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

SRCUS News

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

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Don’t Miss Hike the Hill

Once again, it is the time of year when we plan for our annual Hike the Hill trip to Washington, D.C. 

This year, the trip will take place September 17-19 and will be based at the Embassy Suites just outside of DC in Old Town Alexandria, VA.  We will be meeting with our delegation of Representatives and Senators while we are there as well as representatives from NCUA and CFPB and receiving a great briefing from CUNA on all the most important issues impacting credit unions on Capitol Hill.  

This is a great trip and will provide all in attendance with an opportunity to interact directly with key lawmakers and regulators about the issues that matter most to Kentucky Credit Unions.  

Please reach out to Kyle Hagerty ([email protected]) no later than August 9th to reserve your room.  If you have any questions, do not hesitate to contact him.

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New & Improved Guidelines for Kentucky Recognition Awards

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.

We are excited to announce the new nomination process which will 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 and complete the Nomination and Biographical Form of the desired category. 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.  The deadline to submit a nomination is August 15, 2019. 

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

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Cybersecurity Training Available through Radford University

Through our partnership with TRGroup and the Vinod Chachra IMPACT Lab at Radford University, we are excited to bring you and your staff educational resources to better protect your assets. 

We encourage you to watch this video https://vimeo.com/341339223 about the training opportunities available for IT professionals, managers, and senior executives. 

You may also find additional information online at https://www.radford.edu/trgroup. To request more information or learn how you can enroll your staff in this critical cybersecurity training program, contact Laura Parrish at [email protected].  

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Southeast CUNA Management School Graduates 2 from Kentucky

The Southeast Regional Credit Union Schools (SRCUS) is pleased to announce that 36 distinguished credit union employees, including seven from the Carolinas, graduated this June from Southeast CUNA Management School after successful completion of the three-year program held at the University of Georgia in Athens, Ga.

Congratulations to Lindsey Cottner and Stephanie Peavler!

Lindsey Cottner, Jefferson County FCU

“Southeast CUNA Management School is a rewarding and enriching experience for any credit union professional. I have been able to cultivate a support base of other credit union professionals who I can reach out to for questions and opinions on any number of topics along with developing lasting friendships.

 

The curriculum engages a credit union professional to understand and explore the reasons for the financial decisions made within their own credit union. Southeast CUNA Management School has challenged me to step out of my comfort zone and as a result, it has been a rewarding experience I have been blessed to participate in.” 

 

Stephanie Peavler, Commonwealth CU

“SRCUS was an amazing experience. I was able to gain a tremendous amount of knowledge that helped me grow as a manager. The friendships and connections that were made will last a lifetime!”

 

 

 

 

In addition, both graduates received “Excellence in 3rd Year” on their whitepaper.

For more than 45 years, the SRCUS Southeast CUNA Management School has equipped graduates with the skills and knowledge to meet the leadership challenges that arise in the credit union industry. The curriculum develops students’ operational, managerial and leadership abilities as they receive advanced academic instruction on a variety of topics including management, leadership, and financial analysis. Students also apply the knowledge gained from the on-site sessions to projects that require strategic analysis of their credit unions and research of relevant issues facing the credit union industry.

In addition to a rigorous academic curriculum, the Southeast CUNA Management School provides students the opportunity to develop their leadership capabilities and better understand the credit union philosophy so that they can contribute to the success of their credit unions and to the movement as a whole. In the true credit union spirit of “people helping people”, the Class of 2019 participated in a volunteer outreach effort with the Boys and Girls Clubs of Athens, where they provided school supplies for students in need.

Graduation from the Southeast CUNA Management School is recognized throughout the credit union industry as a prestigious mark of achievement. Upon successful completion of the program, students received a graduation diploma issued in conjunction with the University of Georgia Center for Continuing Education. For more information on the Southeast CUNA Management School, visit www.srcus.org/management.

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Southeast CUNA Management School students "give back" in true credit union spirit

Giving back to the community is a way of life for credit unions. During this year’s Southeast CUNA Management School, students took a break from the academic rigors of the program to put credit unions’ “people helping people” philosophy into action.

Thirty-four credit union professionals worked together to provide school supplies for students in need in the Athens, GA area. Members of the Class of 2019 purchased school supplies and then spent the afternoon decorating and assembling 125 supply bags, which were brought to the Boys and Girls Clubs of Athens. The Boys & Girls Clubs of Athens has provided a clean, healthy, and safe environment for youth of Clark County for over 50 years, where 71% of students in the Clarke County School System come from an economically disadvantaged background.

In addition to supply bags, the class provided 125 BRAVE bears, which will be given to a foster care agency and distributed to children who are placed in foster care.

Amanda Blair, a student in the Class of 2019, was especially thankful for being able to participate in this service project. “You see, while my children attended elementary school, they were the ones receiving the school supply bags! Today, I was able to fill my own bags for children just like my boys all those years ago. I remember the kids coming home with school supplies from local charities and how thankful we were that someone had taken a financial burden off of our plate,” explained Blair.

The Southeast CUNA Management School is administered by the Southeast Regional Credit Union Schools (SRCUS). Students in the Class of 2019 serve credit unions from eleven states across the United States, including Alabama, Florida, Georgia, Kentucky, Louisiana, Michigan, Mississippi, North Carolina, South Carolina, Tennessee, and Virginia.

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House passes FSGG bill w/ CUNA-supported funding levels

The House passed the Financial Services and General Government (FSGG) Appropriations Act for Fiscal Year 2020 (H.R. 3351 Wednesday. CUNA wrote in strong support of the bill earlier this week due to the appropriations amounts for several credit union funds, including the Treasury’s Community Development Financial Institutions (CDFI) Fund and NCUA’s Community Development Revolving Loan Fund (CDRLF).

“We thank the House for passing the bill, and for the attention of House appropriators to ensure appropriate levels for several important funds that credit unions are able to leverage to better serve their members and communities,” said CUNA President/CEO Jim Nussle.

The bill funds the Treasury’s Community Development Financial Institutions (CDFI) Fund at $300 million for fiscal year 2020, a $50 million increase from last year. An amendment was adopted that essentially raises the fund level to $303 million. The fund makes capital grants, equity investments and awards for technical assistance to certified CDFIs.

As of June 14, credit unions make up 274 of 1,061 certified CDFIs nationwide.

The bill also allocates $2 million for NCUA’s Community Development Revolving Loan Fund (CDRLF) for fiscal year 2020.

The CDRLF funds a revolving loan program and a technical assistance program that assists credit unions serving low-income communities to:

  • Provide financial services to their communities;
  • Stimulate economic activities in their communities, resulting in increased income and employment; and
  • Operate more efficiently.

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CUNA Midwest Small Credit Union Conference

Important Pricing Information:
Member Early bird price is $199 until July 5, Regular Member price $229 
Non-Member $350.

Learn from sessions built specifically for smaller shops on lending, marketing, strategic planning, staffing/ internal culture, and exam preparedness. You’ll also have the rare occasion for significant networking time with similar-sized credit unions across the Midwest.

The agenda also features a new program, the CUNA Small Credit Union Strategic Planning Workshop, which teaches best practices for strategic planning, case studies of thriving small credit unions, and a takeaway Facilitator’s Guide that walks small credit union leaders through the steps to build a strong strategic planning process.

Thanks to a collaboration of the Leagues and CUNA, this is a can’t-miss opportunity to strengthen each core area of your credit union, perfect for both management and board members.

Registered attendees also will receive a tour of the CUNA Campuses, including the offices of CUNA, CUNA Mutual, the National Credit Union Foundation, and World Council of Credit Unions. Attendees also will receive a tour of Filene Research Institute and attend a reception at the Wisconsin Credit Union League’s Credit Union House on Madison’s vibrant Capitol Square.

**Discounted member pricing and early bird pricing will appear once you log-in and enter your information.

Who Should Attend

Any credit union employee or board member at a CU Under $50 million in assets.

Please visit the CUNA Midwest Small Credit Union Conference website for additional information.

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Southeast Director’s Conference: Deadline to Register is July 1

July 21 – 24, 2019 | The Seelbach Hilton | Louisville, KY

Save the date and make plans to join your peers from credit union boards across the Southeast for two-and-a-half days of education designed for credit unions’ volunteer leaders. The 2019 Southeast Director’s Conference, set for July 21 – 24, 2019, features a full range of informative sessions on critical, timely issues, with first-rate speakers to address the economy, lending environment, and much more.

Click here for detailed conference information, including agenda, speakers, hotel information, and more!

The room block is filling up quickly!  Reserve your room today!
Click here to reserve your room.

The Southeast Regional Directors’ Conference is designed for credit union directors and committee members. The conference location rotates among the ten Southeastern states, giving each state an opportunity to host their fellow credit union volunteers and showcase the best of what their state has to offer. This conference features a full range of informative educational sessions that provide a conduit for learning about critical issues important to today’s ever-changing financial industry.

The 2019 program will be hosted by the Kentucky Credit Union League and held at The Historic Seelbach Hilton, in the heart of Downtown Louisville, Kentucky; conveniently located 10 miles from Louisville International Airport.

At the Seelbach Hilton, you’ll experience modern amenities wrapped in a storied past that delivers distinct character. The Seelbach Hilton is equal parts historical landmark and architectural masterpiece. A stay at this grand luxury hotel appearing on the National Register of Historical Places will never be described as “ordinary.”

Louisville is home to iconic attractions that visitors can’t experience anywhere else. Here, you can bet on the ponies at Churchill Downs (home of the Kentucky Derby), get inspired at the Muhammad Ali Center, see the craftsmanship firsthand at the Louisville Slugger Museum & Factory, go back in time on the Belle of Louisville, tour Bourbon distilleries and more. 

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FREE Cybersecurity Webinars Available through Radford University

We are excited to bring you a new series of webinars on Cybersecurity, featuring experts in compliance, legal, and education through our partnerships with TRGroup, Woods Rogers PLC, and the Vinod Chachra IMPACT Lab at Radford University. 

July 17th: Cybersecurity Risk from a Legal Perspective:  Top 10 Tips  

Presenter: Beth Burgin Waller, Chair of Cybersecurity and Data Privacy Practice at Woods Rogers PLC in Roanoke, VA 

This session will focus on tactics and strategies to prepare credit unions for cyberattacks from a legal perspective.  From vetting vendors to obtaining the right cyber insurance coverage to incident response plans, this session will help prepare credit unions for an incident before the worst hits.  In addition, this webinar will also focus on officer and director risk associated with the failure to mitigate against cyber threats.  What is worse than a massive data breach?  A massive data breach followed by a member class action lawsuit.  This webinar is designed to help a credit union prepare for the worst both from a cybersecurity and a legal perspective. 

REGISTRATION WILL BE AVAILABLE SOON.

You may also find additional information online at https://www.radford.edu/trgroup. To request more information, please contact Laura Parrish at [email protected]

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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

Hotel Discounted rate of $165 is good for Wednesday through Saturday night.
 

Call 757-305-9000 and use code VACUL.

Hotel Deadline: August 29

 

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Karen Harbin, Commonwealth CU President/CEO, honored by Louisville Business First as a 2019 Best in Finance Honoree

Visionary. Strategic. Courageous. CEOs can be described in many different ways, but it is safe to say they play one of the most important roles in the strategic growth plan of a business. It is more important than ever for financial executives to understand all aspects of their organization. They must fully know the pulse of their operation and be the clear voice of reason that drives the company forward.

Recently, Louisville Business First recognized 25 local professionals who have demonstrated they are the Best in Finance. Each was nominated by their peers plus a panel of three judges. Commonwealth Credit Union’s own President/CEO, Karen Harbin, was honored to be one of the 25 selected.

Karen has been President/CEO for over 7 years and in the financial industry for 33 years. She is a great leader, who is very involved in everything the credit union does. She is very approachable, which is evident in her #heykaren campaign that allows members, employees, and the community to communicate with her directly. She always goes out of her way to explain the “why” behind everything the company does, which helps increase buy-in and improves employee morale. Her leadership also navigated the credit union through the first merger and acquisition in company history.

Commonwealth Credit Union is proud of Karen and honored to have her leading the company into a bright future. 

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Fort Knox Federal Recognized by AUSA for 50 Years of Support

In mid-June, Fort Knox Federal Credit Union was recognized for its tremendous efforts to support soldiers and their families throughout its 50-year partnership with The Association of the United States Army – Fort Knox Chapter.

The Golden Community Partner Award was presented to the credit union during last week’s 244th Army Birthday Celebration and AUSA Annual Meeting. Fort Knox Federal is one of only a handful of AUSA members to receive this recognition for 50 years of support.

“Fort Knox Federal Credit Union has always been proud to support our military members and their families,” said Ray Springsteen, CEO of Fort Knox Federal Credit Union. “Our partnership with the Fort Knox Chapter of the Association of the United States Army is one of the key ways we give back to those who serve. We look forward to many more years of active participation as a community sponsor.

Fort Knox Federal is deeply committed to serving the military community and empowering Kentuckians to make better financial decisions. In addition to our AUSA partnership, we support military families through USA Cares and offer financial education programs, such as Operation Veteran 2 Entrepreneur, designed specifically for veterans.

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Members Choice mentorship program wrapping up second year

The Members Choice Credit Union mentorship program wrapped up its second year, teaching area youth the inner workings of the financial institution and developing their skills for future jobs -- possibly in the financial services industry. 

The three students participating in the program are Aaron Russell, who is pursuing an associate degree in applied sciences at Ashland Community & Technical College; Susanna Russell who is pursuing an associate’s degree in internet technologies at ACTC; and Eden Russell, who just graduated from ACTC with an associate’s degree in arts. 

The mentorship program held the final meeting in early June for the summer mentees, and the students will spend the rest of the month working on their capstone project. They will be developing a plan to add another credit union branch to eastern Kentucky. When they finish developing the plan, it will be presented to MCCU Board of Directors.

“It’s a tremendous opportunity to these young adults,” said Cheryl Deborde, president of MCCU.

“They are working on a project that could potentially bring 10-15 new jobs and over a half a million dollars investment to some place in eastern Kentucky.” 

The plan for the new credit union branch must include a budget for the cost of three tellers (member service representatives), four offices for loan representatives and managers, an ATM, two drive thru lanes, a kitchen and two bathrooms. They are also including cost of other equipment that might be needed like copiers and printers.

“It is a feel-good moment for our community when we can work together with all these different organizations and make a real impact on our community,” said Deborde. 

She said she hopes the plan the mentees create will allow them to build two new branches to help communities that don’t have a credit union within a 50-mile radius.

The 14-week program focused on workforce readiness to hire qualified people. They taught mentees valuable soft skills like accuracy, leadership, timeliness and self-initiative that they can take to their future jobs. They were also subjected to mock interviews, workshops and critiquing. 

The mentorship program happens twice a year. It is held in the summer and is open to the community, and is held during the fall for graduating business students from ACTC. 

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Final Rule: CFPB Delays Compliance Date of Payday Lending Rule Ability-to-Repay Provisions

On June 6, 2019, the CFPB issued a final rule to delay the August 19, 2019 compliance date for the mandatory underwriting provisions (ability-to-repay) of the November 17, 2017 Payday, Vehicle Title, and Certain High-Cost Installment Loans (Payday Lending Rule). The recent final rule also makes certain technical corrections to the 2017 Payday Lending Rule.    

Click here for more information.

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FCC Adopts Robocall Blocking by Default Rule

On June 6, 2019, the Federal Communications Commission (FCC) allowing voice service providers to block calls by default (as opposed to a consumer opt-in) based on call analytics that target unwanted calls, as long as their customers are informed and have the opportunity to opt-out of the blocking.

The ruling clarified that Telecom providers may also offer their customers the choice to opt-in to tools that block calls from any number that does not appear on a customer’s contact list or other “white lists.” This option would allow consumers to decide directly whose calls they’re willing to receive, based on the contact list in a person’s smart phone.

The FCC is urging voice providers to implement the so-called “SHAKEN/STIR” caller ID authentication framework by the end of 2019. Failure to do so could result in further rulemaking to require implementation of the technology. SHAKEN/STIR stands for Signature-based Handling of Asserted Information Using toKENs (SHAKEN) and the Secure Telephone Identity Revisited (STIR) -- it is a protocol for authenticating phone calls with the aid of cryptographic certificates.

In addition, the FCC is seeking comment on whether to:

  • Create a safe harbor for providers that block maliciously spoofed calls (so that caller ID cannot be authenticated) and that block calls that are “unsigned”;
  • Require voice service providers that block calls to ensure that emergency calls reach consumers; and
  • Provide protections and remedies for callers whose calls are erroneously blocked.

Click here to view the FCC’s declaratory ruling.

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CFPB Held First Symposium Regarding Abusive Acts or Practices

The Consumer Financial Protection Bureau (CFPB) held its first symposium on Tuesday, June 25, 2019.  The 90-minute symposium focused on the Dodd-Frank Act’s prohibition on abusive acts or practices. 

The Dodd-Frank Act authorizes the CFPB to take enforcement, supervision, and rulemaking concerning UDAAP.  Unlike the meaning of unfair or deceptive, which have been defined substantially by the Federal Trade Commission (FTC), the CFPB believes that the meaning of abusiveness is less developed. The intention of the symposium, which was part of a series announced earlier this year, will provide a public forum for the CFPB and the public to hear various perspectives on the meaning of abusiveness. 

The symposium consisted of two panels of UDAAP experts.  The first panel include da discussion on various policy issues relating to the abusive standard under Dodd-Frank.  The second panel examined how the abusive standard has been used in practice and will include leading legal experts in the field.

Click here for additional information.

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NCUA’s CURE Offering Assistance for Chartering, Low-Income Designation

At its May 2019 board meeting, the NCUA’s Office of Credit Union Resources and Expansion (CURE) provided an update on its efforts in assisting credit union with their growth and outreach efforts. 

As such, the NCUA’s CURE will offer more resources for credit unions to identify low-income areas they might serve and to assist people organizing credit unions with the chartering process.

The NCUA provides credit unions with a new online low-income designation area workbook that organizing groups and existing credit unions can use to research low-income areas they can target for possible member recruitment and outreach.

A new chartering modernization effort is under way that will automate and streamline the process. The NCUA plans to open a new web portal with information to assist credit union organizers. The agency will offer pre-developed business models that organizing groups can use.

The NCUA also makes training available for all credit unions, including minority depository institutions, through its Learning Management Service and hosts WebEx online meetings and teleconferences for credit unions to discuss management issues, grants and loans, and other topics.

Low-income credit unions interested in 2019 Community Development Revolving Loan Fund grants can submit applications from June 2 through July 20. The NCUA will administer approximately $2 million in grants to the most qualified applicants, subject to the availability of funds.

Click here for further information.

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FTC Rescinding Several FCRA Model Forms

The Federal Trade Commission (FTC) has issued a final rule rescinding several model forms and disclosures issued under the Fair Credit Reporting Act (FCRA) that it has determined are no longer necessary. Given the CFPB's 2018 updates to its model forms and disclosures, the FTC determined that rescinding several of its model forms and disclosures would reduce confusion. The FTC also made conforming amendments to address references to the updated model forms and disclosures in related rules.

The amendments include the following:

  • Removes current appendices A and D through H in 16 CFR part 698; and
  • Re-designates current appendices B (Model Forms for Risk-Based Pricing and Credit Score Exception Notices) and C (Model Forms for Affiliate Marketing Opt-Out Notices) as appendices A and B.

The final rule includes a table of rescinded 16 CFR part 698 appendices and the corresponding CFPB appendices taking their place.

The final rule was effective May 22, 2019.

Click here to view the final rule.

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