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|The Pulse (05-21-14)|
The Pulse (05-21-14)
May 21, 2014 ● Volume 03, Issue 20
Credit Union News
Last week, Sen. Al Franken (D-Minn.) sent a letter to National Credit Union Administration Chair Debbie Matz urging her to consider the input of Minnesota's credit unions as the agency considers its risk-based capital (RBC) proposal.
Minnesota credit unions submit comment letters on Risk-Based Capital proposal – deadline next Wednesday
Wednesday, May 28, is the deadline for credit unions to submit comment letters on the National Credit Union Administration (NCUA) risk-based capital bill proposal (RBC).
The Minnesota Credit Union Network hosted a conference call on April 22 for credit unions to discuss the National Credit Union Administration’s (NCUA’s) risk-based capital proposal. The proposed rule, applicable to credit unions with assets over $50 million, would revise the risk weights for many of NCUA’s current asset classifications, which would place higher risk-weights on certain assets such as: real estate loans, member business loans, and delinquent loans. In addition, the proposed rule would allow NCUA to require an individual credit union to hold higher levels ofcapital to address unique supervisory concerns raised by NCUA. NCUA proposed an effective date 18 months after publication of a final rule.
MnCUN’s conference call featured Mark Cummins, John Wendland and Mara Humphrey from MnCUN, Mary Dunn and Bill Hampel from the Credit Union National Association, Bill Raker of US Federal Credit Union and Bernie Brixius of Central Minnesota Credit Union. The call provided an overview of the rule, MnCUN’s comment letter, a variety of resources, and time for Q&A and comments.
An archive of the recording, along with other resources, are available on the RBC resource page of the Network website.
Last month, MnCUN – with input from its Regulatory Review Committee – submitted a comment letter to NCUA, and is encouraging credit unions across the state to do the same. MnCUN’s comment letter can be found on the Out for Comment page of the Network website. Credit unions are encouraged to use the Network’s letter as a template, but suggest that it be individualized to reflect how your respective credit union may be affected under the proposal.
In recent months, three Minnesota Credit Union Network staffers have been tapped to serve on national industry task forces through the Credit Union National Association (CUNA) and the American Association of Credit Union Leagues (AACUL).
Additionally, MnCUN Vice President – Governmental Affairs Mara Humphrey was reappointed in 2014 to serve on the AACUL State Issues Advocacy Committee. This group works to provide direction and feedback regarding state legislative and regulatory issues affecting credit unions and to identify proactive strategies to promote the state credit union system.
President & CEO Mark D. Cummins is secretary of the CUNA Strategic Services Board of Directors, is the AACUL Board of Directors Treasurer, serves on the AACUL Political Involvement & Grassroots Committee and the System Financial Sustainability Task Force, and is chair of the CUNA Cooperative Alliances Committee.
“As the credit union system changes and evolves, it’s important for credit unions to know that advocates on the state and national levels are continually evaluating the scope, purpose and relevance of our respective associations,” Cummins said. “I am proud that Network staff is sought after to participate in CUNA and AACUL initiatives, as we work to improve coordination and cooperation among credit unions nationwide.”
On Friday, May 16, the Minnesota State Legislature concluded the 2014 Legislative Session. As usual, there were many bills and legislative machinations that the Network tracked and lobbied for and against that kept us busy up until the very last minute. Below is a brief review of a few of the key issues faced by Minnesota credit unions during this most recent Legislative Session. Join us today Wednesday, May 21, from 10-10:30 a.m. for a full Legislative Session round-up conference call. To join, dial (800) 832-0736. When prompted to enter your room number, please dial *2885533#
Financial Literacy 5K participants from across the state are signing up for this inaugural event, to be hosted by the Minnesota Credit Union Foundation on July 12 at Normandale Lakes in Bloomington. Credit union employees and members, teachers, non-profit and agency staff, and government officials are invited to take part in this walk/run and kids run event, powered by soleMOTION Race Management.
Any credit unions, school or organization that registers five or more Financial Literacy 5K participants will automatically be “in the running” for the team award. Participants’ times will be aggregated and averaged to determine the best team time. It’s a pride thing! Team winners will be announced in the weeks following the race.
“We are excited to host this first annual event and to bring together the many individuals and organizations committed to financial literacy,” said Foundation Chair Pat Brekken. “And likewise, we are eager raise additional funding that will allow us to provide more grants and further amazing financial education initiatives across the state.”
The Minnesota Credit Union Foundation is an organization dedicated to providing the resources for credit unions and communities to prosper and thrive. In 2013, the Foundation launched its Financial Education Grant Program and an ongoing budgetary commitment to financial education. The Foundation dedicates 50 percent of its annual budget to Financial Education Grants that positively impact credit union members and communities.
The Financial Literacy 5K is sponsored by:
For additional details, Q&A, & to register, visit the Minnesota Credit Union Foundation website.
Next month, the National Credit Union Administration (NCUA) will be accepting grant applications from low-income credit unions across the country. NCUA recently announced that it will award $1.2 million in its second round of Community Development Revolving Loan Fund grants for 2014. Applications will be accepted June 2-30.
“NCUA’s grants to low-income credit unions are wise investments in community development,” NCUA Board Chairman Debbie Matz said. “These grants have seeded a range of activities, from new products to technology modernization and staff training. Because NCUA’s grants to low-income credit unions can improve service and support local economies, I encourage all qualified credit unions to apply.”
Grants will be awarded in four categories:
Funding for NCUA’s grant initiatives is provided by the Community Development Revolving Loan Fund, a fund created by Congress to support credit unions that serve low-income communities. NCUA’s Office of Small Credit Union Initiatives (OSCUI) administers the fund. For additional information or to apply online, visit the OSCUI Grants page of the NCUA website.
Hike the Hill provides credit union representatives with an exciting opportunity to meet with federal legislators and talk about top credit union issues, face-to-face, in Washington, D.C. During Hike the Hill visits, credit union professionals and volunteers meet with the entire Minnesota Congressional Delegation and typically visit the NCUA Board, CUNA and/or Credit Union House on Capitol Hill.
The three-day Washington, D.C., trip will include a legislative and regulatory briefing with CUNA to provide information on the critical issues facing credit unions as well as background information about the current happenings on the Hill. Attendees will then meet with offices of Minnesota's Congressional Delegation. The trip will also include visits to regulatory agencies including the NCUA.
With questions about Hike the Hill, contact MnCUN Political Advocacy Director Ryan Smith by email or at (651) 288-5533
The Minnesota Credit Union Network will hold its fifth annual CEO Conference once again at the Inn on Lake Superior in Duluth on June 25-27, 2014. Exclusively for credit union presidents and chief executive officers, this event features discussion of the issues, obstacles and opportunities facing credit unions today.
The conference will feature roundtable discussions and networking opportunities. In addition, the education component of the conference will examine many of the unique issues facing credit unions in Minnesota. Designed to be interactive and discussion-oriented, the event will also offer the opportunity to discuss obstacles facing the movement and to build consensus with other CEOs on possible solutions.
Headline speakers will include:
The 2014 CEO Conference is open to presidents or chief executives only. Join your peers at The Inn on Lake Superior in Duluth to discuss issues, learn from each other, and work together toward potential solutions to the many challenges facing credit unions today. Go to the 2014 CEO Conference page to register by Tuesday, July 20!
The National Youth Saving Challenge™, sponsored by GreenPath Debt Solutions, is held during the month of April in conjunction with National Credit Union Youth Week and is hosted by the Credit Union National Association.
By starting youth on the right path setting goals and saving to reach them, the National Youth Saving Challenge helps credit unions build strong, long-term relationships with youth and their families.
Congratulations to Jonah, age 6, of Cloquet, Minn., who won during the savings challenge. Jonah is a member of Northwoods Credit Union.
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.
NCUA Issues Letters to Credit Unions
Help Members Discover the Power of Yes, Yes and Yes
New TruStage insurance marketing campaign makes it easy to leverage peak car buying season
With the height of the car buying and leasing season just around the corner,[i] there’s no better time to let members know auto insurance is available through your credit union.
To help you promote the TruStage™ Auto & Home Insurance Program, the MemberCONNECT® Program is making a new, multi-media marketing campaign available. Called Yes, Yes and Yes, it brings awareness to members through three quick questions: Car insurance through your credit union? At a great rate? And switching is easy? Yes, yes and yes.
This no-cost campaign is available to all credit unions who endorse the TruStage program and includes:
The TruStage Insurance Agency makes coverage available from industry-leading companies including Liberty Mutual Insurance and Esurance. Your credit union can rest assured that your members will be taken care of by experienced, member-friendly experts who deliver the guidance, advice, information, support, and member-only discounts they’ve come to expect from the credit union. Members can get a TruStage quote in just minutes via phone, face-to-face or online—and it’s easy to make the switch from a current carrier at any time. Plus, members could see an average annual savings of up to $427.96. 2
Get your campaign materials by going to www.cunamutual.com/CarCampaign.
Want to learn more about making TruStage Insurance available to members through the MemberCONNECT Program? Contact your CUNA Mutual Group Sales Executive today at 800.356.2644.
1. Source: Monthly sales for all used and new vehicle dealers (3-year average, 2007-2009) from the Dept. of Commerce; Leasing activity reflected in monthly sales figures for all new vehicle dealers (3-year average, 2010-2012) from Dept. of Commerce.
2. Figure reflects average national savings for customers who switched to the TruStage Auto & Home Insurance Program. Based on data collected between 9/1/2012 and 8/31/2013. Individual premiums and savings will vary