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CURRENT Newsletter | 25 November 2020

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Headlines

Advocacy / Governmental Affairs

Compliance / Regulatory Affairs

Education & Training

Financial Services / Economic News

Pandemic Response

News From Credit Unions

Headlines

Turnkey Mortgage Solutions: Learn More about Our New Partnership with CUMA During Dec. 10 Webinar

Looking for a turnkey, customizable mortgage solution for your credit union? Credit Union Mortgage Association (CUMA), your League’s newest business partner, boasts a 40-year track record of providing best-in-class mortgage-related services to credit unions of all asset sizes, including origination, processing, underwriting, servicing, closing and secondary market access. Join us for a Dec. 10 webinar (at noon) to learn about CUMA and what they can help you do for your members!

Register here

CUMA is a full-service mortgage company, owned 100% by credit unions, exclusively serving credit unions. Learn more about our partnership.

Young Professionals Network: Lunch & Learn Event Slated for Dec. 8

We're excited to welcome the Credit Union National Association's April Ales for our Dec. 8 Lunch & Learn.

April will provide us an overview of CUNA's work, including advocacy, professional development, compliance resources and initiatives designed to grow the credit union system.

This free event is scheduled from 1 p.m.-2 p.m.

Register here

CUs Can Again Go Virtual With Board, Annual Meetings in 2021, NCUA Says

Credit unions will again have the flexibility in 2021 to host their annual meetings and board meetings virtually, according to NCUA. Separately, the agency also joined other regulators in issuing clarifications related to the Bank Secrecy Act.

As previously released, a federal credit union may adopt a bylaw amendment by a two-thirds vote of its board of directors to hold its annual meeting virtually.

"The NCUA hereby notifies all federal credit unions that, if they have adopted this bylaw amendment, it is appropriate to invoke its provisions at any point in 2021 for meetings occurring in that year, if a majority of the board of directors so resolves for each such meeting," the NCUA stated in a Letter to Credit Unions. "General quorum requirements must still be met for all-virtual meetings."

The updated letter also adds language that allows for all board of directors meetings to be held virtually throughout the year.

“NCUA is also adding optional language related to board of directors’ meetings to the amendment. A federal credit union may choose to adopt the amendment with or without the underlined language related to board of directors’ meetings,” the letter states.

Learn more

NCUA Response to COVID-19 Subject of Dec. 3 Webinar

Federally insured credit unions can learn more about NCUA’s response to the COVID-19 pandemic by participating in a webinar hosted by the agency on Dec. 3, beginning at 1 p.m.

During the webinar, NCUA staff will also discuss recently issued guidance and regulations, as well as other agency initiatives.

Online registration for this hour-long webinar is now open. Registration is limited to no more than 2,500 participants on a first-come, first-served basis.

Registration Now Open for 2021 CUNA GAC, March 2-4

Registration for the 2021 CUNA Governmental Affairs Conference (GAC) is now open. Next year’s CUNA GAC will be held March 2-4 and delivered in real-time using a full-feature, interactive digital platform.

The online format will integrate many of the conference’s most popular events including live speakers and breakout sessions, a virtual exhibit hall, and the opportunity to (virtually) Hill Hike.

Learn more

Advocacy / Governmental Affairs

Auto Forgiveness of PPP Loans Less Costly for Government, Lenders

CUNA joined more than 100 consumer-focused organizations to call on Congressional leadership to quickly pass Paycheck Protection Program (PPP) forgiveness.

“Bipartisan and bicameral legislation introduced earlier this Congress and would reduce compliance costs by streamlining the forgiveness process for mom-and-pop businesses who received PPP loans during these unprecedented times,” the letter reads. “Additionally, passing such legislation that would expand the hold harmless protections for lenders will provide financial institutions that originated and currently service PPP loans the opportunity to focus their time and energy on providing much-needed credit and financial services to individuals and businesses by creating regulatory certainty for PPP loans in the future.”

Learn more

Biden to Nominate Janet Yellen for Treasury Secretary

President-elect Joe Biden plans to nominate former Federal Reserve Chair Janet Yellen, “an economist at the forefront of policy-making for three decades, to become the next Treasury secretary, ” the Wall Street Journal reported. “If confirmed by the Senate, Ms. Yellen would become the first woman to hold the job. Ms. Yellen, who was the first woman to lead the Fed, would become the first person to have headed the Treasury, the central bank and the White House Council of Economic Advisers.” A formal announcement isn’t expected to occur before Nov. 30.

Related: Janet Yellen's first battle is already taking shape

Compliance / Regulatory Affairs

Agencies Clarify BSA Due Diligence for Charities, Nonprofits

Federal financial institution regulatory agencies, including NCUA, issued a joint fact sheet clarifying that credit union and compliance efforts to meet Bank Secrecy Act (BSA) due diligence requirements for customers that are charities and other nonprofit organizations should be based on the money laundering risks posed by the customer relationship.

The fact sheet highlights the importance of legitimate charities and nonprofit organizations having access to financial services and being able to transmit funds through legitimate and transparent channels, especially in the context of responding to the coronavirus pandemic.

Learn more

NCUA Considering Outside Help to Boost Diversity Survey Participation

The National Credit Union Administration may consider hiring an outside firm to administer its annual diversity self-assessment.

According to Monica Davy, director of NCUA’s Office of Minority and Women Inclusion, many credit unions fear the agency might use the self-assessment against them in an exam, despite strenuous, repeated denials by officials.

“I use every opportunity I can when I go out and speak to make it clear [the voluntary self-assessment] is separate and apart from the examination process,” Davy said Thursday during a virtual meeting of NCUA’s governing board. “Examiners do not have access to this data at all.”

The results of the 2019 survey, which were released Thursday, show just 118 credit unions participated, up from the 81 that completed the diversity self-assessment in 2018, but still a small fraction of the industry. As of June 30, NCUA counted 5,164 federally insured credit unions. (American Banker, Nov. 19)

McWatters Resigns from NCUA Board

Mark McWatters resigned Friday from his position on the board of the National Credit Union Administration. McWatters has served on the NCUA board since his nomination by then-president Barack Obama in 2014.

McWatters served as Chairman of the NCUA Board from 2017-2019. His term expired in August of 2019, but he agreed to continue serving on the board until the Senate confirmed his successor.

The Senate moved Wednesday to schedule a vote on President Trump’s nominee to fill McWatters’ vacancy, with a vote expected after the Thanksgiving holiday.

Learn more
Related: More Resignations Announced as NCUA Officials Silent on Ousting of McWatters

Education & Training

Webinar Series for Small CUs

Start adopting industry best practices to address 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 runs through Spring 2021.

Get impactful best practices relevant to small credit unions on hot topics, including member experience, digital marketing, lending and more.

See a full list of free webinars and register here.

Leadership Skills for Changing Times Ahead Topic of New Virtual School

Creating leadership skills that withstand changing times is the focus of CUNA Resilient Leadership Virtual School Dec. 2-4.

“We can look forward with optimism,” said Kristin Ryan, CUNA director of learning events, “but we need new tools for leadership, and we need to refocus ourselves.”

In nine sessions over three days, credit union leaders who attend can expect to learn:

  • How to build resilience muscle memory for themselves and their teams
  • Respect for where we’ve all been and for where their team is headed
  • Tips for effective communication and empathy
  • How to determine personal leadership and organizational goals for 2021
  • How to foster mental health and wellness for themselves and their teams

To learn more and to register, visit cuna.org/rlvs.

World Council of Credit Unions Moves Annual Event Online

The World Council of Credit Unions has changed its annual conference to a virtual format for 2021.

The group’s 2021 World Credit Union Conference was originally set to be held in Glasgow, Scotland, from July 11-14, but those plans were scrapped due to the coronavirus. Instead, it will be hosted online from July 14-21, WCCU said Tuesday.

Learn more

Financial Services / Economic News

Rising Mortgage Delinquencies to Show Up in 2021

The refinance boom is edging toward its third birthday, but like all good parties, it will be coming to an end.

Mike Fratantoni, chief economist for the Mortgage Bankers Association, said Thursday that this year will close with record profitability for mortgage lenders despite the effects of the COVID-19 pandemic on other sectors of the economy and mortgage delinquency rates that are already rising.

However, next year they will find their margins compressed as rising rates constrict the flow of applications and rising delinquencies boost costs.

Learn more

Loans Up 0.5% in September as Membership Growth Remains Anemic

Credit union loan balances were up 0.5% in September, while CU membership growth continues to be anemic, according to the latest CUNA Mutual Trends Report.

The November Trends Report, which is based on CU data through September, is now projecting the economy will grow at a 4% annualized rate in the fourth quarter and 3% during 2021.

“The probability of a double-dip recession this winter is rising as the number of daily new COVID-19 cases rises,” the report states. “Government-mandated shutdowns of non-essential businesses and stay-at-home orders could result in job losses in the first quarter of 2021.”

Learn more

Related: ‘Double-dip recession' could be in the cards: CUNA Mutual

Court Orders SBA to Release Data on All PPP, EDIL Borrowers by Dec. 1

U.S. District Court for the District of Columbia Judge James Boasberg lifted a temporary stay order, denying the U.S. Small Business Administration's "Motion to Stay" and ordering it to release the names, addresses, and precise loan amounts for all Paycheck Protection Program and Economic Injury Disaster Loan borrowers by Dec. 1.

The U.S. District Court for the District of Columbia decided on Nov. 5 in favor of The Washington Post, et al., and the Center for Public Integrity, stating that the SBA had to release the loan information by Nov. 19. On Nov. 13, Boasberg granted the SBA's plea to temporarily stay his ruling until Nov. 27. (S&P Global Market Intelligence, Nov. 24)

Pandemic Response

COVID-19 Transmission Risk From Using Cash is Low, Study Finds

The risk of catching COVID-19 through using banknotes is low, according to research by the Bank of England that suggests the aversion to using cash during the pandemic is unnecessary.

The central bank considered a plausible worst-case scenario of an infected person coughing or sneezing onto a note and found that the level of virus on the surface began to drop rapidly after an hour. After six hours, it had declined to 5% or less.

The chances of such direct contamination occurring is relatively low as cash is typically stored securely in tills or wallets, the study found. An infected person touching notes would result in far lower levels of the virus. (American Banker, Nov. 24)

News From Credit Unions

Caleb Schlabach Named Mortgage Loan Advisor at Park View FCU

Park View Federal Credit Union is excited to announce the addition of Caleb Schlabach to the Park View Mortgage Advisor team. “His financial background and commitment to the needs of Park View’s members will be an asset to anyone looking to purchase or refinance a home,” said Brad Arehart, Mortgage Manager.

Learn more



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