CURRENT Newsletter | 26 August 2021 - Virginia Credit Union League

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League Writes Lawmakers in Opposition to Expanded 1099s

Your League this week wrote members of the Virginia Congressional Delegation urging them to oppose the Senate’s Fiscal Year 2022 Budget Resolution that proposes financial institutions be required to report significant amounts of aggregate data to the IRS through an expanded Form 1099-INT.

The proposal is so broad, with a de minimis exception so low ($600), that most accounts and accountholders will be subject to reporting, notes the League.

Credit unions and banks would be required under the proposal to annually report gross inflows and outflows of accounts (both businesses and individuals) with a breakdown for cash, transactions with a foreign account, and transfers to and from another account with the same owner.

CONNECT Conference Returns Sept. 27-29

The League’s popular CONNECT Conference is returning Sept. 27-29! Scheduled for the Hilton Downtown Richmond, the conference is designed to help next-generation leaders build their personal and professional brand, elevate their networking and public speaking abilities, understand credit union financials and engage in credit union advocacy efforts.

Notes past conference attendee Christina Michelson (BayPort Credit Union): "Attending the CONNECT conference in Richmond helped me enhance my career in ways that I was not expecting. The keynote speaker was impressively relevant and shared several resources and tips that I have used in both my personal and professional life to grow. I was able to network with several people from other credit unions and had the opportunity to bring some tips from other credit unions back to my own. The whole conference had a fantastic, positive energy and the breakout sessions helped to focus on key points. I left feeling refreshed and excited for my continued career in the credit union industry."

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Mortgage Loan Originator Training Slated for Sept. 29-30 as Virtual Course

In partnership with the Kentucky Credit Union League, we're offering Mortgage Loan Originator Training Sept. 29 and 30. This virtual course is a comprehensive overview of the mortgage lending process. New loan originators as well as those looking to satisfy their periodic training requirement under Regulation Z would benefit from attending this course.

To register, contact your League’s mary Amyx at 800.768.3344, ext. 630 or mamyx@vacul.org

Learn more

Marketing Workshop: Getting Your Digital Story Telling Right

Digital storytelling helps us connect to people. Through videos, podcasts, commercials and other channels, we’re able to share meaningful stories about our credit union and our members. Join Elizabeth Rider (On the Mark Strategies) for a session at this year’s virtual Marketing Workshop covering:

Components of an effective digital story
How to strategically communicate your brand across all digital channels
The secret to building and effectively executing a content marketing strategy
The smarter way to budget for digital marketing

This virtual event (Oct. 14 & 15) event is brought to you by the Virginia Credit Union Leagues Marketing and Business Development Committee. We are excited to invite you to join us for a lot of fun, interactive education and networking. "See" you there!

Learn more and register

Requiring Employee Vaccinations? Risk Alert Offers Advice, Considerations

The Equal Employment Opportunity Commission (EEOC) has issued guidance stating that employers are allowed to mandate COVID-19 vaccinations for in-person employees (barring medical or religious reasons), but it can be a sensitive issue, notes a CUNA Mutual Group Risk Alert.

Credit union leaders should follow key communication fundamentals when sharing their decision about getting vaccinated.

Learn more in CUNA Mutual Group's Risk Alert

Key Trends in Class Action Litigation – Sept. 15 Webinar

2020 was a year of upheaval, and while some industries continue to suffer, certain areas of litigation experienced an upswing. In this webinar, you’ll gain litigation insights and hear which loss trends are impacting credit unions throughout the country including:

Overdraft / NSF Fee Litigation
Collection Letters (defective post-repossession notices)
Wage & Hours and FLSA
Foreign Transaction Fees
Peer-to-Peer (P2P) Fraud & Reg E

CUNA Mutual Group’s expert Claims and Risk Management panelists will share what’s going on and what you can do to minimize these and other potential disputes before they impact your organization.

Cyber Insurance: What You Need to Know

The Sept. 15 webinar will provide an overview of the current trends and state of the marketplace for cyber liability insurance. Attendees will learn the basic fundamentals of how policies are designed to respond to a data breach scenario as well as common pitfalls that organizations make when utilizing their policies.

Learn more and register

No Nonsense Experience: Your CU's Diversity Journey

Where are you in your credit union’s diversity journey? Whether you are in the beginning stages of engaging in diversity, equity, and inclusion conversations or looking for ways to continue to effect positive cultural changes in your credit union, please join credit union leaders from across the country for the No Nonsense Experience, starting Thursday, Oct. 7.

Offered as a one-hour, weekly course each Thursday, Oct. 7 through Oct. 28, The No Nonsense Experience will be guided by a team of expert facilitators from JP Enterprises, and will focus on building conversation skills around your thoughts, intentions, actions, and behaviors regarding Diversity, Inclusion, and Bias.

Details and Registration

Jean Yokum, Retired President/CEO of Langley Federal Credit Union, Dies at 90

We are saddened to hear of the passing of Jean Yokum, a true champion for credit unions at the state and national levels. Her 58-year career in credit unions saw her rise from teller to President/CEO at Langley Federal Credit Union.

She noted in a 2010 interview: “I’ve always had a simple philosophy when it comes to leadership: lead by example, be strong, be true, be someone that others can believe in. I hope that others see the loyalty and passion that I have for our members, for this credit union and for our employees.”

Read Langley FCU’s statement
Click here for a lovely tribute to Jean via Inside Business.
Read the release on Jean being honored by the League in 2010.

Ignite 2021 Offers Key Education Topics for Board Members, Officials

Ignite 2021 will feature three key education sessions for credit union board members, including an overview of board duties and responsibilities. Attorney, author, consultant and nationally recognized speaker David Reed will offer his insights and knowledge on making your board more effective, dynamic and resourceful.

View David’s video invite for credit unions.
Learn more about Ignite 2021 and the League Annual Meeting.

Labor Day Closing Sign Available Online

A reminder that your League provides holiday closing signs for your use. View and download the signs here.

Advocacy / Governmental Affairs

Safe Harbor for CUs Would Strengthen ‘Disparate Impact’ Rule

CUNA applauds the Department of Housing and Urban Development (HUD) for providing clarity and consistency by ensuring there is a codified discriminatory effects standard, but urges it to offer a safe harbor for policies directly required by statutory obligations, such as credit union field of membership limitations.

This year HUD proposed to reinstate a 2013 final rule adopting a long-standing three-step burden-shifting approach for determining violations of the Fair Housing Act’s (FHA) Discriminatory Effects Standard.

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NCUA Request for Information and Comment on Digital Assets, Related Technologies

The National Credit Union Administration Board set Sept. 27, 2021, as the deadline for comments on the existing and potential impact on federally insured credit unions, related entities and the NCUA resulting from activities connected to digital assets and related technologies.

Learn more

Compliance / Regulatory Affairs

Streamlined CDFI Application Qualifying Round Opens Sept. 12

Federally insured, low-income credit unions seeking a Community Development Financial Institution (CDFI) certification can apply for the National Credit Union Administration’s streamlined qualification process between Sept. 12 and Oct. 15.

Learn more

Registration Open for NCUA’s Modernized Examination Tools Webinar

NCUA will host a webinar on the agency’s modernized examination tools on Wednesday, Sept. 8, beginning at 2 p.m. Registration is now open.

The webinar will focus on the NCUA’s new modern examination platforms and systems, including the agency’s Modern Examination & Risk Identification Tool, or MERIT. The webinar will discuss the benefits of these systems to credit unions and federal and state examiners.

CFPB Announces New Tech Specifications for Reporting Credit Card Agreements

The Consumer Financial Protection Bureau (CFPB) announced Friday that the agency is issuing new technical specifications for complying with credit card agreement and data submission requirements under the Truth in Lending Act (TILA) and the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act).

Learn more

Virginia Tax Department Focus on Worker Misclassification

Effective Jan. 1, 2021, Virginia’s General Assembly added several new provisions to the Virginia Tax Code, Title 58.1 of the Code of Virginia (the “Code”), to address concerns raised by the Virginia Department of Taxation with worker misclassification. The Tax Department is now moving forward to enforce these new laws.

Learn more

News About Credit Unions

Inclusiv Racial Equity Grant Fund RFP Available for CUs, Cooperativas Serving Communities of Color

Inclusiv is pleased to announce a Request for Proposals (RFP) for the Racial Equity Grant Fund. This grant fund was previously launched as the Resilience Grant Fund in June 2020 to help credit unions led by and serving people of color provide financial relief to consumers and small businesses affected by COVID-19. Under the Resilience Grant Fund, fifty-nine credit unions and cooperativas were awarded $1 million in philanthropic grants for coronavirus financial relief, including fee waivers; emergency low-interest loans; technology enhancements; marketing; financial coaching and counseling; and business planning.

Learn more

News From Credit Unions

CommonWealth One Federal Credit Union Appoints Frank Wasson As President/CEO

The Board of Directors of CommonWealth One Federal Credit Union is pleased to announce the appointment of Frank Wasson as the credit union’s new President/Chief Executive Officer.

Learn more

BayPort Foundation Announces Official Crawlin’ Crab Race Weekend Sponsors

The BayPort Foundation is pleased to announce it has partnered with Cox Business/Cox Media, Newport News Shipbuilding, and Staples as official race sponsors of the BayPort Foundation Crawlin’ Crab Race Weekend. The Crawlin’ Crab Race Weekend (Oct. 2-3, 2021) is the Foundation’s inaugural family-friendly fundraising event.

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Chapter News

Tidewater Chapter Meets Sept. 9; Registration Ends Sept. 3

Kathryn Ryan, of Children’s Hospital of the King’s Daughters, will be the featured speaker and special guest at the Tidewater Chapter's Sept. 9 meeting. The Chapter will be presenting proceeds from its recent golf tournament fundraiser to CHKD, a Children's Miracle Network Hospital.

Registration/cancellation deadline is Sept. 3, 2021 by noon.

Learn more

Financial Services / Marketplace

Minority Borrowers Struggled in 2020: HMDA

The mortgage market had a stunning year in 2020, with closed-end originations increasing by 65.2% from the year prior, a Home Mortgage Disclosure Act (HMDA) report published by the Consumer Financial Protection Bureau this week disclosed. But some of the industry’s same problems remained in 2020.

According to the report, comprised of data provided by 4,472 financial institutions, the increase was predominantly driven by the refi wave, with originations jumping from 8.3 million in 2019 to 13.6 million in 2020.

The number of refi loans increased by an astounding 149.1% from 3.4 million to 8.4 million last year and home-purchase loans secured by one-to-four-family properties increased by 387,000, the CFPB’s report found.

But apart from lenders reaping the rewards of an ultra-low-rate environment, troubling trends also persisted, mainly, that Black and Hispanic borrowers paid higher median interest rates and total loan costs compared to non-Hispanic and Asian borrowers, the CFPB said.

Learn more

Housing Market Update: Median Home Price Up 16% From 2020

Although the share of home sellers dropping their asking price each week continues to increase, so does the median home sale price, which was up 16% from a year ago. Pending sales are declining seasonally but are still up 10% from a year ago. Overall homebuying demand is still very strong. The market frenzy of 2021 has cooled somewhat, but home sellers are still very much in the driver’s seat in the housing market today.

“Demand for homes is making a comeback because even though home prices are high and competition is still steep, homebuyers don’t have many alternatives but to keep trying,” said Redfin Chief Economist Daryl Fairweather. “This continued demand for homes is enticing more homeowners to sell in order to avoid the fear of missing out on historically high prices. This enthusiasm from both buyers and sellers is translating into continued growth in pending sales compared to last year.”

Learn more

CUs Should Expect Mortgages to Slide Into 2022

The Mortgage Bankers Association’s latest forecast shows the slide in originations continues to be milder than expected, but the trend is clearly downward into 2022.

MBA’s Aug. 18 forecast revised total originations for the third quarter upward by 4.5% to $862 billion. But the revised amount is still down 20% from a year earlier and down 18% from the second quarter.

Learn more

What’s Driving the Boom in Auto Refinancing

A boom in subprime auto lending has given way to a new frenzy for refinancing the same borrowers, as small banks and credit unions hunt for sources of loan growth.

Rather than relying heavily on dealerships for business, smaller lenders are increasingly turning to intermediary fintech companies like iLendingDirect to supply new customers who are not visiting showrooms because auto inventories remain quite low.

Lenders are sometimes halving borrowers’ interest rates — or offering even bigger cuts — from starting points that can be higher than 20%, according to industry executives. Many of these car owners are hesitant to trade in their vehicles, particularly in light of skyrocketing auto prices, and may now have higher credit scores after using recent government stimulus payments to pay down other debts. (American Banker, Aug. 25)

Education & Training

Serving Small Businesses eSchool Starts Sept. 1

Credit unions looking to begin serving small businesses will learn key considerations by attending the new CUNA Serving Small Businesses eSchool Wednesdays, Sept. 1 through 22.

“This is a complex space to be in and is something not widely addressed in the industry,” said Melisa Kallestad, director of compliance and lending education at CUNA.

The four, 90-minute sessions will help attendees evaluate portfolio size and complexity, as well as training, staffing, policies and procedures needed for implementation. Lender liability and regulatory and compliance implications of a business portfolio will also be covered.

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