CURRENT Newsletter | 18 September 2020
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Headline News
- Survey: Help Us Report Your Assistance to Members During Pandemic
- League Hosting Virtual Workshops on IRAs
- Richmond Chapter Hosting VACUPAC Golf Tournament Sept. 29
- Save the Date: Fraud Trends During COVID-19 Coming Oct. 29
- 'Shift Happens' Webinars Available Online
Compliance / Regulatory Affairs
News About Credit Unions
- Credit Union Damage Expectations From Recession Diminish
- NCUA Equity Ratio Drops to 1.22%, Close to Level Requiring 'Restoration Plan'
- NCUA: Second Streamlined CDFI Certification Round Now Open
- CUAid App Allows CUs to Connect, Report, Prepare, Donate
News From Credit Unions
- CUs, Credit Unions Care Foundation Support Roanoke-Area Non-Profits with $10,000 in Donations
- Call FCU: New Personalized Financial Wellness Tool Kicks Off with $10,000 Debt Reduction Giveaway
Headline News
Survey: Help Us Report Your Assistance to Members During Pandemic
We need your help! We have one of the poorest showings nationwide in the number of credit unions participating in the CUNA/League pandemic assistance survey. This short survey captures information on loan modifications, forbearance, emergency loans, fees waived and other assistance you’ve provided to members during the pandemic.
CUNA has graciously given us an extension on reporting until Sept. 25. We’re looking for 2nd quarter 2020 information, which we know many of you are already reporting to your boards.
Please complete the survey here: https://www.research.net/r/CULCOVID630
Here's a PDF copy of the survey for your review. We would also encourage you to name a point person for submitting information via this survey, as CUNA and the Leagues plan to conduct this survey quarterly, given that information such as this is of keen interest to lawmakers and in advancing our advocacy work.
If you need assistance in completing the survey, please contact your League’s Lewis Wood (800.768.3344, ext. 629 / lwood@vacul.org) or Nicole Widell (ext. 604 / nwidell@vacul.org).
League Hosting Virtual Workshops on IRAs
Your League is providing a two-day Essentials and Advanced Virtual IRA Workshop on Sept. 22 and 23 from 9 a.m. – 3:45 p.m. each day. NOTE: Deadline to register is Monday, Sept. 21! This interactive workshop will be led by instructors presenting live with opportunities to pose questions and have discussion.
NOTE: If you cannot attend the Sept. 22 and 23 event, we’ve partnered with the Mississippi League to offer a similar event Oct. 20 and 21. Ascensus will conduct the training.
Richmond Chapter Hosting VACUPAC Golf Tournament Sept. 29
The Richmond Chapter will host its annual Bill Dawson Golf Tournament on Sept. 29 to benefit the Virginia Credit Union Political Action Committee (VACUPAC).
Golfers are needed! Sponsors are needed!
Learn more (PDF document)
Save the Date: Fraud Trends During COVID-19; Webinar Oct. 29
Join us Oct. 29 for a session with Fiserv’s Joe Schwartz on key fraud trends during the pandemic and how credit unions can best position themselves to combat that fraud. Details coming soon!
‘Shift Happens’ Webinars Available Online
We recently wrapped up our free “Shift Happens” webinar series, but we’ve made available through YouTube all the recorded sessions. Learn more here.
Compliance / Regulatory Affairs
NCUA Board Passes Appraisals Rule, Receives MERIT Briefing
The NCUA board passed a final real estate appraisals rule, approved an exemption from the Bank Secrecy Act’s Customer Identification Program and heard a briefing on the new MERIT Examination system at its Thursday meeting.
The appraisals final rule adopts the interim final rule approved by the board in June without change. It defers the requirement to obtain an appraisal or written estimate of market value for up to 120 days following the closing of certain residential and commercial real estate transactions, excluding transactions for acquisition, development and construction of real estate.
It will be effective as soon as it is published in the Federal Register and remain in effect through Dec. 31.
The board also authorized an order granting an exemption from the BSA CIP requirements for certain loans to facilitate purchases of property and casualty insurance policies. This is a joint order together with the other federal financial regulators expanding a related order issued in September 2018.
The briefing on the MERIT, Modern Examination and Risk Identification Tool, demonstrated several benefits, including providing users the ability to:
- Securely transfer documents to an examiner;
- Securely access and download examination reports;
- Provide status updates on findings; and
- Request due date changes.
The second release of MERIT was deployed to pilot users in July, but wider rollout was postponed due to the pandemic. Instead, NCUA began an expanded pilot this month with over 100 additional NCUA and state supervisory agency users and 17 credit unions to gain additional feedback.
Virginian Joining CFPB Advisory Council
The Consumer Financial Protection Bureau (CFPB) released the names of the latest Credit Union Advisory Council (CUAC) members Wednesday and we’re pleased to announce Jose Iregui, vice president of loan servicing and collections at Langley Federal Credit Union, will serve on the Advisory Council.
The CUAC advises and consults with the CFPB on consumer financial issues related to credit unions.
News About Credit Unions
Credit Union Damage Expectations From Recession Diminish
CUNA doesn’t expect the recession to damage credit union earnings as it forecast previously, but it said its latest forecast depends on factors that can be upset by U.S. political tensions, West Coast fires, East Coast hurricanes, and disappearing government benefits.
The CUNA economic and credit union forecast posted Wednesday reflects better-than-expected economic growth. It predicts credit unions’ return on average assets will fall to 0.50% for the 12 months of 2020, and 0.35% in 2021.Both represent increases from CUNA’s previous forecast in July of 0.35% in 2020 and 0.10% in 2021.
“However, there is tremendous uncertainty regarding the immediate future of the economy,” CUNA Senior Economist Jordan van Rijn said “A sustained recovery will largely depend on successful containment of the COVID-19 virus but is also impacted by other immediate risks, including the potential for a drawn-out and disputed presidential election, continued wildfires on the West Coast, and a record-breaking hurricane season.
NCUA Equity Ratio Drops to 1.22%, Close to Level Requiring 'Restoration Plan'
The NCUA’s equity ratio stood at 1.22% at the end of June — approaching the 1.20% level at which a formal restoration plan would be required, NCUA officials told the agency board Thursday.
The ratio has dropped 13 basis points since the end of 2019, largely because of a huge increase in insured deposits because of the coronavirus crisis, Eugene Schied, the agency’s CFO, said during the board’s monthly meeting. The agency’s Normal Operating Level is 1.38%. Federal law allows the NCUA to assess a premium on credit unions if the equity ratio dips below 1.30%. The law requires the agency to adopt a plan to increase the equity ratio once it dips below 1.20%.
The pandemic and stay-at-home orders, decreases in consumer spending and other government actions has led to an “unprecedented growth” in insured deposits, Vicki Nahrwold, supervisory risk management officer in the agency’s Office of Examination and Insurance, told the board.
NCUA: Second Streamlined CDFI Certification Round Now Open
NCUA opened its second application round for eligible credit unions that want to qualify to use the agency’s streamlined process for Community Development Financial Institution (CDFI) certification.
Federally insured, low-income-designated credit unions can find all the necessary information about CDFI qualification in the NCUA’s online program guide. The application round closes on Oct. 17.
To qualify, eligible credit unions should submit their loan-origination data to the NCUA by email to CURECDFI@ncua.gov using the agency’s secured email encryption system and complete an online Participation Form.
CUAid App Allows CUs to Connect, Report, Prepare, Donate
The National Credit Union Foundation launched its CUAid app in July as a way for the credit union system to strengthen the industry’s response in the face of disaster. The app is available for Apple and Android devices, and has a web browser version.
The app was developed by the Foundation in collaboration with PSCU, funded by CUNA Mutual Group and FIS and developed by CU-APPS.
It has four major functions:
- Connect to find and share needed resources with credit unions;
- Report a disaster to the National Credit Union Foundation;
- Prepare a checklist to prepare credit unions for a disaster and content for the "connect" database; and
- Donate to CUAid to help others recover from natural disasters
News From Credit Unions
CUs, Credit Unions Care Foundation Support Roanoke-Area Non-Profits with $10,000 in Donations
Every year at their annual conference, the Virginia Credit Union League chooses a few non-profits to give back to. Since the event was canceled this year, Freedom First had the honor of giving $5,000 each to Bradley Free Clinic and CHIP of Roanoke Valley, on behalf of the League and its Credit Unions Care Foundation of Virginia. Thank you for all you do in the area for the health of our children and adults!
New Personalized Financial Wellness Tool Kicks Off with $10,000 Debt Reduction Giveaway
In line with its mission to improve the financial health and wellness of its membership, Call Federal Credit Union has partnered with Enrich, an industry leader in customizable financial education platforms, to launch the Money & Beyond Portal.
This new online financial wellness center provides personalized learning experiences with interactive courses, budgeting tools, videos, and more. Users have the ability to set goals, track progress, and level up their financial skills and knowledge with current, relevant educational content.
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