The Point: Feb. 6, 2013

Association seeking new Young Professionals Commission members

The Credit Union Association of New York is currently seeking new candidates for membership in the Young Professionals Commission. The Commission, which is comprised of credit union professionals age 35 and under, develops strategies to help credit unions connect with younger adults and engage them as members, employees and volunteer leaders.

"I highly encourage all young professionals who want to grow within our industry to apply for an open Commission seat," said YPC Chairperson Lisa Totaro. "It's not only a great education into the New York credit union system; it also allows you to take a leadership role in ensuring that other young professionals have opportunities to grow into the future leaders of our movement."

Young professionals interested in serving on the Commission should speak with their managers/CEOs to begin the nomination process. Nomination forms must be submitted by Feb. 15 to Allison Barna, director of NYCUF/community development, at Complete details, including nomination information, are available on the Association website.

Matz, Cordray share regulatory priorities during town hall webinar

During yesterday's town hall webinar, NCUA Chairman Debbie Matz and CFPB Director Richard Cordray provided credit unionists with updates on their agencies' priorities and plans. Most notably, NCUA plans to issue a proposed rule on derivatives in the first six months of the year, and the CFPB expects to finalize its international remittance rule in the first quarter.

Matz and other NCUA representatives shared the following updates:

  • Regarding the proposed derivatives rule, NCUA is considering allowing well-run credit unions with the necessary expertise to use simple derivatives to hedge against interest rate risk (IRR).
  • NCUA will address clarity in member business lending waivers. An agency letter that addresses blanket waivers, guarantees and when a waiver is required for a structured or balloon loans is in development.
  • NCUA will release credit ratings and troubled debt restructuring guidance, as well as guidance that clarifies NCUA's expectations for enterprise risk management practices, by mid-2013.

Matz also discussed the state of the credit union system, noting that the system's overall health is "very encouraging" with a solid average capital level of 10 percent and declining delinquencies and chargeoffs. She added, however, that some of the smallest credit unions (those with $10 million or less in assets) are struggling with a return-on-assets of zero, which in fact is an improvement over recent negative numbers. The pressures on these smallest credit unions are spurring a number of mergers.

In response to this, NCUA is implementing the following plans to support small credit union operations:

  • reducing the number of examinations hours to approximately 40;
  • providing more services through the agency's Office of Small Credit Union Initiatives, such as consulting and helping with net worth restructuring plans; and
  • increasing the use and availability of web tutorials.

During his segment of the webinar, Cordray previewed some of the CFPB's future plans. He noted that:

  • A final version of proposed remittance transfer regulations will be released in February or March and will become effective 90 days after it is released. The CFPB has provided a safe harbor exemption from the rule for remittance providers that transact 100 or fewer remittances per year, and the final exemption threshold will remain at this level.
  • The CFPB is considering giving credit unions that hold $2 billion or less in assets and make more than 500 mortgage loans per year safe harbor from portions of qualified mortgage/ability-to-repay regulations.
  • Rules addressing prepaid cards will be released this year, but how far-reaching they will be is still under consideration by the CFPB.
  • The CFPB is also developing plain-language guides to aid smaller institutions with compliance with the new mortgage final rules.

NCUA will post an archived version of the webinar in the next two weeks.

CU women invited to leadership/networking meeting April 25

Female credit unionists are invited to attend a meeting of the NY/NJ Sister Society, an offshoot of WOCCU's Global Women's Leadership Network (GWLN). The meeting will be held April 25 at the McGraw-Hill Conference Center in New York City, and GWLN membership is not required for attendance.

The meeting will take place from 11 a.m.-3 p.m., and lunch will be provided. Discussions will be facilitated by Susan Mitchell, CEO/President of Mitchell, Stankovic and Associates, a consulting firm dedicated to credit unions.

The NY/NJ Sister Society was founded by Melrose CU and Affinity FCU to enable area GWLN members to meet more frequently for networking, community/philanthropic initiative planning and professional development. At the international level, the GWLN provides credit union women with access to a global community of leaders dedicated to advising each other and cultivating the potential of credit unions in the U.S. and worldwide.

The New York City meeting agenda and other details will be finalized in the weeks ahead. To learn more or subscribe to related e-mails, contact Robin Myers, Melrose CU controller, at (718) 658-9800, ext. 1039 or  

CUNA Mutual Group to host webinars on loan growth, employee dishonesty this month

Credit unionists can learn how to grow unsecured loans and prevent losses resulting from employee dishonesty during CUNA Mutual Group's free February webinars.

Credit Card & Personal Loans: Growing Unsecured Loans will be held Feb. 12 at 3 p.m. Participants will learn how to increase their credit card and lending portfolios using CUNA Mutual Group's Credit Card and Personal Loan Acquisition campaigns. Registration is available online.

Employee Dishonesty will be held Feb. 13 at 11 a.m. Participants will learn about the latest loss activity trends, how to identify behavioral red flags and simple steps to help reduce the risk of employee dishonesty. Registration is available online (member log-in required).

To learn more about CUNA Mutual Group's education and training offerings, visit the CUNA Mutual Group website.

National industry news & CUNA reports

To view today's issue of CUNA News Now, click here.

To view the most recent CUNA Regulatory Advocacy Report, click here. (CUNA member log-in/registration required.)

To view the most recent CUNA Legislative Update, click here. (CUNA member log-in/registration required.)