The Pulse (04-08-15)



The Pulse (04-08-2015)

April 8, 2015 ● Volume 04, Issue 14


The Pulse Archive

Credit Union News


MnCUN files comment letter with NCUA on RBC2 proposal

Yesterday, the Minnesota Credit Union Network responded to the NCUA’s second proposed risk-based capital rule. MnCUN’s response is part of our ongoing efforts to communicate credit unions’ ever-increasing regulatory burden and advocate for relief.

MnCUN acknowledges that NCUA made significant efforts in addressing issues raised by the over 2,000 comment letters it received on the initial risk-based capital proposal, including 36 comment letters from Minnesota credit unions. However, considering how well credit unions in general weathered the most recent recession, the Network continues to question the need for a risk-based capital rule. Some of our additional areas of concern include:

  • The continued concern that NCUA states that it took into account the unique nature of credit unions, we have not seen any evidence showing exactly how that has been accounted for.
  • The concern that a “complex” credit union is based on asset size alone and does not take into account assets, loans, investments and liabilities to get a true picture of whether a credit union’s operations are truly “complex.”
  • Although the new proposal allows the use of goodwill in the risk based capital ratio, it only does so in limited circumstances for a short window of opportunity. We ask that NCUA consider allowing the inclusion of good will on an ongoing basis.
  • Concern with some risk weightings that are not on par with the Basel III requirements for banks. We ask that NCUA reconsider risk-weightings that are higher on credit unions than banks, and/or to also provide an evidentiary basis for higher risk-weightings.
  • The need for supplemental capital in some form.
  • The future of interest rate risk, and urging NCUA to continue to regulate it through the examination process.

MnCUN encourages you to submit your own comment letters and to use MnCUN's comment letter as a guide. Comment letters regarding this proposal must be submitted by April 27. Comments may be submitted in a number of ways, including by email - please include “[Your name] – Comments on Proposed Rule: Risk Based Capital” in the email subject line. Additional information regarding NCUA’s risk based capital proposed rule is available on the Network’s Revised Risk-Based Capital Proposed Rule webpage.



MnCUN, Fluence Media research take pulse of Minnesotans’ thoughts about credit unions

A statewide survey indicates that over one-third of Minnesotans have had a credit or debit card replaced because of fraudulent use or a data breach. The survey of 500 Minnesotans was conducted for the Minnesota Credit Union Network (MnCUN) by Fluence Media and American Strategies.

Key findings from the research study will be presented to credit unions during the opening general session at the 2015 MnCUN Annual Meeting & Convention on Friday, April 10. To listen to a recorded webinar outlining more detailed information about the research, click on 2015 Consumer Research Results. When prompted for a password, type “Result” in the box.

“The costs of data breaches and card replacements place a major burden on credit unions and other financial institutions,” said MnCUN President & CEO Mark Cummins. “We should update our laws and regulations to hold retailers accountable for data breaches that impact customers and violate the level of trust consumers have.”

Despite a record number of retail data breaches in the past 18 months, only 36 percent of Minnesotans blame stores when their personal financial information is compromised, while they also blame credit unions/banks, credit card companies and Internet providers. Nationwide, credit unions have incurred nearly $30 million in costs responding to data breaches, including those for reissuing debit and credit cards, increasing call center staff and setting up account monitoring.

Who is most responsible when credit card information is stolen?*

Additionally, fifty-nine percent of Minnesotans believe that stores should pay if they are responsible for the replacement of a card because of a data breach or hacking incident.

Do you favor or oppose making stores pay for the cost of credit card fraud?*

Forty-two percent of those under 50 years of age have been impacted while 28 percent of those over 50 have been impacted by data breaches. College educated Minnesotans are also more likely to have been impacted than non-college educated respondents.

The research study was funded by Minnesota credit unions’ voluntary contributions to the Credit Union Awareness Fund. With questions, contact Director of Communications Connie Kuhn by email or call (651) 288-5527.



Minnesota Credit Unions Kick-Off Financial Literacy Month 

Minnesota Department of Commerce Commissioner Mike Rothman toured the AARP Tax Services center at Accentra Credit Union in Austin to kick off Financial Literacy Month. The Austin AARP tax preparation site serves between 1,500-2,000 area seniors and low income residents.

“We’re celebrating a lot of activities throughout the month,” said Commissioner Rothman. “It’s all about making sure that people from kindergarten through retirement age have the tools and resources to be successful, and Accentra hosts a great program here to help people prepare their taxes.”  

Minnesota credit unions continue to be leaders for financial literacy throughout the state through the Minnesota Credit Union Foundation, opening student-managed credit unions in Minnesota schools, and providing educational materials and programs to children, students and adults.

“We also team up with credit unions to help stop fraud from happening in the first place.  We have a terrific program with AARP and credit unions throughout the state of Minnesota to try to stop fraud.  The idea is to educate people, and give them the financial tools to learn so they can do better in life,” said Rothman.

Over 90 percent of Minnesota Credit Unions help members with their credit score, and most offer low-income financial assistance through loans and grants.

“Financial Literacy is part of the heart and soul of Minnesota credit unions,” said Minnesota Credit Union Network VP-Governmental Affairs Mara Humphrey.  “From our over 400 branches and in hundreds of classrooms across Minnesota, our credit unions aim to be on the front line of ensuring people learn about finances and money.”

During April, credit unions will host dozens of events across Minnesota including a visit by Commissioner Rothman to the new student-run branch at St. John’s University in Collegeville. 

“Financial Literacy is essential to the future economy of the country. Ensuring that as Baby Boomers retire and more economic responsibility is required from younger generations, understanding money and financial decisions will be critical for a strong economy in the future,” said Minnesota Credit Union Network President & CEO Mark Cummins.



Minnesota Credit Union Foundation releases 2014 Annual Report

In celebration of another successful year, the Minnesota Credit Union Foundation has released its 2014 Annual Report. This publication highlights last year’s major activities of MnCUF, which provided $15,000 in financial education grants and supported credit union professional development. The Annual Report also recaps the activities of its two committees, Minnesota Credit Unions for Kids and the Family Involvement Council.

Minnesota Credit Union Foundation Annual Report 2014



Minnesota Family Involvement Council names 2015 scholarship recipients

After poring over nearly 700 applications, the Family Involvement Council (FIC), a committee of the Minnesota Credit Union Foundation (MnCUF), has named its scholarship recipients for 2015. A total of $10,000 in scholarships was awarded to 16 credit union members for the 2015-2016 school year.

The FIC annual scholarship program is the focus of its mission to provide financial awareness to families and to further the education of Minnesota credit union members. Scholarship applicants are asked to submit information on their extra-curricular activities and accomplishments, as well as an essay on an FIC-selected topic. Four $1,000 Harvey Bakke scholarships and twelve $500 scholarships were awarded this year to college students in traditional (high school seniors entering college) and non-traditional categories.

“We had a great response to our scholarship program this year, and I’m always happily surprised at the tremendous response we have to our program,” said Bridget Petersen, FIC Chair. “The quality of applicants we have each year makes it clear that credit union members in Minnesota care about their education and the credit unions they belong to.”

$1,000 Harvey Bakke Winners



Nathaniel Landin
Annie Sun
Rebecca Bjorke
Amy Kempf

Wings Financial Credit Union
Affinity Plus Federal Credit Union
TopLine Federal Credit Union
TopLine Federal Credit Union

$500 Winners


Jacob Gangelhoff
Nathaniel Anderson 
Abigail Teschendorf
Adam Ellingson
Amber Hillesheim
Ellen Kneeskern
Megan Russell
Justin Thompson
Adam Ernst
Rebekah Nowak
Leland Wright

Mill City Credit Union
SouthPoint Federal Credit Union
US Federal Credit Union
Heartland Credit Union
Mayo Employees Federal Credit Union
SouthPoint Federal Credit Union
City & County Credit Union
Electrus Federal Credit Union
Richfield Bloomington Credit Union
Hiway Federal Credit Union
Wings Financial Credit Union
TopLine Federal Credit Union


In their essays, applicants answered the following question:

“What is your interpretation of the American Dream and how do you plan to achieve it?”

While reading through the essays, FIC committee members noted the variety of perspectives and broad range of answers offered by the credit union members.

Funds for the FIC’s scholarship program are raised each year during the committee’s silent auction, which is held during the Minnesota Credit Union Network’s Annual Meeting & Convention. Information about the 2016 scholarship program will be available in late August or early September. 


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.  

Royal CU to open branch in Eden Prairie High School


TopLine FCU helps kids, parent learn money management skills


Thrivent FCU & Thrivent Financial introduce private student loans with a focus on responsible borrowing



GREAT members asked to respond to Prize-Linked Savings action alert

MnCUN celebrates credit unions for achieving Fair Share Fundraising goals


View all Governmental Affairs news stories


NCUA posts new economic update

Registration open for NCUA April Board meeting

U.S. Supreme Court to decide on second liens in bankruptcy

Free Supervisory Committee Training webinar series now available

CFPB issues notice of updated home buying information booklet

CUNA releases guides to TILA-RESPA Integrated Disclosures


View all Regulatory Compliance news stories


If this describes you, then you are invited to join The Crew. This group 
If this describes you, then you are invited to join The Crew. This group 

 Joanna Drennen
 Nathan Dormody

Minnesota Credit Union Network
555 Wabasha Street N, Suite 200
St. Paul, MN 55102

(651) 288-5170
(800) 477-1034