The Pulse (05-01-13)
May 1, 2013 ● Volume 02, Issue 17
The Pulse Archive
Credit Union News
Rep. Nolan co-sponsors MBL, supplemental capital bills
The 2013 Congress is proving to be important for credit union issues. Among the bills introduced in Congress that would strengthen credit unions are the Credit Union Small Business Jobs Creation Act (H.R. 688) and the Capital Access for Small Businesses & Jobs Act (H.R. 719). Co-sponsoring both pieces of legislation is Minnesota's new U.S. Rep. Rick Nolan (D-8th Dist.)
H.R. 688 would allow well-capitalized credit unions operating near the business lending cap to increase their business lending to 27.5 percent of total assets, if approved by the National Credit Union Administration. This would allow credit unions to lend an additional $193 million to small businesses and create more than 2,000 new jobs in the first year – in Minnesota alone – if enacted. Raising the cap on credit union business lending can be done without cost to taxpayers and without increasing the size of government.
Also of benefit to the financial marketplace, H.R. 719 would provide credit unions with the ability to raise capital from sources other than retained earnings. This legislation would improve the safety and soundness of credit unions by allowing them to develop a supplemental cushion to reduce risk to the National Credit Union Share Insurance Fund. Passing this supplemental capital legislation would reinforce and strengthen the regulatory incentive for credit unions to remain safe, sound and secure.
With the backing of Rep. Nolan, the Network hopes both H.R. 688 and H.R. 719 will gain traction in Congress. MnCUN's Governmental Affairs staff will continue to actively monitor the progress of both bills.
Tell your members why the CU tax exemption is necessary
Tax reform has been an issue of high importance at both the state and federal levels recently. Legislators have proposed various ideas for amending the tax code, and some of these proposals have included mention of the credit union tax status. Currently, there is no immediate threat to credit unions' corporate income tax exemption, but it is critical that your members – and all of us – understand the need to continue supporting this exemption.
The Network, in conjunction with the Credit Union National Association, has launched a major advocacy effort in support of the credit union tax status. We are urging credit unions to increase education efforts with their members on this crucial issue. Now is the time to remind your members of the importance of the tax exemption to credit unions' structure and the benefits they receive as a result. Help prepare members and staff to take action, if necessary, to fight for this tax exemption.
To help your credit union in this education effort, the Network has created a Tax Advocacy Resources page on the MnCUN website. This page serves as a toolkit for credit unions to help raise awareness of and garner additional support for the necessity of the credit union tax exemption. It includes newsletter articles, op-ed submissions, state-specific credit union data and talking points.
Use these tax advocacy resources to promote the credit union tax status and educate your members and staff. To help the Network more accurately gauge the reach of this message, please forward any published newsletter articles to MnCUN Political Advocacy Director Ryan Smith.
The Network will continue to update you on any legislative developments involving the tax exemption. In the meantime, please help us ensure that all Minnesota credit union members know the benefits of belonging to credit unions and understand that credit unions' tax status is a crucial factor to their operation.
Annual Meeting registration deadline one week away
If you're considering attending the 2013 MnCUN Annual Meeting & Convention, you have one week left to register. The deadline isThursday, May 9.
This year's Annual Meeting has a lot to offer attendees. There will be education sessions on top credit union issues, including "Credit Union Use of Social Media," "Advocating for Regulatory Relief” and "Managing Risk" with MnCUN's Vickie Ganrude and Marcia Armstrong Lewis, plus much more! There are also events for MnCUN's young professionals group The Crew, including "Coffee with the CEOs" and a networking pizza party. And, you won't want to miss the Credit Unions for Kids "Minnesota Blackjack Tournament” on Friday night and the Family Involvement Council's silent auction, taking place throughout the weekend.
For more information, a full schedule of events and registration, go to the 2013 Annual Meeting page of the Network website.
Credit unions encouraged to report classroom presentations to NYIB
Credit unions across the state and across the country are celebrating the conclusion of a successful Financial Literacy Month in April. As part of the nationwide effort to promote financial education, credit unions are encouraged to notify the National Youth Involvement Board (NYIB) of their classroom presentations made throughout the year.
Reporting financial education presentations is beneficial to the Minnesota Credit Union Network, CUNA and NYIB in providing information to state and federal elected officials. This quantitative data helps illustrate to lawmakers the credit union difference. Plus, in this day and age of bank attacks, credit unions need to showcase the activities that they do to improve their communities.
It is vital for credit unions to document and report such efforts! The information you submit is used to demonstrate how credit unions make a difference in the lives of young people and, at the same time, helps protect the unique status of credit unions as not-for-profit financial cooperatives.
Reporting your information helps NYIB recognize you, your credit union and the state. In addition, your educational efforts contribute to the decline in bankruptcies, benefiting consumers, credit unions and the economy.
Any credit union employee or volunteer who makes a presentation to groups of students or youth audiences age 22 and younger can report it. Presentations can be conducted in a broad range of educational settings, including a traditional classroom, Scout troop meeting, church group, community group, and others.
Acceptable presentations can be conducted on these and other consumer and financial related topics:
- Credit union history, philosophy and/or uniqueness
- Money management: saving, spending, checking, budgeting, credit, lending, insurance, etc.;
- Consumer education: smart shopping and/or other consumer focused issues;
- Employment: interviewing, resumes, credit union careers, etc.;
- Business, finance, employment and other related topics;
- NEFE High School Financial Planning Program (HSFPP) presentations; or
- Junior Achievement and/or other youth-related programs focused on finance
(Note: When presenting Junior Achievement modules or HSFPP presentations, each chapter should be recorded separately.)
Presentations that promote a specific credit union or credit union service, such as youth savings club or teen programs, do not qualify. In addition, visits to schools to pick up deposits for credit union/savings programs or operations of student branches do not qualify.
To report presentations, visit www.nyib.org and log into the "reporting” section on the right side of the page. Additional information can be obtained in the reporting FAQ section of the NYIB website. With questions or for assistance in reporting appropriate presentations, contact NYIB North Central Regional Coordinator Janice Quigg.
Filene opens application period for innovative CU execs
The Filene Research Institute is now accepting applications for its i3 innovation group program. This program works to create new products, services, business models and processes that transform the financial lives of consumers.
"To move credit unions forward and truly improve outcomes for members, communities and the cooperative finance movement, we have to build an environment fertile for creative collisions," said Filene Innovation Director Matt Davis. "A key ingredient to making this happen is making sure bright, creative people with a 'let's roll up our sleeves and get this done' attitude are able to meet, play and build with people like them."
According to Filene, ideas created in the i3 program have gone on to change state laws, improve the financial lives of millions of consumers, save millions of dollars for credit unions, and drive new members to the credit union system. More than 20 former i3-ers have been promoted to CEO of a credit union or system organization.
Applicants must be executives at credit unions or credit union service organizations that are members of Filene. Candidates cannot currently be CEOs, but are those considered to be leaders or future leaders in the credit union system. Ten to 15 candidates will be selected for a two-year term, which requires:
- Commitment and support of the credit union's CEO or manager to be involved in the program;
- Commitment to pilot at least two i3 ideas;
- Commitment to attend two national meetings per year and cover the travel costs; and
- Participation in regular group work and meetings beyond the national meetings.
Applications will be accepted during May, including a 100-question behavioral/entrepreneurial assessment. Information on previous i3 innovations can be found on Filene's website, along with the 2013 i3 application.
Roundtable highlights financial literacy efforts in Minnesota
Damage to banks' credibility could make MBL bill more appealing
CFPB releases compliance guide for TILA Escrow Rule
CFPB publishes report on senior designations for financial advisors
Final determinations issued on Maine, Tennessee gift card laws
White paper issued on payday loans, deposit advance products
NCUA issues Board Action Bulletin
FFIEC releases 2013 HDMA Reporting Guide
Upcoming effective dates
NCUA Letters to Credit Unions
Letter No. 13-CU-04: Streamlined Process for Evaluating Low-Income Designation
Letter No. 2013-01: Final Rule – Alternatives to the Use of Credit Ratings
Out for Comment
CFPB clarifies Ability-to-Repay/QM and mortgage servicing rules