CURRENT Newsletter | 18 February 2022
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REMINDER: The League offices in Richmond and Lynchburg will be closed Monday, Feb. 21 for Presidents Day.
Headline News
- CUs Notch Another Win in Years-Long State-Level FOM Battle
- Register Now: Ignite 2022 Set for April 20-22 in Roanoke
- Thank Your State Lawmakers for Their Support of CU Parity Measures!
- Governance Committee Seeks Candidates for 4 League Board Seats; Deadline Feb. 25
- Jasmine Mines Joins League as Marketing and Digital Media Coordinator
- First Step Taken to Revoke Virginia's COVID-19 Workplace Standard
- Feb. 24 Webinar: Legal Developments in Labor & Employment
- NCUA Approves CUNA/League Requested Extension of PCA Relief
Compliance / Regulatory Affairs
Financial Services / Economy
- Credit Unions Should Be Enabled to Provide Digital Asset Services
- Overdraft Overhaul to Drive More Credit Union M&A in 2022
- DOJ Amping Up Crypto Scrutiny; Names Head of New Enforcement Team
- Fannie Mae Cuts 2022 Origination Forecast
- CFPB Says Consumers Getting Runaround from NCRAs
News From Credit Unions
- Virginians Among Credit Union Innovators Selected for Filene's i3 Program
- Chartway’s Refreshed Brand Identity Conveys Its Promise to Help Individuals, Families Thrive
- BayPort Foundation Raises Nearly $160,000 in First Year
- BayPort Credit Union Opens Fourth Virginia Beach Branch
- Want to Run in the Cherry Blossom 10-Miler? Contact League for Guaranteed Race Entries
Headline News
CUs Notch Another Win in Years-Long State-Level FOM Battle
Marking another significant win in a state-level field-of-membership battle with bankers now stretching into its third year, a State Corporation Commission hearing examiner sided strongly with Virginia Credit Union and the League.
In a report to the State Corporation Commission judges, Chief Hearing Examiner Alexander Skirpan Jr. is recommending to the SCC judges that the case brought by the Virginia Bankers Association and several of its member banks be dismissed and that Virginia Credit Union’s application to add the Medical Society of Virginia to its field-of-membership be approved.
Register Now: Ignite 2022 Set for April 20-22 in Roanoke
We return to the Star City for Ignite 2022 & the League Annual Meeting! We’ve secured the historic Hotel Roanoke as our host hotel.
Among the highlights: League President/CEO Carrie Hunt will be joined by National Credit Union Administration Eastern Region Director John Kutchey for a discussion of the latest regulatory hot topics, supervisory issues and examination priorities.
On tap are a dozen educational offerings, networking opportunities, and our always popular Innovation Expo and vendor showcase. This year’s education lineup features sessions on cannabis banking, cryptocurrency, lending, fintech and various board and governance topics.
Thank Your State Lawmakers for Their Support of CU Parity Measures!
Write your state lawmakers today and thank them for supporting two important parity measures that ensure Virginia's credit unions are able to serve their members and compete in today's marketplace.
The two parity measures have successfully passed the chamber in which they originated. They appear to be well on their way to the governor's desk for his signature! And thank you for the role you played in lobbying for these measures!
Governance Committee Seeks Candidates for 4 League Board Seats; Deadline Feb. 25
The Governance Committee of the Virginia Credit Union League seeks your recommendations for candidates to be nominated for election to the Board of Directors. In 2022, four board seats are open for election. Nominations are due no later than Feb. 25.
Jasmine Mines Joins League as Marketing and Digital Media Coordinator
Your League is pleased to announce the hiring of Jasmine Mines as our Marketing and Digital Media Coordinator!
Jasmine has more than six years of experience in graphic design, web design, and all things print and digital. A Richmond native, she graduated from Virginia Commonwealth University with a degree in Communications/Advertising. She minored in Business.
First Step Taken to Revoke Virginia's COVID-19 Workplace Standard
The Virginia Safety and Health Codes Board, a subset of the Virginia Department of Labor & Industry, today took the first step toward revoking its COVID-19 Emergency Standards for Virginia's workplaces. In January 2021, the Virginia Department of Labor and Industry (DOLI) enacted its Permanent Standard (which replaced an Emergency Temporary Standard), requiring employers to develop and train employees on their plan for limiting the spread of COVID-19.
The Standard included return-to-work guidance after a COVID exposure or positive test, when employers must have physical barriers or engage in disinfecting, and addressed masking and other PPE in the workplace, etc.
Feb. 24 Webinar: Legal Developments in Labor & Employment
Last year was a busy year for federal regulators, and 2021's issues are still affecting workplaces in 2022. Join Woods Rogers Labor & Employment attorneys as they review recent court cases and critical updates from the EEOC, DOL, and NLRB. They'll also discuss pandemic-related issues such as implementing vaccine requirements, the CDC's updated guidance, and whether the federal contractor vaccine mandate applies to credit unions. This session is SHRM and HRCI approved for 2 hours of continuing education credit. Your cost: only $49!
NCUA Approves CUNA/League Requested Extension of PCA Relief
The NCUA board approved an interim final rule extending COVID-19 Prompt Corrective Action relief through the end of March 2023. CUNA, the American Association of Credit Union Leagues, and all Leagues wrote to NCUA calling on it to extend the rule before its scheduled March 31 expiration.
The interim final rule:
- Permits the NCUA board to issue an order to temporarily waive the earnings retention requirement for any credit union classified as adequately capitalized; and
- Permits credit unions to submit simplified net worth restoration plans if the reduction in capital was caused by share growth resulting from a temporary condition due to the pandemic.
Of note, Vice Chairman Kyle Hauptman and Board Member Rodney Hood that this should be the last extension of this rule and warned against it becoming permanent.
However, Chairman Todd Harper noted: “For nearly two years, the pandemic has greatly affected the credit union system and our nation’s economy. We, however, likely have not yet seen the full impact of the pandemic on consumer credit union balance sheets and performance. As such, the renewal of these targeted measures for another year is a prudent course of action at this time.”
Harper noted that with inflation, interest rate risk, and labor market and supply chain disruptions likely to continue well into 2022, consumer credit unions have their hands full.
Related: OIG Releases Audit Statement on NCUA’s ‘Four Funds’
Compliance / Regulatory Affairs
Regulatory Alert (22-RA-03) 2022 Truth in Lending Act (Regulation Z) Adjustment to Asset-Size Exemption Threshold
The Consumer Financial Protection Bureau (CFPB) published annual adjustments for asset-size exemption thresholds under the Truth in Lending Act (TILA), as implemented by Regulation Z, which became effective on January 1, 2022. The asset-size thresholds exempt certain credit unions from escrow account requirements for higher-priced mortgage loans and specific qualified mortgages under Regulation Z.
Financial Services / Economy
Credit Unions Should Be Enabled to Provide Digital Asset Services
Cryptocurrency and digital assets and platforms created through blockchain technology are poised to create major disruptions in the delivery of financial services, CUNA wrote to the Senate Banking, Housing, and Urban Affairs Committee Tuesday. The committee conducted a hearing on the report from the President’s Working Group on Financial Markets’ Report on Stablecoins.
Overdraft Overhaul to Drive More Credit Union M&A in 2022
Much like U.S. bank M&A, the number of credit union mergers rebounded in 2021 following a pandemic-induced dip in activity in 2020.
Credit unions completed 168 deals in 2021, up from 139 in 2020 and 153 in 2019, and one credit union adviser said activity will not slow down in 2022.
Credit unions are increasingly looking to mergers for similar reasons that banks are, like gaining scale and offsetting multiple quarters of tepid loan growth, but the recent uptick in banks eliminating or drastically reducing non-sufficient fund and overdraft fees will likely drive even more credit union mergers this year, according to Glenn Christensen, founder, president and CEO of CEO Advisory Group, an M&A consulting company.
DOJ Amping Up Crypto Scrutiny; Names Head of New Enforcement Team
The Justice Department named a veteran cybersecurity prosecutor to lead a new team dedicated to investigating and prosecuting illicit cryptocurrency schemes carried out by cyber criminals and nation states including North Korea and Iran.
Fannie Mae Cuts 2022 Origination Forecast
Fannie Mae's February mortgage origination forecast reduced its outlook by $172 billion as rising interest rates and higher prices increasingly take their toll on affordability. Company executives alluded to the lowered projection of $3.17 trillion in its fourth quarter earnings call on Feb. 15. In January, Fannie Mae economists expected $3.34 trillion for the year.
CFPB Says Consumers Getting Runaround from NCRAs
The CFPB has published another blog article in its campaign to make consumers aware of a CFPB report that the nationwide consumer reporting agencies (NCRAs), including the Big Three—Experian, Equifax, and TransUnion—are failing to substantively respond to most consumer complaints filed with the Bureau and harming consumers and businesses in the process.
News From Credit Unions
Virginians Among Credit Union Innovators Selected for Filene's i3 Program
Twenty-three of the credit union industry’s most innovative leaders come together to form the newest cohort of the Filene i3 Program, including Virginians Marella Nardotti, (NextMark Credit Union), Justin Stoddard (Chartway Credit Union) and Heidi Worker (Chartway Credit Union).
Chartway’s Refreshed Brand Identity Conveys Its Promise to Help Individuals, Families Thrive
Chartway is proud to announce its refreshed look/feel and new logo to reflect its promise to innovate and embrace change to serve its current members and the next generation.
“We spent a great deal of time last year examining how Chartway’s brand could accurately convey our commitment to better serve members, celebrate their diverse communities, and support our internal teams,” explained Brian Schools, president & CEO, Chartway Credit Union. “The result is a brand evolution that we’re proud to unveil and begin sharing. As a member-owned organization, this is a natural progression for our growth strategy – when we grow, our members benefit.”
BayPort Foundation Raises Nearly $160,000 in First Year
In its first year, the BayPort Foundation has raised $158,875 to support student scholarships and educational grants in the Greater Hampton Roads area.
BayPort Credit Union Opens Fourth Virginia Beach Branch
BayPort Credit Union announced it has opened its fourth Virginia Beach branch to better serve its growing Southside membership. BayPort celebrated the grand opening with an official ribbon-cutting ceremony led by Virginia Beach Mayor Bobby Dyer.
Want to Run in the Cherry Blossom 10-Miler? Contact League for Guaranteed Race Entries
The Virginia Credit Union League is a proud sponsor of the Credit Union Cherry Blossom Ten Mile Run® benefitting Children’s Miracle Network Hospitals, which will be held on April 3 in Washington, D.C.! With our sponsorship, we received 20 Guaranteed Race Entry Codes for the Run or the 5K Run-Walk. Contact us for a code.
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