CURRENT Newsletter | 21 January 2022 - Virginia Credit Union League

Our secondary capital bills continue to advance in the General Assembly, with the state Senate voting unanimously today to pass SB326. Companion bill HB268 is on the House floor and looks to pass that chamber next week. The legislation would fix the Virginia statute so that the NCUA’s Subordinated Debt Rule will not be in conflict with the Virginia Code.

This fix will ensure that Low-Income or Complex credit unions otherwise qualifying to issue subordinate debt under NCUA guidelines will not be denied that opportunity owed to current language in the Virginia statute.

Our “parity powers” bills - HB209 and SB329 - will make the process easier for state-chartered credit unions to exercise the same powers as federally chartered credit unions. Currently, state-chartered credit unions must seek permission to do this; we are asking that be changed to a notice requirement. The two bills have not yet been heard in committee.

Everyone Will Have a Role to Play on CU Day!

COVID is forcing us to limit the number of credit union representatives able to participate in-person for our Credit Union Day at the General Assembly on Jan. 27. We're grateful to those credit union champions who have agreed to participate in-person, but there will be a role for everyone on Jan. 27! As part of our advocacy efforts, we’re asking everyone not attending CU Day in-person to email and contact their state lawmakers on Jan. 27, in support of our legislation. You’ll be able to easily reach out to your state lawmakers on Jan. 27 through our grassroots action center: https://www.vacul.org/action-center.

It’s likely our "parity powers" legislation (HB209 and SB329) will be our focus. What we hope is that you will also ask your fellow employees, officials and members to contact their lawmakers, as well! And please note: anyone can use our grassroots action center.

League’s Carrie Hunt to Headline MACUMA’s Feb. 9 Virtual ‘Lunch-and-Learn’

League President/CEO Carrie Hunt will be the featured speaker at the Metropolitan Area Credit Union Management Association’s Feb. 9 Virtual Lunch and Learn. She’ll discuss the key issues credit unions MUST watch this year at the federal level; flag state trends that could creep into the D.C./Maryland/Virginia area; and talk about how we can change the dialogue on overdraft.

Feb. 16 Virtual Seminar: Your Safe Deposit Service - 50 Most-Important Operating Procedures

The safe deposit operation is a unique, fast-changing service in the financial industry. It is the only product or service in which your staff members do not know the value of a consumer's assets. As a result, every vault transaction can lead to considerable liability. Effective procedures and daily sound practices can counteract and minimize this risk.

Our Feb. 16 virtual seminar covers the "nuts and bolts" and the recommended day-to-day operating procedures for your institution. In addition, you will receive information about many current safe deposit lawsuits and other nationwide horror stories.

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!

League Board Seeks Nominees for Kirsch, Farley Awards

The League Board is seeking nominees for its annual awards recognizing individual achievement - the James P. Kirsch Lifetime Achievement Award and Eugene H. Farley Jr. Award of Excellence. The deadline for nominations is Feb. 15.

The Kirsch Award recognizes an individual who has made significant contributions to their credit union or the credit union industry during the course of their career.

The Farley Award recognizes an individual who has made a significant contribution over a period of the last three years. It may entail work on a specific project or initiative, enhancing your credit union’s culture, financial education, community involvement, or the individual can be recognized for exemplary leadership at the local, state or national level.

Credit union professionals and volunteers are eligible for both awards.

Learn more

NCUA Board's Jan. 27 Meeting to Include Briefing on COVID Relief Legislation

The NCUA board will be briefed on the expiration of COVID-19 related legislation and propose a rule on succession planning at its Jan. 27 meeting. The meeting is scheduled to begin at 10 a.m. ET and will be streamed live on NCUA.gov.

The board will also hear a briefing on the agency’s 2022 supervisory priorities (see letter to CUs here), which it communicated to credit unions earlier this week.

Learn more

CUNA Governmental Affairs Conference Set for Feb. 27-March 3

Join thousands of your credit union peers in Washington, D.C. to share the credit union difference with lawmakers.

Join us to:

Connect with the growing credit union community
Advance the credit union mission
Advocate for the financial well-being of more than 120 million people

Learn more

Compliance / Regulatory Affairs

NCUA Adjusts Operating Fee Schedule for 2022

Federal credit union operating fees will decrease by an average of 23.7% in 2022, according to a Letter to Federal Credit Unions (22-FCU-01) from NCUA adjusting the operating fee schedule for 2022.

Approximately half of the 2022 operating fee reduction results from the NCUA Board applying a $15 million credit to amounts that would otherwise be due to support the approved 2022 Operating and Capital budgets.

Learn more

How Credit Unions Can Build Successful Fintech Partnerships

Between big banks, fintechs and an ever-changing environment, one thing is clear – credit unions need to innovative in ways they haven’t had to in the past. To keep our system strong, we’ve got to embrace the new opportunities, rather than fight them. The way credit unions can level the playing field is through fintech partnerships.

Learn more

Submission for 2021 Voluntary Credit Union Diversity Self-Assessment Extended to Jan. 31, 2022

The NCUA has extended the deadline for credit unions to submit the 2021 voluntary Credit Union Diversity Self-Assessment. Submissions for 2021 will now be accepted until Jan. 31, 2022. After that date, the self-assessment portal will remain open, but submissions will become part of the 2022 data set.

Chapter News

NAFCU's Dan Berger to Speak at Tidewater Chapter's Feb. 10 Meeting

NAFCU President/CEO Dan Berger will be the featured speaker at the Tidewater Chapter's Feb. 10 meeting. He'll discuss legislative and regulatory issues of interest for the coming year and this November's mid-term Congressional elections.

Date and Time: Feb. 10, 6 p.m. social; 6:30 p.m. dinner.
Location: Greenbrier Country Club (1301 Volvo Parkway, Chesapeake, 23320).
Cost: $40 per person.
To register, contact Sue Richardson at srichardson@bayportcu.org.

Learn more

News From Credit Unions

Two CUs Receive Grant Funds to Aid Small Businesses

The Virginia Small Business Resiliency Fund program has provided more than $9.7 million in grants for 12 projects throughout the Commonwealth, including projects for Freedom First Credit Union and Peoples Advantage Federal Credit Union.

The funding will assist organizations to create programs and products that will expand access to capital and provide technical assistance for COVID-19 impacted small businesses.

Learn more

Financial Services / Economy

CFPB Suggests Credit Card Giants May Not Be Playing Fair

The Consumer Financial Protection Bureau is looking at whether the largest credit card issuers are engaged in unfair or anti-competitive practices given that eight companies control 70% of the market.

The CFPB said in a blog post Wednesday that it is looking at ways to make it simpler for consumers to compare, switch or refinance credit cards.

Learn more

US Bank Branch Closures Increase 38% to New Record High in '21

In 2020, U.S. banks set a new record for shuttering retail branches as more consumers bank digitally. In 2021, banks shattered that record — by 38%.

On net, accounting for openings and closings, U.S. banks shuttered 2,927 branches, according to S&P Global Market Intelligence data. That included more than 1,000 branch openings and nearly 4,000 branch closings. Banks have accelerated plans to consolidate their branch footprints as the COVID-19 pandemic encouraged consumer adoption of mobile and digital channels.

Learn more

CFPB Releases Report on Diversity and Inclusion within Financial Services

The Consumer Financial Protection Bureau’s Office of Minority Women and Inclusion (OMWI) released the CFPB Report on Diversity and Inclusion within Financial Services. As part of the mandate of Section 342 of the Dodd-Frank Act, the Bureau’s Office of Minority and Women Inclusion (OMWI) is charged with developing standards for assessing diversity and inclusion at the financial entities the Bureau regulates.

Learn more

Risk Management

Phase Out of 3G Cellular Networks Sets Off Alarm for Potential Updates

Mobile carriers are shutting down their 3G networks, which rely on older technology, to make room for more advanced network services, including 5G. As a result, it is important to ensure your credit union alarm systems and networks that contain a cellular component are upgraded so your service and protection are not disrupted.

Failure to do so may result in a signal not being received by the central monitoring station and delaying the dispatching of first responders.

Learn more

Tags: CURRENT Newsletter

« Return to "CURRENT Newsletter" Go to main navigation