CURRENT Newsletter | 16 September 2021 - Virginia Credit Union League

In light of last week’s announcement from the Biden Administration to mandate vaccinations for employers with 100 or more employees, your League has been actively engaged in dialogue on this issue with policymakers, including the Department of Labor and trade partners.

“I have heard from many of our members that this mandate could have unintended consequences. Mandating vaccines is a very complex issue and over the past few months, credit unions have taken different approaches to maintain a safe workplace. The executive order and the planned vaccination mandate will have a significant impact on all covered organizations and potentially those not covered, most obviously in terms of potential costs, test availability and employee retention efforts,” says League President/CEO Carrie Hunt. “While we strongly support the intent of the mandate -- to end the pandemic -- your League will stay engaged to represent credit unions' operational needs. We will also carefully monitor any additional action at the state level with regard to the federal mandates.”

In addition to our advocacy, the League is providing compliance resources to aid with the forthcoming vaccine regulation and to address recent changes to Virginia’s COVID-related workplace safety standard:

An Early Win on IRS Reporting Requirements, But CUs' Engagement Still Critical as Fight Continues!

There was a temporary win in the fight to keep credit unions from having to report inflows and outflows of deposits information on every account that holds more than $600, with the House Ways and Means Committee, under the leadership of Richie Neal (D-MA), not including it in their tax package. Treasury Secretary Janet Yellen and IRS Commissioner Charles Rettig sent a letter to House Democrats urging them to put it back in the final, larger package. Thank you to the 600-plus credit union champions here in Virginia who responded to this call to action. BUT WE CANNOT LET UP! If you have not sent a letter or an email, or made a phone call, please do so right now!

Action Alert: Write Lawmakers on Interchange; Talking Points, Issue Overview Now Available

Write your lawmakers now and urge them to keep the current interchange system. To aid you in your advocacy efforts, talking points on our interchange issues are also now available. Click here!opens a pdf

Credit unions: please share this advocacy alert with your colleagues and board officials. Ask them to consider writing their lawmakers on this critical issue.

League's CeJae Vtipilson Promoted to Grassroots Programs and Political Fundraising Director

CeJae Vtipilson has assumed a new role at the Virginia Credit Union League following his promotion to Director, Grassroots Programs and Political Fundraising.

“CeJae has been an important part of our advocacy work for the whole of his five-year tenure at the League,” said League Senior Vice President and Chief Advocacy Officer David Miles. “From managing legislative events at the Credit Union House of Virginia to building our pool of grassroots advocates in his work with the Emerging Professionals Network, CeJae’s passion and enthusiasm for advocacy shine through.”

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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 is designed to help next-generation leaders build their personal and professional brand, elevate their networking and public speaking abilities, understand credit union financials and engage in credit union advocacy efforts.

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CEO FORUM Set for Oct. 20; Registration Open!

This year's CEO Forum (small/mid-size CUs) will be held as a one-day, in-person event Oct. 20 at Credit Union House in Richmond. This is a great opportunity to learn from industry experts, network with your peers, and discuss your top-of-mind issues with new League President/CEO Carrie Hunt and other League staff.

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Ignite 2021 Peer-to-Peer Exchange Will Spotlight Regulatory, Operations Issues

Coming to Ignite 2021, we’re pleased to offer a peer-to-peer exchange titled, NCUA Regulatory & Industry Update, on Wednesday, Nov. 10. Hear from NCUA Principal Examiner John Kren and your League’s own Tim Hesson on the regulatory, operations and marketplace issues that will dominate 2022.

Likely topics include ALLL, vendor management, cybersecurity, business continuity and cannabis-related business opportunities.

Learn more about Ignite 2021

League Hosts Meeting With CFPB

Last Thursday, your League hosted a virtual meeting with staff members of the Consumer Financial Protection Bureau. In a wide-ranging discussion, credit union and League participants covered a host of topics, including pandemic relief measures, proposed regulation and consumer protections related to mortgage lending.

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League InfoSight Seeks Your Input

League InfoSight is looking for credit union feedback on its products and services, including our online compliance manual. This feedback helps us prioritize new development and initiatives. Visit https://www.leagueinfosight.com/survey2021.

Advocacy / Governmental Affairs

Proposed SBA Expansion into Direct Lending Irks Banks, Credit Unions

Credit unions and banks oppose federal proposals to let the Small Business Administration make some 7(a) loans directly in addition to its traditional role of guaranteeing credits extended by private lenders.

The Biden administration’s $3.5 trillion spending package would give the SBA nearly $4.5 billion to make 7(a) loans of $150,000 or less directly to borrowers. The cap for direct loans to manufacturers would be $1 million.

Legislation approved by the House Small Business Committee last week included an option for the SBA to originate small 7(a) loans “through partnerships with third parties” — which presumably could include some banks and credit unions. At the same time, the bill would authorize SBA “to originate and disburse direct loans.” (American Banker, Sept. 15)

Virginia Redistricting Commission Approves Neutrality Rule, Deadlocks on Use of Race

The Virginia Redistricting Commission voted Wednesday to formally instruct its map-drawers not to look at political data or information showing where incumbents live as they draw new General Assembly and congressional districts.

The bipartisan panel’s unanimous vote represents a formal commitment to the fairer process voters envisioned when they approved the commission last year. It’s also something of a gamble, resting on hopes that General Assembly members will vote for neutral maps even if they jeopardize the careers of individual legislators.

NCUA Issues Letter to FCUs on Post-Examination Survey Pilot

The National Credit Union Administration (NCUA) sent a letter to federal credit unions yesterday (21-FCU-05). The agency is piloting a new post-examination survey that will allow credit unions to provide timely feedback to the agency while helping to standardize the feedback process.

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NCUA Invites MDIs to Apply for Mentor Grants

The NCUA announced this week that it will begin taking applications Oct. 11 for its next round of mentoring grants to help Minority Depository Institutions.

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Financial Services / Economy

Big Credit Card Issuers Make Their Moves in Buy Now/Pay Later

Credit card heavyweights, which long showed little angst about buy now/pay later competitors, are starting to acknowledge the need to match the offers from those upstart firms.

In recent days, a few major card issuers have either announced new BNPL offerings or signaled that they are closer to doing so. Their products are poised to rival short-term installment loans from fintechs like Affirm, Afterpay and Klarna, which market to millennials and Gen Z consumers, and tout their products as easier-to-understand alternatives to credit cards.

Last week, Synchrony Financial, which partners with merchants on credit cards, said that it will add a “Pay in 4” loan that retailers may choose to offer to their customers. And this week, executives from Chase, Capital One and U.S. Bancorp spoke at an industry conference about their plans in the buy now/pay later market. (American Banker, Sept. 16)

Foreclosure Activity Rises in First Post-Moratorium Month

The other shoe didn't drop last month, but maybe the laces did start to unravel. ATTOM reports that, within a month after the government's pandemic-related moratorium lifted, foreclosure filings nationwide rose 27 percent and were 60 percent higher than in August 2020 when the moratorium was in full force. There were a total of 15,838 properties that received a foreclosure filing during the month, either a notice of default, scheduled auction, or bank repossession.

"As expected, foreclosure activity increased as the government's foreclosure moratorium expired, but this doesn't mean we should expect to see a flood of distressed properties coming to market," said Rick Sharga, Executive Vice President at RealtyTrac, an ATTOM company. "We'll continue to see foreclosure activity increase over the next three months as loans that were in default prior to the moratorium re-enter the foreclosure pipeline, and states begin to catch up on months of foreclosure filings that simply haven't been processed during the pandemic. But it's likely that foreclosures will remain below normal levels at least through the end of the year."

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News From Credit Unions

UVA Community Credit Union President/CEO Alison DeTuncq to Retire

After a 32-year tenure with UVA Community Credit Union, including the last 22 as President/CEO, Alison DeTuncq has announced her plans to retire in May 2022. DeTuncq has played a critical role in the transformation and success of the University of Virginia Community Credit Union. Under her leadership, Credit Union assets grew from $130 million to over $1.3 billion.

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ValleyStar Credit Union Names New CEO

ValleyStar Credit Union is pleased to announce Mike Warrell as its new chief executive officer (CEO). Mike most recently served as president and CEO of Solano First Federal Credit Union ($200 million in assets) in Fairfield, California.

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Henrico Federal Credit Union Welcomes a New Vice President

Henrico Federal Credit Union is excited to welcome Jeanne Dotson to the Senior Leadership team as the Vice President of Finance. Dotson will succeed April Lucy when she retires at the end of 2021. Lucy has been in the role of Vice President of Finance for the last 11 years.

League President/CEO Carrie Hunt to Speak at Tidewater Chapter's Oct. 14 Meeting

League President/CEO Carrie Hunt will be the featured speaker at the Tidewater Chapter's Oct. 14 meeting. Register by Oct. 8.

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