The Pulse (10-01-14)



The Pulse (10-1-2014)

October 1, 2014 ● Volume 03, Issue 39


The Pulse Archive

Credit Union News


Chairman Matz to request second comment period for revised RBC proposal

NCUA Chairman Matz announced Monday in an NCUA press release that she intends to request a second comment period for NCUA’s revised proposed risk-based capital (RBC) rule due to the significant structural changes being made to the rule.

In addition to the comment letter submitted by the Minnesota Credit Union Network, 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.

“I am pleased that the NCUA has agreed to open a second comment period, as requested by so many since the rule was initially proposed,” said MnCUN President & CEO Mark D. Cummins. “This clearly shows the direct impact that we can have by working with and communicating with the NCUA and other agencies in the regulatory advocacy process.

“I sincerely thank Minnesota credit unions for weighing in on the risk-based capital rule up to this point and into the future as well,” Cummins added.

NCUA has stated that the amended proposal will include a longer implementation period and revisions to the risk weights for mortgages, investments, member business loans, credit union service organizations and corporation credit unions.



MnCUN to host comprehensive MLO training: St. Cloud on Nov. 12 & Apple Valley on Nov. 13

The new CFPB Mortgage rules that went into effect in early 2014 amended Regulation Z - Truth in Lending Act (TILA) to impose upon a mortgage loan originator (MLO) certain qualification duties. These duties include either being licensed and registered under the Secure & Fair Enforcement for Mortgage Licensing Act (SAFE Act), or for loan originators who are not required to be licensed and are not licensed, to also be trained on regulations that apply to their loan origination activities.

In addition, the amended TILA broadened the definition of “loan originator” to include those persons who perform loan origination activities, such as:

  • taking an application,
  • arranging a credit transaction,
  • assisting a consumer in applying for credit,
  • offering or negotiating terms, and
  • other common activities.

For those credit unions who have loan originator employees who are not required to be licensed under the SAFE Act, you are generally still required under TILA to provide periodic training covering federal and state law requirements that apply to an individual’s loan origination activities.

The CFPB has said specifically that Nationwide Mortgage Licensing System (NMLS) approved licensed loan originator continuing education training can be used to satisfy the training requirement of the rule, which is being called a “safe harbor.”

In response to these new expansive requirements, the Minnesota Credit Union Network is partnering with the Credit Union National Association (CUNA) to present an NMLS-approved comprehensive mortgage loan originator course to member credit unions at great value. Credit unions can obtain the “safe harbor” training through CUNA’s NMLS-approved comprehensive mortgage loan originator course.*

This course covers the following:

  • Regulation Z (Truth-in-Lending)
  • Regulation X (RESPA)
  • Regulation B (Equal Credit Opportunity Act)
  • Fair Housing Act
  • Regulation C (Home Mortgage Disclosure Act)
  • Adjustable Rate Mortgages
  • Federal Housing Administration (FHA) and Veterans Administration (VA) loan programs
  • Reading and Understanding Credit Reports & Scores / Fair Credit Reporting Act (FCRA) 

This course was designed to meet the continuing education requirements of the SAFE Act inclusive of (3) hours federal laws & regulations, (3) hours ethics, consumer protection & fair lending, and (2) hours lending standards for the non-traditional mortgage product marketplace.

Class sizes are limited, and locations will fill up quickly. For additional details and online registration, please see the MnCUN Event Calendar.

For additional information regarding the mortgage loan originator rules, see the Network’s CFPB Mortgage Rules – Mortgage Loan Originator compliance guide summary, and the CFPB’s Small Entity Compliance Guide on the 2013 Loan Originator Rule.

*8 Hour Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE) Comprehensive Mortgage Loan Originator Course (NMLS #1405021)



MnCUN to host data breach conference call at 10 a.m. today, as new of additional breaches continue to roll in

Today, from 10-11:30 a.m. the Minnesota Credit Union Network will host a conference call for member credit unions – entitled "Data Breaches, New Technologies & Credit Unions." In addition to recent information on the Home Depot data breach, the call will provide an update from the Network's conference call in February, that discussed the Target data breach and class action lawsuits.

The conference call will discuss:

  • Recent data breaches and credit union impact
  • Need for improved security and consistent standards at the merchant level
  • Media attention on this issue
  • Legislative efforts around data security
  • National updates from CUNA Assistant General Counsel Robin Cook
  • Data security and new technologies overview from Leah Work of CO-OP Financial Services
  • Q&A and best practices sharing (as time allows)

Electronic invitations have been sent to all Minnesota credit union CEOs, with an invitation to forward them to pertinent staff. For additional information, please contact



MnCUN files comment letter with FHFA asking for comment period extension

The Federal Housing Finance Agency (FHFA) recently issued a proposed rule placing new ongoing membership requirements on Federal Home Loan Bank (FHLB) members. The new requirements would require each applicant and member of an FHLB to:

  1. Hold, at the time of application and on an ongoing basis, 1 percent of its assets in home mortgage loans; and
  2. Hold, at the time of application and on an ongoing basis, at least 10 percent of its assets in residential mortgage loans (notably, banks with less than $1 billion in assets do not have to comply with this part).The Minnesota Credit Union Network is very concerned with the certain effect that this proposal’s requirements, if finalized, will have on credit unions. We are also concerned that credit unions are not given parity with banks with respect to the 10 percent requirement.

The comment due date for this proposed rule is set for Nov. 12. Due to the extremely short period of time given for our industry to properly analyze and provide commentary given the important policy issues involved, Mark Cummins, MnCUN President & CEO, filed a letter with the FHFA last week requesting additional time (at least 60 additional days) beyond the current comment deadline. A copy of his letter and other comment letters are posted on the Out for Comment page of the Network’s website.

The Minnesota Credit Union Network will be drafting our own comment letter to the FHFA, which in turn we will provide to credit unions. We encourage each of you to do the same.


Applications close today for $7,500 in financial education grants from MnCUF

Today is the last day to apply for a valuable opportunity to boost your credit union’s financial education efforts! The Minnesota Credit Union Foundation (MnCUF) is offering $7,500 in grants to assist Minnesota credit unions in implementing their financial education projects. With its commitment to financial education, the Foundation is offering this grant program as part of its mission to provide essential resources for credit unions and communities.

The Foundation Board of Directors will evaluate applications based on several factors, including credit union value, community impact, collaboration, creativity, and past involvement in and support of Foundation activities. Projects/initiatives must have measurable outcomes and a written follow-up report must be submitted within 30 days of the project completion.

For full details and application forms, visit the Financial Education Grants page of the Foundation website. With questions, email MnCUF Staff Liaison Kristina Wright or call (651) 288-5507.



ONLINE NOW! Family Involvement Council offers $10,000 in college scholarships

The Minnesota Family Involvement Council has kicked off this year’s scholarship program, with online applications and downloadable promotion materials now available on the FIC website! In 2015, the FIC will award $10,000 in scholarships to credit union members continuing their education.

Four $1,000 scholarships and 12 $500 scholarships will be awarded to 16 credit union members throughout Minnesota. Anyone who is a member of a credit union affiliated with the Minnesota Credit Union Network and pursuing post-secondary education in fall 2015 and spring 2016 is eligible. To apply, credit union members must complete a one-page application form and submit an essay that answers the question: “What is your interpretation of the American Dream and how do you plan to achieve it?”

Look for more scholarship information and applications on the FIC website. The FIC is also providing online materials to help credit unions promote the scholarship program to members. Visit the Scholarships section of the FIC website to download a web banner, lobby poster, newsletter article and best practices on promoting the scholarship program.



CUNA Mutual Group’s Fall Loan Generation Marketing Webinar series launches Oct. 7

CUNA Mutual Group’s fall Loan Generation Marketing webinar series begins Oct. 7, at 2 p.m. CDT, with a session focused on recapturing auto loans and targeting new opportunities.


“Loan Generation Marketing campaigns help credit unions recapture loans lost to competitors, and acquire new loans, by identifying a credit union’s best loan opportunities using credit pre-screens and then sending the right message at the right time,” said Steve Hoke, director of loan growth products for CUNA Mutual Group. “Campaigns feature a variety of loan types, including auto, mortgage, home equity, credit card and personal loans,” Hoke added.


Webinars are conducted by CUNA Mutual Group Loan Generation Marketing specialists and address top issues facing credit unions, including how to grow larger, more stable loan portfolios, create deeper credit union member relationships and generate interest and member-friendly non-interest income.


“Attendees will gain valuable insights into how to grow loan volume, increase share of wallet, retain and expand membership and grow credit union assets with a Loan Generation Marketing campaign,” said Hoke.


Webinars are free for all credit unions, run from 2-2:30 p.m., and conclude with a live question and answer session.


Fall Loan Generation Marketing Webinars:

  • Oct. 7: Auto Loan Recapture®, Universal Auto and Next Car Purchase
  • Nov. 5: Growing Unsecured Credit Card and Personal Loans
  • Nov. 12: Recapture Auto Loans and Target New Opportunities

Visit CUNA Mutual online to register for upcoming sessions and view spring and summer sessions.



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.  

Ideal CU Community Foundation Fifth Annual Golf Tournament sets new record for funds raised


General Mills FCU becomes Mill City CU on Oct. 1, expanding reach to Minnesota communities


United Employees CU President seeks to bring view from the outside to council



Three reasons why everyone should sign up for GREAT

Resources available to promote participation in upcoming elections

MnCUN adds Supervisory Committee resources page, updates compliance calendar


FFIEC releases availability of 2013 HMDA data


FY2015 funding round for CDFI and NACA programs now open


Federation hosts informative CDFI webinar


CFPB releases updated reverse mortgage guide  


Minn. Bankruptcy Court changes effective today


FFIEC issues guidance on Shellshock computer virus


Have compliance questions? Contact us.


Department of Defense issues proposed rule on broader SCRA coverage for consumer credit


Upcoming compliance dates



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
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St. Paul, MN 55102

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