protections and the consistency of financial oversight for similar institutions and services.

Learn more

Pandemic Response

FHFA Further Extends COVID-Related Loan Flexibilities

The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will extend temporary loan origination flexibilities until April 30, 2021. The temporary flexibilities are designed to ensure continued support for borrowers during the COVID-19 pandemic. All temporary flexibilities were set to expire on March 31, 2021.

Temporary flexibilities extended through April include:

Alternative appraisals on purchase and rate term refinance loans;
Alternative methods for documenting income and verifying employment before loan closing; and
Expanding the use of power of attorney to assist with loan closings.

Certain temporary flexibilities including employment verification, condominium project reviews, and expanded power of attorney, are expected to be retired on April 30.

Learn more

SBA Updates PPP FAQs, New Document to Calculate Draw Loan Amounts

The Small Business Administration (SBA) has released updated FAQs for its paycheck protection program (PPP), as well as new documents on calculating first- and second-draw PPP loan amounts.

Some of Nation’s Biggest Banks Say No Access to Stimulus Funds Until Wednesday

Some Americans may have had their federal stimulus payments deposited into their accounts over the weekend, but several of the nation’s largest banks said they will not be providing access to those deposits until March 17.

Wells Fargo, Chase and Bank of America have all announced they have placed holds on the checks, which for many people are as much as $1,400.

"We expect that electronic stimulus payments will be available in eligible Chase accounts as soon as Wednesday, March 17, 2021," Chase stated on its website.

Wells Fargo, meanwhile, said, "Customers who are eligible to receive direct deposit of their stimulus payment may expect it as soon as March 17, 2021.” The bank emphasized on its website it would process the payments in line with the effective date provided by the U.S. Treasury, which is March 17.

Bank of America has not issued a statement, but many Bank of America customers complained on Twitter that their payments are also being withheld.

Learn more

Financial Services / Economy

Fed Seen Standing Firm on Interest Rates, Bond Purchases

Federal Reserve officials will likely note an improving economic outlook at their policy meeting this week, while also stressing that it is too early to change their plans for interest rates and bond purchases.

Fed Chairman Jerome Powell has said repeatedly in recent weeks that he wants to see “substantial further progress” in the recovery before the central bank begins scaling back its $120 billion a month in bond purchases.

The Fed, meanwhile, won’t raise rates until its goals of maximum employment and sustained 2% inflation have been reached—a scenario officials have described as a long way off.

The updated economic projections Fed officials will release Wednesday, after the conclusion of the policy meeting, should show they expect the labor market and inflation to rebound faster than they anticipated in December.

The advancing rollout of Covid-19 vaccines and Congress’s completion of a $1.9 trillion economic stimulus program have brightened the outlook. But Fed officials don’t plan to signal a change to their easy-money policies until they see those projections coming true. (Wall Street Journal, March 16)

Americans Set Record for Paying Down Debt in 2020

American consumers set a record in 2020 by paying down $82.9 billion in credit card debt, according to WalletHub’s latest Credit Card Debt Study.

WalletHub described the feat as a “major accomplishment,” considering that consumers have added an average of $54.2 billion in credit card debt per year over the past 10 years.

The cities where consumers posted the biggest debt paydowns and also had the biggest debt increases can be seen in the chart below, according to WalletHub.

Learn more

Stimulus Will Keep America's Economy Humming for Years, Goldman Sachs Predicts

President Joe Biden's $1.9 trillion economic rescue is so massive that economists are marking up their growth forecasts for not just this year, but next as well.

Goldman Sachs predicts the US economy will rebound sharply from the pandemic, registering China-like GDP growth of 7% on a full-year basis in 2021. That would be the fastest pace for the United States since 1984 under Ronald Reagan, according to the St. Louis Federal Reserve.

Goldman Sachs also thinks the US economy will be 8% larger at the end of 2021, compared with the end of last year. By that measure, it would be the fastest GDP growth since 1965.

Over the weekend Goldman Sachs — citing the larger-than-expected American Rescue Plan —also bumped up its 2022 growth forecast to 5.1% on a full-year basis. That's up from the bank's previous prediction of 4.5% and well above the consensus of 3.8%.

Real Estate Boom Has Plenty of Legs

“In nearly every meaningful way,” today’s residential real estate boom “is the inverse of the previous boom,” which burst in 2006 “and set off a global recession. The current housing boom is far more stable than the last one and poses fewer systemic risks, economists say. A downside: There are more barriers to entry, and it’s more difficult for buyers who aren’t already homeowners to make that first purchase.”

“Market watchers also say that a number of longer-term trends are at play that should keep the housing market hot, or at least steady, even after Covid-19-related demand fades. Millennials, the largest living adult generation, continue to age into their prime homebuying years and plunk down savings for homes. At the same time, the market is critically undersupplied. Mortgage lenders, meanwhile, are maintaining tight standards. Rising home values also mean that even if homeowners can’t afford their mortgage payments, they can likely sell their homes for a profit rather than face foreclosure. Financial firms are still packaging mortgages as securities, but the vast majority of those mortgages today have government backing.” (American Banker, March 16)

Education & Training

Upcoming Comprehensive Lending Conference to Include Latest Industry Trends

Lending professionals who attend CUNA Consumer & Residential Mortgage Lending Virtual School April 13-15 will receive a comprehensive view of the current credit union industry lending landscape.

“I definitely recommend going,” said Stephanie Kawamura of Gather FCU. “It is a great experience – especially for supervisors, managers and anyone else looking to progress in the credit union industry and increase their knowledge of lending.”

“This is an opportunity for all of a credit union’s lending staff to learn the latest trends,” said Kathy Smith, instructional design manager for CUNA. “Attendees will learn about consumer lending, mortgage lending, lending compliance, lending leadership and trending topics.”

Learn more

March 24 NCUA Webinar Will Cover COVID-19 Credit Risk Issues

NCUA is hosting a webinar on March 24 about potential areas of credit risk resulting from the COVID-19 pandemic.

Online registration for the “Pandemic-Related Credit Risks for Credit Unions” webinar is now open. The webinar is scheduled to begin at 2 p.m. Eastern and run approximately for 60 minutes.

Topics that will be covered during the webinar include:

Credit markets’ status;
Current federal regulations;
What NCUA examiners look for;
Suggestions on reporting risk to a credit union’s management and board; and
Advice for proactively managing credit risks.

Learn more

Value of DEI Webinar: New Research, Survey Launch

After sharing her latest insights on how credit unions should incorporate DEI into their 2020 recovery playbook, Filene Fellow Dr. Quinetta Roberson joins us to talk about a new research project coming out of the Center for Diversity, Equity and Inclusion, how it will address the changing landscape of the finance industry, and how your credit union can get directly involved.

Dr. Roberson joins credit union leaders this THURSDAY, March 18, to launch this new study to examine industry-specific research on the presence, reach and value-creating effects of DEI practices and policies.

Unable to join us live? A recording of the presentation will be shared with all registrants following the webinar. Be sure to register to be included in this outreach.

News From Credit Unions

Riverside Health System ECU Members Approve Merger with 1st Advantage FCU

Riverside Health System Employees Credit Union (RHSECU) members voted overwhelmingly in favor of the merger with 1st Advantage Federal Credit Union. This was the final step in the approval process. Supported by both credit unions’ Boards of Directors and management, and approved by the National Credit Union Association (NCUA), the merger will take effect on March 31, 2021, after which the continuing credit union will operate as 1st Advantage Federal Credit Union.

Learn more

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