Yesterday, the Minnesota Senate unanimously passed S.F. 1284, MnCUN-sponsored legislation that makes changes to checking account opening procedures.
Currently, the statute forbids state-chartered financial institutions from opening accounts for people that:
“… [have] had a transaction account closed by a financial intermediary without consent because of issuance by the applicant of dishonored checks within 12 months immediately preceding the application, or…the applicant has been convicted of a criminal offense because of the use of a check or other similar item within 24 months immediately preceding the application.”
Over the years, MnCUN staff have heard from our members that the statue -- while definitely protecting financial institutions -- doesn’t allow for individual state-chartered institutions to consider people’s circumstances and open a new account for them while federally-chartered institutions have no such restrictions. The bill addresses this by adding language that states, “This paragraph does not apply to programs designed to expand access to financial services to individuals who do not possess a transaction account.” Additionally, the bill lifts the cap from $4 to $10 for a dishonored check on any person other than the issuer of the check.
“S.F. 1284 provides parity for our state-chartered members and gives them the ability to open accounts for possible members that are living without transaction accounts, potentially forcing them to use check cashing servicers and other non-traditional financial services companies,” said MnCUN Chief Advocacy and Engagement Officer Mara Humphrey. “We’d like to thank Senators Karin Housley and Melissa Franzen for sponsoring the legislation in the Senate and for their continued support of credit unions.”
The House version of the bill, H.F. 1067 unanimously passed the House Commerce committee in March and awaits floor action in the House.
We are deeply saddened by the killing of Daunte Wright, and remain steadfast in our commitment to bring our movement together as a force for change. We are tragically reminded yet again systemic racism and injustices will not go away overnight. As we continue our journey to advance Financial Well-being for All, I encourage all credit unions to cooperatively leverage our unique business model for real and positive change.
Like you, we are concerned for the safety of our communities and the people that live in them. In light of this tragic event and in anticipation that a verdict in the Derek Chauvin trial may occur in the coming days, please prepare for the possibility of expanded civil unrest. We are cognizant that the safety of credit union members and staff is paramount. The Network will continue to monitor the situation very closely and provide updates as appropriate.
Let’s stand together as advocates for all people in our communities.
As the Minnesota Credit Union Network is recognizing April as Financial Well-being for All month, we are proud to highlight how credit unions are committed to empowering their members and communities with financial education:
Earlier this month, Minnesota Congressman Tom Emmer (R), along with Congressman Ed Perlmutter (D-Colo.) introduced the Credit Union Governance Modernization Act. The legislation would modernize the Federal Credit Union Act to allow a credit union board to expel a member for just cause. The bill updates the credit union member expulsion process while ensuring a fair procedure for reinstatement and was modeled on Network-sponsored legislation that was passed in Minnesota for state-chartered credit unions.
In a press release, Congressman Emmer said, “My home state of Minnesota has already taken steps to adopt a similar, important measure. It’s critical we make credit unions safer for both employees and their members. Our community financial institutions are already facing difficulties navigating burdensome regulations as they support their local neighborhoods and businesses, and we need to take steps to make their vital work easier. This nonpartisan legislation will ensure our main street credit unions have the tools to succeed.”
"This bill is important to protect the safety and security of credit union employees and is a much-needed update to the federal credit union charter," said Mark Cummins, President and CEO of the Minnesota Credit Union Network. "We appreciate Representative Emmer’s commitment to Minnesota credit unions and thank him for his continued strong support of our industry."
Companion legislation in the US Senate has not been introduced yet but is expected to be in the near future by Minnesota Senator Tina Smith (D).
Fannie and Freddie to No Longer Acquire GSE Patch QM Loan
On April 8, Fannie Mae and Freddie Mac issued guidance regarding the future acquisitions of Qualified Mortgage (QM) Loans. Fannie issued Lender Letter 2021-09 and Freddie Mac issued Bulletin 2021-13.
Webinar on Updates to the FFCRA Tomorrow
Today is the last day to register for MnCUN’s Webinar on updates to the Families First Coronavirus Response Act (FFCRA).
U.S. Circuit Court of Appeals Concludes Websites Not a “Public Accommodation”
Last Wednesday, the 11th U.S. Circuit Court of Appeals held that websites do not fall within the Americans with Disabilities Act’s (ADA) definition of “public accommodations.” Therefore, the court concluded that websites are not subject to the ADA’s requirements.
Credit union professionals from across the Midwest gathered virtually April 7 and 8 to hear from leading innovators and learn about advancing member experience with FinTech’s. The event keynote was Patrick Schwerdtfeger speaking on "Embracing Disruptive Innovation." Schwerdtfeger is a business futurist specializing in technology trends including big data, artificial intelligence, Fintech and blockchain.
Erin Coleman, Senior Director, Advisory Services, Filene Research Institute, facilitated the event featuring curated demos and tech talks. Demos included:
Thank you to the MnCUN members of the selection committee for reviewing and selecting companies to demo their innovative solutions: John Ferstl, MnCUN COO and Shannon Butler, SVP of Operations, Ideal CU.
Those who registered for the event have access to recordings and resources via the Pheedloop event platform for 30 days.
The event was a collaboration between eight Midwest credit union leagues and associations including the Minnesota Credit Union Network, Dakota Credit Union Association, Heartland Credit Union Association, Illinois Credit Union League, Iowa Credit Union League, Montana’s Credit Unions, Nebraska Credit Union League, and Wisconsin Credit Union League. Conference sponsors included Alloya Corporate Federal Credit Union, Corporate Central Credit Union, CUNA Mutual Group, and Millennium Corporate.
With questions or feedback, please reach out to Ben Hering or Andrea Molnau.
CUNA Mutual Group is collaborating with Inclusiv to help raise credit union awareness and utilization of the Community Development Financial Institution (CDFI) program.
The U.S. Treasury Department’s Community Development Financial Institutions Fund designates organizations that provide financial services to low-income communities and to people who lack access to financing and that meet certain criteria as Community Development Financial Institutions.
CUNA Mututal Group and Inclusiv have prepared timely videos that cover how credit unions can take advantage of the NCUA’s streamlined application process for CDFI and what to do next if their streamlined application is, or is not, approved by NCUA.
There is also a module detailing the Minority Depository Institution (MDI) designation, and how a credit union can self-designate as an MDI.
More resources on becoming a CDFI:
The Minnesota Credit Union Foundaton (MnCUF) and SouthPoint Financial Credit Union are proud to recognize Gordon Osmonson as a CU Builder for his service to the credit union movement upon his retirement from the Board of Directors.
Gordon Osmonson has been an instrumental part of SouthPoint Financial Credit Union since he was appointed to the SouthPoint Financial Credit Union Board of Directors in 1976 and served as Board Chair for 24 years. He is a steadfast SouthPoint and credit union movement advocate and his approach to membership and retention has been a large part of SouthPoint's key to success.
MnCUN President and CEO Presented Gordon Osmonson with a CU Builder Award at SouthPoint's Annual Meeting on April 13.
Created in 2008, the Credit Union Builder Award honors an individual’s dedication to the success, growth, and vitality of the not-for-profit financial movement in Minnesota. Dedications are typically made at a time of significance to acknowledge an individual’s contributions to credit unions.
In total, 77 individuals have been designated as Credit Union Builders over the past nine years. The names of the recipients and the contributing credit unions are permanently displayed in the Minnesota Credit Union Network’s lobby as a tribute to those who have dedicated time and energy to building the credit union movement.
Contact Andrea Molnau, Executive Director of the MnCUF with questions.
Four credit union staff from MnCUN member credit unions were designated as Credit Union Development Educators (CUDEs) after completing the National Credit Union Foundation’s (the Foundation) Credit Union Development Education (DE) Training:
The March DE Training was held March 15 – April 9, 2021. The virtual training was completed by employees and volunteers from credit unions and system partners across the United States credit union movement.
DE Training is a unique experiential training program that provides lessons in credit union structure, purpose and the “why” that differentiates credit unions from other financial institutions.
Interested in Attending DE Training?
Fall 2021 DE Training dates will be announced soon. Email NCUF at email@example.com to be put on a notification list to stay up to date on upcoming 2021 registration information.
Join Minnesota Jump$tart virtually on Thursday, April 22 from 3:30 – 4:15 p.m. for an inspiring afternoon in support of youth financial wellness! During this annual event, you'll enjoy hearing from a variety of speakers and student panelists on the importance of youth financial literacy.
To register: https://forms.gle/ZcJVWhP8AAhpCX7v5
Here’s what you can look forward to:
You will receive a confirmation message after you’ve submitted your registration. The Zoom link to join the event will be sent via email on Wednesday, April 21.
The Pulse is MnCUN's newsletter that keeps credit union professionals and board members updated on current news and information.