CURRENT Newsletter | 9 September 2021 - Virginia Credit Union League

We need your help in fighting a proposal that would require financial institutions to report money moving into and out of accounts to the Internal Revenue Service (IRS). CUNA and the Leagues issued an action alert urging credit unions to share their concerns about the IRS reporting proposal, which is under consideration in the infrastructure package currently being debated in Congress.

The proposal would require depository institutions to report nontaxable activity, including the gross amount flowing into and out of accounts, in an attempt to identify unreported taxable income.

Various resources, including talking points and other tools, are available on the Member Activation Program (MAP) community webpage. These resources will prove helpful in getting staff, officials and members engaged in this effort.

Learn more

Resource: IRS Reporting Requirements: Talking Points and Background
Related: League Writes Lawmakers in Opposition to Expanded 1099s
Related: Advocacy Alert - Write Your Lawmakers and Help Fight New IRS Reporting Provisions
Related: Take Action - Tell Congress to Oppose New IRS Reporting Provisions

Cyber Insurance Webinar: Protect Your CU, Your Members and Your Reputation

Cyber insurance can be essential in helping your credit union recover after a data breach, with costs that can include business disruption, revenue loss, equipment damages, legal fees, public relations expenses, forensic analysis and costs associated with legally mandated notifications.

Join us for a CUNA Mutual Group webinar on Sept. 15, which will provide an overview of the current trends and state of the marketplace for cyber liability insurance.

Protecting your credit union's data is a strategic priority as the threats you face continue to grow. From careless employees to seasoned hackers, those threats are everywhere. Ensure your credit union is ready for today’s complex risk environment by putting in place strong cybersecurity and cyber insurance programs.

Learn more | Register

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.

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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, will benefit from attending this course.

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

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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

Ignite Education Sessions: Strategic Considerations for 2022 and Beyond

Ignite 2021 will feature key education sessions guaranteed to help you address pressing strategic considerations heading into 2022 and beyond, including sessions on auto lending, commercial risk management, leveraging your CECL data, important regulatory considerations, and the outlook for the industry.

Learn more about Ignite 2021 and the League Annual Meeting.

VACUPAC Golf Tournament Tees Off Nov. 10; Golfers, Sponsors Needed!

Calling all golfers: the 32nd Annual VACUPAC Golf Classic tees off Nov. 10 at Hell's Point Golf Club. Your participation aids our advocacy efforts by supporting the Virginia Credit Union Political Action Committee, the state-level, non-profit, non-partisan political action committee of the Virginia Credit Union League and its affiliated credit unions.

We need sponsors, as well! Learn more about golf and sponsorship opportunities here.

Virginia Moves to Loosen COVID Workplace Safety Rules

Virginia is moving toward loosening its first-in-the-nation COVID-19 workplace safety rules, which were designed to prevent the spread of the virus but also were criticized by many businesses as too unwieldy.

A board that oversees the state’s workplace safety regulations voted last week to change those rules, giving businesses some leeway to avoid fines as long as they follow COVID-19 prevention recommendations from the U.S. Centers for Disease Control and Prevention.

Technically, the rules remain in place, but under a 10-to-4 vote by Virginia’s Safety and Health Codes Board last week, businesses would be considered compliant with the state rules as long as they are making a “good faith” effort to comply with the CDC’s recommended guidelines for COVID-19 prevention.

The board’s vote to change the rules is now being considered by Gov. Ralph Northam’s office before it is made official, which could happen this month. The rules will be published before they become official. (Richmond Times-Dispatch, Sept. 6)

National CU Foundation Commits $100,000 to Aid Those Affected By Hurricane Ida; Your Donations Will Help

The National Credit Union Foundation said Friday it has committed a minimum of $100,000 from its CUAid program to support Louisiana credit union employees and volunteers affected by Hurricane Ida.

A grant will be made to the Louisiana Credit Union League to coordinate specific individual donations to those who need disaster relief.

You can donate to CUAid here.

Compliance / Regulatory Affairs

CFPB Issues New Mortgage Rule Aimed at Preventing Avoidable Foreclosures

During the COVID-19 pandemic, millions of Americans have been able to temporarily pause or reduce their mortgage payments under the CARES Act. However, in the coming weeks and months, those forbearance programs will begin to expire for some borrowers.

Under the 2021 Mortgage Servicing COVID-19 rule, most mortgage servicers are required to take certain steps to help homeowners in forbearance find options for repaying their loans.

Learn more

CFPB Accuses Firm of Again Deceiving Borrowers

The Consumer Financial Protection Bureau is accusing the online lender LendUp of violating a five-year-old consent order and deceiving thousands of borrowers about the cost of its installment loans.

The Oakland, California, company misrepresented the benefits of repeat borrowing by claiming that certain borrowers would gain access to larger loans at lower rates, the CFPB said in a lawsuit filed Wednesday. The suit also alleges that LendUp illegally failed to provide timely and accurate notices to consumers whose loan applications were denied.

Read the complaint

News From Credit Unions

DCCU Receives Recognition for 2020 Credit Card Campaign

DuPont Community Credit Union received first place in the state-level 2021 Louise Herring Philosophy In Action Award for its unique community campaign – Dine Out and Make a Difference. The Dine Out and Make a Difference campaign encouraged members to use their DCCU credit cards to support restaurants during the pandemic.

Learn more

UVA Community Credit Union Proudly Finances Culpeper Wellness Foundation’s New Recreation Center

Recreation facilities are important for a healthy and vibrant community. That is why UVA Community Credit Union is proud to partner with the Culpeper Wellness Foundation. The credit union is financing a new facility to benefit the area’s residents, while the foundation continues to actively accept donations for its capital campaign.

Learn more

InFirst, Apple FCUs Recognized as “Best CUs to Work For”

Congratulations are in order for InFirst Federal Credit Union and Apple Federal Credit Union, two Virginia-based credit unions being recognized by Credit Union Journal/American Banker in its “Best Credit Unions to Work For – 2021 Edition.”

InFirst Federal Credit Union (Alexandria, $224 million in assets) was recognized for its “Thank You Tuesday” email, recognizing employees and their contributions to the organization; its Bring-Your-Dog-to-Work policy; and its extended paid leave periods for employees who have experienced a loss.

Apple Federal Credit Union (Fairfax, $3.7 billion in assets) was recognized for its “Apple Way Award,” which recognizes staff members who exemplify its corporate values; it’s Bring-Your-Child-to-Work events; family picnics; and its “Happle Hour” social event.

See the complete list here

News About Credit Unions

FICUs Report Net Income Growth of 126%, Better Loan Performance During Second Quarter

Federally insured credit unions reported net income growth of $11.9 billion in the second quarter of 2021, or 126.8%, over the same period in 2021, according to the latest financial performance data released by NCUA.

The agency said the increase in net income largely resulted from strong growth in other operating income and a decline in the provisioning for loan, lease, and credit loss expenses, similar to what the FDIC reported for its insured banks.

New Filene, TransUnion Research Offers Insights into Increasing Lending While Expanding Financial Inclusion

A new research brief from the Filene Research Institute and TransUnion offers insights into how credit unions can adapt lending strategies to better compete in an evolving landscape while also expanding financial inclusion efforts.

The market research was commissioned by TransUnion through Filene, with the interviews covering four broad topics: the current state of lending operations, new paradigms for lending, the credit union ethos, and the impact of the COVID-19 pandemic.

According to the organizations, key insights “reinforced the notion that credit unions want to be more inclusive and take more calculated risks. The current economic environment has also driven many financial institutions to shift their underwriting models to include trended and alternative data versus legacy credit modeling, which has allowed credit unions better serve their membership's evolving needs.”

The researchers said, however, that barriers exist, such as readily adopting new technologies and cost – particularly for smaller and mid-sized credit unions. While credit union size often correlates to the degree of automation or amount of nontraditional data in underwriting, new paradigms for assessing thin or no-file members are widely seen as desirable, the researchers added.

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Education & Networking

Sen. Mark Warner Joins Inclusiv Virtual Conference Lineup

Inclusiv welcomes Senator Mark Warner, D-VA as a speaker at the 2021 Inclusiv Virtual Conference!

Financial Services

Walgreens Wades into Consumer Banking Melee with ‘Scarlet’ Account

Walgreens has introduced a series of financial products built around an enviable pool of prospects — the 75 million members of its myWalgreens loyalty program. The offerings include a bank account and a pair of rewards credit cards, with the company saying this is just the beginning of its foray into financial services.

Walgreens and InComm Payments launched “Scarlet,” a bank account and debit card that can be opened digitally or via a card that can be purchased and activated right off an in-store display rack at one of Walgreen’s 9,000 locations. (This capability isn’t surprising, given that InComm introduced point of sale activation of prepaid cards in 1995, for which it holds a patent.) Shortly before Scarlet kicked off, Walgreens and Synchrony introduced two credit cards, myRewards Credit Card and myWalgreens MasterCard.

A key promotion point around Scarlet is attention to financial wellness, while the credit card offerings promote physical wellness.

Learn more

Cash Not Only Survived the Pandemic — It Came Out Stronger

Cash usage is showing signs of surpassing pre-pandemic levels — and some of the digital payment options put in place during lockdown are actually fueling the trend.

While much of the attention has been on major overhauls such as Burger King and Chipotle creating digital kitchens with no room for seated dining, companies have also invested in systems that accommodate cash users' habits during lockdown.

Cash Connect, a division of the Wilmington, Delaware-based bank WSFS Financial that provides cash-management technology for independent ATM operators and retailers, is seeing growing demand for unmanned secure kiosks to accept cash payments, for example. (American Banker, Sept. 1)

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