By The Way

The By The Way newsletter is a great way to keep Kentucky credit unions informed of the latest updates in governmental affairs, compliance and regulations, education and training.  In addition, By the Way highlights the difference credit unions are making on a daily basis.

League Updates

VISION 2022 Highlights


CUNA Announcements


Educational Opportunities

Credit Union News

Compliance Updates

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A Message from the President 

Going back to school…

Going back to school was never as fun and impactful as it was on August 8-10.  Your League hosted its 88th Annual Meeting and Convention in Louisville at the Omni Hotel. This year’s theme was “Back to School.” 

The 3 days included recess (golf outing), two days of classroom instruction (general session and breakouts) and even graduation (Emerging Leaders).  We had a competition between the classes – League Staff, League Board, Vendors, Volunteers, Credit Union Staff and Guests in a game of “Friendly Feud” during our “Night Under the Stars” prom event (Awards Banquet). 

In addition, we had a high school throwback night with attendees proudly wearing their high school jerseys, sweaters, jackets, and t-shirts.  The closing event took us back to the football field with a keynote from Dan Meers, mascot for the Kansas City Chiefs.

Even in all the fun and learning time, we also had the opportunity to raise awareness for the communities in Eastern Kentucky that were impacted by flooding.  Because of everyone’s generosity, in just 3 days, we raised $5,470 in gift cards and cash. 

The success of this event would not have been possible without the support of our credit unions and vendors.  I also want to thank our staff for all their hard work in putting this together.  They are rock stars!  Again, thank you to all those who played a part in making the 88th Annual Meeting and Convention one of our best. 

We look forward to seeing you next year!

Sincerely,
Debbie Painter
League President

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Governmental Affairs Update

August is traditionally a slow month for government, with Congress on recess and the state legislature not in session.  This year broke out of that mold. 

The month started with the Annual Meeting and Convention being held in Louisville where participants were able to hear some unique and informative stories from a longtime Frankfort insider during the Government Affairs Breakfast.

In most Augusts, the most exciting or interesting part of the work of the legislature are the meetings held on location at the State Fair, this year however the legislature was called into a Special Session near the end of the month in response to the flooding disaster in Eastern Kentucky. As you may remember from the last General Session of the Legislature, one of the newest laws enacted limits the duration of any state of emergency declared by the Governor to 30 days without the legislature convening to extend and/or modify the declaration.  The legislature met for 3 days and swiftly passed legislation to extend the state of emergency for both the flooding in Eastern Ky and the tornado-damaged areas of Western/Central KY as well as appropriating over $200 million toward relief and clean-up in impacted communities.

While all this was taking place, back here in Kentucky, your League was busy working with other league partners and CUNA to advocate aggressively against proposed changes to Interchange. After the introduction of a proposal from Sen. Durbin (D-IL), in partnership with Sen. Marshall (R-KS), to reform interchange to the detriment of financial institutions, the League-CUNA system sprang into action and thousands of messages have poured into congressional offices so far. Senators McConnell and Paul remain opposed to these changes and are understanding of our concerns about this and similar proposals.  Rest assured that we are focused on combating this and any threats that emerge to the system.

Sincerely,
Kyle Hagerty, CUCE
Director of PR & Governmental Affairs

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Vision 2022 Highlights

Thank you to all the attendees, sponsors, exhibitors, and special guests who made VISION 2022 a success! This year's event brought in 119 attendees from 31 credit unions and showcased 43 vendors in the Exhibit Hall.

Golf Tournament 

1st Place: Larry Moore (Retiree), Rob Beaven (Guest), Gary Lord (Retiree), Tim Root (L&N FCU, not pictured)  

 

2nd Place: Janelle Morgan (Allied Solutions), Mike Hovekamp (Louisville Federal CU), Heather Walter (Advanz CU), Erin Walter (Brown-Forman ECU)

3rd Place: Ryan Wood (L&N FCU), Sam Jackson (L&N FCU)

 Longest Drive – Men:
Rob Beaven, Guest

Longest Drive – Women:
Heather Walter, Advanz CU

Longest Putt:
Rob Beaven

Closest to the Pin:
Piper Graham, Metro Employees CU

 Straightest Drive:
Erin Walter, Brown-Forman ECU

 

Awards Banquet

CUNA Awards 

 

 

 

Service One CU
Dora Maxwell Award
$50-$250M Assets 

 

 

 

Class Act Federal CU
Dora Maxwell Award
$250M - $1B Assets

 

 

 

Abound CU
Dora Maxwell Award
$1B+ Assets

 

 

 

Service One CU
Louise Herring Award
$50-$250M Assets

 

 

 

Commonwealth CU
Louise Herring Award
$1B+ Assets

 

 

 

Class Act Federal CU
Desjardins Award (Adult)
$250M - $1B Assets

 

 

 

Commonwealth CU
Desjardins Award (Adult)
$1B+ Assets

 

 

 

Abound CU
Desjardins Award (Youth)
$1B+ Assets

  

Chapter Awards

 

 

 

Blue Grass Chapter
Most Effective Award
Chapter Attendance Award

  

Kentucky Awards 

 

 

 

Frank Moore Outstanding
Professional Award
Judy Hester, Northern KY Federal CU

 

 

 

Richard Zimmerman Outstanding Young Professional Award
Amanda Reynolds, Park Community CU

 

 

Emerging Leaders 

The Kentucky Credit Union League is proud to sponsor the Emerging Leaders Program — a program designed to bring up-and-coming credit union professionals to the next level and prepare them for leadership roles within the credit union movement. 

Over the course of 8 months, Emerging Leaders attended motivational and educational meetings where they learned about: 

  • Different communication styles within group settings
  • How to speak in front of an audience
  • How to read credit union financials and
  • Why advocacy is important

In addition, they organized drives at each of their credit unions to collect personal hygiene items for a local organization and surpassed this organization’s expectations. 

In a special session at Vision 2022, the Emerging Leaders wrapped up their experience by presenting a topic of importance to the credit union movement.  

 

Congratulations to the Emerging Leaders Class of 2022!

Abound Credit Union
Sharon Carter
Wendy Ernst
Tara Harper
Emily Thomas 

Advanz Credit Union
Alisha Martin

Ashland Credit Union
Mary Gambill
Hannah Gillum
Eden McKenzie
Laura Tackett 

Class Act Federal Credit Union
Amber Davis
Germaine Randolph

Commonwealth Credit Union
James King
Blake Manning
Ann Osborne
Kendra Thacker Dickinson

Daviess County Teachers Federal Credit Union
Ashley Hicks

L&N Federal Credit Union
Austin Moran
Joseph Partin
Sarah Ryan

Members Choice Credit Union
Susan Daniels
Amanda Gillum

Park Community Credit Union
Jessica Hicks
Laura LaManna
Chase Nelson

Service One Credit Union
Elisabeth Lindsey

The Health & Education Federal Credit Union
Joe Staff

University of Kentucky Federal Credit Union
Kayla Francisco
Spencer Johnson
Kimberly Powell
Jordan Reed
Gabe Richie
Marta Routt
Taylor Evans

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CUNA Releases August Economic Update

In the August 2022 CUNA Economic Update, Chief Economist Mike Schenk discusses credit union development in the first half of the year and how that compares to banks.

Highlights from the most recent update include: 

  • Unprecedented loan growth: Schenk projected credit union loan growth at 8%, but mid-year data shows loans grew over 10%.
  • ‘Eye-popping’ auto lending growth: Auto loans were up 12% in the first half of this year. This surpassed the previous 1994 record when auto loans were up 11.3%.
  • Consumer perceptions: Credit union members are over two times more likely than non-members to say they are ‘very positive’ they can get a low-cost loan at their credit union.

The credit union impact 

“Data shows that credit unions are much more likely to be consultative, to sit down with their members and have deep meaningful conversations. Credit union members were two times more likely than non-members to say that they’ve had a personal interaction with somebody at their credit union to talk about their financial situation. A combination of decent pricing consumer-friendly pricing and those deep meaningful conversations mean that the credit union members are more resilient.”

“But when the year is done, there’s no question about it, credit union loan growth is going to be substantially stronger than what we originally predicted and the impacts the social impacts, the consumer impacts, will be stronger than we originally anticipated.”— Mike Schenk  

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Mortgage Loan Originator Training

Sept 19 & 20 | Online Learning Opportunity

This course is a comprehensive overview of the mortgage lending process. New loan originators as well as those looking to satisfy their periodic training requirement under Regulation Z would benefit from attending this course. 

The cost for the training will be based on the credit union’s asset size:

  • $279 for credit unions under $100 million assets
  • $399 for credit unions over $100 million assets

MLO Training will be held in 2 virtual half-day sessions:

September 19 from 1pm-4pm

  • Loan originator basics
  • Application requirements
  • Underwriting requirements

September 20 from 9am-12pm

  • Closing requirements
  • Servicing requirements
  • Fair Lending Considerations

 

REGISTER

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Board & Committee Leadership Conference - REGISTRATION IS OPEN

November 3-5 | Doubletree by Hilton Hotel Asheville-Biltmore | Asheville, NC

DoubleTree by Hilton Hotel Asheville - Biltmore
115 Hendersonville Road
Asheville, NC 28803

Make plans to join your peers for an education conference designed just for credit union volunteers. The 2022 Board & Committee Leadership Conference (Formerly Volunteer Leaders Conference) is set for November 3-5 in iconic Asheville, NC and features a full range of informative sessions on critical, timely issues, with first-rate speakers. 

MORE INFORMATION

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2022 Women's Leadership Conference

October 5-7, 2022 | Omni Royal Orleans | New Orleans, LA

Get ready for a conference designed for NOW. Seven collaborative states (TRGroup) join forces to launch a unique development experience designed to drive results and accelerate the advancement of women in the industry.

Through inspired speakers and engaging content female leaders will leave equipped with actionable strategies to overcome challenges faced in a modernized business environment. Expect bold dialogue, innovative idea sharing and more! Are you in? 

Sessions Include:

  • Women in Financial Technology: Fueling Meaningful Innovation
  • Living & Leading by Design Rather than Default
  • Panel Discussion: Women in Credit Union Leadership
  • Barking Up the Wrong Tree
  • Interactive Experiment: Are You Asking the Right Questions to get to the solution?
  • Identifying & Addressing Stress to Prevent and Manage Burnout
  • Breaking Glass: Dare to Thrive


Your educational investment is $445 per person.  The event is taking place at the historical Omni Royal Orleans located at 621 St Louis St.

Click below for more information, including registration and hotel accommodations.

MORE INFORMATION

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Abound Takes Home Top Awards for Youth Financial Literacy, Social Responsibility

Abound Credit Union was recognized as the statewide leader in youth financial literacy and social responsibility by the Kentucky Credit Union League. During the league’s annual meeting in Louisville, Abound received first place in two separate award categories. 

Specifically, the 2022 Alphonse Desjardins Youth Financial Education Award recognized Abound’s development of a customized, in-house curriculum and significant expansion of its financial literacy programs for elementary, middle, high school and college students. Through formally training 44 Abound team members to provide in-person lessons at local schools, Abound’s programs have evolved to better meet student and teacher needs. The programs have reached thousands of local students, empowering them to be smart financial decision-makers.  

The 2022 Dora Maxwell Social Responsibility Community Service Award recognized Abound’s actions after the devastating tornadoes Kentuckians experienced in December 2021. The Credit Union matched up to $5,000 in donations and encouraged Members, along with others in the community who wanted to make a difference, to donate through its online, phone and branch networks. In early 2022, Abound presented a total donation of $23,270 split evenly between the Warren County Public Schools Synergy Relief Fund and the Caring for Kids Tornado Relief Drive (operated by Taylor County Schools). Abound also offered two storm-relief lending options to help Kentuckians who were impacted. 

“Abound Credit Union was founded more than 70 years ago to help improve the lives of our Members and our community. We’re committed to meeting local needs and providing the financial education and resources Kentuckians need to thrive,” said Ray Springsteen, President & CEO of Abound Credit Union.

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Commonwealth Credit Union Named Best in State Credit Union

Commonwealth Credit Union was recently named the best in state credit union by Forbes. Each year, Forbes partners with market research firm Statista to conduct in-depth interviews of more than 26,000 U.S. citizens from all 50 states. Looking at members that have checking accounts, members provided an overall satisfaction score and were asked if they would recommend that credit union to friends and family. They also answered questions focused on six separate facets of the relationship: Trust, terms & conditions (including reasonable and transparent fees), branch services, digital services, customer service, and financial advice. Commonwealth Credit Union is proud to be named a best-in-state credit union for the 4th year in a row and number 1 for the 3rd time.

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Service One Credit Union Hosts Ribbon Cuttings at New Hopkinsville & Scottsville Locations

On August 4th, a ribbon-cutting ceremony for the Service One Credit Union (SOCU) branch at 361 Old Gallatin Rd.

On August 11th, Service One held another ribbon-cutting ceremony for the new branch at 120 Griffin Bell Dr.

The Kentucky-based credit union recently acquired both branches from MidWest America FCU, based in Indiana.

“We look forward to serving our Hopkinsville and Scottsville members and are pleased to have the existing staff of both locations join our team”, said Rebecca Stone President/CEO.

Branch hours are from 8:30 am-5:00 pm Monday through Thursday, and from 8:30 am to 6:00 pm on Friday.

With three branches in Bowling Green, one in Glasgow, and now one in Scottsville and Hopkinsville, Service One continues to grow its membership while investing in the best technology and products to serve its members.

 

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UK Federal Credit Union Announces Donation to American Red Cross Bluegrass Chapter

On August 1st, the University of Kentucky Federal Credit Union (UKFCU) launched a donation campaign to help raise funds for the Flood Relief efforts in Eastern Kentucky.

UKFCU has teamed up with the American Red Cross Bluegrass Chapter to help those struggling with the devastating effects of the recent flooding in Kentucky with a $25,000 donation. In addition, UKFCU is matching donations dollar for dollar, up to $50,000, for a maximum donation of $75,000.

Please join UKFCU in providing some much-needed help to those in need by clicking on the link below:

https://www.ukfcu.org/relief 

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Abound Named Credit Union of the Year by National Association

Abound Credit Union was named Credit Union of the Year by the National Association of Federally-Insured Credit Unions (NAFCU). Winners of NAFCU’s Annual Awards competition are chosen by a committee of peers based on entries exemplifying above-and-beyond achievements, dedication, service in the community and leadership. Abound Credit Union will be honored during NAFCU’s Congressional Caucus in Washington, D.C. September 11-14. 

Abound last won the credit union of the year award in 1994. 

Specifically, Abound Credit Union was awarded Credit Union of the Year (assets more than $250 million) based on its commitment to consumer education, impact on the community, and adherence to principles of sound financial judgment.  

The Credit Union’s ongoing leadership in financial education has continued to expand, with Abound’s youth programs now reaching thousands of Kentucky students from elementary school through college. Abound’s adult financial education programs are also reaching more Kentuckians than ever before through new community partnerships and annual events, such as Veterans 2 Entrepreneurs.  

Abound’s donation matching program, which was launched just after devastating tornadoes struck portions of Kentucky in December 2021, is another notable example of the organization’s commitment to the community and contributed to the 2022 Credit Union of the Year recognition.  

Abound's Board of Directors: Front Row (left to right) Cathy (Pierce) Groner, Wanda Parker, Richard L. Ardisson, Jo Exler. Back Row (left to right) George Pennington, Otto Tennant, Jr., Henry Wheatley, J. Marvin Hawk, and Robert H. Roush.

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Commonwealth Credit Union Adds Two More Awards

At this year's Kentucky Credit Union League Annual Meeting, Commonwealth Credit Union won 1st place for the Louise Herring Award and the Desjardins Adult Education award.

Commonwealth Credit Union won first place for the Louise Herring for the work done to expand its lending efforts by implementing Zest. This program uses artificial intelligence (AI) to review 191 critical features to deliver a decision in approximately 2.4 seconds. This program has allowed CCU to extend lending opportunities to more members, especially those often overlooked by traditional credit scoring methods.

Commonwealth Credit Union was awarded the Desjardin Award for Adult Education for its collaborative efforts with the Norton Healthcare Sports and Learning Center in conjunction with the Louisville Urban League. Through a co-branded financial education platform with the Louisville Urban League, community members and Norton Healthcare Sports and Learning Complex participants have access to a dynamic online portal that provides data analytics to the Louisville Urban League. Participants also receive access to an in-person financial curriculum, products, and accounts geared to lay a solid foundation for a lifetime of financial success.

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Rumored Regulation E, EFTA expansion from CFPB is ‘unwise, unlawful’

The Consumer Financial Protection Bureau’s (CFPB) rumored plan to expand Regulation E and the Electronic Fund Transfer Act (EFTA) is unlawful, would contravene the bill’s text, and would run afoul of the Administrative Procedures Act, CUNA wrote to the CFPB Tuesday.

CUNA sent its comments in response to reports the CFPB is considering a rewrite of Regulation E and the EFTA under which credit unions would be liable for the actions of illegal actors if a consumer/member initiates a money transfer.

“CUNA and the credit unions it represents strongly support efforts to stop fraudulent schemes, robust compliance programs to limit this activity, and all efforts at the federal level to mandate safe and reliable payment platforms,” the letter reads. “But expanding current law to punish member-owned credit unions for the actions of a rogue fraudulent actor, despite no fault of the credit union or other members, is not only unwise: it is unlawful,” it adds.

CUNA notes the CFPB cannot impose liability not in the EFTA without Congressional revisions, nor can it revise Regulation E to impose liability on credit unions without going through the formal rulemaking process.

“CUNA asserts that the aforementioned changes, imposing new credit union liability and new requirements through the rumored guidance would not be the act of promulgating guidance at all, it would be issuing a legislative rule without going through the formal rulemaking processes,” the letter reads.

It also adds that a rulemaking process will benefit the CFPB, credit unions, and consumers—besides the legal obligation—as it will allow the CFPB to hear from stakeholders and ensure its regulations reflect sound policy.

CUNA also notes the expansive burden of forcing credit unions to pay for the misdeeds of fraudulent actors “would put a major strain on credit union resources and their ability to collaborate with payments platforms and expand consumer choice.”

Source: cuna.org

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NCUA to Return $395 Million to Credit Unions Next Month

The fund comes from the remnants of four corporate credit unions the NCUA liquidated in 2010.

The NCUA announced Monday it will pay credit unions $395 million in September from the remainders of four corporate credit unions it liquidated in 2010.

The NCUA, as liquidating agent, will distribute $313 million to more than 400 membership and paid-in-capital shareholders of the former Members United, Constitution and U.S. Central corporate credit unions. It will also distribute $82 million in dividends to more than 1,100 shareholders of Southwest Corporate.

The NCUA completed capital distributions to Southwest Corporate capital holders last year.

The distribution announced Monday is scheduled to occur by Sept. 30. With this fifth distribution, the NCUA will have returned more than $2.6 billion to former membership and paid-in capital shareholders and almost $292 million in dividends to shareholders.

“The NCUA has reached another milestone in winding down the remaining asset management estates under the successful Corporate System Resolution Program,” NCUA Chair Todd Harper said in a news release.

“Thanks to the diligent efforts of the NCUA team over more than a decade, we continue to fulfill our fiduciary responsibility to return these funds to capital holders,” he said. “As a result, the federally insured credit unions receiving these distributions will have the capacity to lend more and better offer safe, fair and affordable financial products. That is good for credit union members and for our economy.”

The NCUA has previously made four rounds of distributions from the corporate credit unions’ asset management estates. In 2020, 2021 and the first quarter of 2022, distributions were made to capital holders of Southwest, Members United, Constitution and U.S. Central.

The NCUA set up the Corporate System Resolution Program “to stabilize, resolve and reform the corporate credit union system in the wake of the 2008 financial crisis.” It said the program allowed the credit union system to absorb the failures of U.S. Central, Western, Southwest, Members United and Constitution corporate credit unions over time.

Some of the recoveries were from suits the NCUA brought against major banks that participated in the sale of residential mortgage-backed securities that were a major contributor to the financial crisis. The NCUA said those securities also contributed to its liquidation of five corporate credit unions.

Chip Filson, a former NCUA official who blogs on credit union issues, has criticized the wisdom of the NCUA’s liquidation of those corporates. He has noted that the losses the NCUA projected never materialized, and instead the estates have shown large surpluses.

CU Times sought Filson’s comment regarding Monday’s report. He emailed back comments and questions, which were shared with the NCUA to give them an opportunity to respond. They were:

  • The Asset Management Estates (AMEs) “spent $10 million on liquidation expenses in the March quarter of 2022, since there had been virtually none for the year or two before this. Who got paid?”
  • “As of March 31, 2022 AME financial update, (the) NCUA estimated the total remaining AMEs’ surplus at $846 million. That was five months ago. There is still $451 million remaining from the March projections. Why is (the) NCUA continuing to slow walk distributions two years after the NGN program ended?”
  • “No financial updates or further estimates were provided. For example, in March the Southwest surplus’ projected dividend was $127 million, so why is just $82 million being returned now?”

“The lack of public discussion at the board level or by any other agency personnel responsible for managing these assets is disappointing,” Filson wrote in an email to CU Times. “It falls far short of the public transparency and timely responsibility one would hope the agency would demonstrate in its cooperative regulatory role managing member funds.”

Source: CU Times

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