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CURRENT Newsletter | 2 February 2021

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Headline News

Compliance / Regulatory Affairs

Education / Training

Financial Services / Economy

Headline News

League YPN Plans Feb. 11 Lunch & Learn

Join young professionals from across the Commonwealth Feb. 11, for the Young Professionals Network’s first virtual meet-up of the year. Guest speakers Diana Kevorkian and Diana Flowers will offer a session on “Networking 101” in anticipation of a return to in-person meetings later this year!

Everyone (young professional or not) is invited to attend! The hour-long session begins at 1 p.m.

Learn more and register

Virginia’s COVID-19 Emergency Standards Are Now Permanent

SOURCE: Woods Rogers law firm - The Virginia Department of Labor and Industry (DOLI) has enacted a Permanent Standard to replace the Emergency Temporary Standard (ETS) (pdf) that became law for Virginia employers over the summer. These Permanent Standards include some significant changes to the ETS. Employers will have to be ready to update their policies.

To recap, the ETS requires employers to develop and train employees on their plan for limiting the spread of COVID-19. The ETS also requires employers to report cases of COVID-19 to DOLI. Details about the ETS requirements can be found in our legal update from July 27, 2020.

The Permanent Standard replaced the ETS on January 27, 2021. However, preparedness and response plans do not need to be updated until March 2021, which is good news for employers.

Ironically, even though the new rule is called a Permanent Standard, it can expire. The law will no longer be in effect if, first, both the Governor’s State of Emergency and the Commissioner of Health’s Declaration of Public Emergency are lifted, then, the Virginia Safety and Health Codes Board determines the Standard is no longer needed.

Learn more

Recorded Webinar on COVID-19 Legal Updates Now Available

Last Tuesday, your League hosted a webinar with attorneys Dan Summerlin and Leah Stiegler on pandemic-related HR and employment law issues, including vaccinations and paid leave for employees.

CUNA's April Ales Now Serving as Engagement Consultant to Virginia-Based Credit Unions

We're pleased to announce that April Ales has been appointed to serve as the Credit Union National Association's Engagement Consultant for the Commonwealth. She replaces Richard Dines, who is serving in another role with CUNA.

April will serve credit unions in the Southeast region and has been assigned to work alongside the Virginia Credit Union League as your access point to all things related to CUNA.

Learn more

Three-Part Fundamentals of the Mortgage Process Webinar Series Offered in February

A three-part webinar series (Feb. 3, 10 and 17), 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.

Your educational investment is $150 per person for all three sessions. MGIC clients may attend at no charge. The webinar and registration are hosted by our TRGroup partner, the Mississippi Credit Union Association.

Get additional program details or register here!

Small Credit Unions: CUNA Mutual Group Providing 13 GAC Scholarships

Thanks to CUNA Mutual Group, small credit unions have a chance to win one of 13 scholarships to CUNA’s Governmental Affairs Conference, which is being held virtually March 2-4.

Learn how to qualify for one of these scholarshipsopens a pdf.

Risk Alert: Preparing For Deepfakes

Deepfakes are digitally altered images, videos or audio recordings that through the use of certain technologies, can make it appear an individual said, or did something they didn't actually do. Initially used to impersonate politicians, celebrities, and other well-known individuals, a much more concerning use has been emerging. As the technology has become increasingly? available to fraudsters and other bad actors, deepfakes are being used for fraudulent financial gain. ?

View Alert

CUNA Mutual Group Hosts Office Hours: Cybersecurity Webinar February 17

CUNA Mutual Group invites you to connect with their Risk Consultants, risk and insurance partners, and your credit union peers to ask questions regarding the latest risks, loss trends, and mitigation tips related to cybersecurity.

The hour-long webinar is slated for Feb. 17 at 2 p.m.

Learn more | Register

Compliance / Regulatory Affairs

Comments on Several Proposals, Rules Due This Month

Comments are due in February on several proposals and rulemakings of interest to credit unions, including ones issued by NCUA, the Consumer Financial Protection Bureau (CFPB), Federal Communications Commission (FCC) and Federal Housing Finance Administration (FHFA).

A complete list of comment deadlines can be found in the “Actions” section of CUNA’s Advocacy webpage.

Comments due in February include:

  • Feb. 10: NCUA proposal to amend the chartering and field of membership rules to modernize requirements related to service facilities for multiple common bond federal credit unions;
  • Feb. 16: NCUA proposal on overdraft policy, which would modify the requirement that a federal credit union’s written overdraft policy establish a time limit, not to exceed 45 calendar days, for a member to either deposit funds or obtain an approved loan from the credit union to cover each overdraft;
  • Feb 18: FCC proposal to implement the TRACED Act to streamline the process by which private entities may submit information to the FCC about violations of the Communications Act;
  • Feb. 22: NCUA proposal on Bank Secrecy Act modifications that would allow NCUA to issue exemptions from the requirements of that regulation; and
  • Feb. 28: FHFA advance notice of proposed rulemaking on potential changes to the regulation establishing housing goals for Fannie Mae and Freddie Mac.

Learn more

FCUs Should be Permitted to Purchase Mortgage Servicing Rights

CUNA supports removing the prohibition for federal credit unions to purchase mortgage servicing rights, it wrote to NCUA Monday.

“CUNA supports the proposed rule to remove the prohibition against federal credit unions from purchasing mortgage servicing rights as permissible investments while also maintaining safety and soundness,” the letter reads. “However, we recognize that the purchase of mortgage servicing rights will not be appropriate for all federal credit unions given the risks and compliance considerations associated with mortgage servicing rights.

Specifically, NCUA’s proposal would amend regulations to explicitly permit a federal credit union to purchase mortgage servicing rights from other federally insured credit unions, provided:

  • The underlying mortgage loans of the mortgage servicing rights are loans the federal credit union is empowered to grant;
  • The federal credit unions purchase the mortgage servicing rights within the limitations of the credit union’s board of directors’ written purchase policies; and
  • The board of directors or investment committee approves the purchase in advance.

Learn more

CUNA Releases Update to the Credit Card MLA Fee Comparison Spreadsheet

CUNA has released the fourth-quarter 2020 update to the credit card Military Lending Act (MLA) Fee Comparison Spreadsheet, which is now available. As a refresher of the MLA requirements for reasonable and bona fide credit card fees under a Safe Harbor in the MLA rule, a credit union may exclude a Bona Fide credit card fee from the MAPR if the fee is considered “reasonable.”

Education / Training

Virtual Event Provides Important Updates for CU Lenders

Credit union lenders juggling numerous challenges – including the effects of the pandemic, an evolving market and regulatory hurdles – have an opportunity to get caught up with industry-wide developments that affect their departments.

This is one of the many reasons why they should plan to attend CUNA Business Lending Virtual Roundtable, to be held February 9 and 10, according to Kathy Smith, instructional design manager at CUNA.

Lenders attending the event will be able to gain the latest insights from industry experts and peers, she said.

Learn more

Southeast CUNA Management School Going Virtual for 2021

Although many things have changed in the past year, Southeast Regional Credit Union Schools’ (SRCUS) commitment to providing an outstanding educational experience for credit union professionals remains strong, and in this spirit, is delighted to announce that registration will open soon for the VIRTUAL 2021 Southeast CUNA Management School.

While there will be some things that look a bit different from the traditional on-campus program, participants will also experience many of the same amazing opportunities that the in-person program offers.

Learn more

Financial Services / Economy

8-in-10 Americans Feel in Control of Their Finances: Survey

The COVID-19 pandemic hit many Americans hard, yet 81% feel in control of their financial situation, according to a recent survey from the financial services firm Edward Jones.

Forty-six percent of study participants say they were confident in their ability to withstand or quickly recover from difficult financial situations — what Edward Jones refers to as their financial resilience.

“It’s encouraging to see that Americans feel confident in their financial standing given the tumultuous year 2020 presented,” Edward Jones principal Vanessa Okwuraiwe said in a statement. “Even so, financial stability requires careful planning, goal-setting and the flexibility to revise that strategy if and when situations arise.”

Morning Consult, a global data intelligence firm, conducted the survey in early December among a national sample of 2,220 adults.

Seven in 10 survey participants with a strategy said they felt financially stable and resilient.

The pandemic and other challenges last year prompted many individual investors to rework their financial strategies. Survey respondents said they were prioritizing and saving more for personal education opportunities, marriage and the birth of a child.

At the same time, 12% reported that they had postponed buying a house, 10% changing careers and 6% retirement. Although they are still saving for those future moments, many are repurposing funds to cover current unexpected expenses as a result of the pandemic.

Learn more

Survey: Consumers Hit Financially by the Pandemic Paid Higher Credit Union/Bank Fees

Consumers who suffered cuts in their income because of the pandemic also paid higher credit union and bank checking account fees, according to a new Bankrate.com survey.

The survey of 2,339 checking account holders also found that more than 60% of them changed their payment practices to using online methods more frequently during the coronavirus crisis.

Those hit financially saw average monthly charges of $11.41 to their checking accounts, which included ATM fees and overdraft expenses. For those whose income was not affected by COVID-19, their average monthly checking account charges amounted to $2.79, the Bankrate.com survey showed.

“Those whose personal finances have been adversely affected by the pandemic have been hit with a double whammy of higher banking fees,” Bankrate.com Senior Economic Analyst Mark Hamrick said in a prepared statement. “Unemployment or loss of income can be devastating, but one should try to avoid adding financial insult to injury by paying too much in banking fees when so many less expensive options abound.”

Overall, the average U.S. checking account holder reported paying less than $8 in fees, including routine service charges, ATM fees and overdraft penalties. A sizeable majority of checking account holders (72%) reported paying nothing in monthly fees, while nearly four in five (79%) said they were paying $5 per month or less.

Learn more

US Housing Market: Home Starts, Sales Up in December 2020

New single-family home sales in the U.S. increased 1.6% on a monthly basis in December 2020 to a seasonally adjusted annual rate of 842,000 units, according to data from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. On an annual basis, new home sales rose by 15.2%.

Likewise, single-unit housing starts rose 12.0% month over month in December and were up 27.8% on a yearly basis.

Existing home sales slightly rose by 0.7% compared to the previous month, and up 22.2% from December 2019, according to the National Association of Realtors. In the most recent release, NAR chief economist Lawrence Yun said that despite the pandemic, the year 2020 saw the highest sales performance since 2006. "What's even better is that this momentum is likely to carry into the new year, with more buyers expected to enter the market," he added.

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index continued to increase in November, rising 1.4% month over month after seasonal adjustment, and up 9.5% on an annual basis. (S&P Global Market Intelligence, Feb. 2)

Court Rules Lawsuit Challenging CRA Rule can Proceed

A judge ruled that a lawsuit seeking to invalidate recent reforms of the Community Reinvestment Act can proceed.

Judge Kandis A. Westmore of the U.S District Court for the Northern District of California denied a motion by the Office of the Comptroller of the Currency seeking to throw out the lawsuit by three advocacy groups.

The National Community Reinvestment Coalition, the California Reinvestment Coalition and Democracy Forward sued the OCC in June, alleging that the agency's CRA reform rule would "gut" banks' obligations to invest in their communities. They also argued that the rulemaking process violated the Administrative Procedure Act.

In an order Friday, Westmore indicated that the case had merit, noting concerns about the transparency of the OCC's process.

The OCC "failed to publish research it claimed supports the issuance of the rule and data obtained in a request for information and failed to provide any substantive records of calls [former] Comptroller of Currency Joseph Otting had with CEOs of 17 large banks,” Westmore wrote. (American Banker, Feb. 1)

 



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