Issues, Initiatives and Solutions (June, 2009)
Prepare to Spread the Word
I have the great privilege of representing the Michigan credit union industry when I visit with lawmakers, community leaders and various reporters from the media. Especially these days, more and more people are saying “Why don’t credit unions get the word out? They have such a great story to tell in this economy.” They want to know why credit unions don’t market themselves more effectively. Given these tough economic times and the new relevance of credit unions, it is very safe to say that we have never had this kind of golden opportunity to promote the benefits of credit unions.
Credit unions do a lot of marketing and advertising and many are very good at promoting the credit union difference, but one unique and quality tool that we have at our disposal is cooperative advertising. Credit unions have been doing some form of cooperative promotion for over 25 years in Michigan. Our program today is better funded and stronger than ever, but not all credit unions participate in that funding. Only about 43 percent of Michigan credit unions made a contribution to the 2009 campaign and participation has averaged 40-50 percent during the past ten years.
We have a terrific opportunity for every Michigan credit union to participate in the funding for cooperative advertising (or the Credit Union Difference Campaign, as we refer to it). In April, the MCUL board approved a 25 percent dues rebate for 2009 and a 25 percent reduction in MCUL dues for 2010, conditioned upon affiliation in both years. Over 90 percent of our affiliated credit unions have now signed an “intent form” that indicates their desire to participate in the rebate program. Now we have a new offer to coincide with the dues reductions: We want to offer credit unions the opportunity to commit some, or all of their dues reduction dollars to the Credit Union Difference Campaign for 2010.
These dues rebates come at a time when most credit union associations have to increase their dues and/or cut back on many services. The reason the MCUL is in a position to share the dues rebates is that subsidiary operations have been strong and profitable at record levels during this economic meltdown. While the MCUL incurred unrealized and realized losses on its investments in 2009, the year 2010 is showing some recoveries of those losses and subsidiaries CUcorp and CU Village continue to generate strong earnings. This has helped put the MCUL in a position to make the dues reductions possible for 2009 and 2010. Also contributing to this are the cost-savings measures taken by management that included the sale of the Northville facility and streamlining of facilities and other expenses.
For the 43 percent of credit unions that already support the campaign, applying the dues reductions to the CU Difference Campaign should be an easy decision, in that it will help defray the participation cost for 2010. This is a golden opportunity for the other 57 percent to support the Credit Union Difference Campaign in 2010 without cost, since you can apply your dues reductions for 2009 and 2010 to the campaign. If all credit unions would agree to do this, our 2010 campaign would have the potential of expanding from roughly $1.5 million to $2 million, because CUcorp plans to offer $1 million in matching funds again in 2010. This year, one-third of those matching funds went unused because of a lack of credit union participation.
The Credit Union Difference Committee and MCUL staff are still working on a more definitive strategy for the 2010 campaign, but the preliminary direction is to continue in 2010 with the “Invest in America” ads that were so successful in 2009. These ads showcase the way that credit unions are assisting the auto industry and consumers with exclusive credit union member incentives. We are also hopeful that some of the dollars spent in placing the ads will be recouped from the “Invest in America” promotional pool funded by GM and Chrysler. This means that we could have an additional pool of money to plow back into the campaign in 2010.
Consider the fact that while credit union new car loans actually went down in 2008 and the first quarter of 2009 nationally, Michigan credit unions’ aggregate new car loan volumes went up by 10 percent in the fourth quarter of 2008 and another 7 percent in the first quarter of 2009. That means that during the past six months, while all U.S. credit unions saw new car loans go down by -2.5 percent as car sales plummeted, the opposite happened here. In Michigan, new car loans went up by 18.7 percent in the past 6 months. That 20 percent differential accounted for roughly $340 million in total new car loans and approximately 17,000 car loans in just 6 months.
Now, the “Invest in America” program is just one of many catalysts for this reversal of fortunes in Michigan. Because credit unions have been more adversely affected by competition from captive finance companies (due to the prevalence of employee and supplier pricing in Southeast Michigan), as the domestic auto companies and their captives suffered, more opportunity emerged in Michigan for a credit union recovery. But it certainly didn’t hurt that more than 200 Michigan credit unions actively promoted the “Invest in America” discounts and more than $1.5 million in cooperative advertising was also focused on increasing public awareness of these credit union member incentives.
Opportunity lies ahead in so many areas for credit unions. Credit unions have unprecedented opportunities for growth in deposit and membership, new car loans, and small business loans and mortgage lending as well – and another great opportunity is to expand our cooperative advertising campaign for 2010 with the help of the MCUL dues rebates.
Please consider carefully whether you might agree to share some, or your entire dues rebate with the 2010 Credit Union Difference Campaign. Your credit union will benefit, as well as your colleagues and the entire credit union industry in Michigan. You will soon be receiving a pledge form to give you this option.
This campaign is not just about auto loans for credit unions. It is also about projecting a timely and positive image that credit unions truly do invest in America. We are helping the auto industry, and that translates into more jobs and more stability for our Michigan economy.
Thanks in advance for your consideration and support.
-David Adams
President and CEO, MCUL/CUcorp
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.
Top Federal and State Legislative Issues
• SAFE Act Mortgage Licensing Information
• Michigan Legislature Foreclosure Package
• 2009 Federal Legislative Issues Agenda
• 2009 State Legislative Issues Agenda
• 2009-2010 State Legislative Tracking Document
June Highlights on Federal and State Legislative Issues
Credit Card Bill Signed by President; CUNA Audio Conference Held
President Barack Obama signed H.R. 627, the Credit Card Accountability, Responsibility and Disclosure Act of 2009 (Credit CARD Act) into law on May 22. The bill requires card issuers to notify a cardholder at least 45 days in advance of increasing the APR or fees. The APR generally will not be allowed to increase on existing balances, unless covered by an exception specified in the law, such as for cards with variable rates or when the cardholder is more than 60 days late in making a payment. The provisions in the new law will generally take effect in nine months, but two of the provisions will be effective Aug. 20. Starting this summer, credit unions will have to give the 45 day written notice before any increase in the APR or fees, and will have to make sure they mail credit card statements at least 21 days before any due date in order to assess late payment penalties. CUNA recently held an audio conference on June 18 to discuss the requirements of the law. An archived version of this session may be found here. To view a summary of the credit card bill, click here for the link on the MCUL’s Legislative Affairs page.
Washington Work Period Update
The U.S. House and the Senate returned the first week in June to begin a four week Washington work period. CUNA expects Congress to make headway on appropriations bills, health care reform, and energy legislation. CUNA does not anticipate significant financial services legislation on the floor during this work period. It is expected that Congress will hold a number of hearings on regulatory restructuring throughout the summer. The House Financial Services Committee may have as many as four hearings on issues related to regulatory restructuring, and the Senate Banking Committee is likely to have hearings as well.
NCUA Corporate Stabilization Plan Signed; NCUA Webinar Scheduled
The corporate stabilization plan, which President Barack Obama signed into law as part of S. 896 (the Helping Families Save Their Homes Act), increased NCUA's borrowing authority to $6 billion, with a possible further extension to $30 billion under emergency circumstances. The stabilization plan will also allow credit unions to spread the cost of the NCUSIF 1 percent deposit replenishment over seven years. Credit unions will also be granted up to eight years to deal with the cost of a premium assessment that has resulted from losses at wholesale corporate credit unions. The NCUA will present its guidance on implementing its new corporate credit union stabilization plan in a webinar which is scheduled for June 24. Registration will open June 19 at the NCUA Web site. For more information on the corporate stabilization plan, please visit the informational page on the MCUL’s website here.
Regulatory Restructuring Proposal Unveiled
On June 17, President Obama outlined his vision for reshaping U.S. financial regulation, aiming to tighten oversight of the largest firms whose excessive risk-taking triggered a global recession. U.S. Treasury Secretary Timothy Geithner will soon testify on the administration's proposals at separate hearings before the Senate Banking Committee and the House Financial Services Committee on June 18. Under the plan, the NCUA would remain a separate regulator for credit unions. The proposal outlines suggested reforms to meet five key objectives including promoting robust supervision and regulation of financial firms; establishing comprehensive supervision and regulation of financial markets; protecting consumers and investors from financial abuse; improving tools for managing financial crises; and raising international regulatory standards and improving international cooperation. For the full report from Treasury, click here. You may also click here to view CUNA’s issue summary on regulatory restructuring.
Cash for Clunkers Update
It appears that the “cash for clunkers” legislation may be finalized in the near future. The U.S. House recently approved the bill, H.R. 2751 to help boost new auto sales by allowing consumers to turn in their cars and trucks for vouchers worth up to $4,500 toward more fuel-efficient vehicles. The bill passed the House by a vote of 298 to 119 and all members of Michigan’s Congressional Delegation voted in favor of the bill except for U.S. Rep. John Conyers, who did not vote. The Senate is expected to take up the measure soon. The MCUL has been working closely with General Motors, Chrysler and now Ford on the “Invest in America” program, which has helped sell more than 140,000 automobiles since January. The “cash for clunkers” legislation fits well with “Invest in America” and would be helpful in motivating consumers to purchase a new car from a domestic automaker. The MCUL Government and Political Affairs Forum voted on April 9 to support the legislation. To view the MCUL’s letter to Congress in support of the legislation, click here.
Interchange Issue Update
U.S. Rep. John Conyers recently introduced H.R. 2695, the "Credit Card Fair Fee Act of 2009." The bill would allow merchants to negotiate credit card transaction fees with financial institutions through an antitrust exemption. Credit unions regulated by the NCUA would be exempted from the terms of the bill. Financial institutions would not be bound by the terms of outside agreements that they had no part in negotiating. The MCUL and CUNA still strongly oppose this bill as it could allow merchants to exclude credit cards issued by credit unions. Credit unions oppose statutory and rulemaking proposals that would affect interchange fees, as such action would adversely affect consumer options, competition and technological innovation. Government intervention in interchange will result in increased cost for consumers, decreased competition, and an unfair disruption of the marketplace. To view talking points on interchange, click here for the link on the MCUL’s Legislative Affairs page.
Governor Signs State Foreclosure Prevention Bills; MCUL Webinar Scheduled
On May 20, Governor Jennifer Granholm signed foreclosure prevention bills into law as Public Acts 29-31 of 2009. Formerly house bills 4453-4455, the new laws provide a 90 day “workout” period where lenders and borrowers work together to modify troubled mortgages. The provisions take effect July 3, 2009, or 45 days after enactment. For more information on the language in the legislation, click here to view the MCUL’s summary of the bills. The MCUL will be hosting a webinar on implementation of the new law on June 29 at 1 pm (ET) featuring Michael Kus of Kus, Ryan & Associate PLCC and Sean Mansell from Member First Mortgage. Click here for more information on the webinar.
Legislature Reviews New CDARS Legislation for Community College Monies
Senate Bill 583, introduced by State Sen. Tony Stamas, R-Midland, recently passed the State Senate and was quickly reported by the House Committee on Banking and Financial Services on June 18. The legislation is similar to the CDARS legislation that the MCUL supported and the Governor recently signed into law dealing with K-12 and municipalities. SB 583 would permit credit unions to invest deposits made by community colleges in a registry system. While credit unions cannot participate in this program because they are not insured under FDIC, this legislation is necessary in case CDARS in opened up to NCUA insured institutions or if a credit union registry is created in the future. For more information on SB 583, click here.
State Budget Talks Continue
Ongoing fiscal year 2009-10 budget talks resulted in the Senate recently advancing budgets for agriculture, general government, military and veteran’s affairs, transportation and judiciary. The Department of Energy, Labor, and Economic Growth budget already advanced to the House Floor with the remaining first round of next year’s budgets expected to pass the Senate soon. To address the $1.7 billion budget shortfall, Senate Republicans may exceed $1.3 billion in major structural cuts to state government for next year while House Democrats recommend cuts of about $525 million. The ongoing restructuring of department budgets has resulted in many prison closings and the potential merging of Department of Environmental Quality and Department of Natural Resources to create the Department of Conservation. In addition, the House is discussing two fiscal year 2008-09 supplemental bills that would restore funding for 104 state troopers, fairs, horse racing tracks and the School Aid Fund that were originally cut in the executive order. For more information on all appropriations bills for state departments and supplementals, including status and language, click here.
Top Federal and State Regulatory Issues
• Obama Administration Proposed Reg Changes (PDF)
• NCUA Corporate Stabilization Plan Resources
• 2009 Federal Regulatory Issues Agenda
• 2009 State Regulatory Issues Agenda
June Highlights on Federal and State Regulatory Issues
UBIT
In an expected move, the federal government asked for a reversal of the jury’s decision in favor of Community First Credit Union of Appleton, Wisc., in the trial challenging unrelated business income tax (UBIT). In the suit, the credit union requested that the IRS refund taxes paid on income from the sale of credit life and credit disability insurance and guaranteed auto protection (GAP). The jury favored the credit union and concluded that the insurance products are related to the mission and purpose of the credit union and are not taxable. The U.S. Department of Justice, representing the IRS, contends that there was no “legally sufficient basis” for a “reasonable” jury to have found in favor of the credit union. The jury agreed with the credit union that the insurance products are related to the credit union’s purposes under Wisconsin state law and are connected to the loans made by Community First.
Mortgage Loan Officer Registration – Joint Rule Proposed
The NCUA and other federal financial institution regulators have jointly issued for public comment proposed rules requiring mortgage loan originators who are employees of agency-related institutions to meet the registration requirements of the S.A.F.E. Mortgage Licensing Act of 2008. The law requires the agencies to jointly develop and maintain a system for registering residential mortgage loan originators who are employees of credit unions, national and state banks, savings associations, and farm credit system institutions, as well as some subsidiaries. These loan originators must be registered with the Nationwide Mortgage Licensing System and Registry, a database established by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators. Registration will provide the loan originator with a unique identifier that will remain with that originator regardless of change in employment. Because of the need to modify the registry to accept federal registrations (currently state based only), the proposed rule provides for a delay of 180 days after the registry becomes operational and available for initial federal registrations. There will be no penalty during this transition time. The proposed rule was published June 9 and has a 30 day comment period. The NCUA portion of the proposal will apply to all federally insured credit unions and indicates a new Part 761 will be added to its regulations. The NCUA provisions in the joint proposal begin on page 35 of the Federal Register version here. A MCUL Comment Call was issued.
Legal Opinion Supports Shared Appreciation as Loan Modification Tool
In a reply to a request from MCUL President/ CEO David Adams, NCUA General Counsel Robert Fenner has opined that federal credit unions have the authority to modify troubled loans using a shared appreciation approach. The opinion stated: “This modification is a matter of contract between a federal credit unions and a troubled borrower.” The opinion went on to say that authority to enter into a loan contract also means authority to modify the contract subject to any NCUA regulations. Under the proposed arrangement, a federal credit union would enter into a written agreement with a troubled borrower to modify an existing residential mortgage. The agreement would state that, in exchange for reduction of the principal balance of the troubled borrower’s outstanding residential mortgage loan, the borrower would agree to share with the credit union any future increase in the home’s appreciation. Shared appreciation would be based on a predetermined calculation and occur upon the sale of the property at a future date. The legal opinion emphasizes it must be done in a safe and sound manner, that there may be tax issues for the borrower and it must be properly reported on the NCUA 5300 call report. A copy of the legal opinion is available here and posted on MCUL’ s Making Home Affordable Web site.
OFIR Interpretation of MCUA Regarding Leasing Foreclosed Property
One of the issues related to the increase in foreclosures is how credit unions may deal with property received through that process. A question was raised to both NCUA and OFIR at one of the economic stabilization summits conducted in late 2008 as to whether property received through foreclosure could be leased back to the borrower or another party. For federal credit unions, leasing foreclosed property is not permitted under current law. OFIR stated, however, that it is permitted for state-chartered credit unions in accordance with the powers section of the Michigan Credit Union Act, section 401(2)(jj), which clearly states that credit unions have the power ”(jj) To sell, convey, lease, or otherwise dispose of…all or part of its land and buildings, including land and buildings obtained as result of a default of an obligation owed to it.” OFIR said that land acquired through this process is not subject to the 5 percent asset limitation under Section 401(2)(hh), which stands on its own, but cautioned that it would monitor the impact the aggregate of foreclosed properties held by a credit union is having on the credit union’s financial performance and, if it becomes material, additional safety and soundness discussions would be triggered. Click here to see the powers section of the Michigan Credit Union Act where both sections cited above can be found.
Deborah Matz Nominated to the NCUA Board Again
President Obama has nominated Deborah Matz to the NCUA board and, if the Senate confirms the appointment, she will replace the current chair, Mike Fryzel. Fyzel may continue to serve on the board with a term expiring in 2013. Matz is replacing board member Rodney Hood, whose term expired in April of this year. Matz was formerly a member of the NCUA board serving from March 22, 2002 through September 2005. Following her departure from the board, she served as executive vice president and chief operating officer of the $800 million Andrews Federal Credit Union in Suitland Maryland until June 2008. The third member of the board is Gigi Hyland, and her term expires in 2011. Here is a link to the NCUA announcement.
NCUA Region I Acting Director, Anthony LaCreta, to visit Michigan
The Metro East Chapter has invited NCUA Region I Acting Director, Anthony LaCreta, to speak at a chapter dinner session scheduled for June 30 from 6 – 9 p.m. which will be held at Michigan Schools and Government CU in Clinton Township. Topics discussed will be corporate stabilization, share insurance, and other hot compliance topics. LaCreta was appointed to his current position when Mark Treichel was appointed acting director of the Office of Corporate Credit Unions. OFIR Commissioner Ken Ross will also attend the event. Because of the possible increased interest in having both officials present, the Metro East Chapter is opening the dinner to credit union officials outside of the chapter. Please contact Kathy Figgs at Christian Financial CU to reserve a spot not later than June 23, 2009. Figgs may be contacted at 586-498-2055 or by e-mail at kfiggs@cfcumail.org.
NCUA Web site and CUNA Compliance Webpage Have Been Redesigned – Update Your Saved Links
If you have recently tried to get into the NCUA Web site through a saved “favorites” link, a window probably popped up saying the site was unavailable. The NCUA recently announced that it had revised its website, so any previously saved links to specific pages within the NCUA website were no longer functioning. Visit the NCUA’s homepage to become familiar with the new format and look. Links on InfoSight to specific NCUA Web pages have been updated. CUNA has also revised its compliance Web page. Click here for the link.
OFIR Reaccredited by NASCUS
It was recently announced that OFIR had successfully completed the rigorous reaccreditation process of the National Association of State Chartered Credit Union Supervisors (NASCUS). NASCUS is the national trade association of professional regulators and is the primary resource and voice of the 47 governmental agencies that charter, regulate and examine the nation’s state-chartered credit unions. The reaccreditation process includes a careful review of the application and supporting documents as well as a three-day onsite review of programs and performance. The accreditation is valid for five years subject to annual reviews, which are intended to measure progress and improvement by the NASCUS Performance Standards Committee. Here is a link to OFIR’s media release.
MCUL SAS Audit Guidance Project
One of the requirements of the Michigan Credit Union Act in Section 344 is for credit unions to obtain an audit annually (at least). Credit unions with assets less than $5 million may comply with this requirement through an audit conducted by their supervisory committee, if they have one. This option is not available to larger credit unions. After receiving several requests for more guidance from state-chartered credit unions, the MCUL is working in conjunction with OFIR and small credit unions to determine exactly what additional guidance would be helpful. Current guidance is a two-page examination check list found in OFIR Bulletin 2005-CU-02, and the nearly 400-page comprehensive Supervisory Committee Guide from NCUA touching on almost every aspect of conducting an audit for federal credit unions. The goal is to create a tool and/or training resource more useful to small credit unions without duplicating existing guidance.
June InfoSight Updates
InfoSight Surveys Users Nationwide
League InfoSight recently completed a nationwide survey of its users seeking input on various features of this compliance database resource. Features evaluated included awareness, ease of use, reliability of the information, timeliness of the information, ease of navigation, and depth of content. While the final results are still being prepared, preliminary results show the respondents gave InfoSight high marks (above 70%) for most of the features evaluated. Overall asked whether they would recommend it to others, over 90% agreed they would. One mild weakness was ease of navigation. This feature had previously been identified by the Content Advisory Group as an area that continues to require attention and is on their list of priorities.
Click Here for Full MCUL Regulatory Roundup
June Highlights on Economic Issues
First Quarter Data on Michigan Credit Unions Available
Data on Michigan credit unions’ performance during the first quarter of 2009 is available on the MCUL’s “credit union statistics, economic data and research” Web page in PDF format and as an Excel spreadsheet. The information was provided by CUNA, and additional economic analysis from CUNA Senior Economist Steve Rick will be provided to credit unions soon.
Michigan Foreclosure Rate - Top Ten List
In May, Michigan was back in the national top ten for foreclosure rates at sixth place. Michigan ranked fifth in fore¬closures with 13,891 filings, which reflects one foreclo¬sure filing for every 326 house¬holds. This compares with the na¬tional rate of one for every 398 households during the same time period. The Michigan filings includ¬ed 7,645 notices of sale and 6,246 bank repossessions for the month. Filings were down by 4.72 percent in Michigan compared with April and rose by 28.3 percent compared with May 2008. May foreclosure activity was the third-highest month on record, and marked the third straight month where the total number of properties with fore¬closure filings exceeded 300,000. Nevada, California, Florida, Arizona, Utah, Georgia, Colora¬do, Idaho and Ohio had the high¬est foreclosure rates in May.
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 Issue Summary and Action Calls
o SAS Support Page
• Credit Union Difference Initiative
o www.lovemycreditunion.org
• Community Reinvestment Initiative
o Just File It! Free Tax Preparation Service
o Career Transition Program
o HLPR Affordable Housing Program
o MSHDA Save the Dream Program
• CUNA Initiatives
Highlights on Strengthening the Charter
PAC Fundraising Update
As of June 12, MCULAF, the MCUL’s state PAC, has raised $89,588, or 51 percent of its $175,000 goal. The largest contributor to MCULAF has been the lapel pin program, which has raised $80,298 to date; up $3,449 compared to last year. MCULLAF, the federal PAC, has raised $59,143 through the same time period, which accounts for 22 percent of this year’s goal. To view more information about PAC fundraising, please click here. MCULLAF/MCULAF has reached a combined total of $148,731, or 33 percent of the combined goal of $450,000. As the single largest annual fundraising event to benefit the federal PAC, the grand raffle is an essential part of the MCUL's political action program. The winner will choose between a 2009 Dodge Challenger and $20,000 cash. The grand raffle is boasting some large numbers early, with 126 credit unions participating and 26,320 of the 35,000 tickets quickly in circulation. The Grand Raffle ends Oct. 9 with the grand prize drawing taking place on Tuesday, Nov. 3. There is still time to participate in the grand raffle. Any PAC fundraising questions can be directed to MCUL Political Affairs Coordinator Jami Wolfe by phone at MCUL ext. 353, or via e-mail at Jami.Wolfe@mcul.org.
2009 CURE Golf Outing Preview
The 8th annual CURE golf outing is set for Wednesday, July 29, at Forest Akers West Golf Course in East Lansing with registration beginning at 9:30 a.m. So far, 12 sponsors have committed $4,000, and 42 sponsorships worth $16,300 are still available. Hard copy information on registration and sponsorship is being mailed out the week of June 15 to over 1,100 individuals and vendors. You may view the brochure by clicking here. Each year, the money raised at the CURE golf outing is used to provide financial assistance to credit union officials willing to participate in important grassroots lobbying events, such as the CUNA Governmental Affairs Conference and MCUL Hike the Hill. Last year’s event raised more than $28,000. As a result, six credit union officials received scholarships to attend the 2009 CUNA GAC. If you have questions, or would like to donate a door prize, contact Jami Wolfe at MCUL ext. 353, or via e-mail at Jami.Wolfe@mcul.org.
Hike the Hill Recap
Twenty-two credit union people along with MCUL staff were in Washington, D.C. June 3 – 4 meeting with members of Michigan’s congressional delegation for Hike the Hill. Attendees discussed issues such as corporate credit union stabilization, community reinvestment act (CRA), and regulatory restructuring as they visited all 17 Michigan congressional offices. Attendees received a briefing from CUNA and attended a luncheon with NCUA Executive Director Dave Marquis as the featured speaker. While on the Hill, attendees urged members to oppose any legislation that would affect the interchange received by card-issuing credit unions.
Chapter Legislative Event Update
Credit union chapters are encouraged to schedule at least one chapter legislative event to help build and maintain personal relationships between state and federal lawmakers and their local credit union officials. The Lansing, Huron Valley, Metro West, Oakland County, Paul Bunyan and Mid-Michigan chapters have held legislative breakfasts so far this year. The Paul Bunyan breakfast this month drew 10 lawmakers and staff. The Moon, Downriver, and Jackson chapters have each scheduled legislative breakfasts. To view the MCUL master calendar of events by month, please click here. To begin planning an event, contact Jami Wolfe, MCUL Political Affairs Coordinator, at ext. 353 or Jami.Wolfe@mcul.org.
Highlights on the Credit Union Difference
MCUL/MCUF Boards Announces Award Winners
The MCUL board of directors has announced that Michigan State University FCU (LN) President/CEO Patrick McPharlin has been named recipient of the Distinguished Service Award (DSA), the MCUL’s highest honor. Other award winners approved by the MCUL board include American 1 FCU (JA) President/CEO David Puckett, who will receive the Credit Union Professional of the Year award, and Communicating Arts CU (MW) which will receive the Outstanding Credit Union of the Year award. Click here for additional information on each of the MCUL award winners. The Michigan Credit Union Foundation also announced the winner of the Credit Union Community Volunteer Award, which was Frances Fowlkes. Frances is the spouse of Chief Financial FCU board member Arthur Fowlkes, and is well known within the city of Pontiac for her volunteer efforts where she has devoted her time, talent and leadership ability to a variety of organizations.
“Invest in America” Press Coverage
Chrysler announced a new round of incentives for June and the $1000 dollar credit union discount was mentioned in the news release. A number of blogs picked up the release, giving “Invest in America” good coverage and some exposure through new Web sites. A number of business journals ran a story out of San Antonio where the “Invest in America” program was mentioned as part of a larger focus on Chrysler financing. You can read this article in Business First of Louisville, as well as an article in Barron’s about purchasing a vehicle that at www.lovemycreditunion.org.
CUBE TV for June
Several new videos have been added to CUBE TV in the past month. A new Chrysler commercial touting the credit union discount can be found on the CUs in the News channel. The CU National Update channel has four new webcasts covering national topics of interest for credit unions. MCUL CEO David Adams’ monthly podcast can be found in the Michigan Priority Report channel. The Advocacy in Action channel has two new lawmaker cable shows. Adams was guest of State Sen. Mickey Switalski, D-Roseville, and State Sen. Ray Bashem, D-Taylor. These videos can be embedded on credit unions’ Web sites or downloaded. For more information, contact MCUL Director of Public Affairs Mike Bridges at michael.bridges@mcul.org.
MCUL Press Room for June
The MCUL press room houses news releases, newspaper, television and radio coverage of Michigan credit unions, as well as some of the leading national stories on credit unions. On the national side, U.S. News and World Report posted an article on the “Save to Win” program being piloted in Michigan. The St. Louis Post Dispatch also ran a similar story. The San Antonio Business Journal mentioned “Invest in America” in a larger story on Chrysler Financing. In the Michigan newspaper section, the Battle Creek Enquirer has two stories on Battle Creek-area credit unions. United Educational CU is learning Spanish, while Omni Community Credit Union was named one of the 101 best and brightest West Michigan companies to work for. To read these stories and more, click here.
Awards Deadline Approaching
The deadline to submit an entry for the Maxwell/Herring/Desjardins awards is Aug. 14. This is about a month early. Michigan credit unions have a long history of performing well on the national stage. The past two years Michigan credit unions have picked up seven national awards. The more entries received means the more that can get sent to CUNA for national consideration. Click here for entry forms, tips on preparing a winning entry and FAQs.
Highlights on CRI
Cooperative Solutions Found Through Foundations-CTP
The MCUL ‘s Career Transition Program(CTP) has been recognized by the National Credit Union Foundation (NCUF) as a compelling way to assist displaced workers and further demonstrate a vested interest in community development. CTP is a line of credit loan with a maximum limit of $10,000. For the first two years, interest or fees are not assessed, and at the end of the 24-month period the balance of the line of credit will be converted to a fixed-rate loan that can be paid back over a period determined by the credit union. In the current economic environment, regulators are discouraging credit unions from offering new loans that carry higher risks than their traditional products and services. Michigan’s growing ranks of unemployed and underserved workers are defined by regulators as “at-risk” loan applicants. In order to provide the Career Transition Program and remain in compliance, credit unions need a reliable backstop to mitigate credit risk. Therefore, the NCUF in conjunction with the MCUL has approached the Kresge Foundation for a grant of $4 million in order to establish a 10 percent loan loss reserve. With below-market loans up to $10,000 each, at least 4,000 recently unemployed workers will be empowered to gain education and new skills to revitalize their careers, generate income for their families, and contribute to cohesive Michigan neighborhoods. The NCUF has submitted its grant application to the Kresge Foundation. For additional information on CTP, contact Stacy Dugan, CRI Coordinator at Stacy.Dugan@mcul.org.
“Right at Home” Foreclosure Prevention DVD and Web Site Will Be Rolled Out Soon
The “Right at Home” foreclosure prevention initiative, which includes a DVD and Web site created by MCUL, CU Village and several nonprofit partners, is close to being rolled out. A packet will be mailed to credit unions with an initial small quantity of DVDs, a flyer that can be customized with the credit union’s logo and printed, a reorder form for additional quantities of the DVD to distribute to members and the community, and a sample newsletter article and press release to make it fast and easy for credit unions to utilize. Stay tuned to MCUL publications for further updates on “Right at Home.” The Web site, www.RightAtHomeAnswers.org, is not online but will be operational soon.
Save to Win; The Michigan Road Trip
To promote the “Save To Win!” program, Denise Gable of the Filene Research Institute and Nick Maynard of the D2D Fund visited the eight participating Michigan credit unions to speak with credit union staff and members about the impact of the prized linked savings product so far. After 18 weeks, 6,000 certificates have been issued and over $1.8 million saved, or approximately $100,000 in savings per week. Click here for a video from Communicating Arts Credit Union in Highland Park of a winner and here for a video of a staff member discussing the program.
Chapter Assistance Tools
During the Chapter Leaders Retreat May 15-16, it was noted that chapter leaders were unaware of the many MCUL materials available for supporting and strengthening the chapter structure. Support materials include an individual website for each Chapter located by clicking here, which highlights chapter activities, events and MCUL specific initiatives; the opportunity to join a Chapter Listserve to communicate and find solutions through peer communications; and a host of educational topics provided and presented free of charge by MCUL staff. Topics include: youth and adult financial education, CRI, how chapters and credit unions can become involved in outreach efforts to the unbanked, legislative and regulatory topics, and others. If interested in further information, contact Martha Ninichuk at Martha.Ninichuk@mcul.org or your League Representative.
SOLUTIONS
Products, services and educational events offered by the MCUL and Affiliates that are available now to help credit unions be successful and become informed in a constantly changing financial services industry.
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
Membership Survey Coming Soon
The MCUL membership survey will be available online for credit unions within the next week. Credit unions are encouraged to utilize this survey to provide feedback on League services. Responses to the survey are used by MCUL, CUcorp and CU Village policymakers in their strategic planning processes. Availability of the survey will be communicated with credit unions.
AC&E Agenda Maximizes Attendee’s Time with Informational “Lunch & Learn” Sessions
Each year MCUL’s Annual Convention & Exposition is a tailored to meet the needs of a variety of busy credit union professionals, each expecting to take away something meaningful. The 2009 event has an agenda packed full of Education Breakout sessions ranging from 60-, 90- to 120-minutes, plus the popular “Lunch and Learn” sessions on Friday which include:
• Bank Secrecy Act/Anti-Money Laundering for Board Members with Robert Zalewski
• An Inconvenient Truth: Be Relevant to the Marketplace or Disappear with Tim Harrington
• Human Resources: Managing and Leading Change with Mitzi Taylor
• Lending: Top 100 in Lending – the Best Lending Strategies with Rory Rowland
• Marketing on a Shoestring Budget with Jayni Sech
• The Power of Mobility: How to Compete in the Next Technology Revolution with Russ McGuire
• CU Performance: Metrics and Incentives with Denny Graham
“Lunch and Learn” sessions are scheduled concurrently and are priced at just $25 per person, an exceptional value including a box lunch and training from an amazing line-up nationally known industry authorities. The AC&E takes place Jul. 9-11 at the Grand Traverse Resort & Spa, just outside of Traverse City. Further details about training topics included with event registration, as well as the ticketed “Lunch and Learn” sessions, maybe found on the event Website at keyword: 2009AC&E or at http://www.mcul.org/Welcome_1719.html.
Networking Opportunities and Cherries Take Center Stage at AC&E Events
Credit union professionals regularly rate “networking” as one of the greatest values of attending conferences and at the MCUL 2009 Annual Convention & Exposition, many opportunities have been created for attendees to interact with peers. On Friday, Jul. 10 from 4:00 – 5:00 p.m. a series of optional “Discussion Groups” has been arranged, allowing participants to engage in timely dialogue with a group facilitator, which will include: “Biggest Problems, Biggest Opportunities” with Tim Harrington; “Rolling Out Change Successfully” with Mitzi Taylor; and “Hot Topics in Credit Unions” with Denny Graham. Plenty of informal networking opportunities are also available during social events including the Thursday Night Welcome Reception, the Friday Night “SS MCUL” Poolside Dinner (ticketed), the Saturday Night “Evening on the Bay” Dinner and Fireworks event (ticketed), as well as at the optional MCUL organized Chateau Chantal Wine Tasting Tours (ticketed) or Manitou Sailboat Tours (ticketed). Complimentary shuttle busses will run on a schedule to take attendees downtown to enjoy National Cherry Festival activities or over to the nearby Turtle Creek Casino. The AC&E is being held Jul. 9-11 at the Grand Traverse Resort & Spa near Traverse City. Affordable accommodations are still available at area hotels. Additional information about the AC&E, including the complete agenda and online registration is available online at http://www.mcul.org/Welcome_1719.html or at keyword: 2009ACE.
Account Basics Webinar Addresses Areas of Liability
In response to calls to the MCUL compliance hot line requesting information on various account situations, the Education group has added a Webinar entitled “Account Basics for Credit Unions, Avoiding Liability for Commonly Misunderstood and Mishandled Matters.” The session will be held Sept. 22, 2009 from 1:00 – 2:30 p.m. (ET) Attorney R. Todd Sherpy will facilitate the session that will address questions about opening accounts for minors, trusts, businesses, beneficiary payee and custodial/guardianships, as well as documenting account changes, handling account disputes, important aspects of power of attorney and frequently mishandled death and estate account issues. The educational investment to attend is $169 per Internet Connection. The session is ideal for CEOs, managers, compliance professionals, member service and frontline supervisors and trainers. Additional details and online registration is available at keyword: 09ACCTWEB or at https://www.cuvlearning.com/MCULReg/miniweb.php?eventcode=09ACCTWEB
Summer Audio Conference Focuses on Matters Related to Deceased Members
When a credit union member passes away, it’s extremely important that the credit union properly handle the remaining accounts and understand who can legally be the recipient of funds. Attorney Robert Rutowski will review what documents survivors need to present when making claims for funds and explain what becomes of existing loans, as well as the consequences that can arise from mishandling funds paid to estates and beneficiaries. The audio conference is scheduled for Jul. 21, 2009 from 11:00 a.m. – Noon (ET). The educational investment to participate is $129 per phone connection. Additional details may be found at keyword: AudioDeath or at https://www.cuvlearning.com/MCULReg/miniweb.php?eventcode=AUDIODEATH
June Audio Podcasts
Three new audio podcasts are available on the MCUL homepage. MCUL Director of Public Affairs Mike Bridges talks Rep. Tim Melton (D-Auburn Hills) about “Invest in America,” how his district is dealing with this economy and the priorities of the legislature. There is an “Invest in America” podcast with the Pennsylvania Credit Union Association. Bridges talks with Corinne Sherman from the PCUA about “Invest in America” and how Pennsylvania credit unions are marketing the program. MCUL Director of Education Renee Werth is featured in a podcast previewing the upcoming AC&E. Werth has information that highlights the agenda, provides insights into networking activities and hotel registration. You can access the podcasts by clicking here.
Compensation Survey Coming in July
The 2009 MCUL Compensation Report is on schedule for a July delivery. The report will encompass base compensation, bonus/incentive compensation, deferred compensation, as well as specific employee benefits. For those credit unions that filled out the survey, a free PDF copy of the report will be emailed in late July. If your credit union did not participate in the survey, but would still like a copy of the PDF, the price will be $40 for affiliated credit unions and $80 for unaffiliated. For more information on the survey and report, contact MCUL Director of Public Affairs Mike Bridges at michael.bridges@mcul.org.
Second Quarter SAS Gazette and Contact Available
The second quarter editions of the SAS Gazette and Contact magazine will be delivered in the next two weeks. Both publications focus on the corporate stabilization plan and how Michigan credit unions are coping with the roller coaster ride of information that comes out. Contact also features a look at the positive tone for credit unions in Washington and Lansing, emerging social media, the 2009 AC&E and a time capsule of a past AC&E. The SAS Gazette focuses on Mark to Market, Collections and a Legislative visit by a Congressman. Each publication is always available online by clicking here. If you have an idea or comment for either publication, drop MCUL Director of Public Affairs Mike Bridges an email at michael.bridges@mcul.org. Extra copies of each publication can be sent to credit unions upon request.
Major Solutions Provided by CUcorp
• CU Growth Solutions
• CU HR Solutions
• CU Lending Solutions
• CU Technology Solutions (CU Village)
• CU Cooperative Solutions (AAA, Sprint, CMG, etc.)
Highlights on CUcorp Solutions
Upcoming video series to feature CU HR Solutions' Shared Staffing offerings
CUcorp’s CU HR Solutions division is slated to release a video series this July about the Shared Staffing consulting program. The series will feature an overview of the program with separate videos addressing compliance, internal audit and human resource consulting service offerings. The Shared Staffing program allows credit unions to utilize the expertise of a well-qualified consultant by purchasing blocks of time or contracting for special projects. After a well attended webinar in January 2009, our League Representatives continue to field calls from interested credit unions, said CU HR Solutions Managing Consultant Jessica Strasser. “Our video series and soon to be released marketing materials will provide credit unions with a comprehensive overview of the myriad of consulting service options available through our shared staffing program”. Whether part or all of a function is outsourced, shared staffing is highly customized to each credit union client needs. A benefit of utilizing a consultant is that credit union staff have time to focus on key objectives while ensuring compliance, HR and/or internal audit requirements and related strategic goals are addressed by a skilled professional with expertise in the related function. The video series, which will be available on the Michigan Credit Union League’s CUBE TV video library, will enable credit unions to gain an overview areas they are interested in without having to fit a webinar in a busy schedule. For more information, contact your League Representative at extension 534.
Mortgage Center Creates Web Site to House Financing Information
CUcorp’s partner, Mortgage Center, is a CUSO that services over seventy credit unions in Michigan. Mortgage Center continues to make mortgages affordable for credit union members with 30 year fixed rates below 6% and 15 year fixed rates below 5.5%. Mortgage Center has recommended a Web site, www.MakingHomeAffordable.gov, which is a great resource for credit unions members who are seeking to refinance an existing mortgage or for first time buyers. If credit unions or their members need additional information, they can contact CUcorp League Representatives at 800-262-6285 extension 534.
Top Fraud Threats for 2009 – Resources for credit unions
• IVR Hacking – Ensure your system is monitored and tested frequently
o Frontline staff are often the weakest link in authentication – Do not share information
o Staff Training must focus on conformance to established procedures
• PC Malware Infections – Hacking of legitimate sites and re-direction to bogus sites
o Education of employees and members is critical
• Below the Radar Attacks – Theft occurs over days, weeks or even months. Criminals realize that slow and low attacks will decrease the likelihood of getting caught.
o Train employees to watch for consistent low transactions and authorizations
o If in doubt speak to your credit card processor or your back office provider
• Check Image Fraud – Copy of victims’ checks are stolen and scanned for the check images
o Educate your members to file police reports and close out checking accounts when applicable.
If credit unions or their members need additional information, they can contact Flo Cobb at CUcorp ext. 544.
Earnie the Earlybird Youth Program Updated with New Look
CU Growth Solutions has updated Earnie the Earlybird’s look with bright new colors to appeal to kids of a wider age range. This youth program assists credit unions in cultivating loyal members for the future by involving them with the credit union at an early age. Through games, activities, giveaways and mailings, the Early Bird Savings Club teaches children from birth to age 12 the importance and benefits of being a credit union member. The Early Bird program has been developed to increase membership value to parents and create both brand loyalty and awareness within your community, showing your credit union is family friendly. Unlike most youth programs, there is no licensing fee to offer the program and items are available as a kit and sold individually. To view the new materials and pricing, call 800.435.2824 or visit www.cucorp.com, keyword search: EARLY BIRD. The original Earnie the Earlybird materials will be available to credit unions while supplies last.
CU Growth Solutions Introduces Online Creative Portfolio
CU Growth Solutions, CUcorp’s marketing division, has developed an online portfolio to showcase the creative work they have developed for clients over the past eighteen months. The site features credit union campaigns, including print materials, direct mail, radio spots and micro sites. Visit www.cucorp.com, keyword search: DESIGN to check out CU Growth Solutions latest work.
CUNA Mutual Group Free Webinar - Home Equity Recapture & Home Equity Acquisition – Grow & Diversify Your Loan Portfolio
The FREE webinar is scheduled on July 1, 10 – 10:30 a.m. CT. The Home Equity Recapture program identifies creditworthy members with home equity loans or lines financed elsewhere and brings them back to the credit union where they can experience the credit union advantage. The Home Equity Acquisition program targets creditworthy members with a first mortgage loan financed elsewhere and pre-qualifies them for a home equity loan or line at your credit union. These programs help credit unions fight back against the competition in a highly competitive market and help diversify your loan portfolios and control risk. Register now.
AAA Members Save with the Show Your Card & Save program - AAA and Penske Do-It-Yourself Moving Made Easy
In today’s economy, many families are choosing to move themselves to save money. These quick tips from Penske Truck Rental can help ensure that your move is smooth and easy. “Moving is one of life’s most stressful moments,” said Don Mikes, vice president of consumer truck rental for Penske. “Our goal is to help guide people through their journey.” AAA members receive a 12% discount on one-way truck rentals and supplies and a 10% discount on local rentals and supplies. Click here to see the entire article to use in your newsletters or on your web site.
Sprint Launches the Palm Pre
June 6th, Sprint launched the much anticipated Palm Pre. It introduces Palm’s new computing platform called webOS that delivers a phone that is always thinking ahead! A limited supply will be available at launch through Sprint Retail Stores, Best Buy and Radio Shack. Credit Union Employees and Members receive special discounts from Sprint. Remember to tell your members to ask for their credit union member discount to receive waived activation or upgrade fees and a discount off select monthly service plans. Learn more by clicking here.
CUNA Strategic Services Launches VendorTrack
With NCUA’s new emphasis on due diligence requirements, CUNA Strategic Services researched and developed a comprehensive vendor management system for credit unions called VendorTrack. The system is FREE to America’s credit unions and allows you to load due diligence documents, manage vendor files, use our RFP templates or create your own. You can centralize your entire third-party functions in one free, secure tool. Click here for a brochure or for more information, contact Michelle Cunningham, New alliances associate manager, 800-356-9655, ext. 4067, or mcunningham@cuna.com.
Major Solutions Provided by CU Village
• Website Services
• Web Content
• Multimedia Services
• Security Services
Highlights on CU Village Solutions
Powered by CU Village
What do CUNA’s CU Magazine site, InfoSight (the online compliance service used by over 25 leagues), and a bilingual Polish/English credit union site have in common? They are each powered by the content management system developed by CU Village. It has the dual benefit of being feature-rich right “out-of-the-box” and the flexibility to be customized as needed. To find what our Content Management System can do for you, contact info@cu-village.com or visit CU Village by clicking here.
Web and Graphic Design
For a look that’s unique to your site, look to CU Village for your design work. We also provide Flash, multimedia and ad banner development services. For more information, contact info@cu-village.com or visit CU Village by clicking here.
Web Site Strategic Planning
For tips how to develop a strategic plan for your web site, check out CU Village recent blog posts on the topic at cuvillage.blogspot.com. We also provide consulting services where will lead you through our planning model. For more information, contact info@cu-village.com or visit CU Village by clicking here.
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Regulatory Affairs
