CURRENT Newsletter | 27 October 2020 - Virginia Credit Union League

Join attorney Jay Spruill, who coordinates the League Compliance Hotline through the Woods Roger law firm, for a free webinar Oct. 28 on compliance updates and hot topics. Jay will cover recent regulatory changes and issues that should be on your radar in 2020 and beyond. There’s still time to register!

Fraud Trends During COVID-19; Free Webinar Oct. 29

Join us Oct. 29 for a session with Fiserv’s Joe Schwartz on key fraud trends during the pandemic and how credit unions can best position themselves to combat that fraud.

CUNA Mutual Group’s ULEND Academy Set for Nov. 2-6

Your League is proud to offer CUNA Mutual Group’s popular ULEND Academy Nov. 2-6 as a virtual learning experience for credit union lenders looking for real-world solutions to today’s toughest lending challenges.

The curriculum guides lenders from foundational to advanced skill levels in all lending communication channels and across all stages of the loan process - origination, underwriting, and closing - with cross-selling, consultation, and compliance woven throughout. ULEND Academy is set up as a virtual learning workshop within six, 60-to-90-minute daily sessions where participants will discuss, learn, and then apply.

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Register Now! CUNA’s Post-Election Webinar with CUNA Advocacy

Election day is right around the corner, but what happens after that? Join CUNA’s Leadership and Advocacy team on Nov. 5 at 2:30 p.m. to learn how the results from the 2020 election could impact your credit union and members.

Don’t forget to vote! Just a reminder that early voting in Virginia ends Saturday, Oct. 31. Office hours and voting information for all County and City registrars is also available on the Department of Elections website. (Information is likely also available on the website of each individual county or city.)

For details on your polling place for Election Day, visit the Department of Elections website.

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.

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Advocacy / Governmental Affairs

Democrats Introduce Legislation to Include FIs in Civil Rights Protection

A group of Democratic lawmakers in both Houses has introduced legislation that would extend the 1964 Civil Rights Act to cover credit unions and other financial institutions.

While the legislation has no chance of being enacted this year, the introduction of the measure by members of the Senate Banking Committee and House Financial Services Committee may indicate a Democratic priority for the 117th Congress.

In introducing the legislation, lawmakers noted that while the Civil Rights Act of 1964 outlawed discrimination in certain places of public accommodations, it does not cover financial institutions.

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Compliance / Regulatory Affairs

NCUA Fee Proposal Would Provide Greater Certainty

CUNA supports NCUA’s proposal on fees paid by federal credit unions, it wrote in comments filed Friday with the agency.

CUNA supports the proposed exclusion of Paycheck Protection Program (PPP) loans from a federal credit union’s total assets for purposes of calculating its operating fee. CUNA believes this change should help ensure federal credit unions interested in making PPP loans do not bear greater financial burdens for doing so.

The proposal would also amend:

The current rule to exclude from total assets any loan an FCU reports under the PPP or similar future programs approved for exclusion by NCUA for purposes of calculating the annual operating fee; and
The period used for the calculation of a federal credit union’s total assets as the average total assets reported on the credit union’s previous four Call Reports.

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CFPB Amends Regulation Z to Extend GSE QM Patch

The CFPB issued a final rule extending the sunset date for the GSE Qualified Mortgage (QM) Patch. The GSE QM Patch temporarily defines certain mortgages eligible for purchase by Fannie Mae and Freddie Mac as QMs that receive liability protection against claims that the loans were originated in violation of the Truth in Lending Act.

This final rule amends Regulation Z to replace the previous January 10, 2021 sunset date of the GSE QM Patch with an expiration on the mandatory compliance date of final amendments to the General QM loan definition, which is being determined through a separate rulemaking.

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Pandemic Response

White House Winner Will Need Stimulus to Fend Off 'Collapse' with Virus Surging

No matter how the Nov. 3 election goes, a preventable threat to the U.S. economy the next administration could inherit is a failure of Congress to pass a new stimulus bill, economists told S&P Global Market Intelligence.

"We're in this risky situation where without further fiscal aid, the U.S. economy is much more exposed to headwinds in the form of either the worsening health situation or a significant rise in political uncertainty," Gregory Daco, chief U.S. economist for Oxford Economics, said in an interview. "What some sectors gained to get near pre-COVID levels, a lot was driven by fiscal stimulus. If you take out that part of the puzzle, the domino could fall and collapse. What seems like a strong recovery could turn into a negative surprise in the fall."

Lawmakers and the White House have been at an impasse on more relief for an ailing U.S. economy since passing the CARES Act in March, though House Speaker Nancy Pelosi, D-Calif., and Treasury Secretary Steven Mnuchin are still in talks for a new bill, with President Donald Trump signaling support via Twitter for a large package. Senate Republicans, led by Mitch McConnell of Kentucky, have not expressed willingness to sign on to a relief bill that is not small and narrowly targeted, such as the $500 billion bill they failed to advance Oct. 21. The Senate has adjourned until after Election Day, further jeopardizing a deal.

Without further federal fiscal action, the next president would inherit an economy on the brink of a deeper recession, according to forecasts and interviews with economists. (S&P Global Market Intelligence, Oct. 26)

SHRM Research: COVID-19 Takes a Toll on Employees' Mental Well-Being

Are you feeling emotionally drained, having trouble concentrating or losing interest in activities you once enjoyed? If so, you're not alone.

Between 22 percent and 35 percent of U.S. employees often experience these symptoms of depression as they live through the COVID-19 pandemic, according to new research by the Society for Human Resource Management.

The survey of 1,099 employees found that women, younger workers and people living with at least one person who is a member of a vulnerable population—such as a health care worker or someone with a compromised immune system—were affected the most. Nearly two-thirds of respondents who said they felt like a failure lived with someone who is vulnerable.

"COVID-19 is taking a toll on our minds and emotions in a million little ways," said SHRM President and CEO Johnny C. Taylor, Jr., SHRM-SCP. "Now, more than ever, employers should double down against stigmas and guarantee employees know of the resources, benefits and accommodations available."

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Financial Services / Economic News

The U.S. Economy Probably Grew at Record Speed in 3Q, But Crisis Isn't Over

The U.S. economy started bouncing back from the pandemic lockdowns over the summer months. That much is certain. But just how big this rebound was — and how far we still remain from the pre-pandemic normal — won't be known until Thursday, when we'll get our first look at America's third-quarter report card.

Just five days before the presidential election, the Bureau of Economic Analysis will report US gross domestic product — the broadest measure of economic activity.

Economists polled by Refinitiv expect the economy expanded by about 7%, when adjusted for seasonal particularities, between July and September compared to the prior three months. That would be a sharp gain from the second quarter, when the economy shrunk a seasonally-adjusted 9%.

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Consumer Confidence Dips to 100.9 as Virus Spreads in U.S.

U.S. consumer confidence dipped slightly in October as a new wave of coronavirus cases appeared across the country.

The Conference Board reported Tuesday that its consumer confidence index fell to a reading of 100.9, from 101.8 in September, but still remains well below pre-pandemic levels. This month's moderate decline follows a sharp rise in September.

Consumer spending accounts for 70% of economic activity in the U.S., so a decline in confidence gets a lot of attention from economists, especially as the U.S. heads into the crucial holiday shopping season.

Consumer confidence tumbled to 85.7 in April as large swaths of the country went into lockdown to check infections. It had consistently been well above 100 in the months before that, with the index hitting 132.6 in February before the severity of COVID-19 infections became clear.

CUs Gird for More Branch Shutdowns as COVID Rates Spike

Banks and credit unions across the country shuttered their lobbies in the spring and moved to appointment only when the pandemic first became widespread, but in many instances, those closures were the result of mandates from state and local officials. Most institutions eventually reopened, but branch access is different everywhere.

Some have maintained their appointment-only policies, while others have reopened for general access. Some institutions have also opened for their own members but restricted access for members of other credit unions who utilize shared-branching services.

It’s unclear exactly how many credit unions have fully reopened and how many are by appointment only. CO-OP Financial Services, which operates the nation’s largest shared-branching network, does not have data on those figures.

“Full reopening isn’t a reality in a lot of places and we’re absolutely hearing anecdotal reports of people closing again,” said Steve Reider, CEO of the consultancy Bancography. “One of the reasons why institutions may be quicker to close branches this time around is because they’ve gotten skilled at working with it and working through it. We’ve gotten call centers and digital channels stronger, and it’s not ideal but I do think there’s a safety-first mentality that says, ‘We can live with a two-week closure because we’ve learned how to work around it.’” (American Banker, Oct. 27)

Nearly Half of Americans Have Missed at Least 1 Payment

While overall consumer credit scores actually remain on the rise, during the seven months of the COVID-19 pandemic many Americans continue to struggle with making ends meet.

According to a new report from doxo, 42% of consumers have missed at least one bill payment during the coronavirus outbreak.

Just 10% have missed a health insurance payment, and only 14%-15% have missed a car or dental insurance payment.

“By comparison, 27% of respondents said they’ve missed an auto loan payment and 26% have skipped a utility payment. Rent and mortgage payments fell in the middle of the rankings, but that still shows that roughly one-in-five Americans haven’t been able to pay for housing at some point,” said LowCards.com in its analysis.

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News From Credit Unions

ABNB FCU Announces Amazon Alexa-Enabled Banking

ABNB Federal Credit Union is thrilled to announce the debut of our new mobile banking access via Amazon’s virtual assistant Alexa! Launching on Oct. 26, members will be able to enjoy the convenience of accessing their ABNB accounts 24/7, hands-free, in a secure environment right on their Alexa device from wherever they are.

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