CURRENT Newsletter | 20 May 2021 - Virginia Credit Union League

Carrie Hunt has been selected to lead the Virginia Credit Union League, the statewide trade association for the 113 Virginia-based credit unions, the League Board announced May 20. She will succeed Rick Pillow, who retires June 30.

Hunt is currently Executive Vice President of Government Affairs and General Counsel for the National Association of Federally-Insured Credit Unions (NAFCU), and manages the association's legislative, political, regulatory, compliance and research divisions. She is among the most-respected lobbyists on Capitol Hill, having been named to The Hill newspaper’s top Washington lobbyist lists in 2019 and 2020.

“The League Board entered the selection process focused on the interests, welfare and success of our member credit unions,” noted Patsy Stuard, Chairman of the Virginia Credit Union League Board of Directors and President/CEO of Fort Lee Federal Credit Union. “The search framework and process brought us a number of highly qualified candidates, but Carrie truly shined because she possesses an outstanding record of leadership, she is a respected and trusted advocate for credit unions, and she has a deep understanding of the opportunities and challenges facing credit unions. She is the right leader for the industry today and for the future we’re working toward.”

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Fiserv Webinar May 27 on Fraud Trends

As part of the FISERV series for 2021, please join us May 27 as FISERV will provide an update on fraud and the continued impact the pandemic has had on card fraud.As we begin to come out of the pandemic and life gets back to a more normal sequence, how will fraud-related events impact issuers, acquirers and your cardholders?

Learn more about what you can do to continue to battle fraud.

Register Now for CU PolicyPro Training!

League partner CU Solutions Group will offer a series of live training webinars to introduce you to (or reacquaint you with) CU PolicyPro. The training sessions are FREE, but registration is required.

Click here to view the session listing and descriptions, and to register for each class.

(Please note: there is no session on June 23, and all times are EDT.)

Your League recently hosted similar training with CU Solutions Group, though this latest training will offer a deeper dive into new and enhanced features. You can access that training here:

Session 1: General Overview of the new platform

The slide deck is available hereopens a pdf.
You can also access the recording of the session here.

Session 2: A deep dive for administrators and content creators

The PPT can be accessed here.
The recording of the session is available here.

Social Responsibility Awards: Get Recognized for Your Good Works!

The League-CUNA Social Responsibility awards are a way for you to showcase the extraordinary efforts you are taking to serve your members. The deadline is June 30!

There are four entry categories:

Desjardins Youth Financial Education Award for excellence in youth financial education
Desjardins Adult Financial Education Award for excellence in adult financial education
Louise Herring Philosophy in Action Award for excellence in member service.
Dora Maxwell Social Responsibility Award for excellence in community service and outreach.

Start your entry here. The time period covered for your application should be the calendar year through June 30, 2021. If you have additional questions after reading this FAQ, please don't hesitate to contact your League’s Mary Amyx - 800.768.3344, ext. 630.

NCUA, CISA to Conduct Cybersecurity Webinar May 26

The National Credit Union Administration will host a webinar on Wednesday, May 26, to provide credit unions with important information about protecting their organizations and their members from cyberattacks. Online registration for the webinar, “Critical Security Controls and Cyber Hygiene,” is open now. The webinar is scheduled to begin at 2 p.m. (ET) and will run for approximately 60 minutes.

Participants will be able to log into the webinar and view it on their computers or mobile devices using the registration link and should allow pop-ups from this website to ensure easier access to the webinar.

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Advocacy / Governmental Affairs

CUNA Backs Bills to Expand Financial Access, Keep CLF Changes

CUNA wrote in support of three bills and offered additional legislative suggestions in a letter sent to the House Financial Services Committee. The committee will hear testimony from federal regulators, including NCUA Chairman Todd Harper, at the hearing, and discuss several pieces of legislation.

The letter also reiterated CUNA’s request that NCUA act quickly to finalize its proposals on capitalization of interest and transition to the current expected credit loss (CECL) methodology.

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Compliance / Regulatory Affairs

NCUA Chairman’s Letter on LIBOR Transition

In a recent letter to Boards of Directors and Chief Executive Officers, NCUA Chairman Harper wrote:

“On March 5, 2021, the London Inter-bank Offered Rate (LIBOR) administrator announced it will stop publishing the one-week and two-month LIBOR settings immediately following the December 31, 2021, LIBOR publication.¹ The remaining LIBOR settings will cease immediately following the LIBOR publication on June 30, 2023. While the extension of the publication of certain LIBOR settings through June 30, 2023, is not an opportunity to continue using LIBOR, it will allow some legacy LIBOR contracts to mature naturally.

The NCUA encourages all federally insured credit unions to transition away from using the U.S. dollar LIBOR settings as soon as possible, but no later than December 31, 2021. Failure to prepare for LIBOR disruptions could undermine a federally insured credit union’s financial stability, and safety and soundness. As noted in the Federal Financial Institutions Examination Council’s (FFIEC) July 1, 2020, Joint Statement on Managing the LIBOR Transition, the LIBOR transition is a significant event that credit unions should manage carefully. The FFIEC statement recommends that new financial contracts use a reference rate other than LIBOR or have robust fallback language that includes a clearly defined alternative reference rate after LIBOR’s discontinuation.

The recent supervisory letter provides the supervision framework examiners will use to evaluate a credit union’s risk management processes and planning regarding the transition from LIBOR. The guidance applies to all federally insured credit unions, and I encourage all credit unions with LIBOR exposure to consult this information.

Source: NCUA

Libor, tied to an estimate of over $200 trillion global financial instruments, is the world’s most widely used benchmark for short-term rates. In the United States, the dollar Libor is the benchmark for certain bonds, financial derivatives, securitized products and floating-rate loans including adjustable-rate mortgages. Interest rate swaps tied to Libor comprise a large portion of some banks’ commercial portfolios.

And unfortunately, it is not simply a matter of substituting the Secured Overnight Financing Rate, an alternative endorsed by the Alternative Reference Rates Committee, for Libor. In contrast to Libor’s forward-looking term rates, SOFR only looks backward overnight. SOFR is based on data from observable transactions rather than on the estimated borrowing rates that were sometimes used in Libor. If Libor is used in new contracts, fallback clauses must be carefully crafted to account for the cessation of the benchmark. Guidance has been published by the International Swaps and Derivatives Association (ISDA) in its 2020 IBOR Fallbacks Protocol. (American Banker, May 19)

NCUA Schedules Upcoming Webinars

Online registration for the May 26 webinar, “Critical Security Controls and Cyber Hygiene,” is open now. The webinar is scheduled to begin at 2 p.m. Eastern and will run for approximately 60 minutes. Participants will be able to log into the webinar and view it on their computers or mobile devices using the registration link and should allow pop-ups from this website to ensure easier access to the webinar. Participants can submit questions anytime during the presentation or in advance by emailing WebinarQuestions@ncua.gov. The email’s subject line should read, “Critical Security Controls.” Please email technical questions about accessing the webinar to audience.support@on24.com.

Online registration for this 60-minute May 27 webinar on Small-Dollar Loan Program, co-hosted by the National Credit Union Administration and the CDFI Fund, is open now. Participants will be able to log into the webinar and view it on their computers or mobile devices using the registration link. They should allow pop-ups from this website.

Staff from the NCUA and the CDFI Fund will describe the program and discuss eligibility and permissible uses of these funds. A question-and-answer session will follow the presentation. Credit unions should review the CDFI Fund’s Small-Dollar Loan Program webpage, including information about the application process and timeline.

Source: NCUA

CUNA Writes to CFPB About Proposed Delayed Effective Date for Recent Debt Collection Rules

CUNA submitted a comment letter on Wednesday in response to the Consumer Financial Protection Bureau’s (CFPB) proposal to delay the implementation date of the Debt Collection Final Rule. The Bureau has proposed to delay by 60 days the effective dates of the Debt Collection Final Rules from November 30, 2021, to January 29, 2022.

“...We strongly recommend the Bureau announce its intention to implement the debt collection rules as finalized last year,” the letter reads. “After a reasonable period postimplementation, the CFPB can then analyze the rules’ effects and, with stakeholder input, consider whether additional resources would be beneficial, or amendments needed. The debt collection rules, while imperfect, reflected considerable input from a wide variety of stakeholders.”

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News About Credit Unions

Credit Unions for Kids Marking 25th Anniversary With YouTube Special

Credit Unions for Kids reported it is now celebrating its 25th year of a successful program with its network of credit union partners and hospitals, and will host an event on YouTube to mark the milestone.

“Since 1996, thousands of credit unions have come together, under the banner of Credit Unions for Kids, to raise more than $150 million for tens of millions of children that are sick and injured,” noted Credit Union for kids.

To celebrate, on June 2, Credit Unions for Kids will host an event online from 1-1:30 ET. To register, go here.

“You can expect to hear from industry leaders discussing the milestones CU4Kids has reached, the innovative ways they’ve raised funds, and why they do so,” the organization said. “CMN Hospitals representatives will also discuss updates to the program, recommendations on how to easily raise money, and the future of the program.”

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Financial Services / Economy

Treasury, IRS Announce Families of 88% of Children in the U.S. to Automatically Receive Monthly Payment of Refundable Child Tax Credit

The U.S. Department of the Treasury and the Internal Revenue Service announced yesterday that the first monthly payment of the expanded and newly-advanceable Child Tax Credit (CTC) from the American Rescue Plan will be made on July 15.

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New White Paper Examines Un- and Under-Banked

A new report from CUNA, The Clearing House, and other financial trade organizations outlines obstacles and viable solutions for improving financial inclusion. The report identifies the chief reasons for individuals being unbanked/underbanked and highlights existing actions from credit unions and other financial institutions that have shown promise in bringing individuals more fully into the financial system.

“This research underscores how important it is to remove barriers to financial access for the unbanked and underserved,” said Ryan Donovan, CUNA chief advocacy officer. “For over 100 years, America’s credit unions have promoted thrift and provided access to credit for provident purposes. We look forward to working with policymakers to apply these findings and explore meaningful solutions that improve financial well-being for everyone.”

The paper also makes recommendations that policymakers should consider moving forward.

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FIs No Longer Have to Limit Savings Withdrawals, But Some Still Do

In the early days of the pandemic, the Federal Reserve temporarily axed a requirement that had limited the ability of depositors to make transfers and withdrawals from savings and money market accounts.

At the time, the nation was largely in lockdown, so consumers were having a hard time conducting in-branch transactions, which were exempt from the preexisting rules.

One year later, the Fed has declared that the changes are permanent, though some additional tweaks may still be made — an example of a crisis prompting long-lasting change.

The changes give banks freer rein to make their own decisions about the terms of their savings accounts. And while some banks have not budged, others have dropped a six-transaction limit that was required under the old rule. (American Banker, May 17)

News From Credit Unions

TruEnergy FCU Elevates Benson to CEO

TruEnergy Federal Credit Union in Springfield, Virginia, named Scott Benson as its next president and CEO. The $142 million-asset credit union said current CEO Lynette Smith is retiring after 12 years with TruEnergy. The transition will happen this summer, it said.

“TruEnergy is an incredible organization, and I am happy to retire knowing that it is in Scott’s capable hands," Smith said in a press release Tuesday.

Benson has been the chief operating officer at TruEnergy since 2019 and has nearly 25 years of experience in the credit union industry.

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CommonWealth One President/CEO Announces Her Retirement

After a CommonWealth One Federal Credit Union career spanning 36 years, President/CEO Charlotte Cash has announced she will retire August 6, 2021. She leaves as only the third CEO in the credit union’s 77-year history.

In 1985, Ms. Cash began her CommonWealth One career as its first marketing manager under former long-time President/CEO Kathryn Coleman. “When I was hired, credit unions nationwide were beginning to aggressively compete with small banks, and a bona fide marketing function was necessary if you wanted to be relevant,” said Cash.

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Chapter News

Tidewater Chapter Charity Golf Tournament Tees Off June 4

The Tidewater Chapter will hold its 8th Annual Charity Golf Challenge on June 4 at Sewells Point Golf Course in Norfolk. ALL credit unions – regardless of location - are invited!

Format will be four-man captain’s choice. The cost will be $100 per player. Proceeds will benefit Children’s Hospital of the King’s Daughters, our local Children’s Miracle Network Hospital! Please join us for this exciting event, which has raised more than $100,000 for CHKD during the past seven years.

Learn more / Register

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