The Pulse (01-29-14)
January 29, 2014 ● Volume 03, Issue 4
The Pulse Archive
Credit Union News
NCUA proposes risk-based capital rule
On Jan. 23, the National Credit Union Administration (NCUA) released new risk-based capital framework for credit unions.
The proposed rule would replace the current pass/fail risk-based capital standard with a scaled approach. The rule would apply specifically to those federally-insured natural person credit unions with assets of over $50 million; small credit unions under $50 million in assets, would be exempt. The rule would revise the risk weight for many of NCUA’s current asset classifications, which would weigh more heavily assets in real estate loans, member business loans, and delinquent loans. A credit union with asset concentrations in such areas may be required by NCUA to maintain higher minimum levels of risk-based capital. This may also result in the potential decline in classification from well-capitalized to adequately capitalized, and possibly from adequately capitalized to under-capitalized.
The NCUA has developed a calculator to assist credit unions in determining how the proposed rule will impact their capital needs, which can be found on NCUA’s website. Enter the credit union’s charter number or name, and it will populate information from the June 2013 Call Report to show the newly-weighted asset classifications and the resulting ratio. A tutorial can also be found on YouTube.
The rule will be open for a 90-day comment period after publication in the Federal Register, which has not yet occurred. We will continue to monitor NCUA for publication of the proposed rule and the time period for commentary, to appear in future editions of The Pulse. For a draft version of the proposed rule, see NCUA’s website. The MnCUN Regulatory Review Committee will also meet to discuss the proposed rule.
Dues deadline approaches Jan. 31
MnCUN dues packets were mailed to all Minnesota credit unions in mid-December. Packets included dues invoices, CUNA and MnCUN's Power of Association brochures, and information about the additional funds for 2014. Electronic versions of the invoices were also sent via email to each credit union president on Jan. 15. Dues should be remitted by Friday, Jan. 31.
Use the following links for additional information about MnCUN dues:
With questions or to receive a copy of your invoice, please contact MnCUN Vice President – Association Services Kristina Wright by email or phone at (651) 288-5507.
Harry Carter recognized for more than two decades of credit union leadership
Former TopLine Federal Credit Union President & CEO Harry Carter was recently honored for his tenure, service and excellence with a Credit Union Builder Award from the Minnesota Credit Union Foundation.
Carter was also inducted into the Credit Union House Hall of Leaders in recognition of his dedication to upholding the credit union mission of people helping people. The Hall of Leaders award is given to those whose commitment has made a significant impact on the credit union movement at the local, state and national levels.
Carter retired at the end of 2013 after 22 years of service to the credit union industry.
During Carter’s tenure at TopLine, the credit union experienced a period of growth and expansion in the areas of membership, market share and product offerings. Under his leadership, TopLine nearly doubled in size from $175 million in 1999 to over $340 million in 2013 and has also received numerous awards for its efforts in financial education and social responsibility.
Another significant accomplishment for Carter was guiding TopLine’s community charter expansion to include all Twin Cities metro counties, making it the first credit union in the nation to be granted a seven-county charter with a population of more than 3.5 million.
"Harry is a visionary leader who provided guidance, unparalleled integrity and unsurpassed devotion to TopLine employees and members, which fostered a culture shaped by individual respect and trust,” said TopLine President & CEO Tom Smith. "His main focus was on delivering hallmark service each and every day. The credit union remains a financially strong, neighborhood-based organization dedicated to the true credit union philosophy of ‘people helping people.’”
Carter served as Chair of the Minnesota Credit Union Network Board of Directors and was actively involved with numerous committees, including MnCUN’s Political Action Committee. Locally, he is active in his community as Chair of the North Hennepin Area Chamber of Commerce Board of Directors and serves on several chamber committees, including Government Affairs, Business and Education Partnership and Grow Minnesota. Carter was appointed to the North Hennepin Community College Foundation board, was a member of the Brooklyn Park Rotary and has served on a number of state and national committees of industry trade associations.
"Harry is a strong leader who has helped lead the growth and success of credit unions, not just in Minnesota but nationwide as well,” said MnCUN President & CEO Mark D. Cummins. "The vision and guidance he’s provided to TopLine and to the credit union industry make him highly deserving of both the Credit Union Builder and Credit Union House Hall of Leaders Awards.”
Reminder: NCUA opens first 2014 grant round
The National Credit Union Administration will accept applications for its first technical assistance grant round beginning Feb. 3. Low-income designated credit unions can individually receive up to $16,500 in funding for three grant categories:
- A new Community Development Financial Institution (CDFI) certification;
- New products; and
- Student internships.
NCUA will provide $481,000 in total funding during this grant round. The application period runs Feb. 3-Feb. 14. Credit unions may apply online.
In 2014, NCUA will provide $2,500 each to as many as 40 credit unions seeking a CDFI certification. Certified CDFIs may apply for funding from the U.S. Department of the Treasury’s Community Development Financial Institutions Fund. The CDFI Fund provides funding for financial institutions serving low-income people and communities that lack adequate access to affordable financial products and services. The CDFI Fund awarded $184 million to CDFIs in 2013.
NCUA’s Office of Small Credit Union Initiatives fosters credit union development and the effective delivery of financial services for small credit unions, new credit unions and credit unions with a low-income designation.
CUNA Mutual 2014 Credit Union Protection Webinar Series announced
CUNA Mutual Group has announced its lineup of 2014 Credit Union Protection Webinars, 11 risk management sessions exclusively for fidelity bond policyholders.
Webinars are conducted by CUNA Mutual Group risk management specialists and address top risks facing credit unions and how to mitigate losses.
The 2014 webinar topics include:
- Managing the Risk of Payment Cards
- Understanding ACH Risk
- Uncover Hidden Lending Risks
- Lessons Learned for Being Prepared
- When Robberies & Violence Occur
- Questions Your Supervisory Committee Should Ask
- Employment Practices Trends & Increased Risks
- ATM Risks – What You Don’t Know Can Hurt You
- Don’t Wait to Address Employee Dishonesty and Internal Controls
- Mobile Banking Risks Knocking at Your Door
- Risk Management "Around the Horn”
Webinars are one hour long, beginning at 10 a.m. Central time, conclude with a live question and answer session, and will be archived. To register and access the Webinar Library within the Protection Resource Center, visit the CUNA Mutual CU Protection Webinar Website.
Credit Unions in the News
Follow the links on the stories below to read more about the outstanding programs, new initiatives and well-deserved recognition received by your peers recently. Got news of your own? Send stories, pitches, press releases and published articles to MnCUN Director of Communications Connie Kuhn.
Former TopLine FCU President/CEO Harry Carter Received the Credit Union Builder Award from the Minnesota Credit Union Foundation
Senior Center Prepares for Tax Time
Moorhead Business Association Elects Two New Board Members
Minnesota credit unions display excellence in political advocacy fundraising in 2013
Caucuses to be held Tuesday, Feb. 4
MnCUN updated Compliance FAQ
NCUA warns of ‘Vishing’ scheme
NCUA Board meeting update
Extension of 18% loan ceiling approved
Proposed rule re: derivatives investments approved
Risk-based capital rule proposed, to be published for comment
IRS updates FAQs for Receiving Depository Institutions - direct deposit of federal tax refunds
CUNA releases Target breach survey results
NCUA Issues Letters to Credit Unions
LETTER No. 14-FCU-01:Operating Fee Scale reduced for 2014
Out for Comment
NCUA publishes 2014 Regulatory Review List
The Minnesota Credit Union Network welcomed 22 participants into its Vendor Involvement Program (VIP) for 2014. Designed to optimize business relationships with Minnesota's credit unions, this program combines advertising with exclusive benefits at MnCUN's major conferences, as well as speaking engagements and opportunities to participate in new MnCUN initiatives.
V.I.P. is a program created in 2005 to provide committed service organizations with an opportunity to work with MnCUN and increase brand visibility among Minnesota credit unions. MnCUN's V.I.P. participants are dedicated to serving credit unions and their members by providing quality products and competitive pricing.
- CUNA Mutual Group
- Alloya Corporate Federal Credit Union
- American Deposit Management Co.
- AmeriCU Mortgage
- Bullseye Collection Agency
- CO-OP Financial Services
- CU Companies
- DAYTA Marketing
- Emergent Networks
- First Class Mortgage
- The League Service Corporation
- Locknet IT Solutions
- LSS Financial Counseling
- Minnesota Housing Finance Agency
- MnCUSC Shared Branching
- Murnane Brandt, P.A.
- Repossessors Inc.
"The Vendor Involvement Program gives credit union service providers an easy way to promote their offerings and to show support for Minnesota credit unions,” said MnCUN Vice President – Network Service Corporation John Ferstl. "At a time when companies are looking to get the most out of their advertising budgets, this program provides specific opportunities to target potential clients and can help create brand loyalty among credit unions.”
To learn more about these product and service provides, visit the Vendor Involvement Program page of the Network website.
Participants in MnCUN's Vendor Involvement Program agree to offer professional service and quality product lines. These companies must appreciate the characteristics that make credit unions unique and understand the importance of providing the best service possible to Minnesota's credit union members. Participation in the Vendor Involvement Program does not constitute an endorsement by the Minnesota Credit Union Network.