The Point: Feb. 13, 2014


Mellin shares updates with Westchester-Rockland Chapter, connects with local reporter

Members of the Westchester-Rockland Chapter gathered in Thornwood, N.Y., Tuesday for dinner, networking and a special presentation from William J. Mellin, president/CEO of the Credit Union Association of New York. Mellin updated the group on core services offered by the Association and its Affiliates, as well as regulatory, legislative and consumer advocacy initiatives.

Much of Mellin’s remarks focused on NCUA’s proposed risk-based capital rule and the impact it would have on New York’s credit unions. Mellin also discussed the importance of advocacy and networking at upcoming credit union events, such as CUNA’s 2014 Governmental Affairs Conference (GAC), the Association’s State GAC and the Annual Meeting and Convention.

An open dialogue on credit card fraud was then led by Thomas J. Powers Jr., Westchester-Rockland Chapter president and CEO of Hudson River Teachers FCU.

Earlier that day, Mellin and Powers met with Journal News consumer affairs reporter Ernie Garcia to discuss credit unions, the positive impact they’re making in the region and other industry issues. During their time with Garcia, Mellin and Powers explained the basics of the credit union movement and the cooperative philosophies behind the credit union structure.

“This was a positive, productive meeting that allowed us to share specific examples of the credit union difference with the local media,” said Mellin. “Every chance we have to connect with the press helps build awareness about the credit union movement, which is essential to our advocacy efforts.”

NCUA: No corporate assessments in 2014; future assessments less likely

In a positive development for credit unions, NCUA has confirmed via a news release that there will be no Temporary Corporate Credit Union Stabilization Fund (TCCUSF) assessment charged in 2014. Credit unions are also less likely to be charged another TCCUSF assessment in the future, and rebates may be issued when the stabilization program ends in 2021.

NCUA must still repay $2.9 billion in outstanding borrowings to the U.S. Treasury Department before any remaining stabilization fund distributions can be legally made to credit unions, so potential repayments to credit unions are unlikely prior to 2021.

The net remaining TCCUSF projected assessment range now runs from negative $1.9 billion to negative $400 million. NCUA said last year’s $1.4 billion settlement with JPMorgan Chase and the continued performance improvements of the legacy assets underlying the NCUA Guaranteed Notes program caused the assessment range decline.

Credit unions have paid $4.8 billion in TCCUSF assessments since the fund was established in 2009.

Matz, Cordray discuss regulations during ‘town hall’ webinar

NCUA Chairman Debbie Matz and CFPB Director Richard Cordray covered a broad range of regulatory issues, including NCUA’s proposed risk-based capital requirements, during yesterday’s town hall-style webinar.

Matz discussed the individual minimum-capital requirements proposal and other credit union concerns. She also told webinar attendees that NCUA has heard from many credit unionists who are concerned about the proposed rule, and she noted that the agency will take credit union feedback into consideration as the proposal moves forward.

Cordray answered questions relating to CFPB’s new rules on qualified mortgages (QM) and ability-to-repay. He also encouraged credit unions to continue writing mortgages according to their current underwriting standards and to make non-QM loans when appropriate.

WOCCU seeking young CU leaders for international scholarship program

The World Council of Credit Unions (WOCCU) is now accepting nominations for World Council Young Credit Union People (WYCUP) scholarships, an international networking and educational program for promising young credit union leaders. The WYCUP program is open to individuals who are 35 or younger, passionate about credit unions and interested in networking with young leaders from around the world.  

Five scholarships will be awarded for an all-expenses-paid trip to the 2015 World Credit Union Conference in Denver, Colo., and the program and awards ceremony will take place at the 2014 World Credit Union Conference in Gold Coast, Australia, July 27–30, 2014. The nomination deadline is June 16, 2014.

For more information, visit the WOCCU website.

Biz Kid$ Financial Education Grants now available

Credit unions can now apply for Biz Kid$ Financial Education Grants from the National Credit Union Foundation (NCUF). Biz Kid$ Financial Education Grants may be used to fund innovative programs that improve the financial education of youth through the use of the Biz Kid$ program, and applications will be accepted through March 31.

Biz Kid$ is a national financial literacy initiative that teaches kids about money and business. The initiative includes an award-winning TV series, free classroom curriculum, outreach activities and a website for children 9-16 years old.  

To learn more or apply for funding, visit the NCUF website.

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