a veteran owned and operated credit union website design, social media
and marketing firm. With a focus on member experience, the company
ensures that every touch-point has the exact same user interface. Along
with incredible design, OMNICOMMANDER creates sites with built-in mobile
responsiveness, SSL encryption while observing ADA guidelines on
accessibility for disabled members.
and CEO Eric Isham said, “Partnering with the Firefighter Council is
especially important to me because the members they serve are heros
therefore they deserve a fantastic web experience. One of our employees
is actually a New York City Firefighter that works as a liaison for the
Council. The credit unions love working with one of their own through
the website selection process.
Become a OMNICOMMANDER Credit Union
Want to offer the best ADA compliant website in town. Now you can with complete confidence! As your members visit your gorgeous new user friendly website they will just be a click away from seeing all the products and services you offer.
WASHINGTON—For U.S. states ready to legalize gambling, banks hold many of the cards. The Supreme Court recently ruled that states can allow betting on individual sporting events, but gamblers who want to place those wagers using a credit card face a major hurdle: The largest U.S. issuers, including JPMorgan Chase, Citigroup, and American Express, don't yet allow their cards to be used for sports gambling, reported Bloomberg. “The stakes are huge. Americans illegally bet an estimated $150 billion on sports games each year, a figure that's enticing for credit-card issuers looking to gin up extra spending by their customers. Still, allowing cardholders to fund their gambling habit with a credit card could create problems for lenders, which are left on the hook if a borrower can't repay,” Bloomberg said.
Time to review your policy?
Decoration Day, as Memorial Day was originally known, was
conceived in May 1868 and was first observed at Arlington National Cemetery to
bring together the families of the fallen to help heal the wounds of a war that
had threatened to tear our young nation apart. The tradition endures nearly 150
years later at national cemeteries across the country.
This Monday, as a nation, we will observe Memorial Day. It is not just for
barbecues, shopping, or having the day off from work. It is a day when all
Americans should remember and reflect upon those who have fought and died for
our country and who now lay in peace.
President Donald Trump today signed the NAFCU-backed Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) into law. Following years of NAFCU advocacy and credit union grassroots efforts, the industry has secured meaningful regulatory relief.
"NAFCU and our members again appreciate all House and Senate lawmakers who worked on this bill and pushed it through to final passage – especially [Senate Banking Committee] Chairman [Mike] Crapo and [House Financial Services Committee] Chairman [Jeb] Hensarling," said NAFCU President and CEO Dan Berger. "We appreciate President Trump signing the bill, as we can now look towards the future and continue to work with Congress on further regulatory relief measures to ensure robust growth of the credit union industry."
After House passage of the bill on Tuesday, Berger sent a letter thanking Trump for his leadership on helping Main Street financial institutions and urging him to sign the bill. In addition, Berger personally contacted White House staff again to thank them for their dedication to regulatory relief efforts and for working with NAFCU.
NAFCU is already moving forward on a number of other top legislative items still pending before Congress, including risk-based capital (RBC) reform, data and cybersecurity standards, field of membership reforms, and lawsuit abuse under the Americans with Disabilities Act. Berger has asked leaders in the House and Senate to work with the association to address these issues and bring credit unions much-needed regulatory relief.
The association is already making strides on a provision to delay the NCUA's RBC rule. The provision has been added to a House Appropriations Financial Services and General Government's appropriations bill, which is being marked up today. NAFCU has long advocated for a repeal or delay of this rule, and the association's efforts proved instrumental in getting the language added to this appropriations bill as well as H.R. 5841, which passed out of the House Financial Services Committee Tuesday.
Berger noted that the passage of S. 2155 is a good first step in creating a regulatory environment in which credit unions can thrive – both upon House passage of the bill this week and in an interview yesterday on Fox Business.
Berger with NAFCU's advocacy team has held numerous meetings on Capitol Hill in the past week to gather support for S. 2155. In February, Berger, along with numerous credit union CEOs, met with Trump to discuss industry issues – including regulatory relief.
NAFCU has been working towards regulatory relief for credit unions since the implementation of the Dodd-Frank Act and will continue to do so.
Managing and maintaining a portfolio of performing loans is a basic challenge for all credit unions. Marketing and underwriting loans is a major function in all credit unions. However, getting loans on the books is only 50% of the job. The other 50% is managing loans over their life in the portfolio. Credit Migration is a powerful tool that credit union leaders are using for this purpose.
This presentation will provide a clear understanding of what credit migration is, how it works and how it is applied by credit unions to minimize losses, enhance yields, and prepare for CECL implementation.
We are pleased to have Dr. Thompson present a general session on the CECL and how it will be applied to credit unions and an afternoon breakout on how to implement CECL in your credit union.
Randy C. Thompson, Ph.D. is the CEO and founder of TCT Risk Solutions LLC a CUSO. He has consulted with Credit Unions, for the past 32 years. He holds advanced degrees (Ph.D. and MS) in Finance, Statistics, Economics and Public Health and taught graduate courses in finance and statistics at several Universities in the western United States. He has been a frequent speaker at League and Association meetings across the United States and has authored papers and articles for Credit Union trade journals and for the New Jersey Credit Union League, California/Nevada Credit Union League, CU Times and CU Business trade magazines. He is the creator of TCT Suite of products including risk based pricing, deposit pricing, Credit Migration with ALLL, and the CostPro Earnings at Risk ALM Simulation Model.
Dr. Thompson has delivered training on loan and deposit pricing, credit migration and ALLL to federal and state examiners in six western states.
He was awarded the Kim Bannon Eternal Flame Award for service to credit unions in 2013. He is the father of 12 children and grandfather to 25 grandchildren. He is a private pilot and an avid gardener.
Introducing STARS, an AML Monitoring Solution for Smaller Financial Institutions
With the ever-increasing expectations on financial institutions to monitor transactions and manage alerts, many smaller financial institutions find themselves stranded somewhere between nerve-wracking reliance on limited reporting options from their core systems and a prohibitively large investment in an anti-money-laundering monitoring system that, in addition to the up-front costs, can create significant time demands on resources that are already stretched thin.
What’s a small financial institution to do?
Introducing STARS from AdvisX. Our Streamlined Transactional Analytics and Review Solution is the right-sized monitoring solution for smaller financial institutions. STARS offers a low-cost way to monitor transactions, generate alerts, and manage those alerts from identification to resolution.
STARS is implemented in three phases:
Phase I: Discovery
Phase II: Implementation
Phase III: Ongoing Monitoring and Optimization
We’ve designed this solution to specifically work within the budget constraints of smaller financial institutions. Click here to watch the video, visit our website for more information, or contact us (call 888-980-1949, ext. 7010, or email us at email@example.com) for a fee proposal geared to your specific needs.
Let STARS from AdvisX give you the peace of mind that comes from knowing your institution’s transactions are being monitored for more than just structuring in a way that is both efficient and effective.
Banks and other covered financial institutions must comply with this rule beginning on May 11, 2018.
The Federal Financial Institutions Examination Council (FFIEC) today issued new examination procedures on the final rule, “Customer Due Diligence Requirements for Financial Institutions,” issued by the Financial Crimes Enforcement Network (FinCEN) on May 11, 2016.
These examination procedures apply to banks, savings and loan associations, savings associations, credit unions, and branches, agencies, and representative offices of foreign banks.
The new examination procedures replace those in the current “Customer Due Diligence — Overview and Examination Procedures” section of the FFIEC’s Bank Secrecy Act/Anti-Money Laundering Examination Manual. In addition, a new overview and examination procedures were developed for the beneficial ownership requirements for legal entity customers.
The FFIEC member agencies created these procedures in close collaboration with FinCEN and the U.S. Department of the Treasury.
FinCEN’s 2016 final rule clarifies customer due diligence requirements and also includes a new requirement for covered financial institutions to identify and verify the identity of beneficial owners of certain legal entity customers.
Once largely thought of as taboo, the use of external funding is now widely accepted throughout the credit union industry. In fact, the NCUA has required all credit unions to seek multiple liquidity sources and document those sources in their liquidity policy.
As the acceptance of external funding has improved, credit unions are increasingly sourcing funds from many channels, including the Federal Home Loan Bank System, the corporate credit union network, and several non-member deposit channels, such as public fund deposits.
Yes, public fund deposits are being increasingly sourced to fund credit union assets.
Increasing Growth, Benefits, And Uses
Total member and non-member government deposits totaled $5.4 billion at year-end 2017. This is an increase of 27% since 2015. While this amount pales in comparison to total deposits and other liabilities, how important are these deposits to the nearly 500 credit unions who report them?
Many of these credit unions are strategically pursuing public fund deposits as these deposits are an additive funding source from outside the industry. These deposits provide stability as they are not subject to the liquidity strain that can occur across the entire credit union and banking industry. Additionally, they mitigate the seasonality of consumer deposits and support core deposit metrics.
When pursuing a matched book asset liability strategy, public fund deposits offer a compelling and economically sound funding source for select loan portfolios while preserving your existing credit lines. The amount and term of a public fund deposit can be structured to closely match a member business loan origination. Or, the deposits can be used to fund an unsecured loan portfolio or a specific vintage of originated of auto loans.
Acquiring Public Fund Deposits
But, you ask, how are credit unions accepting public fund deposits? Public fund deposits are largely controlled by state statutes for both the depositors and deposit takers. When these statutes were initially created, the credit union industry was largely cut out, and public unit depositors were limited to FDIC-insured institutions. Much like the taboo of using external funding, many credit unions think they are completely locked out of the public funds market. But that is not true.
The great news is that efforts to facilitate public fund deposits to credit unions are paying off. Many states now allow government entities to deposit funds in credit unions. Additionally, there are states that allow their government entities to place their deposits nationwide.
So, consider a federally insured and chartered credit union in Florida or Ohio accepting public fund deposits from multiple government entities from Minnesota. This is happening.
Looking At Collateralized Options
While credit unions may find the NCUSIF insurance limitation restrictive for raising external deposits, several states allow collateralized deposit options. Using excess collateral at a Federal Home Loan Bank or the Federal Reserve Bank are a couple of options for collateralizing deposits. Or, credit unions could work directly with their safekeeping agent on possible collateral arrangements. Lastly, these states may also allow a public fund deposit to be supported by a letter of credit issued from a Federal Home Loan Bank.
Serving Our Local Communities
Credit unions restricted on a local level continue to lobby legislators to modify rules and statutes to expand the deposit market to credit unions. This is a growing need, as smaller communities with local and state government operations have lost bank presence in their community and thus access to local financial services. The desire and willingness of public fund depositors, and their aggregators, to place deposits with credit unions will certainly promote further change.
Overall, continued growth of public fund deposits in credit unions will further support our position as a viable and, in some cases, preferable deposit taker for local government entities.
Don't be the last to know, follow the National Council of Firefighter Credit Unions Inc on Facebook and Twitter. Stay in touch and get all the latest updates on the council, credit unions serving firefighters & first responders, annual conferences and events.
“Great things happen when credit unions serving firefighters and first responders come together. Our Face-to-face interaction is the platform where collaboration begins, relationships are forged, and ideas are generated."
The key aspects of this meeting will focus on the collaborative discussions among the attendees from the credit union community. Participants will have the opportunity to sit in on breakout sessions covering a variety of subjects of key interest to credit unions.You'll walk away with:
Tools and techniques from credit union leaders
Fresh and innovative business strategies – from growing your products to being ready for the next wave of change
What you really need to know about the firefighter credit union environment
New connections from open forums, networking receptions and special events.
On Wednesday, the U.S. central bank released its latest policy statement, maintaining a target benchmark interest rate range of 1.5%-1.75%.
Wall Street had expected the Fed would make no changes to its interest rate policy on Wednesday after raising rates in March for the sixth time since the financial crisis. Wednesday’s announcement was not accompanied by a press conference with Fed chair Jay Powell nor were updated economic forecasts from the Fed released.
In its statement, the Fed said, “Information received since the Federal Open Market Committee met in March indicates that the labor market has continued to strengthen and that economic activity has been rising at a moderate rate. Job gains have been strong, on average, in recent months, and the unemployment rate has stayed low.”
The biggest development in the statement, however, was a tweak in the Fed’s language with respect to inflation.
“On a 12-month basis, both overall inflation and inflation for items other than food and energy have moved close to 2 percent,” the Fed’s statement said.
The Fed has a goal of 2% price inflation.
In March, the Fed said that inflation excluding food and energy had “continued to run below 2 percent” on a 12-month basis.
And so in making this change, Fed officials are acknowledging that inflation is getting closer to its target. In March, personal consumption expenditures (PCE) rose 1.9% over the prior year when stripping out food and energy. Core PCE is the Fed’s preferred measure of inflation.
A sustained turn in inflation above this 2% target, or even a sustained period of inflation hitting this target, could change the Fed’s policy outlook in the coming years.
Following the release, equity markets in the U.S. were higher, but little-changed, with the Dow up 0.2%, the S&P 500 u 0.1%, and the Nasdaq up 0.3%.
In the bond market, Treasuries were higher, but little-changed, with the 2-year yield right at 2.5% and the 10-year sitting at 2.96%. Last week, the 10-year moved above 3% for the first time in four years.
The Fed’s statement also had no mention of the trade tensions that some economists have warned could impact the economic outlook both in the U.S. and abroad. The Fed also removed a sentence from the March statement which said, “The economic outlook has strengthened in recent months.”
Here’s the full text of the Fed’s announcement:
Information received since the Federal Open Market Committee met in March indicates that the labor market has continued to strengthen and that economic activity has been rising at a moderate rate. Job gains have been strong, on average, in recent months, and the unemployment rate has stayed low. Recent data suggest that growth of household spending moderated from its strong fourth-quarter pace, while business fixed investment continued to grow strongly. On a 12-month basis, both overall inflation and inflation for items other than food and energy have moved close to 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed, on balance.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with further gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace in the medium term and labor market conditions will remain strong. Inflation on a 12-month basis is expected to run near the Committee’s symmetric 2 percent objective over the medium term. Risks to the economic outlook appear roughly balanced.
WASHINGTON–CUNA is cautioning federal credit unions to pay attention to what a court decision on field of membership means as they look to add new members.
As CUToday.info reported here, NCUA is considering an appeal to the U.S. District Court for the District of Columbia’s ruling that vacated two provisions of the agency’s field of membership rule.
What that means, reminded CUNA CEO Jim Nussle in a letter to credit unions, is that while NCUA filed a notice with the court last week setting forth its plan to comply with the ruling, it will not grant new community charters to federal charters based on the expanded definition of "rural district" and "combined statistical area" going forward. Credit unions will not be required to de-list members who joined prior to April 4.
“The NCUA's notice also observes that some of the court's ruling could be overturned in an appeal,” wrote Nussle. “CUNA strongly supports NCUA's authority to issue the rule, and the important modernizations the final rule made to credit unions' ability to serve members. We also support NCUA efforts to pursue any available avenue, be it judicial, regulatory, or legislative, to ensure consumers have the access to credit union membership within their community.”
Nussle added that CUNA’s own “rigorous analysis shows unambiguously that broader fields of membership create not only substantial benefits to the credit unions and their members, but to the overall safety and soundness of the financial services marketplace.”
CUNA is urging any credit union that believes it has been affected by the court’s decision to contact it.