CURRENT Newsletter | 21 July 2020 - Virginia Credit Union League

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) amended the Fair Credit Reporting Act (FCRA) to add new reporting requirements that apply during the pandemic.

The Consumer Financial Protection Bureau (CFPB) released guidance on April 1 and June 16 addressing the CARES Act requirements and other important reporting obligations during the pandemic, emphasizing its focus on credit reporting accuracy and handling disputes, and noting it will not hesitate to take enforcement action against those who violate the law.

Importantly, the CFPB reported that credit reporting complaints tops the list of grievances it receives from consumers. There were 21,945 credit reporting complaints made to the CFPB in the month of May alone. Other regulatory agencies also receive large numbers of credit reporting complaints.

In addition, FCRA court actions filed in the past 12 months have increased, and that number is expected to grow as consumers increasingly seek credit access to recover from the fallout of the pandemic. Many recent FCRA court actions against financial institutions claim that inaccurate information was furnished to credit reporting agencies (CRAs).

Because of the current risks, financial institutions should conduct a thorough review of their credit reporting practices and procedures to ensure compliance, particularly with respect to issues of significance during the pandemic. In this regard, the CFPB’s Guidance on June 16 focused on the FCRA amendments under the CARES Act and other important provisions in the FCRA in light of the pandemic.

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League’s Free ‘Shift Happens’ Webinar Series Launches July 28

Your League will offer an ongoing series of free webinars, beginning July 28. Registration is now open for the first seven sessions.

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Bring the "A" in Agile to Your Credit Union (July 28)

As consumer demand for convenience continues to drive member expectations, have you worried that your credit union is falling behind in terms of bringing innovative products and services to market? Have you had an initiative end with something no longer relevant in the marketplace? Have you ever developed a new product exceeding a budget long before it’s completed and launched? Do you want to experience faster time-to-market and an earlier ROI?

If the answer to any of these questions is yes, here’s your chance to hear more about best practices leveraging an Agile development process! Agile Methodology is being utilized across top industries to not only reduce cost but deliver more value faster, with less risk and with better quality!

I Now Pronounce You Dev and Technology (Aug. 4)

Smart brands have now recognized the massive opportunity presented them to build new connections and relationships with consumers. But now, with so many channel choices to reach your finances, you must stop doing things the way they’ve always been done. Time to be brave!

League Providing 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. This interactive workshop will be led by instructors presenting live with opportunities to pose questions and engage in the discussion.

Staying informed about IRA policies is imperative for staff who work with members to secure and maintain IRAs in any capacity. Whether you are new to working with IRAs or an experienced finance professional, staying up to date on IRAs is exceptionally beneficial for your credit union and its members.

Day 1 offers IRA Essentials, giving attendees a solid foundation of IRA knowledge. Attendees will leave this session able to work with IRA owners and process basic IRA transactions with confidence.
Day 2 features Advanced IRAs, which builds on the attendees’ basic IRA knowledge to address some of the more complex IRA issues that their financial organizations may handle. The instructor uses real-world exercises to help participants apply information to job-related situations.

NOTE: If you cannot attend this event, we’ve partnered with the Mississippi League to offer a similar event Oct. 20 and 21. Ascensus will conduct the training. Learn more and register

League Co-Hosting Webinar Series for Small CUs

Start adapting industry best practices to the unique challenges of your small credit union. CUNA-League System Small CU Webinar Series is a new live and recorded webinar series that’s free for CUNA and League members. It kicks off on Tuesday, August 4, 2020, and runs through Spring 2021. Get impactful best practices relevant to small credit unions on hot topics, including member experience, digital marketing, lending and more.

The first sessions include:

August 4, 2020: New member growth: Learn from the best in the industry
August 11, 2020: Revising your budget following COVID-19 Pandemic
August 18, 2020: Getting to know your members A LOT better and why DEI matters

See a full list of free webinars and register here.

Virginia Adopts COVID-19 Workplace Safety Standards

CUs Encouraged to Begin Preparations

On July 15, 2020, the governor announced that Virginia is adopting first-in-the-nation workplace safety standards for the COVID-19 Pandemic. Employers should prepare now!

The finalized text of the regulations is expected to be published the week of July 27, 2020. A June 2020 draft can be found on the Department of Labor & Industry website. However, the draft version is subject to revision between now and final publication.

The standards establish guidelines for employers to ensure workplaces are as safe as possible in light of the challenges posed by COVID-19. Some expected highlights include the following:

Mandated PPE and social distancing
Temperature check kiosks or other entry protocols
Requirements that positive employees remain out of the workplace for 10 days or until they produce two consecutive negative test results
Development and implementation of an Infectious Disease Preparedness and Response Plan
Required training for employees, especially those in high-risk jobs, on infectious disease preparedness and response plans
Notification to employees within 24 hours of any potential workplace exposure

Learn more
View the guidelines (PDF document)

League Writes Sens. Warner, Kaine in Support of PPP Forgiveness Bill

Your League has written Sens. Mark Warner and Tim Kaine in support of a bill that will expedite forgiveness of Paycheck Protection Program loans of less than $150,000. We ask the two senators to co-sponsor the legislation.

The League recently surveyed Virginia-based credit unions participating in PPP lending. The survey revealed 8,603 loans had been funded as of July 10, totaling $341.7 million. More than 93 percent of the loans were for less than $150,000.

According to June 30 data from SBA, credit unions nationally have made more than 196,000 loans totaling $9.7 billion, with the average loan being $49,487.

"Credit unions are continuing to focus on communities and small businesses as evidenced by the numbers cited," notes the League communication. "We appreciate the tough deliberations facing the Senate as the members consider the next economic stimulus measures needed to aid COVID-19 response... Passage of [S. 4117] will enable credit unions to continue lending at a time of unprecedented need."

Need Protective Masks?

Your League has masks available to credit unions at the cost of $29.50 per box of 50 masks. These standard adult-sized masks feature three breathable layers, comfortable stretchable ear loops, and embedded nose strip (pinch to secure). To order, contact your League’s Nicole Widell at nwidell@vacul.org.

Social Responsibility Awards: Entries Due July 31

It's time to show off your good works! The CUNA/League Social Responsibility awards are a great way for you to showcase the extraordinary efforts you are making to serve your members during these unprecedented times.

There are 4 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

Remember, the deadline is July 31! Need help? Contact your League’s Mary Amyx.

Compliance / Regulatory Affairs

NCUA Updates 2020 Supervisory Priorities

NCUA sent a letter to credit unions (20-CU-22) this week updating the agency’s 2020 supervisory priorities to reflect economic conditions emerging in the wake of the COVID-19 pandemic, as well as other statutory and regulatory changes.

A detailed analysis of the updates can be found on CUNA’s CompBlog.

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Key COVID-19 Accessibility Issues As ADA Turns 30

As summer kicks into high gear, and the Americans with Disabilities Act's 30th anniversary looms large at the end of this month, businesses in many jurisdictions are in the process of gradually reopening to the public.

And if the long and difficult spring wasn't trying enough, businesses now face yet another challenge — balancing maintaining the safety of employees and patrons against complying with Title III of the ADA, and applicable state and local laws, which can significantly vary depending on the jurisdiction. The COVID-19 pandemic has also brought new issues to the forefront — including the filing of some lawsuits alleging novel theories.

Some key considerations:

With businesses increasingly relying on technology, lawsuits regarding accessible technology begin to surge again.
Lawsuits against businesses that require patrons to wear masks are a potentially ripe new area for litigation.
Be sure to provide effective communication to individuals who are deaf/hard of hearing where both parties must wear masks.
Social distancing will impact businesses' obligations under the 2010 standards.

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NCUA Hosts July 23 American with Disabilities Act Anniversary Webinar

The National Credit Union Administration invites federally insured credit unions to join a meaningful conversation on the importance of financial inclusion for persons with disabilities and the 30th Anniversary of the Americans with Disabilities Act (ADA) during a webinar on Thursday, July 23, beginning at 2 p.m. (EDT).

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Financial Services / Economic News

Savings, Fixed Mortgages Give Credit Unions Encouraging Economic News

CUNA officials have continued to downwardly revise economic projections for credit unions in 2020, for the most part, as the coronavirus has surged again in many parts of the country.

According to the most recent “CUNA Economic and Credit Union Forecast” report, economists appeared to accept the need for a COVID-19 vaccine before the economy can get back into positive territory.

“We will learn to live and work with the virus, but a full economic recovery won’t be in reach until a vaccine is widely available. That is not expected until 2021 at the earliest,” the report said.

The most encouraging news for credit unions, and one that appears to be holding up overall lending forecast numbers in the positive area, comes from fixed-rate mortgages. According to the report, “Fixed-rate mortgages rose an incredible 12.9%, and we expect continued mortgage lending to support modest credit union loan and membership growth in the immediate future.” The strength in fixed-rate mortgages helped sustain an overall lending growth of 2% through May.

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Vast Majority Satisfied With Their Credit Union During Crisis: Harris Poll

Nearly three-fourths of Americans are satisfied with how credit unions have responded to the ongoing COVID-19 pandemic, according to a new survey.

Seventy-three percent of respondents whose primary financial institution is a credit union are satisfied with how those entities have responded to the international outbreak of the novel coronavirus. Credit unions were among the businesses that received the highest approval ratings in the survey either among financial institutions or businesses in general.

According to a press release, the only businesses that outscored credit unions were a respondent’s primary grocery store (80% approval) and community banks (74%). Megabanks tied with credit unions.

“The post-pandemic customer may have an entirely new set of banking expectations,” said Jack Sundstrom, the chief product and marketing officer for ID Insight, in a press release. ID Insight, which sells anti-fraud products to financial institutions, commissioned the online survey, which was conducted by The Harris Poll on June 18-22. The survey pulled results from more than 2,000 U.S. adults.

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US Consumer Sentiment Slumps Amid Coronavirus Resurgence

U.S. consumer sentiment retreated in the first half of July, dashing expectations for further rebound amid the resurgence of COVID-19 cases across the U.S., survey data from the University of Michigan showed.

The consumer sentiment index reversed most of the promising gains recorded in June, falling month over month to 73.2 from 78.1. The consensus estimate of economists polled by Econoday was for an increase in the index to a reading of 79.0.

The index of consumer expectations declined to 66.2 from 72.3, while the current economic conditions index fell to 84.2 from 87.1.

"Unfortunately, declines are more likely in the months ahead as the coronavirus spreads and causes continued economic harm, social disruptions, and permanent scarring," Surveys of Consumers Chief Economist Richard Curtin said, adding that consumers may need time to reassess the impact of the pandemic on personal finances and the wider economy.

Curtin called for another "aggressive" fiscal policy response focusing on financial relief for households and state and local governments, but he recognized the lack of time for Congress to act because of the upcoming elections.

"Without action, another plunge in confidence and a longer recession is likely to occur," Curtin added. (S&P Global Market Intelligence, July 17)

Study Found Mixed Results for Credit-Builder Loans at CU

Food for thought if you’re offering credit-builder loans at your credit union: A recently released report by the Consumer Financial Protection Bureau (CFPB) found mixed outcomes for participants enrolling in such a program at a credit union.

CBLs are designed to allow individuals with no credit files or poor credit histories to build or repair their credit. According to the study, CBLs were most likely to have positive outcomes for borrowers with no existing debt or credit score. For participants without an existing loan, opening a CBL increased their likelihood of having a credit score by 24 percent. Participants without existing debt saw their credit scores increase by 60 points higher than participants with existing debt.

However, the study found that CBLs appeared to cause a slight decrease in credit scores for participants with existing debt.

The CFPB concluded that borrowers with existing debt may have had difficulty making payments on their CBLs and their current debts. The CBL was associated with a higher late-payment rate on non-CBL loans, and nearly four in 10 CBL borrowers made at least one late payment on their CBL.

According to the National Credit Union Administration, 1,509 federally insured credit unions offer credit builder loans, as of March 2020.

Read the study

News From Credit Unions

Baylands Family CU Recognized With ‘America Saves’ Award

Baylands Family Credit Union is among the 12 recipients of the 2020 Designation of Savings Excellence award from America Saves. The financial institutions that earned the distinct honor were chosen from more than 200 banks and credit unions across the nation that participated in America Saves Week.

In its sixth year, the America Saves Designation of Savings Excellence is awarded to financial institutions that displayed exceptional achievement by motivating individuals to take action toward becoming more financially stable. Those achievements include opening new savings accounts, increasing savings deposits, and creating an automatic savings plan.

Collectively, the 12 banks and credit unions that earned the award encouraged nearly 125,000 people to deposit $363,847,982 into new and existing savings accounts during America Saves Week 2020.

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Baylands Family CU to Participate in Anthem LemonAid

Baylands Family CU is joining organizations all across the Greater Richmond area for Anthem LemonAid 2020! The popular fundraiser is going virtual this July and August with four lemon-inspired, interactive challenges to commemorate the charity's 20th anniversary of helping local children and families faced with cancer diagnoses.

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Virginia Credit Union’s Move to Online Education Breaks Records

Three months after moving its in-person financial education programs online, Virginia Credit Union is breaking records for the number of individuals its programs are reaching.

More than 20,000 individuals attended a Virginia Credit Union financial education program in the second quarter of 2020.

Overall, Virginia Credit Union has reached 25,823 adults and 4,911 youth with its education programs so far in 2020. Most of the programs between January and early March were delivered in-person, while all 117 sessions in April, May and June were offered online only due to health concerns about gathering in groups.

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Justice Federal Credit Union Awards Scholarships

Justice Federal Credit Union is pleased to announce the recipients of the Building Futures across the Nation, Annual Scholarship Competition.

“Despite the pandemic, we cannot cancel the dreams and hopes of our young people seeking to further their education. We remain committed to investing in those dreams. Our scholarship recipients encompass all life stages— from high school graduates to seasoned career employees, but they all have in common a passion for changing the world either through furthering a career in the field of justice, or their desire to give back by helping others in the community. We are pleased to invest in their future growth and development,” said Mark L. Robnett, President and CEO.

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Pandemic Response

Senate Republicans to Propose Laundry List of Liability Protections in Next COVID Relief Bill

Senate Republicans are proposing robust legal protections for U.S. universities, schools and businesses across the country in order to reopen without the threat of COVID-related lawsuits looming overhead, according to a portion of the draft summary of the forthcoming coronavirus relief package obtained by CBS News.

The summary, first reported by the Wall Street Journal, includes a laundry list of legal liability protections which Senate Majority Leader Mitch McConnell has emphasized as his red line to any future COVID-19 relief support. Included in the list are temporary protection from the trial bar for schools, colleges, charities and business that follow public health guidelines and for frontline medical workers.

"So that people who acted in good faith during this crisis, are not confronted with a second epidemic of lawsuits in the wake of the pandemic that we're already struggling with," McConnell said this week at a Louisville, Kentucky press conference.

He noted, "Unless you were grossly negligent or intentionally engaging in harmful conduct, you should be protected from liability during this process. Why is that necessary -- as of couple of weeks ago there were already 1,100 lawsuits filed an army of trial lawyers out there ready to take advantage of this situation, we cannot get back to normal if we have an epidemic of lawsuits."

The proposal also moves to create an exclusive federal cause of action for personal injuries arising from coronavirus exposure allegedly caused at such establishments, and notes that defendants are liable only if they failed to make reasonable efforts to follow applicable public-health guidelines and committed an act of gross negligence or intentional misconduct.

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CDC Launches Natural Disasters and COVID-19 Response Website

Planning and preparing for hurricanes and other natural disasters can be stressful, even more so during the COVID-19 pandemic. CDC has launched a new website, Natural Disasters, Severe Weather, and COVID-19, that includes information on preparedness and recovery during the COVID-19 response and what the general public can do to keep themselves safe. It may help you with developing disaster response plans at your credit union.

Education & Training

CUNA Mutual Group Hosting Discovery Conference Aug. 13

CUNA Mutual Group has been delivering its popular Discovery conference free and online for 11 years. This year’s event takes place Aug. 13 and is exclusively designed for credit unions and developed to help boost your strategic planning. Deepen your industry knowledge while engaging in a virtual environment that is easy to navigate and a great way to network.

The agenda for Discovery 2020 is built around the most requested topics from credit union leaders and allows you to attend based on your schedule.

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Woods Rogers Launches ‘HR Lifeline’ Webinar Series

2020 has been a year like none other. With consideration for the health and safety of our clients and employees, Woods Rogers' annual seminar series will move to a virtual platform for 2020. We hope you can join us online this fall every Thursday from Oct. 1 to Oct. 29 from 1:30 p.m. - 3:00 p.m.

Since March, the role of the human resources department is front and center in daily operations as issues of racism, inclusion, and equality appear next to COVID-19 in the headlines. While life may have paused for a few months for some businesses, understanding HR laws and issues is now more crucial than ever.

We’ll cover topics that have come out of the COVID-19 pandemic, as well as other top issues that require the guidance of a human resources leader. Beginning with a discussion of how to create an inclusive workplace and closing with our annual overview of actions from the “Big Three,” we’ll bring the same experience to you, just in a different format.

Email seminars@woodsrogers.com or call 540.983.7791 with questions. Session info can be found online at www.woodsrogers.com/hrlifeline2020.

PRICING: $250 for 5 courses. Credit unions can use the code “LOYAL50” to save $50!

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