Priority Report - January 2012
January 2012
January 2012 Priority Report Commentary
Celebrating a fantastic 2011, looking forward to an even better 2012
By David Adams
 Starting this month and once per quarter, my regular monthly Priority Report will essentially be the same as a new quarterly plan update that I give to policymakers and chapter leaders.
This is MCUL’s strategic plan update for the fourth quarter of 2011. The update is intended to provide our policymakers and staff with a snapshot of our plan progress as of Dec. 31. This fourth quarter update uses our refreshed 2012 plan format and will give stakeholders both a sense of fourth quarter accomplishments as well as our focus as we move into 2012.
Our staff and policymakers should be well aware of our top priorities. Here is a brief update on each of them. In 2012, assisting challenged credit unions, expanding regulatory and compliance support, legislative and regulatory lobbying efforts with an emphasis on the 2012 election, greater integration with the Illinois Credit Union League, an expanded CU Difference Campaign and enhancing MCUL’s website functionality are new areas of significant focus.
On the MCUL’s important credit union strength priority, our focus shifted from ODP legislation to the MBL bill at the federal level and to foreclosure and small claims reform at the state level. We continued to monitor for reactive issues such as credit card interchange, ODP and mortgage cramdowns. While there has not been any new legislation introduced on these issues, we will continue to watch for them in 2012.
MCUL lobbying efforts also continue at the state level. MCUL is seeking new business equity investment authority using a CUSO approach, addressing NCUA concerns with MEDC’s Collateral Shortfall program and working with CUNA to address concerns with NCUA’s call reporting requirements for TDRs. We’re making progress on all of these issues.
MCUL continues to strive to provide better pricing tools for credit unions via our website. Our goal for 2012 is to strengthen this part of our website by adding white papers, third-party pricing analysis and resources and data to better assist credit unions in this important area.
Using call report data and anecdotal information from our league reps, management is in the process of identifying capital-challenged credit unions with the objective of working with them to develop a game plan for assistance. CUcorp has budgeted $100,000 to provide consulting services such as strategic planning, ALM, marketing, profitability analysis, etc., to assist these credit unions. A big difference in 2012 is that we will leverage resources to focus on a few credit unions most in need versus providing smaller amounts of assistance to a larger group of credit unions. So, if anyone is aware of credit unions that are particularly financially challenged who could benefit from this assistance, they should let me and the MCUL staff know.
A second high-priority objective for the league is regulatory compliance. We continue to execute well on our plan to provide advocacy and information on regulatory issues and to support expanded compliance information needs through programs like CUBE TV, InfoSight and fee-based consulting.
MCUL Compliance staff continue to provide timely assistance in response to calls and emails on a broad range of topics which are increasing due to the growing regulatory burden. Assistance also includes helping callers become familiar with InfoSight channels and how to navigate. Assistance is also occurring through the SAS Listserv primarily with short articles and links to the appropriate channel in InfoSight. Topics that represent areas of interest and questions become the basis for monthly compliance videos, FAQs, articles in various publications and webinars.
As we move into 2012, the development of pre- and post-election lobbying plans to educate state and federal elected officials will be one of MCUL’s top priorities. The emphasis will be on identifying key races and increasing MCUL and credit union involvement in those races.
Chapters hosted nearly 40 legislative events in 2011 with the MCUL and lawmakers in various districts. We’re working with chapters on scheduling events for 2012.
Thumbnail charts of state and federal legislative and regulatory issues are constantly updated on the legislative and regulatory pages of the website. In addition, issue briefs are updated continuously on the website in order to provide the most up-to-date information. Our goal, of course, is to increase credit union awareness of the issues we are tracking on their behalf, as well as to facilitate dialogue and input to help formulate our stance on how to address the issues. As I’ve said many times, we really need our credit union community to continually help us identify specific issues that we can address.
Another priority for the MCUL is our effort to collaborate with other state associations, particularly the Illinois Credit Union League. In December we signed a master agreement with the Illinois league to guide our implementation with CUBE TV, League InfoSight, Policy Pro and education events as well as on the business side with a $1 million stock swap between CUSG and the Illinois League Service Corp. and a joint agreement to market each other’s services. We’re making steady progress here and just as credit unions see the need for collaboration and consolidation, we’re looking for those same potential opportunities at the trade association and service corporation levels.
With the Credit Union Difference and CRI Objective, we’re focused on expanding a high-quality cooperative advertising campaign, implementing media strategies and coordinating various social mission-directed programs. The CU Difference Campaign achieved a 52percent participation level with more than $800,000 contributed in 2011. For 2012, the MCUL board approved a plan to expand the funding and reach of the campaign including an allocation of $500,000 to incentivize credit unions to more fully integrate the Credit Union Difference message with their own marketing efforts. With our media strategies, we’ve leveraged the debit card issue, call report data and other economic issues to generate scores of good stories for credit unions across the state. Expanding the CU Difference campaign this year is one of our highest industry priorities and we hope that more credit unions will participate at the full “fair share” funding level. New this year is the opportunity to receive hard dollar incentives for “full share” credit unions who also wish to integrate the campaign with their own marketing. What a great opportunity.
Our Community Reinvestment Initiative continues to produce a high-quality annual report that communicates the wide array of community involvement and social mission activities of credit unions.
We plan to share this with state and federal lawmakers as a way to emphasize the unique structure and mission of credit unions. Of course, the marquee CRI program is Save to Win, currently supported by 43 credit unions with another dozen in the queue. It is also garnering national media attention and MCUL & Affiliates will continue to encourage broad-based support for Save to Win as a great program for promoting and incentivizing thrift.
For 2012, CRI will also work to assist credit unions offering small business products and services with financial education tools and resources as well as relevant financial products.
On our Education and Information Objective, we have had great results with high attendance at our AC&E, Fall Leadership Development Conference, Executive Summit and other events. We also continue to produce a lot of education content through online webinars and other resources including CUBE TV. We hope that credit unions and chapter leaders will continue to stay plugged into our education calendar to help promote participation so that we can make these events more successful and relevant for credit unions.
While all of these programs are important, we also understand the importance of creating a positive culture for our staff, management and policymakers to communicate, plan and execute our plan. So, our internal activities associated with vision, plans and communications, board dynamics and communication with our staff are all critical to our success. We’re making progress on all of these fronts.
As we look at our key performance metrics, we see some strong results. Affiliation is at its highest point in several decades at nearly 97 percent. Member satisfaction according to our member survey data is also high and improving. We have begun to develop metrics to measure our relationships with credit unions of various asset sizes based on survey data, product usage and attendance at MCUL events.
Our metrics demonstrate progress on strengthening credit unions, providing compliance support, strengthening the CU charter, achieving our regionalization objective, implementing and expanding our CU Difference and CRI activities as well as delivering results on education and information metrics. If staff, policymakers or our anyone in the credit union community have questions about these results, I welcome the opportunity to discuss them further.
Finally, I can report on solid financial progress for the MCUL & Affiliates in 2011. The balance sheet remains strong with member net assets just more than $57 million, of which over $28 million is invested in a 50/50 mix of stocks and bonds with the balance invested in our profitable subsidiary companies.
At year end, 50 percent of 2011 dues were refunded to member credit unions as approved by the MCUL board. Subsidiary income is strong and the sale of just more than one quarter of MCUL’s shares in CUSG to our member credit unions and the Illinois league raised $5.2 million in new capital for the MCUL. MCUL was also able to realize a $4.1 million gain from CUcorp and a $3.4 million share of CU Solutions Group earnings in 2011.
The results paint a picture of strength and member focus for the league. After-tax subsidiary income provides a good subsidy of MCUL operations to help keep dues low. Year-end income again shows that dues are a very small part of the funding for MCUL as subsidiary income (especially when considering the 50 percent dues rebate in 2011) and investment returns are a significant source of funding.
The sale of MCUL’s CUSG shares to 65 Michigan credit unions and the Illinois league are a strong validation of their support in our model.
In conclusion, the MCUL had a very successful year in 2011 and we are executing well on our key priorities. I appreciate the efforts and commitment of our staff, policymakers and credit union community and we collectively look forward to a dynamic year in 2012. Rest assured that we understand that our focus needs to remain on advocacy and information services and fee-based solutions that help credit unions serve, grow and remain strong.
Thank you for your support and we look forward to 2012 as a year where we help to create an even stronger environment for Michigan’s credit unions.
(See the full text or watch the January Michigan Priority Report video summary at CUBE TV)
ISSUES
Important legislation and regulations that affect credit unions and what the MCUL is doing to address them, as well as other items that are having an impact on Michigan and its economy.
Federal and State Legislative Issues
• Legislative Affairs Homepage
• 2011 Federal and State Legislative Issues Agenda
• 2011 State Legislative Issues Snapshot
• 2011 Federal Legislative Issues Snapshot
Highlights of Federal and State Legislative Issues
FEDERAL ISSUES (Click here for full articles)
Transaction Tax Proposal – Should CUs Be Worried?
Every time a new legislative session begins, a new door opens for lawmakers to introduce legislation. Back in 2010, Rep. Chaka Fattah, D-Pa., introduced H.R. 4646, also known as the Debt Free America Act. If enacted, this legislation would have imposed a 1 percent transaction tax on most transactions, including transactions with credit unions and banks. While some “out-of-the-box” ideas on reducing the federal deficit are popular, this doesn’t appear to be one of them. Rep. Fattah was unsuccessful in gaining any co-sponsors of his legislation in 2011. He reintroduced the legislation again in 2011 as H.R. 1125, and again lacks the support of any House colleagues. With each new year, there continues to be a lot of Internet traffic suggesting the enactment of this proposal is imminent; however, CUNA does not believe this is the case. The MCUL and CUNA will continue to monitor this legislation. The bill has been referred to four different House committees, which also makes inaction seem likely. Additionally, the President’s Economic Recovery Advisory Board did not include a transaction tax among the options to raise revenue and address the federal budget deficit. While federal budget deficits continue to drive tax reform, this bill appears to be one for the garage. Click here to access a recent article by the Heritage Foundation discussing the negative impact such a tax would have on the U.S. financial sector and economy.
Huizenga Becomes MCUL’s Top Target for 2012 MBL Support
2011 lobbying efforts for MBL support in Michigan were extremely successful. Sens. Carl Levin, D-Detroit, and Debbie Stabenow, D-Lansing, both co-sponsored MBL legislation in the U.S. Senate for the first time, in addition to the MCUL gaining the co-sponsor support from eight of our U.S. House members. Since this issue has been referred to the House Financial Services Committee for consideration, members on the panel are extremely important to our promotion of this legislation’s passage. Michigan Reps. Thaddeus McCotter, R-Livonia, Gary Peters, D-Bloomfield Township, and Bill Huizenga, R-Zeeland, all serve on this committee, of which Huizenga is the only one who has not yet committed his support through co-sponsorship. Given the 2012 congressional schedule and the fact that there could be an MBL vote at any time, the MCUL and CUNA continue to educate lawmakers on why MBL legislation should be passed. In the coming month, the MCUL is going to be coordinating a special in-district meeting with Rep. Huizenga and CU leaders to discuss the need for additional CU capital in small business lending. Event details will be emailed to all CEOs in the district once confirmed. If your CU is in his district and interested in participating, or if you have a member business from his district seeking additional capital that may be interested in joining, contact Jordan Kingdon, the MCUL’s director of Government Affairs, at (734) 793-3475 or Jordan.Kingdon@mcul.org. Click here to access the MCUL’s current issue brief and talking points on MBL legislation.
STATE ISSUES (Click here for full articles)
Gov. Snyder Gives 2012 State of the State Address
While many previous governors have used the State of the State address to outline new legislative agenda items for the year, Gov. Rick Snyder in his 2012 speech instead delivered more of a report card on where the state stands and called on the Legislature to complete work on key unfinished items from his 2011 agenda. The governor delivered the annual State of the State address Jan. 18.
Overall, Snyder said 2012 would be an opportunity to finish items remaining from 2011 such as the New International Trade Crossing, transportation funding reform, regional transit in metro Detroit, insurance coverage for residents with autism, cyber learning, a health insurance exchange, and elder abuse protection legislation. The governor also said this year the Legislature would continue work on legislation to phase out the personal property tax and create a mechanism to replace much of the funding it now provides to local governments.
One new proposal Gov. Snyder announced was a request of the Legislature that it put into statute the Education Achievement Authority that will oversee the worst schools in the state. And while no details were given yet, the governor also reiterated his plans to issue a special message on public safety in March, noting that while statewide crime statistics have generally improved, Michigan still has four of the top 10 cities in the nation for violent crime (Flint, Saginaw, Pontiac and Detroit). Some other new initiatives Snyder announced were more frequent campaign finance reporting, especially for ballot committees, and a six-month ban on state procurement officers from going to work for vendors to whom they had previously awarded contracts.
Considered among the major achievements of 2011, Snyder mentioned eliminating a $1.5 billion budget deficit, teacher tenure reform, the anti-bullying law, lifting the cap on charter schools and changes to the foster care system. The governor did also point to the Michigan Dashboard, which is a series of metrics he has established to determine the state's condition when discussing the state’s present status. Snyder highlighted the decline in the state's unemployment rate during the year from 11.1 percent to 9.3 percent with the addition of 80,000 private sector jobs, as well as signs the mass departure of residents from the state had stopped. But he noted a 1 percentage point increase in the obesity rate as disturbing and a small boost in college readiness from 16 percent to 17 percent as unacceptable. He also praised the improved outlook on the state's bond rating.
The governor said the theme for 2012 would involve implementing the major changes made in 2011 as well as enacting the issues left unfinished.
Click here to read the press release of the governor’s second State of the State address as well as finding more information on the Michigan Dashboard.
Governor Signs Foreclosure Bills
Gov. Rick Snyder has signed bills that reform the 90-day foreclosure delay law championed by the MCUL & Affiliates. The laws revised Michigan’s “foreclosure by advertisement” process to develop a 90-day foreclosure prevention workout program to provide borrowers additional time to discuss with their lenders possible alternatives to home foreclosure.
Under the program, the lending institution that holds the home mortgage in question is required to send a written notice to borrowers before foreclosing on a principal residence. If a borrower decides to work with the lender, the two parties have 90 days to participate in “pre-foreclosure” meetings in the effort to discuss alternative possible solutions. The goal was to encourage greater communication between borrowers and members of the mortgage industry.
The MCUL & Affiliates supported the original act because of the rise in foreclosures and because it had a 2-year expiration date, set for July 5, 2011. However, with the law being in effect for more than 2 years now, the MCUL worked with lawmakers to seek reforms to the current process. Many of those reforms include the following:
- More clear timelines as to which actions must occur at various points during the process for both lenders and borrowers, thereby allowing a lender to proceed immediately to foreclosure if a borrower is unresponsive to requests for certain documents. This takes the process to a more clear 30/60/90-day timeline. Borrowers will now have 30 days to contact their lender (or housing counselor) if they want to try to make a possible modification (under current law, they have 14 days). Now under the bill, within 60 days of the lender sending the notice, if the lender has not received the requested documents from the borrower in order to consider a modification, the lender can proceed to foreclosure. Previously, there was no timeframe in the law for borrowers to send those documents.
- Holding borrowers responsible for damaging the property during the redemption period. Every notice of foreclosure by advertisement must now include language stating that if the property is sold at a foreclosure sale, the borrower will be held responsible to the person who buys the property or to the mortgage holder for damaging the property during the redemption period.
- Reducing the redemption period for properties larger than three acres from 1 year to 6 months, if the property is not deemed to be for agricultural use. To qualify for the agricultural-use exemption, borrowers will be required to provide an IRS schedule F from their prior year tax return. This will now align the redemption periods for any residential property, regardless of size, to the 6-month period.
- Extending the sunset to Dec. 31, 2012. The bill as introduced originally proposed a July 2015 sunset.
Lawmakers recognized they would like to continue to look into helping credit unions and community banks in this process, since these lenders engage their borrowers earlier on and therefore supported extending the sunset only until December of 2012 in order to ensure that those conversations will continue to take place in the upcoming year.
House Bill 4542 became Public Act 301’2011, House Bill 4543 is Public Act 302’2011, and House Bill 4544 is Public Act 303’2011.
Federal and State Regulatory Issues
• Regulatory Affairs Homepage
• 2011 Federal Regulatory Issues Agenda
• 2011 State Regulatory Issues Snapshot
• 2011 Federal Regulatory Issues Snapshot
Highlights of Federal and State Regulatory Issues (Click here for full articles)
President Obama Appoints CFPB Director
President Barack Obama named Richard Cordray as the director of the Consumer Financial Protection Bureau. Given the politically charged nature of the appointment, some observers expect a legal challenge by Senate Republicans.
The CFPB was created by the Dodd-Frank act, and while its regulations apply to all financial institutions, it only has direct supervisory authority over those with assets of $10 billion or more. Among credit unions, that includes only Navy FCU, Pentagon FCU and State Employees CU of North Carolina.
CUNA President and CEO Bill Cheney says he expects to meet with Cordray soon to reinforce that credit unions are consumer-owned cooperatives that need meaningful regulatory relief, and not new regulations, to protect consumers.
NLRB Delays Effective Date of Employee Rights Notice Again
The National Labor Relations Board has once again delayed the effective date of its rule requiring most private-sector employees to post a notice advising employees of their rights under the National Labor Relations Act, this time from Jan. 31 to April 30. The rule requires the notice to be posted in a conspicuous place, where other notifications of workplace rights and employer rules and policies are posted. Employers also should publish a link to the notice on an internal or external website if other personnel policies or workplace notices are posted there.
The NLRB makes the 11-by-17-inch notice available at no cost through its website, where you can download and print a copy. If you prefer, you can request that copies be mailed free of charge by calling (202) 273-0064 or completing an online request form. The website also includes Frequently Asked Questions.
The final rule can be found by clicking here.
5300 Call Report and the Impact of Dodd-Frank
As required by the Dodd-Frank act, the 2011 fourth quarter 5300 Call Report includes this new question: “Do you have a diversity policy or program in your credit union?” This change appears on NCUA Amended Form 4501A (page 16) of the Credit Union Profile. Also added were questions about a credit union's minority membership and potential minority membership. The amended form can be found here.
NCUA was required to comply with Section 342 of the Dodd-Frank act by Jan. 21, and report on the diversity policies and practices of credit unions across the country.
The 2011 fourth quarter 5300 Call Report was due by Jan. 20, 2012. CUNA’s Regulatory Advocacy Report – Changes to NCUA Form 4501A – Credit Union Profile can be found here.
FinCEN Extends Deadline for Adopting New CTR and SAR
On Dec. 20, 2011, the Financial Crimes Enforcement Network (FinCEN) announced that the deadline for financial institutions to utilize FinCEN's new Currency Transaction Report (CTR) and Suspicious Activity Report (SAR) for reporting purposes will be extended from June 30, 2012, to March 31, 2013.
FinCEN will soon make available industry testing arrangements, demonstration reports, and other helpful technical information for the new CTR and SAR and will subsequently announce when the new reports will be made available for filing purposes.
For those financial institutions unable to meet the proposed electronic filing deadline, FinCEN will consider, based upon certain limited hardship exceptions, specific requests to file the most current paper forms for up to one year past the mandatory electronic filing deadline. Further information on how financial institutions can make such requests will be provided in a future notice.
CUNA Makes ATM Disclosure Advice Available
CUNA has alerted credit unions, as well as the Consumer Financial Protection Bureau, of increasing instances of lawsuits being brought against credit unions and other financial institutions when ATM notices have been removed, damaged or destroyed. CUNA's Center for Professional Development also has re-released a spring audio conference on ATM fee disclosures to assist credit unions with issues.
The Electronic Fund Transfer Act requires credit unions and other financial institutions to display at each ATM location that fees will or may be charged. More detailed ATM fee information must also be provided before the transaction is completed, either by projecting it onto the ATM's screen or providing the ATM user with a small printed disclosure.
Credit unions and others have found that the outside notices on ATMs are, in some cases, being intentionally removed or destroyed, without the financial institution's knowledge, and that pictures are then taken of the ATM to show noncompliance. Some ATM users may then use this as evidence of apparent noncompliance and as grounds for lawsuits.
For more on the CPD audio conference, click here.
Regulatory Roundup
INITIATIVES
Updates on specific campaigns created by the MCUL to strengthen the credit union charter and differentiate credit unions from banks, as well as the Community Reinvestment Initiative (CRI).
Priority Initiatives – Click Any Initiative for More Information
• Strengthen the Charter Initiative
o PAC Fundraising
o Grassroots Lobbying Events and Activities
o SAS Support Page
• Credit Union Difference Initiative
o www.lovemycreditunion.org
• Community Reinvestment Initiative
o Credit Union Small Business Financing Alliance
o Just File It! Free Tax Preparation Service
o Career Transition Program
o StretchPay Program
• CUNA Initiatives
Highlights on Strengthening the Charter (Click here for full articles)
2012 Lapel Pins
The key accessory for showing your support for grassroots advocacy and the strengthening of the Michigan credit union movement, the MCULAF lapel pin, is now available for 2012. Credit union people can order a $25 pin (Capitol Club) up through a $1,000 pin (Michigan Club), and can make a one-time contribution or enroll in payroll deduction to spread the cost over time.
Visit the MCUL’s lapel pin page for contribution and payroll deduction information, along with a PDF of the lapel pin designs. Questions can be directed to Jami Meyer, MCUL & Affiliates political affairs coordinator, at (800) 262-6285, ext. 353, or Jami.Meyer@mcul.org.
Still Time to Register for CUNA GAC
There is still time to register for the 2012 CUNA GAC March 18-22 at the Washington Convention Center in Washington, D.C. To register for this important event, click here. Never before have credit unions had so much important, impactful legislation being considered and we need to make sure our voices are heard. Stay tuned to the MCUL CUNA GAC Web page for more information on the Michigan contingent and events that are scheduled that are Michigan specific. Questions should be directed to Jordan Kingdon, MCUL & Affiliates director of Government Affairs, at ext. 475 or Jordan.Kingdon@mcul.org.
Project Zip Code 12.0 is here
With the CUNA GAC right around the corner, the MCUL & Affiliates would like to remind affiliated credit unions to run the latest edition of Project Zip Code, Version 12.0. With this new release, membership data will be matched to the current 112th congressional districts and state legislative districts in addition to the new legislative districts that are being created post 2010 Census. The 113th Congressional and state districts are updated on a rolling basis. Therefore, it is more important than ever for credit unions to run PZC 12.0. Remember this valuable tool is now available online as a download, so the new version is just a mouse click away.
By running PZC, credit unions can see where their membership lives by state, county and zip code. These functions allow credit unions to better track where their membership resides and can be helpful with ATM expansion and shared branching. If you have any questions about this or would like a CD copy of PZC 12.0, contact Jami Meyer at Jami.Meyer@mcul.org. For more information on the latest release of PZC, visit the MCUL & Affiliates Project Zip Code website.
2012 Legislative Events
It is that time of year again to start thinking about scheduling chapter legislative breakfasts. We are encouraging each chapter to host a minimum of two meetings annually as we expect 2012 to be another busy year for policymaking in the financial services industry. To ensure a good turnout from legislators, legislative events are recommended to be scheduled on Mondays or Fridays since lawmakers will most likely be in their districts on those days.
The Government Affairs department has created a Governmental Affairs Events Web page where you can find more information on chapter legislative events as well as other opportunities for credit union staff to interact with lawmakers. Click here to access that website. To view the MCUL master calendar of events by month, click here. To begin planning a legislative event, contact Jami Meyer, MCUL & Affiliates political affairs coordinator, at (800) 262-6285, ext. 353, or Jami.Meyer@mcul.org.
Highlights on the CU Difference
CU Difference Campaign Encourages Your Cooperative Spirit
At this time of year, one of MCUL & Affiliates’ biggest priorities is raising money to support a spring media campaign that speaks to consumers about taking control of their finances at a credit union and tells them to “Own Your Money.” The campaign messages promote every single one of Michigan’s 313 credit unions. In the cooperative spirit that credit unions are so famous for, we encourage you to show your support of our industry’s growth and make a meaningful contribution today.
The 2012 campaign includes some new features that have not been included before, such as a $10,000 sweepstakes, free collateral materials to all participating credit unions, a social media component to target younger generations, and expanded public relations efforts. MCUL & Affiliates has put additional money behind this campaign with its first-ever pledge of 15 percent of MCUL dues dollars to the media buy and $500,000 from CUcorp to fund the free collateral materials and additional marketing dollars to all credit unions that contribute their full fair share (the CU Difference amount that appears on your invoice).
Because of the tough economy and current anti-bank sentiment, this year presents a rare opportunity to credit unions to gain higher awareness, new members and new accounts. We ask all credit unions to consider a substantial increase in their investments to this campaign so that credit unions will be recognized as our state’s premier financial institutions. Through Feb. 1, 125 credit unions (41.5 percent of affiliated credit unions) had already made their pledge to the campaign, contributing a total of $654,289.But, we are still short of our goal of $2 million for the media buy, which includes up to $1 million in matching funds and an MCUL contribution of $280,000. If you haven’t already, please consider making your donation today.
Contributions to the CU Difference Campaign can be mailed to MCUL & Affiliates, Attn: Accounting, P.O. Box 8054, Plymouth, MI 48170-8054. Please include the name of your DMA or media market on your check. Matching funds will be allocated on Feb. 8, 2012, to all contributions that have been received. Media planning will begin immediately to meet our projected launch date of May 7.
Highlights on CRI
IEiYW® Offers Online Education on Wise and Safe Investing
In collaboration with the state of Michigan OFIR and MCUL & Affiliates, at least 500 credit union employees will be able to participate in the Investor Education in Your Workplace® (IEiYW®) employee investment education program at no cost starting this spring.
After learning of the success of this program with roughly 200 credit unions in Wisconsin, Pennsylvania and North Carolina, the MCUL is now able to bring this powerful program to help benefit Michigan credit unions. The program, which will start in April 2012, will allow at least 500 credit union employees to improve their investment knowledge and behaviors as they participate in 10 hours of online investor education over a 10-week period.
The turnkey online program covers basic personal finance, saving and investing concepts and uses pre- and post-testing to help measure and demonstrate the positive impact on participants. In Pennsylvania and Wisconsin, this testing showed an improvement in knowledge for credit union employees of 38 percent and 47 percent respectively. Potential subsequent campaigns in Michigan may include additional credit union employees and members of targeted employer groups from credit union SEGs.
Credit union employees benefit from this training personally by being better equipped to reach their individual financial goals and professionally by being better able to serve members. Credit unions benefit as well from the IEiYW® program since staff members become more knowledgeable about the productive use of employee benefits such as health and retirement plans. According to the Personal Finance Employee Education Foundation, providing financial education programs improves employees’ personal financial behaviors, job performance, member service and the employer’s bottom line.
The national IEiYW® program is sponsored and underwritten by the nonprofit Investor Protection Trust. Since 1993, the IPT has worked with states and at the national level to provide the independent, objective investor education needed by all Americans to make informed investment decisions.
Registration for this program will be on a first-come basis starting in late January. The employee program will start in April and run for 10 weeks with a one-hour course each week. For more information about the program, credit unions are encouraged to attend an introductory webinar that will provide full details about participation. Webinars are offered on two dates: Feb. 16 and Feb. 22, both at 1 p.m. To sign up for a webinar, click here.
For more information, contact MCUL financial education coordinator, Beth Troost at Beth.Troost@mcul.org or (800) 262-6285, ext. 453.
SOLUTIONS
Major Solutions Provided by MCUL – Click Each for More Information
• MCUL Education Events
• InfoSight Compliance Support
• MCUL Publications and Information Services
• MCUL Podcasts
Highlights on MCUL Solutions (Click here for full articles)
2012 Education Calendar Sent With Affiliation Packet
For the convenience of credit union CEOs, the MCUL & Affiliates’ 12-page 2012 education calendar listing the complete lineup of training events and highlighting conferences and products offerings was recently mailed out with the league's affiliation packet. Additional calendars were mailed to other executives and training professionals. The booklet includes 100 “remote learning” webinars and audio sessions. The calendar is also available electronically from the MCUL & Affiliates homepage, and can be found here.
Register Now for Lending Conference and Marketing Conference
Credit union lenders and marketers will find unmatched industry knowledge and emerging trends at the MCUL & Affiliates Lending and Marketing Conference, Feb. 14-15 at the Amway Grand Plaza Hotel in Grand Rapids. The highly interactive event features two distinct agendas, two keynote presentations and dozens of breakout sessions. Tim McIntyre, vice president of communications for Michigan-based Domino's Pizza will present "Truth in Marketing: How Domino's Broke the Rules and Turned Itself Around." To view the complete agendas and additional information, click here.
Compliance for Executives Offered Twice During 2012
The popular MCUL & Affiliates Compliance for Executives event will take place once following the Lending and Marketing Conference at the Amway Grand Plaza Hotel in Grand Rapids on Feb. 16 and again in the Upper Peninsula on June 7 at the Holiday Inn in Marquette. Attorney Robert Rutkowski will speak at the Feb. 16 event, presenting the opening session on "When Does a Credit Union Need Legal Counsel" and a closing session on "Dodd-Frank Act/Consumer Financial Protection Bureau.” To view the full agenda, click here. More details on the June 7 session will be available soon.
Major Solutions Provided by CU Solutions Group / CUcorp
• Technology Solutions
• Marketing Solutions
• Membership Enhancement Solutions
• HRN Performance Solutions
CUcorp
• Lending Solutions
• Partnering Solutions
• Strategic Solutions
Highlights on Technology Solutions (Click here for full articles)
Keeping Your Website Compliant
Compliance may be an instrumental part of your credit union’s day-to-day operations, but where does your website factor in? Your credit union’s website must comply with a variety of rules and regulations from NCUA, OFIS, and the Federal Reserve Board. At least once a year (if not quarterly), you should take time to review your credit union’s site to ensure that it is in compliance with the numerous consumer protection and credit union laws and regulations.
Are there any regulatory requirements has your site has not met? What do you need to do to correct each case of non-compliance? It’s time your credit union takes the necessary steps to ensure that its website is in compliance with regulatory requirements – and a Website Compliance Review from Technology Solutions can help make it all happen. Learn more about the process
here, or call (800) 262-6285.
Highlights on Membership Enhancement Solutions
MCUL Redirects SAS Initiative Fund to Assist Financially Challenged CUs
The MCUL & Affiliates is opening up the former MCUL Small-Asset-Size Initiative Fund to all affiliated Michigan credit unions, regardless of size and based on need.
Renamed the MCUL Credit Union Assistance Fund, the league wants to offer assistance to the state’s credit unions facing the most significant financial challenges. While the funds will assist fewer Michigan credit unions, the MCUL will take a more targeted approach to assisting credit unions in need by offering free or discounted services on a variety of offerings including regulatory compliance, board governance, income improvement, education, ALM and marketing.
Due to the success of the league’s subsidiaries and the continued support from affiliated credit unions, the league is increasing the fund from $70,000 to $100,000 to assist in these efforts.
If your credit union is facing significant financial challenges and you would like additional information about the MCUL Credit Union Assistance Fund, contact your league representative.
Your Members Are Already Starting to Look for Tax Services
Out of all the online tax preparation programs, TurboTax leads the pack. Over 23 million returns were filed with TurboTax in 2010, a 37 percent increase since 2007.
For those members that prefer to file their taxes with a person instead of a computer, CUSG is offering a $30 instant discount from Jackson Hewitt for members of participating credit unions. And even better, Jackson Hewitt has over 6,000 offices open across the country during the tax season.
Help your members find TurboTax and/or Jackson Hewitt programs quickly and easily! For those CUs that are enrolled, the following marketing tips will drive enhanced performance of your tax service program(s):
TurboTax Program Marketing Tips:
- Post Web banners on your website home page and online banking pages. Free standard banners are available in the Partner Center and custom banner sizes available upon request.
- Send dedicated member emails.
- Free HTML email templates available in the Partner Center for you to send or CU Solutions Group can help you send these for FREE. Click here to request our help.
- Include Newsletter Articles in electronic and printed member communications
- Messaging is available in the Partner Center.
Jackson Hewitt Program Marketing Tips:
- Be sure that your credit union has ordered FREE statement inserts.
- These printed inserts are the main way members redeem their $30 savings from Jackson Hewitt.
- Post Jackson Hewitt logo and text link messaging on credit union website which links to a co-branded Web coupon which your members can print and bring to their local Jackson Hewitt office.
Materials are also available in the Partner Center if you are enrolled in this program.
Not enrolled in either TurboTax or Jackson Hewitt? It’s not too late. To learn more about IIA tax services click here for the tax services overview or simply click here to enroll in the tax services programs through IIA.
Highlights on Marketing Solutions
Keeping Your Credit Union’s Forms Compliant
With the credit union industry constantly changing, it usually means that to stay compliant, various operational forms need to change as well. Marketing Solutions offers not only disclosures and credit card applications, but also membership and share draft applications – and everything in between. Most of our forms come standard or custom and can be printed or electronic. To learn more or to place an order call (800) 262-6285, ext. 801, or click here to visit our online store.
Highlights on HRN Performance Solutions (Click here for full articles)
When Compliance Applies to HR Practices — CUSG Has You Covered
What makes a credit union a unique and special place to bank? People. Together the members and the employees create an atmosphere of community support and friendly service. How a credit union manages and provides services for its employees translates directly into staff attitudes, customer service and member experience.
HRN Performance Solutions specializes in human resource consulting services and staff performance solutions. Led by Mike Dougal, SPHR, it provides cost-effective HR services that keep credit unions in compliance with federal HR mandates and employment law best practices. These services include but are not limited to:
- Affirmative action plan (AAP) development and maintenance
- HR audit (policy and compliance review)
- Executive compensation and performance plan development
- Management training (sexual harassment, hiring, conflict resolution, performance planning, etc.)
- Succession planning
- Organizational planning and development
“There are three areas that I am seeing increasing interest: CEO compensation, succession planning and HR policy review audits," Dougal said. "In fact, an HR compliance audit is something every credit union should consider conducting once every 3 to 5 years to ensure that policies and practices are compliant with federal and state employment laws. Things are changing all the time and an HR audit is a cost-effective way to ensure HR practices and policies are in compliance. For example, in 2012 the requirements for federal contractors having an affirmative action plan have changed.”
Dougal and his team of consultants are available to answer questions and provide recommendations on proven and effective HR compliance, performance and compensation administration services. Dougal can be reached at mike.dougal@hrnonline.com or by calling (717) 264-0529. Additionally, HRN Performance Solutions provides an online HR compliance solution called HR Suite for a very affordable $595 that provides a complete library of up-to-date HR forms and tools, and a customizable employee handbook and HR policy manual. Click here for more information.
CUcorp Solutions
Highlights on Lending Solutions (Click here for full articles)
CUcorp, in partnership with Advanced Fraud Solutions, the company who has brought us TrueChecks, brings us a new product, TrueCards, a powerful, proactive tool in mitigating credit card fraud losses.
TrueCards has the unique ability of locating a common point of compromise within a card portfolio. It’s simple, when a card portfolio is being attacked, TrueCards gives the participating financial institution the tool to determine a common point of compromise and determine precisely which cards are at risk. The financial institution can simply block the cards at risk and save untold thousands of dollars they could have lost waiting on a Visa CAMS Alert or third-party information.
TrueCards provides these advantages:
- Enables a single institution to independently manage their card portfolio
- Identifies the common point of compromise within the portfolio
- Delivers a custom preemptive ‘stop, block and reissue’ report
- Offers a real-time solution rather than a strategy that relies on late information
- Utilizes historic and current plastic card transactions regardless of processor
- Provides a holistic view of a multi-card vendor portfolio
To learn more about TrueCards, please contact your league representative at (800) 262-6285.
Bryan Laviolette is the editor of Priority Report. Contact him at (800) 262-6285, ext. 233, or Bryan.Laviolette@mcul.org. 
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Regulatory Affairs
