CURRENT Newsletter | 3 November 2020 - Virginia Credit Union League



League President Rick Pillow reminds you that your vote counts! Please share your photos on our Facebook page - https://www.facebook.com/VACreditUnionLeague/

Your vote counts! Just a reminder that polls close in Virginia at 7 p.m. Also, if you requested an absentee ballot and haven’t yet submitted it, you may complete it and drop it off at your polling place on Election Day. If you drop off your absentee ballot, it MUST be returned in the sealed envelopes provided.

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

Learn How Election Outcomes Could Affect CU Advocacy

The votes are coming in and it is time to plan for what the 2020 election could mean for credit unions and their members. CUNA's Post-Election webinar will be held Nov. 5 at 2:30 p.m. Free to CUNA members, this webinar will focus on how possible outcomes could affect credit unions and CUNA’s advocacy efforts.

The Nov. 3 election will decide whether incumbent Donald Trump or challenger Joe Biden serves as president for the next four years. In terms of overall political considerations, the election will also decide the majority of both the U.S. House of Representatives and Senate.

Four presenters from CUNA lead the webinar:

CUNA CEO/President Jim Nussle,
CUNA’s Chief Advocacy Officer Ryan Donovan,
CUNA Chief Political Officer Richard Gose, and
CUNA Deputy Chief Advocacy Officer for Political Action Trey Hawkins.

As the credit union movement’s lead advocacy organization, CUNA is closely watching how the election will shape Washington in the new year. Any potential shifts in Congressional and Executive leadership will affect how — and to whom — credit unions advocate for better serving their members.

Thursday’s webinar will discuss:

How the election could affect credit union advocacy in 2021;
The importance of CUNA-League-credit union 360-degree advocacy; and
Why lawmakers are interested in credit unions’ diversity, equity, and inclusion work.

Learn more

League Hosting Small CU Webinar Nov. 17 on Digital Marketing

Your League is helping host a webinar Nov. 17 as part of the CUNA-Leagues Small CU Webinar series. During this webinar, we will talk about the tactics credit unions need to implement for a robust digital marketing strategy.

In our current climate, it is more important than ever to be forward-thinking when it comes to digital marketing for your credit union. Topics covered will include:

Why is digital important to your marketing strategy?
How do I get started with digital marketing?
The top must-haves for successful digital marketing.

Programming in this series is FREE!

Presenters:
Brandon Frey, director of digital marketing (WebStrategies)
Kristin Harrison, director of business development (WebStrategies)

Moderator:
Nicole Widell, chief member engagement officer (VACUL)

Fair Lending, Consumer Compliance Webinar Set for Nov. 17

NCUA will host a webinar on a range of fair lending and consumer compliance topics Nov. 17. Registration for the “Fair Lending and Consumer Compliance Regulatory Update” webinar is now open. It is scheduled to begin at 3 p.m. (ET).

The information presented reinforces the NCUA’s commitment to expand the availability of safe and affordable credit to meet the needs of diverse and underserved communities, which is a pillar of the agency’s financial inclusion initiative, ACCESS: Advancing Communities through Credit, Education, Stability, and Support.

Staff from the NCUA’s Office of Consumer Financial Protection will discuss the focus areas for the agency’s consumer compliance exams in 2021, including a review of COVID-19-related loan modifications and credit reporting, and fair lending policies and procedures. The discussion will also include the findings from the 2020 consumer compliance exam reviews.

Learn more

Advocacy / Governmental Affairs

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

Compliance / Regulatory Affairs

CFPB Finalizes Debt Collection Rule

The Consumer Financial Protection Bureau (CFPB) released its final rule on debt collection Friday. The rule prescribes certain disclosures and conduct limitations for covered debt collectors, as that term is defined under the Fair Debt Collection Practices Act (FCDPA). The FDCPA and the Bureau’s final rule will regulate the activities of third-party debt collectors and not entities collecting their own debts, commonly referred to as “first-party debt collectors.”

CUNA and your League continue to oppose any legislative or regulatory efforts to expand the scope of the FCDPA to credit unions that collect their own debts.

Learn more

Education & Training

Ignite 2021 Set for April 14-16 in Virginia Beach

We’re excited to announce the return of IGNITE, the League Annual Meeting! Slated for April 14-16, 2021 in Virginia Beach, we’ve secured the newly opened Marriott Virginia Beach Oceanfront as our host hotel.

You can make hotel reservations now at this location: http://bit.ly/VACUL2021-hotel

Registration information for the event will be distributed in the coming weeks, so stay tuned!

Safety is our priority! We will continue to monitor guidance from local, state and federal officials regarding the safety of meetings during the COVID-19 pandemic.

NCUA to Host Webinar on PALs, Short-Term Lending

NCUA said it will host a webinar for credit unions interested in offering payday alternative loans (PALs) or other forms of short-term lending.

The agency said the information presented in its webinar reinforces its commitment to expand the availability of safe and affordable credit to meet the needs of diverse and underserved communities as part of NCUA’s financial inclusion initiative, ACCESS: Advancing Communities through Credit, Education, Stability, and Support.

Registration for the Nov. 16 webinar, “PALs and Short-Term Lending,” is now open online here. It is scheduled to begin at 3 p.m. and run approximately 60 minutes.

Learn more

Pandemic Response

CUNA Mutual Group: Risks Rising for Economic Deterioration

A CUNA Mutual Group economist said he expects credit unions and banks to tighten credit standards next year as the labor market deteriorates following another steep rise in COVID-19 infections.

The U.S. Bureau of Economic Analysis on Thursday reported real GDP rose 7.4% from the second quarter to the third quarter, following a drop of 9% from the first quarter to the second quarter.

In CUNA Mutual’s Credit Union Trends Report released Friday, chief economist Steven Rick said he and economists at CUNA, both based in Madison, Wis., forecast a 5% GDP gain in the fourth quarter. But Rick said gains are imperiled by the pandemic’s path.

“The probability of a double-dip recession this winter is rising as the number of daily new COVID-19 cases rises,” Rick said.

“Expect credit growth to remain slow,” he said. “In recent years, lenders have been quick to tighten lending standards at the first sign of deterioration in credit quality. If the unemployment rate remains elevated or even rises due to a third COVID-19 wave, then expect loan delinquencies and charge-offs to rise also.”

Learn more

S&P Says US Recession May Be Over, But Economy at Risk of Relapse

The U.S. recession that started in the first quarter may have ended, with several economic indicators leaving negative territory, but the economy still is at risk of relapse, according to a new report from S&P Global Ratings.

The National Bureau of Economic Research declared in June that U.S. economic activity peaked in February, defining the starting point of a recession and the end of a 128-month expansion, as the coronavirus crisis took hold. The NBER has yet to announce when the economy hit its trough.

S&P Global Ratings estimated that the NBER would tag May as the end of the recession period and peg the third quarter, when real GDP rebounded with an annualized growth rate of 33.1%, as the recovery quarter. The rating agency said that based on real-time and leading indicators published since May, the economy may have bottomed out when it began reopening near the end of April.

"It's quite clear now that unless the numbers get drastically revised, the recession could now be said to be over and we've begun the recovery phase," S&P Global Ratings said, noting that the economy remains about 3.5%, or $167.5 billion, below its pre-pandemic peak set in the fourth quarter of 2019.

Four of the 10 leading indicators of near-term growth are now back in positive territory, including the Institute for Supply Management's manufacturing new orders index, while four others such as consumer sentiment are in the neutral zone. Only jobless claims and the Federal Reserve's loan survey remain in negative territory, compared to eight indicators that were flashing red in May.

S&P Global Ratings warned that the economy faces a high risk of a relapse due to the waning impact of emergency stimulus measures and the continued swelling of the country's COVID-19 caseload.

"We have already observed the recovery path fade in recent weeks as the virus cases have resurged widely across the U.S. and additional fiscal support was punted until at least post-election," said the rating agency, which projected real GDP growth at a 3.5% annualized pace for the fourth quarter.

The probability of a recession within the next 12 months stands between 25% and 30%, down from a previous forecast range of 30% to 35%, according to the rating agency.

"The risk is closer to the top of the range given the elevated uncertainty over the path of the virus and an agreement on further stimulus," S&P Global Ratings said. (S&P Global Market Intelligence, Nov. 2)

Fed Adjusts Terms of Main Street Lending Program to Benefit Smaller Businesses

The Federal Reserve Board (Fed) on Friday announced it adjusted the terms of the Main Street Lending Program in two important ways to better target support to smaller businesses that employ millions of workers and are facing continued revenue shortfalls due to the pandemic. Credit unions are among the eligible lenders for this program.

Learn more

How Much Longer Will Consumer Credit Hold Up?

The remarkably strong loan repayment rates by U.S. consumers during the first seven months of the pandemic could be a harbinger of continuing durability, or they could be the prelude to a collapse.

Under one plausible scenario, Congress passes a big new stimulus package early next year, which shores up the finances of unemployed Americans until a COVID-19 vaccine is widely available. In the bleaker forecast, a cold-weather spike in coronavirus cases leads to another sharp decline in U.S. economic activity, and ongoing political gridlock prevents a repeat of the rescue that Washington provided in March 2020.

“If you see a wave of white-collar layoffs in December, January and February, then start watching payment rates very closely,” warned John Hecht, an analyst at Jefferies. (American Banker, Nov. 2)

Financial Services / Economic News

Pew Analysis Finds Virginia Has Gotten It Right When It Comes to Small-Dollar Loans

Reforms enacted by the state of Virginia have led to significantly more affordable small-dollar loans for borrowers in the state, according to a new analysis released by Pew Research Trusts.

Pew examined Virginia’s 2020 Fairness in Lending Act and its effect on closing regulatory loopholes and capping interest rates, and said the results have been successful enough to offer lessons to other states.

The Fairness in Lending Act, which had bipartisan support, put a number of new restrictions in place, including prohibiting loans with large final balloon payments. The organization noted that previous research by The Pew Charitable Trusts showed that before the reforms, companies routinely charged Virginians three times more than customers in lower-cost states.

Learn more

Marketing

6 Ways CUs Can Attract Gen Z During Pandemic

Until 2020, Generation Z was set to enter the workforce in the middle of a thriving economy with record-low unemployment rates. However, in the midst of COVID-19, our youngest generation is coming of age during a global crisis.

Most Gen Zers (ages of 10 and 24) have not yet had the opportunity to build an emergency fund, invest in a retirement plan or gain full-time employment. Now, the oldest of this generation are having to navigate finding a job, paying student loans and managing their own money during a crisis.

Credit unions were founded to address these very issues as well as wealth inequality and accessibility. So how can credit unions resonate with Gen Z as they come of age and enter adulthood during a crisis? It’s all about understanding and validating their fears, addressing their needs without judgement and tapping into their hopes for the future.

Offer low-interest student loans
Provide high-interest checking and savings accounts
Make personal loan standards more accessible
Offer financial guidance that validates their fears
Lead with digital banking
Embrace diverse representation

(Credit Union Journal, Oct. 29)

« Return to "CURRENT Newsletter" Go to main navigation