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

CUNA Announcements

Educational Opportunities

Credit Union News

If your credit union would like to share an announcement, please email your article to Janet Garrett.

Compliance Updates

Career Opportunities
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Governmental Affairs Update

August was a busy month for Advocacy, with multiple events taking place across the state.  While Congress and the General Assembly are both out of session for the month, League members and staff were busy meeting with lawmakers from all levels.  

On August 8th, Senate President Pro Tempore, David Givens, visited the League Office for a roundtable with local credit union executives.  The following week, we joined the team from Signet FCU for a visit with State Representative and Chairman of the Appropriations & Revenue Committee Steven Rudy at their Paducah branch.  We closed August with fundraising events for Congressman Andy Barr and for members of Kentucky State House leadership including Speaker David Osborne & Majority WHIP Chad McCoy. 

These events offered credit union leaders the opportunity to engage and discuss important issues with policy makers. In addition, these policy makers were able to ask questions and have conversations to give them a better understanding of the credit union industry and how we #MoveKentuckyForward.

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Today is the Last Day to Make Nominations for a Kentucky Recognition Award

Each year, your League hosts an Awards Banquet to recognize the achievements of individuals, credit unions, and chapters.  Nominating an individual, credit union, or chapter for a Kentucky Recognition Award is a wonderful opportunity to honor those in the movement who demonstrate a sincere passion for the cause and recognize their commitment to the “people helping people” philosophy. 

 

THE FINAL DEADLINE TO MAKE A NOMINATION IS AUGUST 30th. 

Remember, we have revised the nomination process to be more transparent and much simpler: 

  • Any volunteer or professional of a League-affiliated credit union may nominate any volunteer or professional, provided the individual is with a League-affiliated credit union. The person making the nomination and the nominee need not be affiliated with the same credit union. Nominations may be made without regard to chapter boundaries.

  • To make a nomination, visit https://www.kycul.org/cu-awards-programs, complete the Nomination and Biographical Form. The nomination process will be transparent, and it is recommended that the person making the nomination collaborate with the nominee in the submission process to ensure accurate and detailed information. 

  • Self-nominations will not be considered. If no candidate meets the criteria, a winner will not be selected. 

  • The winner will be notified within 30 days of the annual meeting. 

We hope that the change in guidelines will provide more opportunities for recognition and increase nominations moving forward.  

If you have any questions, please contact Vicki Hall at [email protected].  

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CUNA Mutual Group’s Discovery Conference Now Available On-Demand

Free Online Conference Helps Credit Unions Drive Innovation for Today & Tomorrow

CUNA Mutual Group's tenth annual, day-long Discovery Conference brought together innovation experts and credit union leaders to help credit unions prepare for upcoming 2020 strategic planning sessions. The conference is now available on-demand, at no cost, until February 2020.

All credit union and league employees are welcome and encouraged to register to access conference content on-demand. Register at:

https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=3B7F00B7-4E48-467D-93C3-DD893D5E65FB&GroupID=B2B.

The Discovery Conference is the credit union industry’s leading online conference hosted annually by CUNA Mutual Group for credit union leaders. Participants enjoy the conveniences of attending sessions and hot topic chats virtually with on-demand content available 24/7 following the conference.

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CUNA Marketing & Business Development Certification Schools

October 7-10, 2019 | Louisville, KY

Pave Your Path

In the race to secure more members, credit unions need skilled professionals in both marketing and business development to stay ahead of the competition. CUNA Marketing & Business Development Certification Schools brings these intertwined disciplines together while enabling you to pursue the field of your choice.

Whether you're new in your role or a veteran looking to refine your skills, these schools provide valuable education guided by industry experts--with double the potential for networking. From member recruitment to building your brand, you'll return to your credit union with a comprehensive review of the critical skills and best practices in your field.

Who Should Attend?
Both schools are beneficial for credit union marketing and business development professionals looking to build and grow their skills.

REGISTRATION INFORMATION

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CUNA Experience Learning Live!

October 20-23, 2019 | Las Vegas

Invigorate training and reignite your passion for talent development

You know training is important, but building a training program that gets results without straining your staff's schedule and budget is a tall order.

Connect with your fellow learning leaders to discuss opportunities and barriers in credit union training at CUNA Experience Learning Live!

You'll gain:

  • Expert insight into forward-thinking learning trends
  • Actionable guidance for creating a positive training experience
  • Answers to current, relevant questions in today's training landscape

Who Should Attend?

This conference is beneficial for credit union professionals looking to start, build and grow training and development programs at their credit union.

REGISTRATION INFORMATION

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The Kentucky Credit Union League is proud to provide our credit unions with this distinguished opportunity for improvement, growth, and knowledge. 

The 85th KCUL Annual Meeting and Convention features a comprehensive agenda on top-of-mind issues, the KCUL Business Meeting, a golf outing, an awards banquet, entertainment and an extensive showcase of business partners and exhibitors.

Whether you are a credit union professional or volunteer, from a small or large credit union, you will find useful information geared towards your needs.

Opening Keynote

Timothy Alexander knows what it takes to beat the odds. No matter what obstacle comes his way, he’s determined to never quit. His drive helped him become a college football player when many believed that dream was impossible due to a car accident that left him paralyzed.

During Timothy’s session, he will tell his story and challenge those in attendance to live a life of residency. He is a living example of the phrase, "We don’t need it to be easy, we just need it to be possible.

Special Guest Keynote

Kentucky State Treasurer, Allison Ball, will discuss recent financial literacy advancements in Kentucky, including the Kentucky Financial Empowerment Commission which was created earlier this year.

 

  

Governmental Affairs Keynote

Richard Gose is CUNA’s Chief Political Officer.  In that role, he has spearheaded the strategy and implementation of awareness and advocacy campaigns in states across the country. In addition to fighting direct attacks on the Credit Union model in states like Iowa, Richard has been an invaluable partner in the creation and success of our own Awareness Campaign under the “Move Kentucky Forward” banner. 

 In his address at the Government Affairs Breakfast, Richard will not only discuss the progress of the Move Kentucky Forward campaign, and the important work still to be done, but he will speak to the national environment in which our campaign and others are being waged.  Richard will discuss the keys to effective advocacy and awareness efforts and how to maintain hard fought gains.  This will be an important, and interesting talk with new and valuable information presented to those in attendance.”

Don’t miss these exciting keynotes!  REGISTER for the Annual Meeting today!

Hotel rooms are filling up fast...RESERVE your room. The deadline date is September 10th.

This conference is made possible in large part by:

 

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East Coast Marketing & Business Development Conference

September 26 – 27, 2019 | Hilton Richmond Downtown | Richmond, VA

CONFERENCE REGISTRATION
Two-Day Conference Cost: $349 for first attendee from your credit union and $329 for each additional attendee.

HOTEL
Hilton Downtown Richmond
501 E. Broad St, Richmond, VA 23219

TOPICS/SPEAKERS:

  • Silos Are Meant to Be Bent, Not Broken, Randy Schultz, Weber Marketing Group
  • Serving the Millennial Mom, Lacy Briney, The Mom Complex
  • Flavorless to Fabulous: A Roundtable Experience, VA League Marketing Council
  • Turning Data into Action, John Pastor, GoMarquis
  • Onboard Program that Builds Relationships, Joyce Colins, 360 View
  • Recipe For Success, The Right Mix of Products, Donna Tyson, Donna Tyson, Inc.

REGISTER

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Mortgage Lending Made Easy

This is a ONE-DAY workshop.  Register for the most convenient option for your schedule.

Kentucky Credit Union League Office
5111 Commerce Crossings Drive, Suite 210
Louisville, KY 40229 

Choose from two dates: 
Tuesday, October 29 or Wednesday, October 30

Time: 9:00 a.m. - 4:00 p.m.

Educational Investment: $239 per participant 

Join Regulatory Compliance Counsel Michael Christians for a comprehensive overview of the mortgage loan origination process. 

First, we’ll take a look at specific requirements applicable to loan originators under both the SAFE Act and Regulation Z. From there, we’ll walk through the lifecycle of a mortgage loan from application to post-closing. Our discussion will focus on Regulations V, X and Z; the Home Ownership and Equity Protection Act; the E-Sign Act; the Homeowner’s Protection Act and the NCUA’s Rules on appraisals and flood insurance.

From there, we’ll turn our attention to fair lending requirements under the following: the Equal Credit Opportunity Act, the Fair Housing Act, the Home Mortgage Disclosure Act, the Servicemember’s Civil Relief Act and the CFPB’s prohibition against unfair, deceptive and abusive acts and practices.

This course is designed specifically for loan originators, loan underwriters and loan support staff looking to satisfy their periodic training requirement under §1026.36 of Regulation Z. 

About the Speaker: Michael R. Christians, Regulatory Compliance Counsel

As principal of Michael Christians Consulting, LLC, Michael assists financial institutions and organizations across the country with ensuring their compliance programs conform to Federal laws and regulations. He provides counsel relative to current rules, assists with the strategic implementation of upcoming regulatory changes and offers customized education and training services.

Michael has more than two decades of experience in the financial services industry with a primary focus on consumer compliance. He obtained his Juris Doctorate from Drake University Law School. He is a member of the Iowa State Bar where he is licensed to practice law.

SCHOLARSHIPS ARE AVAILABLE.  The deadline to register is October 20, 2019.  Registrants will be accepted after this date if space is available.

REGISTER

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Human Resources University

November 12-14, 2019 | The Westin Nashville | Nashville, TN

The Westin Nashville
807 Clark Place
Nashville, TN 37203 

Educational Investment:  EARLY BIRD $699 (Early bird pricing ends October 14, 2019, after which the regular price of $899 will apply.)

Hotel Deadline: October 22, 2019

TRGroup and Woods Rogers Attorneys have teamed up to offer credit union professionals a two-day Human Resources Seminar in exciting Nashville, Tennessee.

To view the Agenda or to Register, please visit: https://trgroup.regfox.com/hru2019 

TRGroup (The Raiffeisen Group) is a collaboration of seven state leagues—Indiana, Kentucky, Louisiana, Mississippi, Tennessee, Virginia, and West Virginia. TR Group uses our collective strength to bring the best-of-class products, services, and service to credit unions at the lowest possible cost. Our mission is to empower credit unions to better serve their members, build loyalty, expand market share, realize savings on certain operational functions, and grow revenue. 

For more information about TR Group, please visit: https://trgroup.org/

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JCPS/YMCA Child Enrichment Program Partners with Class Act FCU to Teach Students Financial Success Skills During Summer Camp

Kindergarten seems to be a great time to start building financial literacy skills, as kids learn about needs versus wants, different values placed on coins and how not just to spend, but also to earn money. However, teaching them about money isn’t as simple as it sounds. Kids today, don’t have much exposure to cash as in years past. Teaching them about money can be challenging when what they see is a little plastic card that has money “inside”. When money is intangible, it’s a much more difficult concept to understand. 

That’s where Class Act Federal CU stepped in, to make learning easier and more fun. Class Act FCU is passionate about financial education at all ages. They believe it’s part of their mission to help build a community of smart savers. To support that mission, they partnered with the JCPS/YMCA Child Enrichment Program (CEP) and taught financial success skills during summer camp to more than 600 students ages 5 through 11. Class Act FCU staff visited 19 CEP school sites over the course of two months teaching about money with accompanying interactive activities to expand their thinking. 

The lesson, based on the book Less Than Zero integrated English, language arts, personal finance and mathematics. Class Act read the book to the classes and the students had to track progress made by the main character by listening for cues to follow along with the story using a number line - a graph that arranges positive and negative numbers in their order on either side of zero. Each student received a penny to help them navigate it. 

The students learned that negative numbers, with respect to money, means that a person owes money to someone else or that a person spent money that wasn’t his or hers. They had to evaluate needs versus wants and they learned about earning opportunities, interest, instant gratification, delayed rewards, borrowing, spending and saving. “Anything we can do as an organization to help kids make good choices about money and saving before a financial crisis, we want to do,” says Laura Lewter, Executive Director, School Age Child Care at YMCA of Greater Louisville. 

The objective of the lesson was to teach each student to identify savings goals and discover a way to reach it. Each student also received a Class Act Federal Credit Union piggy bank. The students were challenged to put their penny inside and to start their very own savings journey, just like the character in the story. Lewter added, “It was a perfect fit for us to have area experts for them to hear from about how to handle money and reach savings goals. To us, it’s a total investment in their future. If you plant those seeds as early as possible, they will grow!” 

CEP sites offer childcare before and after school at select locations throughout the school year, as well as holiday break and summer programs. The CEP is a 34-year old partnership between JCPS and the YMCA and it provides a safe, quality place to go before and after the school bell. Financial assistance is available. For more information, click here.

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Greater Kentucky CU Raffle Helps Benefit Woodford Humane Society

This past weekend, the Greater Kentucky CU staff made their way into downtown Versailles to interact with the community and spread the word about their Free Kasasa Checking Accounts. While there, they also raffled off a YETI Hopper Two 30 Soft Cooler to benefit the Woodford Humane Society!

Thanks to everyone who entered the raffle, they were able to donate $300 to the Woodford Humane Society to help them care for the animals in need of homes. 

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Transcend CU Recognized as Top 200 Healthiest Credit Unions in America

Transcend Credit Union was recognized as a 2019 member of the Top 200 Healthiest Credit Unions in America! All 5,460 federally insured credit unions in the United States were recently evaluated on a number of key factors including capital, deposit growth and troubled loan reserves in order to determine a comprehensive health score. This analysis was performed by DepositAccounts.com, a Lending Tree affiliated company. This is a tremendous honor which puts us in the top 3% of credit unions in the United States. This recognition indicates that Transcend is not only a top local and state credit union, but ranks with the best of the best on a national basis.

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What Are the Changes to NCUA's Appraisal Rule?

Last week the NCUA Board approved its final rule amending 12 CFR 722, the NCUA regulation requiring real estate appraisals for certain transactions.

The NCUA had issued a notice of proposed rulemaking seeking comments on amendments to the real estate appraisal rule on October 3, 2018, with comments due by December 3, 2018.  While the final rule was adopted essentially as proposed, it did not adopt the proposed modification to the exemption for existing extensions of credit.  Therefore, the final rule maintains the current exemption for existing extensions of credit. CUNA had strongly opposed the proposed modification in its comment letter on the proposal.

The four objectives of the final rule: 

  • Increase the threshold for required appraisals in non-residential real estate transactions from the current $250,000.00 to $1 million;
  • Implement a provision from S2155, (Economic Growth, Regulatory Relief, and Consumer Protection Act), regarding appraisals in rural areas. This provision exempts from the appraisal regulation certain federally related transactions involving real estate where the property is located in a rural area, valued below $400,000.00, and no state certified or licensed appraiser is available within five business days beyond customary and reasonable fee and timeliness standards for comparable appraisal assignments;
  • Restructure the regulation to clarify requirements for the reader. For example, it reorders section 722.3 to help the reader determine (a) whether the real-estate related financial transaction does not require an appraisal or written estimate of market value, (b) when an appraisal required under Part 722 must be prepared by a state-certified appraiser, (c) when an appraisal required under Part 722 may be prepared by either a state-certified or state-licensed appraiser, and (d) when only a written estimate of market value is required.
  • Make certain amendments to the definitions section. For example, the final rule replaces the term “complex 1- to 4-family residential property appraisal” with the shorter term “complex”. Section 722.2 now defines complex, when used in regard to a real estate-related financial transaction, to mean a transaction in which the property to be appraised, the form of ownership, or market conditions are atypical. 

The final rule will become effective 90 days after publication in the Federal Register. 

For more information, refer to the Letter to Credit Unions 10-CU-23 dated December 2010, which includes a link to the Interagency Appraisal and Evaluation Guidelines. The Guidelines, including their appendices, address supervisory matters relating to real estate appraisals and evaluations used to support real estate-related financial transactions. 

Source:  CUNA Compliance Blog

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What Does FHFA's Validation and Approval of Credit Score Models Final Rule Mean For CUs?

The Federal Housing Finance Agency (FHFA) published a final rule on August 16, 2019 that presents the standards and criteria, and outlines a four-phase process, that Fannie Mae and Freddie Mac (the Enterprises) will use to validate and approve third-party credit score models.  The final rule implements Section 310 of the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 (the Act), which amended the Enterprise charter acts and the Federal Housing Enterprises Financial Safety and Soundness Act (Safety and Soundness Act). 

Although the final rule is effective October 15, 2019, the FHFA anticipates the process of approving an alternative credit score model will take up to 26 months. That timeframe doesn’t include the implementation of any approved model for use by the Enterprises and that process will likely take as much as two more years beyond that.  “FHFA believes, based on years of related credit score work, that it will take the industry approximately 18-24 months to adopt a new credit score model after a model has been approved by an Enterprise,” the FHFA said.  So, the entire timeframe from approving an alternative credit score model to implementation of a different credit scoring model by the Enterprises will likely be at least four more years.

Currently, Fannie Mae and Freddie Mac require lenders to provide credit scores derived from the Classic FICO credit score model for each loan delivered to the Enterprises.  The FHFA noted that it expects Classic FICO to meet the criteria for approval based on its history of use while continuing to state that it expects the Enterprises to submit other credit score models to it for approval, acknowledging that “approving a credit score model in use for the past decade would not satisfy the intent of section 310 that the Enterprises consider credit score models developed after Classic FICO.” 

If an Enterprise conditions its purchase of a mortgage loan on the provision of a borrower’s credit score, the score must be produced by a model that has been validated and approved by the Enterprises using the following four-phase process: 

  • Solicitation of applications from credit score model developers – during this phase, the Enterprise will describe what information must be submitted with the application, what are the timeframes for submitting applications, what criteria will the Enterprise use to conduct the validation and approval of a credit score model, how will the Enterprise obtain data for testing, and any additional approved information.
  • Submission and initial review of applications – during this phase, the Enterprise will determine whether each application is complete and includes all required fees, and if not, will notify the applicant of any additional information that is required.
  • Credit score assessment – during this phase, each credit score model with be assessed for accuracy, integrity and reliability independent of the use of the credit score in the Enterprise’s system.
  • Enterprise business assessment – during this phase, the Enterprise will assess the credit score model in conjunction with the Enterprise’s business systems and processes. This phase will include assessing the accuracy and reliability of the credit score when used within the Enterprise’s system, assessing possible impacts on fair lending and on the Enterprise’s operations and risk management, and consideration of the impact on the mortgage finance industry, and other evaluations as established by the Enterprise as part of this assessment phase. 

For a credit score model to be approved for use, the model must pass both a credit score assessment and an Enterprise business assessment.  FHFA then reviews a proposed determination by an Enterprise for use of the credit score model and will either approve or disapprove the proposed determination. If an application is approved by FHFA, the Enterprise must follow through with a final determination to approve the credit score model for use in its systems. 

The final rule did not adopt a proposed conflict-of-interest certification requirement. The proposed rule would have required each applicant to provide a certification regarding any conflict-of-interest as part of its application. This reflected concerns that the consumer reporting agencies lacked an incentive to support new entrants because of their ownership of VantageScore Solutions, LLC.  Therefore, the independence requirement of the proposed rule was intended to encourage additional credit score developers to enter the mortgage marketplace.  The final rule does not adopt this requirement and instead permits credit score model developers to submit applications to the Enterprise in response to a credit score solicitation, regardless of the ownership structure of the credit score model developer. However, the final rule does permit consideration of any conflict-of-interest as part of a comprehensive Enterprise business assessment to determine whether use of a credit score model could have an impact on competition in the industry.  The Enterprise must consider whether such impact is due to any ownership or other business relationship between the credit score model developer and any other institution. 

FHFA’s Fact Sheet on the final rule. 

Source:  CUNA Compliance Blog

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