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Articles for October 28, 2022
- Wisconsin DFI Receives 2022 NASCUS Reaccreditation
- Regulatory Guidance in WA for Depository Institutions On Providing Account Services to Money Services Businesses
- California-Based Tech CU Opens First Virtual Branch in Idaho
- New York State Department of Financial Services Issues Revised Proposed Community Reinvestment Act Regulation to Improve Lending to Minority and Women-Owned Businesses
October 24, 2022 — The National Association of State Credit Union Supervisors (NASCUS) is proud to announce that the Wisconsin Department of Financial Institutions, Office of Credit Unions has earned Reaccreditation following a series of in-depth reviews and assessments by a panel of veteran state supervisors.
“We are pleased the Wisconsin Office of Credit Unions received reaccreditation from the National Association of State Credit Union Supervisors,” said Wisconsin Department of Financial Institutions Secretary-designee Cheryll Olson-Collins. “This professional recognition affirms our agency is meeting superior regulatory standards and demonstrates we serve the people of Wisconsin through operating an effective, skilled, and professional program with credit union safety and soundness at the forefront of supervision. We look forward to continuing to meet these standards for years to come.”
NASCUS Accreditation is a robust process that includes disciplined self-evaluation and ongoing monitoring administered by the NASCUS Performance Standards Committee (PSC), a group of senior regulators from accredited state agencies.
“This peer-reviewed program recognizes achievements of state credit union regulators to effectively carry out regulatory and supervisory programs in their operations and utilization of resources,” commented NASCUS President and CEO Brian Knight. “Achieving NASCUS Accreditation reflects the exceptional capabilities of state regulatory agencies and their ability to meet the highest level of regulatory proficiency and industry standards. Furthermore, the Accreditation review process can identify opportunities for statutory, regulatory, or supervisory changes to further enhance the agency and the state’s charter.”
To earn Accreditation, a credit union state supervisory agency must demonstrate that it meets accreditation standards in agency administration and finance, personnel and training, examination, supervision, and legislative powers.
NASCUS began developing the Accreditation program in 1989 to administer and ensure states’ credit union examination and supervision quality standards. This program, modeled on the university accreditation concept, applies national performance standards to a state’s credit union regulatory program.
To learn more about the NASCUS Accreditation program, visit: https://www.nascus.org/state-activities/accreditation/
Regulatory Guidance in WA for Depository Institutions On Providing Account Services to Money Services Businesses
October 2022 — For many years certain money services business regulated by the Washington Department of Financial Institutions have found they are categorically excluded from access to account services offered by financial institutions.
These small money services businesses send remittances overseas to vulnerable areas of the world, where poverty is widespread and for whom remittances form a large portion of the gross national product and serve a humanitarian purpose.
The Washington State Department of Financial Institutions has worked closely with money services businesses, depository institutions, federal regulators and state and federal legislators and other stakeholders to develop guidance and tools that will support an appropriate, risk-based approach to providing account services to these businesses. The following documents are designed to supplement existing federal regulatory guidance and are the product of a collaborative process. These documents may be revised as discussions addressing the issue of derisking of some money services businesses continue.
Guidance and Resources from DFI
- DFI’s Guidance Regarding Impact Money Services Business Program
This document is intended to provide supplemental best practice regulatory guidance and expectations for depository institutions looking to provide banking services to money service businesses, specifically those seeking foreign remittance services.
- Agreement to Maintain Confidentiality
This Agreement, if signed by all parties, would provide the money service business an opportunity to allow DFI to share the companies Report of Examination and other regulatory information with the depository institution.
- Model Master Addendum to Commercial Deposit Agreement
The Commercial Deposit Agreement is a sample agreement that could be used by the depository institution to establish a risk framework with the money service business client. This is not intended to be an all-encompassing document, could be revised by the depository institution, and should undergo standard internal legal review.
- October 14, 2022 Letter from DFI Director to Bank and Credit Union CEOs
Letter from DFI Director Charlie Clark to bank and credit union CEOs regarding money services businesses and depositories.
Courtesy of CUToday.info
October 26, 2022 — Technology Credit Union, which is based in San Jose, Calif., has made its first foray into Idaho with the opening of a virtual branch.
The facility was opened via a virtual event at which speakers included Boise Mayor Lauren McLean and other officials.
“We’re excited to open our Virtual Branch in Idaho and formally expand outside our borders for the first time,” said Tech CU CEO Todd Harris. “Treasure Valley, and Boise in particular, have been a goal of ours for several years now. Not only are the people who live there super friendly, but it is a burgeoning technology hub with a rapidly growing population, and a strong concentration of well-respected employers, making it an ideal location for Tech CU.”
According to the credit union, the Virtual Branch allows members to receive the “same high-touch, personalized face-to-face banking experience they typically receive in person, from the comfort of their homes.”
Virtual Branch members can talk to an expert virtual banker about their banking questions and can take care of the types of transactions typically done at an in-person appointment including credit card and loan requests, account or debit card issues, savings/CD requests, IRA/HSA, and more, the credit union added.
Refining the Model
“Consumers are used to doing many things virtually now, and banking is no exception,” said Robert Reed, the Chief Retail Banking Officer at Tech CU. “We’ve spent the past year and a half refining our Virtual Branch model across our entire field of membership and are confident we can deliver the same in-person experience our members have come to expect in a virtual way.”
The $4.5-billion Tech CU has more than 160,000 members.
New York State Department of Financial Services Issues Revised Proposed Community Reinvestment Act Regulation to Improve Lending to Minority and Women-Owned Businesses
October 26, 2022 — Superintendent of Financial Services Adrienne A. Harris today announced a revised proposed regulation that will allow the New York State Department of Financial Services (DFS) to collect data to evaluate how well New York-regulated banking institutions are serving minority- and women-owned businesses in their communities, pursuant to an expansion of New York State’s Community Reinvestment Act (CRA). The revised proposed regulation is subject to a 45-day comment period following publication in the State Register.
The revised proposed regulation addresses comments received by DFS during a prior 60-day comment period. The revisions aim to minimize compliance burdens by ensuring the proposed language complements requirements in the Consumer Financial Protection Bureau’s proposed regulations for data collection on credit access for small and minority- and women-owned businesses.
“Banks must meet the needs of all consumers, including minority and women business owners, who historically have been denied fair access to credit,”said Superintendent of Financial Services Adrienne A. Harris. “This revised regulation ensures DFS has the necessary data to verify that banks are providing equitable access to financial products, creating a fairer financial system.”
Among its provisions, the proposed regulation details how institutions must collect and submit the necessary data to DFS while abiding by fair lending laws. Banks will be required to ask whether a business applying for a loan or credit is minority- or women-owned and report to the Department the details of applications, such as the date; type of credit applied for and amount; and whether the application was approved or denied; as well as whether the applicant is a minority-owned business, a women-owned business, or both; the size of the business; and the location of the business.
Revisions to the proposed amendment include:
- Establishing how covered banking institutions should solicit, collect, store, and report the information relating to their provision of credit to minority- and women-owned businesses, for example, when requests for information should be made, and notifications to applicants of their right to refuse to offer information in response to such requests and that the information they provide may not be used for any discriminatory purpose;
- That to the extent feasible, underwriters should not have access to the information provided by applicants;
- The length of time the information gathered must be preserved by the covered institution;
- A sample data collection form that covered institutions are permitted (but not required) to use.
A copy of the updated proposed regulation can be found on the DFS website.
Articles for October 21, 2022
- Consumers Credit Union Ventures into a Branded Restaurant
- New CU Opening Its Doors This Week
- SECU Foundation Makes $2 Million Challenge Grant for New Child Advocacy and Resource Center in Onslow County
- CFPB’s Chopra Meets with Cornerstone League Reps, Urges CUs to Ask Themselves a Question
- Churchill Named 2022 CUES Emerge Winner
Courtesy of Michael Ogden, Credit Union Times
Oct. 11, 2022 — The ConsumersCU Club Restaurant + Bar opens inside the Van Andel Arena in Grand Rapids, Mich.
Typically, a credit union is known for opening new branches or headquarters as a way to expand its branding footprint. In the case of the Kalamazoo, Mich.-based Consumers Credit Union, officials decided to take over a restaurant.
About an hour north of Kalamazoo in downtown Grand Rapids, Mich., Consumers ($1.9 billion in assets, 126,497 members) launched a new partnership with the Van Andel Arena. The partnership includes a full branded sponsorship of the restaurant and bar space inside the arena – which is now called the ConsumersCU Club Restaurant + Bar.
According to a spokesperson for the credit union, the partnership is a five-year deal to start. Financial details of the arena sponsorship were not provided.
Beyond the Consumers-branded restaurant, the credit union will have signage placed throughout the arena, sponsorship of the first game of the season for the Grand Rapids Griffins hockey team and ticket giveaways all season.
In a statement from the credit union, the ConsumersCU Club will be managed by the food and beverage provider for the 12,000 seat arena, SAVOR…Grand Rapids. The menu will feature Tuscan mussels, poke nachos, sopapillas, margherita flatbread and other arena favorites.
“The Van Andel Arena and Griffins hockey team are staples of the Grand Rapids community,” Consumers President/CEO Scott Sylvester said. “We are looking forward to all the possibilities that arise as part of this exciting new collaboration.”
Courtesy of CUToday.info
Oct. 18, 2022 — Unity of Eatonville FCU is celebrating its official opening this week. The credit union was officially granted its charter and share insurance fund coverage in December of 2021.
The new CU is located seven miles north of downtown Orlando in Eatonville, which is the oldest black-incorporated municipality in the United States. Throughout the city’s history, the credit union said Eatonville has been an underserved community by established banks, adding that the opening of Unity of Eatonville FCU is a “landmark celebration” as it is the community’s first federally insured financial institution.
“I began exploring the possibilities of starting a local credit union back in 2018,” said Rev. Willie C. Barnes, pastor and CEO of Macedonia Missionary Baptist Church of Eatonville. “It was necessary to originate a financial concept that would be compassionate and understanding of our local community members. With the direct relationship Macedonia Missionary Baptist Church has within our community, it was important to leverage this relationship to build a financial system from within our town to foster a sense of trust and confidence.”
According to its organizers, Unity of Eatonville FCU was founded with the mission to provide exceptional products, steadfast customer service and uncompromised integrity.
The New FOM
The credit union’s field of membership consists of Macedonia Missionary Baptist Church members and their families, community members and businesses in Eatonville.
It said members can expect low-interest loans and the opportunity to invest their earnings and savings in a manner that “supports community development.”
“Unity of Eatonville FCU will benefit our community by supporting and motivating our members to take control over their financial futures,” said Board Chairman George Williams. “We will be there for our members every step of the way – from providing educational programs that deepen understanding of money management to long range financial and retirement planning, we are here because we understand and cater to the specific needs of our community.”
UEFCU said Jacksonville, Fla.-based
VyStar Credit Union has been a strong advocate for its establishment, and began partnering with the credit union as a mentor shortly after it earned its charter at the end of 2021.
SECU Foundation Makes $2 Million Challenge Grant for New Child Advocacy and Resource Center in Onslow County
Oct. 10, 2022 — SECU Foundation recently awarded a $2 million challenge grant to One Place, an Onslow County non-profit dedicated to ending child abuse. One Place will use the grant to assist with the construction of a new child advocacy and resource facility, the SECU Hope Center.
The Foundation awarded this second grant just 14 months after giving One Place a Mission Development Grant to create financial strategies for facility
expansion and sustainability. The future SECU Hope Center will include a mental health clinic with onsite medical services to assist victims of physical and sexual abuse and human trafficking. It also will increase the organization’s capacity by 50 percent to serve 600 children and families annually.
“We are so pleased to be part of this organization’s incredible journey to open a new child advocacy and resource center,” said Bob Brinson, SECU Foundation board chair. “One Place has been serving families in this region for over 20 years, and their passion, determination, and hard work has earned them well-deserved recognition. Their programs and services are invaluable to the community – the Foundation’s support and the support from so many others will ensure their mission to help those in need will continue for years to come.”
“This is truly historic as we have been on the journey to our forever home. When we think about what is needed in this community, we know that we need expanded mental health services for children, we know that we need expanded capacity to support victims of child abuse, and we also know that we need more preventative services,” said Dawn Rochelle, One Place CEO. “With the award from SECU Foundation, we celebrate another step forward in working to build a sustainable future for One Place that protects our children. We are honored to work with SECU Foundation in building the SECU Hope Center to further our mission to connect all children and their families to programs and resources that provide opportunities and hope.”
Courtesy of CUToday.info
Oct. 18, 2022 — More than four-dozen members of the Cornerstone Credit Union League met with CFPB Director Rohit Chopra, during which the discussion touched on auto loans, overdraft protection programs, rulemaking, and ways to engage with the Bureau.
According to CUNA, Chopra opened with a brief on the economic climate, CFPB priorities, and recent efforts to open a dialogue with credit unions to get a “first-hand account of the credit union landscape.”
Chopra also praised credit unions for stepping up to help their members take on larger debt burdens amid a tight economy, the association said.
Consumers Lack ‘Reference’
“While the labor market continues to be pretty strong, we have not really been in an inflationary cycle in a long time,” Chopra was quoted as saying. “That means a lot of our businesses and consumers don’t really have a prior reference. I’m seeing lots of issues in auto lending. We see a lot of credit unions stepping up to help their members as they take on larger debt burdens.”
CUNA reported Chopra also discussed with the Cornerstone league representatives that the rapidly changing payments landscape, particularly Google and Apple Pay, is changing the way consumers engage with money, which presents challenges, especially for smaller financial institutions.
“I’m interested in restoring and safeguarding relationship banking,” Chopra said, according to CUNA. “I encourage everyone to reflect and ask themselves, ‘What are we doing now as a community that’s working?’”
Support for Auto Lending
CUNA further reported that Chopra encouraged credit unions to make auto loans to initiate further conversations.
“Auto lending is a great asset for a credit union,” he said. “It’s also a great way to create a relationship with someone. An initial conversation about auto loans can turn into a larger conversation about financial health.”
Oct. 11, 2022 — Zachary Churchill, VP of Finance, USF FCU, Tampa, FL, has been named the 2022 CUES® Emerge winner.
As one of five Finalists, Churchill’s route to the podium began when he was selected into the CUES Emerge program early in 2022. From there, participants completed business cases and worked toward their project idea while a team of judges reviewed their proposals. On October 5, it culminated in Churchill and the four other finalists presenting their projects live during an online pitch show, hosted by Tim McAlpine of Currency.
Two other finalists, Angela Harden, Facilities Assistant Manager, Bay FCU, Capitola, CA, and Jose Raya, Security Operations Engineer, Magnifi Financial CU, Melrose, MN, were named as runners-up. Churchill and each of the runners-up will receive an educational and coaching package to support continued development and growth within the industry.
Churchill’s winning business case was The Case for a Data Analytics Team.
The other Finalists taking part in the online pitch show were Marilyn Mims, Learning & Organization Development Manager, Northeast CU, Portsmouth, NH, and Randi Timonere, Risk and Compliance Manager, WeStreet CU, Tulsa, OK.
CUES Emerge was created to offer free professional development to the industry’s up-and- coming leaders.
Participants who complete the course work and business case earn the Certified Credit Union Manager designation in recognition of their commitment to their career, credit union and the industry. You can learn more about the program at CUESEmerge.com.