Those who were able to attend Vision 2024 last week in Lexington were introduced to several new League-sponsored initiatives designed to strengthen our credit unions and the communities we serve. In the spirit of “previews of coming attractions” that show before the feature presentation at a cinema, I was excited to announce these initiatives. Now, you can look them over at your leisure.
Auto Advisors is the second largest car buying service in the country, serving more than 30 credit unions in the southeast. We are thrilled to bring Auto Advisors Kentucky to the commonwealth, helping Kentucky credit union members to source new and used vehicles.
We are working with a handful of credit unions in the Louisville market to pilot this incredible program, which delivered more than $65 million in vehicle loans to credit unions last year alone. As I mentioned in Lexington, you should only be interested in this program if you care about your members, are interested in growing you auto loan balances, and want vehicle loans with loan-to-values that are significantly better than indirect loans.
Buy Lokyl (pronounced “Buy Local”) is an innovative community outreach and advocacy initiative intended to significantly increase the number of Kentuckians who belong to a credit union. It connects your members to locally owned businesses and encourages them to use your credit union’s debit card for purchases. The League is very interested in growing the number of members in our state because more members means more voters, which means our legislators pay more attention when we speak!
We’ll be hitting the road soon with much more information on how your credit union can participate in this awesome program that will increase membership and generate non-interest income!
For the first time, our Legue will partner with CU4Kids to host a fundraising event to support Children’s Miracle Network hospitals. The Great Bourbon Gala will be held on Friday, September 26, 2025 at the Ice House in Louisville, and will feature a bourbon auction and raffle, a plated dinner, and the opportunity to win tremendous occasions like barrel picks and other unique distillery experiences.
We’re actively seeking volunteers to help on one of several committees as we plan this exciting event. We will be hosting an information session in September for those who are interested in helping out. Please submit your name on the form provided on the website.
August has certainly been a roller coaster when it comes to temperatures this year, swinging from days in the 70s to hitting 100 just this week. Thankfully, our advocacy efforts have been steady, not following those wild temperature swings. The highlight of this month was the 90th League Annual Meeting and Convention, which concluded with the Governmental Affairs Breakfast, as it does every year. This year, our keynote speaker was Kentucky Secretary of State Michael G. Adams, a longtime friend of Credit Unions.
With the next election less than 80 days away, we found it timely to discuss the trust and security of our election processes with Secretary Adams. He drew great parallels between the trust Member-Owners have in their Credit Unions and the trust voters place in the electoral systems and infrastructure. Secretary Adams, who grew up with Credit Unions, truly understands and values the unique role they play in communities across the commonwealth.
A big thank you to Secretary Adams for taking the time to share his insights and story, and to all who attended and participated in this important conversation. I look forward to seeing you at the next advocacy event, and in the meantime, please don’t hesitate to reach out with any questions or if I can be of service.
Hike the Hill 2024 is scheduled for Sept. 10-12 and is set to be the most collaborative and engaging in recent memory. This year’s event features a welcome reception at the iconic Old Ebbit Grill just steps from the White House sponsored by the Cincinnati FHLB and including Credit Union leaders from Ohio and Tennessee. The following evening, after our day of visits on Capitol Hill, we will join 7 other states for a reception at the National’s Park to network and enjoy the game between the Washington Nationals and the Atlanta Braves. All this is presented FREE OF CHARGE with thanks to our sponsors and increased collaboration across many state leagues.
Collections & Bankruptcy School offers collections professionals the knowledge and skillsets to run a collections department and solve issues from delinquencies to bankruptcy. Starting with the nuts and bolts of collections, the curriculum moves through practices, legality and eventuality, specific nuanced details of management.
BACK TO TOP
Small Credit Union Conference
November 3-5, 2024 // Charlotte, NC
Venue: DoubleTree By Hilton Charlotte City Center
Join successful small credit union leaders from all over the country at this year’s Small Credit Union Conference in Charlotte, North Carolina. You’ll learn how to leverage collaboration to generate growth, strategies to strengthen your operations, and network with like-minded peers. Priced at only $149.99 through September 4, don’t miss out on this opportunity to grow in your career and gain a competitive edge to equip your organization for future success.
Key topics include:
- The Future of Small Credit Unions in a Digital Age
- Strategies for Marketing, Operations, Lending & Member Experience
- Succession Planning for Your Next CEO
- Leveraging Fintech for Growth
Who should attend?
Executives and board members of small credit unions are encouraged to attend. This conference will be most beneficial for credit unions under $150 million in assets.
BACK TO TOP
Virtual BSA Training
Wednesday, October 9, 2024 | 2:00 p.m. ET | 1:00 p.m. CT | Virtual
Sign up now for this required training at no additional charge to your credit union!
Attendees will receive valuable information updates on the requirements of the Bank Secrecy Act. The agenda includes the following:
- USA PATRIOT Act – Customer Identification Program (CIP), 314(a), and 314 (b)
- Office of Foreign Assets Control (OFAC) program requirements
- Currency Transaction Reporting (CTR) elements
- Suspicious Activity Reporting (SAR) requirements
- Tips for writing an effective SAR
- Real-world examples of how to identify suspicious activity
- Elder Financial Exploitation red flags
- What's new in 2024?
Completion of this training and your credit union’s own internal BSA Training, can be used to meet your NCUA Annual BSA Training requirements. Attendees will receive confirmation of training for their records.
BACK TO TOP
iLead at 11
We recognize leaders are looking to accelerate their own performance through a leadership development program. iLead@11 is a virtual leadership program comprised of three main sections via two tracks, specifically curated for your leadership journey.
Take control of your development, learn more about yourself and push yourself further than you imagined.
Registration is always open! Select dates and times convenient to you!
Use promo code KCU for exclusive Platinum Partner Reward pricing!
Have questions? Contact Janet Garrett or Jenna Dye.
*The iLead@11 Emerging Leaders track differs from our existing Emerging Leaders Program.
BACK TO TOP
Board & Committee Leadership Conference - Registration Open!
November 7-9 | Embassy Suites by Hilton Asheville Downtown | Asheville, NC
Embassy Suites by Hilton Asheville Downtown
192 Haywood St
Asheville, NC 28801
Make plans to join your peers for an education conference designed just for credit union volunteers. The Board & Committee Leadership Conference is set for November 7-9, 2024 in the beautiful Blue Ridge Mountains of North Carolina and features a full range of informative sessions on critical, timely issues, with first-rate speakers.
BACK TO TOP
New Opportunity: IRA Training Essentials & Advanced
The Tennessee Credit Union League is pleased to offer a collaborative effort of the Ascensus IRA Essentials and Advanced Training. This training is open to Kentucky's Credit Unions and will be offered October 16-17.
Ascensus IRA Essentials, Wednesday, October 16, 9:30 a.m. ‐ 4:30 p.m. ET
Ascensus IRA Essentials gives attendees a solid foundation of IRA knowledge. Exercises throughout the day help participants apply information to job‐related situations. Attendees will leave this session able to work with IRA owners and process basic IRA transactions confidently. This is a beginner's session; no previous IRA knowledge is assumed.
Ascensus Advanced IRAs, Thursday, October 17, 9:30 a.m. ‐ 4:30 p.m. ET
Advanced IRAs build on the attendees' basic IRA knowledge to address more complex IRA issues that their financial organizations may handle. This is an advanced session; previous IRA knowledge is assumed. The instructor uses real‐world exercises to help participants apply information to job‐related situations.
Registered attendees will receive a detailed training guide for each day of study. For convenience, this training will be recorded.
Educational Investment: $299 per person per day
BACK TO TOP
Mortgage Loan Originator Training
September 23-24, 2024 | Online Learning Opportunity
Educational Investment:
- Assets over $100 M - $399 per CU, unlimited participants
- Assets under $100 M - $289 per CU, unlimited participants
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.
This training will be split over two days:
Day 1: September 23 from 9:30 a.m. - 12:30 p.m. ET (8:30 a.m. - 11:30 a.m. CT)
Day 2: September 24 from 9:30 a.m. - 12:30 p.m. ET (8:30 a.m. - 11:30 a.m. CT)
BACK TO TOP
SRCUS’ Southeast Management School approved to offer CCUE designation, ACE Credits®
The Southeastern Regional Credit Union School (SRCUS) proudly announces its approval to offer the prestigious Certified Credit Union Executive (CCUE) designation to graduates of its Southeast Management School.
SRCUS joins the Madison school of America’s Credit Unions’ Management School program in offering the CCUE designation, a testament to the quality and care of its education. The CCUE designation, instituted by America’s Credit Unions, is designed for credit union staff seeking to acquire the knowledge and experience essential for career advancement in management and business operations.
In addition to this significant milestone, an assessment by the American Council on Education (ACE) has determined that the Southeast Management School qualifies for nine ACE Credits®. These credits acknowledge the rigorous academic standards and thorough curriculum of the SRCUS program.
The first-year students from the 2024 program were the inaugural group to complete testing for credits this past June. Second-year students and 2024 graduates will also have the option to take a cumulative test this summer to earn credits as well. Students earn the total credits and the CCUE designation upon successful completion of all coursework and testing over the three-year SRCUS program.
“It’s been a well-sought journey to reach this point and offer this extra layer of achievement to SRCUS students,” said SRCUS Executive Director Brittani Champlin. “From the curriculum to the experience, and now certification, it’s important to us to make sure this school is always relevant and valuable to all who make the commitment and investment in this program.”
ACE, the major coordinating body for the nation’s higher education institutions, provides a pathway for SRCUS graduates to use ACE Credits® towards a degree or certificate at over a thousand colleges or universities within the ACE network, further enhancing their educational and professional prospects.
The Southeast Management School is scheduled for June 15 – 20, 2025 in Athens, GA. To learn more about the CCUE designation and the program, please visit www.srcus.org/ccue.
BACK TO TOP
Abound Opens Doors to Homeownership with $160,000 in Welcome Home Grants
Abound Credit Union made a life changing impact on local families this spring by helping eight families take advantage of a total of $160,000 in Welcome Home Grants and go from renters to homeowners.
The grants, which are up to $20,000 each, provide closing cost and down payment assistance for eligible home buyers and are offered in partnership with the Federal Home Loan Bank of Cincinnati (FHLB). Abound’s home loan officers worked closely with Members to verify their eligibility and help them take advantage of this amazing opportunity, which is typically only available for a very limited time each year.
“We’re incredibly proud to help more Kentucky families become homeowners,” says Ray Springsteen, President/CEO of Abound Credit Union. “Our experienced, local loan officers are here to help Members achieve their goals, whether that means buying their first home, building one from scratch, acquiring land or purchasing investment property. Abound’s affordable home loans make it happen.”
The eight families who took advantage of a total of $160,000 in Welcome Home Grants this year included several hard-working single parents with young children, and Members who would not have been able to purchase a home otherwise due to a lack of funds to put towards closing costs and a down payment.
“After my divorce, a home right down the street from my parents came available. I have young children and need family close by for support but my debt-to-income ratio was too high to be approved – even at the financial institution where I work. Thanks to Abound’s help and the Welcome Home Grant, I was able to get my ratios down and buy the home of my dreams – close to my job and my parents,” shared one Member.
More information about the credit union’s home loans and ongoing community impact may be found on Abound’s website.
BACK TO TOP
Abound Credit Union Delivers $39.9 Million in Financial Benefits to Members
Abound Credit Union delivered approximately $39.9 million in direct financial benefits, through lower loan rates, lower fees and higher earnings on deposits, to Abound Members during 2023. That’s an average benefit of $305 per member or $640 per household, according to the latest Membership Benefits Report compiled by America’s Credit Unions.
Depending on how members utilize Abound’s financial products and services, their actual benefits may be higher than the averages quoted above. For example, financing a $30,000 new automobile with Abound for 60 months would save an individual an average of $271 per year compared with other banking institutions in Kentucky. That’s approximately $1,355 in savings over five years.
Savers benefit as well with Members earning a total of nearly $17.4 million more on their certificate accounts with the credit union compared with other banking institutions in Kentucky. Abound Members also paid a total of $1.7 million less in total fees, which includes the everyday benefits of the Abound Free Checking account.
“Abound exists to help improve the lives of our members, it’s that simple,” says Ray Springsteen, President & CEO. “We’re proud of how much we’ve been able to save our hard-working friends and neighbors this past year and look forward to helping even more Kentuckians build brighter financial futures in the years to come.”
Community members are invited to join the Credit Union to see how much they could save. More information about becoming a member along with Abound’s products, services and free financial education resources may be found at aboundcu.com.
BACK TO TOP
Commonwealth Credit Union’s Karen Harbin Advocates for AI-Driven Lending at Congressional Hearing
Commonwealth Credit Union (CCU) is proud to announce that its President/CEO, Karen Harbin, delivered impactful testimony at a Congressional field hearing on July 12th in Lexington, Ky. Harbin spoke before the House Financial Services Subcommittee, chaired by Congressman Andy Barr (R), about the role of artificial intelligence in expanding access to loans while ensuring strong performance for financial institutions.
"We have been able to confidently lend down the credit spectrum through more accurate, unbiased decisioning that does not increase risk," Harbin said, highlighting CCU’s successful partnership with Zest AI. Since 2019, this collaboration has led to the approval of over 21,500 consumer loans totaling $372 million, with delinquency rates remaining below industry standards. Harbin emphasized that AI has allowed CCU to increase approval rates for auto loans, credit cards, and personal loans, especially among traditionally underserved populations.
During her testimony, Harbin also shared an example of how AI enabled CCU to swiftly approve a $6,000 loan for a member facing reduced work hours, helping them bridge an immediate financial gap. However, she cautioned against potential regulatory overreach, urging Congress to ensure that new regulations do not restrain innovation or negatively impact credit unions and smaller institutions. "We are concerned that stringent regulatory measures could harm credit unions while benefiting the largest incumbents," Harbin stated, advocating for balanced oversight that supports continued access to AI-driven financial services.
BACK TO TOP
NCUA Board Approves Proposed Rule to Standardize Data Submitted to Federal Financial Regulatory Agencies
The National Credit Union Administration Board unanimously approved, by notation vote, an interagency notice of proposed rulemaking(Opens new window) that would establish data standards for certain information collections submitted to the NCUA and other financial regulatory agencies.
The proposal is required by the Financial Data Transparency Act of 2022. It would promote interoperability of financial regulatory data across the agencies through the establishment of data standards for identifiers of legal entities and other common identifiers.
Within two years of the final standards being established, the NCUA is required to issue a separate rule that adopts applicable data standards for certain information collected by the NCUA.
Comments on the proposed rule will be accepted for 60 days after publication in the Federal Register.
Source: www.ncua.gov
BACK TO TOP
CFPB Takes Action Against Credit Repair Cloud and CEO Daniel Rosen for Enabling Credit Repair Companies that Harvest Illegal Fees
Proposed order requires defendants to pay $3 million
Today, the Consumer Financial Protection Bureau (CFPB) filed a proposed order to resolve its lawsuit against Credit Repair Cloud and CEO Daniel A. Rosen for providing substantial assistance or support to credit repair businesses that charge illegal advance fees to consumers. The proposed order, if entered by the court, would impose a $2 million civil penalty against Rosen and a $1 million civil penalty against Credit Repair Cloud. The order would also require the company and Rosen to take steps to ensure credit repair companies using Credit Repair Cloud stop charging consumers illegal advance fees.
"Credit Repair Cloud and its CEO Daniel Rosen enabled credit repair companies that harvested illegal fees from struggling consumers,” said CFPB Director Rohit Chopra. “We will continue our work to hold individual executives accountable when they violate federal law."
Credit Repair Cloud is a California-based corporation founded by Daniel A. Rosen. Since 2013, Credit Repair Cloud has sold software and other tools to help others start and operate credit repair businesses. A credit repair business provides consumers with goods or services that purport to remove derogatory information from credit reports or otherwise improve a person's credit history, credit record, or credit rating. Credit repair companies that use telemarketing are covered by the Telemarketing Sale Rule, which prohibits charging fees until the company has provided that consumer with a credit report that shows the promised results and that was issued more than six months after such results were achieved.
The CFPB alleges that Credit Repair Cloud and Rosen provided substantial assistance to credit repair companies that use telemarketing to reach consumers and charge illegal advance fees by providing users with a system that, among other things, generated and tracked disputes and integrated a billing system, and provided training, marketing tools, and model websites.
The CFPB alleges that Rosen was individually liable for Credit Repair Cloud’s violations because he controlled Credit Repair Cloud, he participated in its acts of substantial assistance, and he knew or recklessly disregarded that they were taking place. Rosen’s acts of substantial assistance included, among other things, training credit repair companies on the Credit Repair Cloud’s system, providing sample scripts, and offering advice on how and when to collect fees from consumers.
Enforcement Action
Under the Consumer Financial Protection Act, the CFPB has the authority to take action against persons violating consumer financial protection laws, including the Telemarketing Sales Rule. If entered by the court, the proposed order would require the defendants to:
- Pay $3 million in civil penalties: CEO Daniel Rosen would pay a $2 million civil money penalty and Credit Repair Cloud would pay a $1 million civil penalty, both of which would be deposited into the CFPB’s victims relief fund, called the Civil Penalty Fund.
- Stop assisting companies with illegally charging advance fees: The order would permanently bar Credit Repair Cloud and Rosen from providing substantial assistance to any companies that use telemarketing to sell credit repair services and that charge advance fees. Credit Repair Cloud and Rosen would also be required to delete from their tools and services any language related to telemarketing and charging monthly fees for credit repair services.
- Notify companies using its tools and services that they cannot charge illegal upfront fees, and monitor whether companies are complying: Credit Repair Cloud and Rosen would be required to send a notice to all companies that use Credit Repair Cloud that provides specific examples of telemarketing and advance fees that are unlawful. They also would be required to monitor whether Credit Repair Cloud’s users are telemarketing and charging advance fees.
Read today’s proposed order.
Consumers can submit complaints about financial products or services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372).
Employees who they believe their company has violated federal consumer financial protection laws are encouraged to send information about what they know to [email protected]. To learn more about reporting potential industry misconduct, visit the CFPB’s website.
BACK TO TOP
CFPB Report Finds Lenders Cramming Markup Fees and Confusing Terms into Solar Energy Loans
Agency issues nationwide consumer advisory on predatory solar lending.
The Consumer Financial Protection Bureau (CFPB) today issued an issue spotlight finding that some residential solar lenders are misleading homeowners about the terms and costs of their loans, misrepresenting the energy savings they will deliver, and cramming markup fees into borrowers’ loan balances. The report describes how fees often increase loan costs by 30% or more above the cash price, and that lenders often misrepresent the impact of the federal tax credit for solar installations. These loans are generally facilitated by lenders in partnership with solar installers and door-to-door sales companies.
“With sweltering heat across America this summer, many families are installing solar panels to save on energy costs to cool their home,” said CFPB Director Rohit Chopra. “The CFPB is closely scrutinizing solar lenders to make sure that Americans don't get burned.”
The market for residential solar energy systems continues to grow rapidly, and is shifting toward less affluent communities. In 2023, solar energy represented 55% of new electricity-generating capacity added to the grid in the United States, up from 23% of new capacity in 2018. The growth is, in large part, due to declining solar panel costs and increased government incentives, including tax credits. The average residential solar project costs $25,000, and federal tax credits currently cover approximately 30% of the installation cost.
Fifty-eight percent of solar projects were paid through loans in 2023, and the number of lenders is increasing accordingly. These lenders often partner with solar installers and employ a variety of marketing and door-to-door sales tactics to convince homeowners to enter into financing agreements.
The CFPB found that the rapid rise of nonbank lenders partnered with solar salespeople into the solar market is also raising the potential for illegal behavior and consumer harm. In contrast to auto loans or mortgages where consumers know they want a car or house and then seek out financing options, door-to-door salespeople are going directly to homeowners in attempts to convince them both to purchase a solar energy system and to do so via a loan through their company. Within this sales and lending scheme, many homeowners are discovering they are being duped and misled into contracts with inflated principals, ballooning monthly payments, and electricity savings lower than promised.
Specifically, the CFPB has identified four areas of significant risks:
- Hidden markup fees: Lenders build hidden fees into their loans by marking up the principals of the loans. These “dealer fees” often increase the loan cost by 30% or more above the cash price of a solar project. Lenders frequently bake these fees into a loan’s principal without including them in the stated annual percentage rate (APR). Lenders also rarely and clearly separate these markups from the total cash price that consumers would otherwise pay for a system’s installation.
- Misleading claims about what consumers will pay: While receiving a tax credit is not guaranteed and based on a number of factors, many solar loan sales pitches promote the 30% federal “Investment Tax Credit” for residential solar installations. In fact, lenders will present loan principals as a “net cost” that assume the tax credit will be received. Consumers may end up believing either the tax credit will subtract from the “net cost” or that the “net cost” is what will be paid regardless of whether they end up qualifying for and receiving the tax credit.
- Ballooning monthly payments: Loan terms may require a substantial prepayment by a certain date that is equal to the expected tax credit. If a homeowner does not qualify for the tax credit, they will end up on the hook for the prepayment or face substantially higher monthly payments.
- Exaggerated savings claims: Homeowners report being told that solar panels will cover financing costs as well as eliminate future energy bills. While this promise may be true for some homeowners, the financial benefits of solar projects are uncertain and can vary significantly by geographic location and season.
In conjunction with today’s report, the CFPB released a consumer advisory warning homeowners of the risky practices in the solar lending market and sharing advice for borrowers who encounter illegal activity. The U.S. Department of the Treasury also published information to help consumers as they shop for solar power. The agencies will work together, along with the Federal Trade Commission and other government partners, to crack down on abuses in this important market.
Read today’s issue spotlight.
Today’s effort complements other work by the CFPB to protect families when it comes to clean energy financing. Last year, the CFPB proposed rules to rein in abuses on Property Assessed Clean Energy (PACE) loans. The CFPB is currently working on finalizing these rules.
Consumers can submit complaints about financial products or services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372).
Employees who they believe their company has violated federal consumer financial protection laws are encouraged to send information about what they know to [email protected].
BACK TO TOP
