The Pulse (11-26-14)


 

 






The Pulse (11-26-2014)

November 26, 2014 ● Volume 03, Issue 47

 

The Pulse Archive

Credit Union News

 

NCUA announces revised RBC proposal at Jan. 15 Board meeting

National Credit Union Administration (NCUA) Chairman Debbie Matz last week announced in a press release that a revised risk-based capital (RBC) proposed rule will be on the agenda for consideration at the Board’s Jan. 15 meeting. In addition, she also indicated that a 90-day comment period would also be likely to follow. The comment period generally begins from the date of publication in the Federal Register, so even if the revised RBC proposed rule is presented and approved at the January meeting as indicated, there will be an additional period of time between the meeting and publication date.

The first risk-based capital proposed rule was issued in early 2014. During that comment period the Network provided information on the proposal through articles in the Pulse, emails and also a teleconference for member credit unions. The Network’s Regulatory Review Committee also met on two occasions to discuss the proposal. In addition to the Network’s comment comment letter, 36 comment letters were filed by Minnesota credit unions on the RBC proposal requesting revisions such as amendments to the risk weightings, a longer implementation period, and the issuance of a second proposed rule and corresponding comment period. Numerous credit unions also had conversations with Chairman Matz on the RBC proposal at the MnCUN Annual Meeting & Convention in April, and representatives from the Network and four member credit unions attended the NCUA listening session in Chicago in July to voice their concerns with the proposal.

The Network will be meeting with the Regulatory Review Committee to craft a comment letter once the revised rule has been released. As with the original proposed rule, we anticipate providing a template of our comment letter to our member credit unions to use for their own comments. The Network will provide member credit unions with updates and information in the Pulse.

For more information, see our Risk-Based Capital Resource page.


 

TESTIMONIAL: Political & regulatory advocacy, public relations work makes MnCUN the “heart of the credit union movement,” says member

Minnesota Credit Union Network members are speaking out about the value of affiliation as 2014 winds to a close. As an organization designed to serve and support the needs and interests of credit unions around the state, MnCUN works hard on behalf of its members year-round.

 

The Network is committed to providing a viable option for membership at an affordable price, while working to ensure the success and vitality of Minnesota credit unions. MnCUN creates the environment for credit unions to grow by providing to provide strong advocacy on the legislative, regulatory and public awareness fronts.

 

Hiway Federal Credit Union President/CEO David Boden is a strong proponent of the credit union movement, having spent 25 years in the financial services industry.


He said he values MnCUN’s leadership and coordination of political and regulatory advocacy efforts. 

 

“In this era of over-reaching rules and regulations, the Network staff members do an outstanding job of identifying and researching all current and emerging issues, working with state and federal agencies and elected officials, informing credit union representatives, and coordinating needed lobbying activities with all appropriate parties,” Boden said.

 

Boden noted the importance of MnCUN’s public relations work “to enhance credit union awareness, foster membership growth, and build overall credit union market share in a highly-competitive financial environment.” He also highlighted the Network’s role in coordinating unity and collaboration within the industry.

 

“In a nutshell, the Network is really the heart of the credit union movement in Minnesota, with a fantastic staff of dedicated professionals working for all of us,” Boden said.

 

Through our consistent presence and valuable service offerings, MnCUN has maintained an affiliation rating at or above 90 percent for more than a decade. We value our members' continued trust in us, and we appreciate the opportunity to be able to serve credit unions throughout the state.

 

Take a look at what your peers are saying about the value of membership on the MnCUN Membership page of the Network website. With questions, please contact MnCUN Vice President – Association Services Kristina Wright by email or phone at (651) 288-5507.

 


Public opinion rates credit unions the best

In today’s economy and political climate, it’s important not to underestimate the power of public opinion. That’s a message being shared by the new Credit Union National Association (CUNA) President & CEO Jim Nussle, now just over two months into the job leading the nation’s predominant credit union trade group.

As evidenced by the growth of credit unions in recent years – with credit unions surpassing the 100 million membership mark nationally this summer and Minnesota credit unions gaining 110,000 memberships in the last two years – public opinion continues to be on the side of not-for-profit financial institutions. Consumers trust credit unions and believe that they have members’ best interests in mind.

Below is a collection of national stories and links that highlight the high praise credit unions have received in recent months.

  • According to the American Customer Satisfaction Index (ACSI), credit unions are ranked first in customer satisfaction, significantly outpacing all other financial services.
  • In a U.S. News & World Report article, credit unions were recommended as an option for consumers who are considering a change in financial institutions.
  • A recent Harris Poll reported: Consumer trust in credit unions steady, while banks decline.
  • Mortgage Banking Magazine reports that credit unions are expanding their role in mortgage origination, filling the demand for more mortgage credit and enabling more first-time homebuyers to purchase a home.
  • Time Magazine has a good story about credit unions stating "Why the Right Bank for You Might Not Be a Bank."

“In my time at CUNA, I've come to appreciate more and more the amazing job credit union staff are doing on the frontlines – fighting for the best interest and financial security of the members they represent,” Nussle said.

For additional evidence about the importance of credit unions, visit the MN Credit Union News channel to see what’s happening locally. If you have news of your own to share, follow this link to submit your story.

  

 

Register now to receive your FREE chain of hearts materials! 


Credit unions, get ready to line your lobbies with paper hearts! The Minnesota Credit Unions for Kids (MnCU4Kids) Committee is inviting you to participate in its 2015 Chain of Hearts campaign.

 

The Chain of Hearts is a statewide fundraiser that will run from Jan. 12 to Feb. 27, 2015. All proceeds benefit Gillette Children's Hospital, which helps kids with disabilities and chronic conditions. Gillette is based in St. Paul, with numerous clinics around the state.

 

To participate in Chain of Hearts, credit union members

 purchase paper links and hearts that are connected and hung in lobbies to help illustrate the "people helping people" philosophy of credit unions. 

 

Chain of Hearts is an extremely simple fundraising event that is available to your credit union at no cost! Each participating credit union will receive the following materials for free

  • Fundraiser instructions
  • A supply of hearts and links
  • Sample press release
  • Sample social media posts
  • Chain of Hearts posters

The MnCU4Kids committee encourages you join the 2015 Chain of Hearts fundraiser. To participate, complete the fundraiser registration survey by Wednesday, Dec. 10. 

Participating credit unions can also apply for a Miracle Match from CO-OP Financial Services! 
 

With questions about this fundraiser, contact MnCU4Kids liaison Becky Holst.

 

 

Do your holiday shopping through AmazonSmile online & support the Foundation 

Attention shoppers -- with the holiday season upon us, you have the ability to shop online and support the Minnesota Credit Union Foundation through AmazonSmile (smile.amazon.com)!


AmazonSmile is a website operated by Amazon that lets customers enjoy the same selection of products, low prices, and convenient shopping features as on Amazon.com. However, when customers shop on AmazonSmile, the AmazonSmile Foundation will donate 0.5 percent of the price of eligible purchases to the charitable organizations selected by customers. There is no cost to charitable organizations or to customers for this benefit.


In order to browse or shop at AmazonSmile, customers must first select a charitable organization. The Minnesota Credit Union Foundation has been added to the list of eligible charities.


"The Foundation is excited to test drive this new fundraising vehicle, and we hope Minnesota credit unions will use AmazonSmile when shopping online for business or personal purchases," said Foundation Chair Dave Larson. "With a shopping experience identical to Amazon.com, this fundraiser has great potential to generate new revenue for the Foundation and provide additional grant funding for professional development and financial education initiatives."


To explore the online shopping experience, visit 
www.smile.amazon.com and select the Minnesota Credit Union Foundation as your charity of choice. Visit the Foundation web site for tools to promote this to your members, including sample email/newsletter text, logos and  a web banner.

 

With questions or feedback, please contact Foundation Executive Director Kristina Wright by email or at (651) 288-5507.

   

 

40 Under 40 nominations open

Nominations for the Minneapolis/Saint Paul Business Journal’s (MSPBJ) 40 Under 40 awards are open. Each year, MSPBJ honors 40 leaders under the age of 40 who have already accomplished much in their professional lives while also giving back to the community. Nominations are being accepted until Wednesday, Jan. 7.

The nomination form can be found online. For more information, contact project editor Mark Reilly or by phone at (612) 288-2110.

 


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.  


US Federal Credit Union’s Anthony Bumgarner receives promotion


Mayo Employees FCU CEO Mary Hansen named “Top Woman in Finance” by Finance & Commerce


Royal CU helps foil financial fraud scheme


Ideal Credit Union collects 224 coats for Coats for Kids, donates $2,500 for 156 more

 

 

Chairs and committee structure announced for 89th legislative biennium

 

Credit unions “front and center” in November elections

 


 

ECOA: guarantors v. spousal discrimination

 

NCUA releases Board Action Bulletin 

 

NCUA releases November NCUA Report 

 

Fed to host 2014 Year in Review webinar on consumer compliance “hot topics”

 

CUNA Mutual Group issues risk alert on HELOC wire fraud

 

CFPB provides guidance on ECOA obligations concerning SSDI and SSI borrowers

 

Regulatory Compliance Q&A


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

Cuna Mutual Group introduces Risk Insight Dashboard for fidelity bond policyholders

 

  

Credit unions face myriad daily risks that threaten their financial well-being, reputation and membership. To further protect credit union fidelity bond policyholders and reduce their loss exposures, CUNA Mutual Group has introduced an intuitive online tool that provides executive-level risk insights unique to a particular credit union.

 

The Risk Insight Dashboard elevates a credit union’s risk awareness in five key areas, helping guide risk prevention decisions by management and boards. Credit unions complete an initial online assessment by answering a short series of yes/no or multiple choice questions to establish their benchmark. Responses feed a customized dashboard for each credit union to provide executive insight into five key risk areas, which include:

  • Internal Controls (Cash Handling & General Ledger)
  • Lending Oversight
  • Employment Practice
  • Data/Network Security
  • Member Authentication

The Risk Insight Dashboard is a value-added benefit for fidelity bond policyholders and is housed online in CUNA Mutual Group’s Protection Resource Center. It provides credit unions a custom risk rating of low, moderate, or high in each area with a numerical scale of 0-100 based on the credit union’s completed assessment. Risk awareness in key areas helps the credit union prioritize action steps to prevent, mitigate, and manage risks. The Dashboard also shows how the credit union compares to peers.

 

“The Dashboard uses submitted data to analyze and compare a credit union’s unique risk characteristics and risk management practices, and the results help the credit union identify, prioritize and act to manage the most pressing risks,” said Jay Isaacson, CUNA Mutual Group vice president, Credit Union Protection. “It’s not just a check list of best practices; it arms executives with tangible data to share with their management teams and boards as they set policies and procedures.” 

 

CUNA Mutual Group benefits from Dashboard results as well. “The Risk Insight Dashboard enables us to capture credit union Risk Management practices relative to peers, provide customized, consultative advice and deliver solutions they need to mitigate those exposures,” Isaacson added.

 

Policyholders can access the Dashboard via a link on the main navigation of the Protection Resource Center, or it can be accessed directly online.

 

Users can reassess their risks anytime, but Isaacson suggests credit unions update their dashboard at least annually, or when they make a significant change to their policies and procedures in one of the key risk areas. In addition, CUNA Mutual Group will regularly update data that defines the credit union’s risk score (e.g. NCUA 5300 Call Reports).

 

CUNA Mutual Group is the credit union marketplace leader in offering fidelity bond protection, insuring more than 85 percent of all credit unions (CUNA Mutual Group internal data, 2014).

 

“We’ve used our nearly 55 years of working with and understanding thousands of credit unions’ loss exposures in building the Risk Insight Dashboard. It’s a differentiator for CUNA Mutual Group and a critical addition to our portfolio of value-added risk management tools we already provide to customers to help them understand and mitigate risk exposures,” Isaacson said. “We continue to invest in our Risk Management offering to ensure that we are positioned to add value to our credit union policyholders as they contemplate how to manage the most critical areas of risk in their operations."

 

To learn more about CUNA Mutual Group and the products and services it has to offer your credit union and its members, contact John Ferstl, Vice President - Network Service Corporation, by email or at (651) 288-5505.

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 

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

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