Nat'l. Election Re-cap Teleconference Scheduled Posted by Association of Vermont Credit Unions on 1:59 PM

CUNA will be hosting a free national teleconference to review how the election results will shape credit union advocacy efforts going forward, and how credit union financial support affected key congressional races.

Subjects covered will include:

• Credit union success in electing credit union champions
• How the election results will alter the landscape in Washington—including the makeup of pertinent congressional committees such as the House Financial Services Committee and Senate Banking Committee—and how credit unions can best navigate this new environment with their advocacy efforts
• How the new administration may have an impact on our industry, including through the ability to appoint new members to our regulatory bodies 
• A question and answer session.

The free national teleconference takes places at 4 PM eastern time, on Thursday, November 10th. Registration is required to participate. Find more details and register online.

These are Tesla’s new solar roof tiles for homes Posted by Bryan Kent on 8:07 AM

These are Tesla’s new solar roof tiles for homes

https://techcrunch.com/2016/10/28/these-are-teslas-stunning-new-solar-roof-tiles-for-homes/

NCUA To Vote On FOM Proposal In Morning, Host Budget Briefing In Afternoon Posted by Bryan Kent on 9:05 AM

NCUA To Vote On FOM Proposal In Morning, Host Budget Briefing In Afternoon

http://cutoday.ssd.thinkcreativeinternal.net/Fresh-Today/NCUA-To-Vote-On-FOM-Proposal-In-Morning-Host-Budget-Briefing-In-Afternoon?utm_source=Fresh+Today+102716&utm_medium=email&utm_campaign=Fresh+Today+102716

Big Banks, Big Mortgages: Jumbos Remain Popular Posted by Bryan Kent on 8:32 AM

Big Banks, Big Mortgages: Jumbos Remain Popular

http://cutoday.ssd.thinkcreativeinternal.net/Fresh-Today/Big-Banks-Big-Mortgages-Jumbos-Remain-Popular?utm_source=Fresh+Today+102616&utm_medium=email&utm_campaign=Fresh+Today+102616

Merchants Bank to be Acquired Posted by Association of Vermont Credit Unions on 12:16 PM

As reported by the Burlington Free Press and elsewhere on Monday of this week, Merchants Bank announced its pending acquisition by Community Bank System, Inc. of Syracuse, New York for about $304 million. The transaction was approved by the boards of both organizations.

At approximately $2 billion in assets, Merchants Bank is the largest Vermont chartered bank in the state. It has 32 branch locations throughout the state, and expanded into western Massachusetts.  The bank's shareholders will choose to receive cash, shares of Community Bank System, or a combination. Estimates value the gain to shareholders at $44.02 for each share in Merchants Bancshares.  The merger is expected to occur in the second quarter of 2017.

According to data from the Vermont Department of Financial Regulation (DFR), following the Merchants Bank acquisition, 6 Vermont chartered banks will remain in the state:

• Brattleboro Savings & Loan Association - $170m
• Northfield Savings Bank - $862m
• Passumpsic Savings Bank - $606m
• Peoples Trust Companyof St. Albans - $255m
• Union Bank - $628m
• Wells River Savings Bank - $169m

Another 5 nationally chartered banks are domiciled in Vermont:

• Bank of Bennington - $395m
• Community National Bank - $596m
• First National Bank of Orwell - $57m
• Ledyard National Bank - $446m
• National Bank of Middlebury - $335m

Another 10 out-of-state-banks also maintain branch locations in Vermont (Bershire, Charter Trust, KeyBank, Lake Sunapee, Masoma, NBT, People's United, Citizens, TD, Trustco).

The total assets of banks and credit unions domiciled in Vermont (not including out of state instituti ons) totals about $10.3 billion (as of 12/31/15), of which Vermont's 21 credit unions comprise about 36%. 

Proposed CFPB Info Sharing Amendments Posted by Association of Vermont Credit Unions on 11:13 AM

CUNA and state credit union leagues have concerns with a Consumer Financial Protection Bureau (CFPB) proposal which would modify the disclosure of records and information. The proposal would make changes to regulations regarding confidential supervisory information (CSI), confidential investigative information (CII), and the Freedom of Information Act.

Despite the CFPB's intent to clarify, correct and amend certain provisions, industry reviewers feel the proposal goes well beyond this scope, and in some instances, beyond statutory authority.

“Information sharing is a critical component to ensuring the safety and soundness of financial institutions and their provision of financial services to consumers,” CUNA’s letter reads. “However, the vast expansion of information sharing contemplated by the proposal could increase the risk of unintended disclosures and a loss of confidentiality, which could ultimately harm consumers.”

The area of greatest concern is changes to the subpart that deals with confidential information.
Highlights of the letter include:

• CUNA asked the CFPB to refrain from expanding the scope of a section that allows the bureau to disclose CSI that pertains to a supervised institution to that institution to also include CII;
• CUNA opposes a proposed change that would allow the bureau to disclose CSI and CII to an institution’s service providers, due to numerous potential unforeseen consequences, including possible compromise of attorney-client privilege held by the institution as well as disclosure of proprietary information;
• CUNA strongly opposes a proposed removal of a provision that limits CFPB sharing of CSI to only those agencies with jurisdiction over the institution. This removal is unnecessary for supervision and enforcement purposes and exposes the CSI to potential unauthorized release; and
• A proposed new definition of “agency” could exacerbate the above concerns, CUNA believes, due to the new definition encompassing non-governmental agencies. The CFPB has not provided rationale for this expansion, and it also contains potential for unauthorized release.

Read an overview of the CFPB's proposal and CUNA's comment letter here.

CFPB Report: Market Developments Prime for Consumer-Friendly Innovation Posted by Association of Vermont Credit Unions on 11:05 AM

This week the Consumer Financial Protection Bureau (CFPB) issued a report of financial services marketplace products, services and trends from FinTech startups and financial institutions that have potential benefits for consumers. The report provides an overview of work to promote consumer-friendly innovation and outlines the importance of consumer protections being built into emerging products and services from the outset.

The CFPB’s Project Catalyst is designed to encourage consumer-friendly innovation. One of its top priorities is to engage with companies, entrepreneurs, and other stakeholders at the front lines of innovation. This allows the CFPB to better understand emerging market innovations, what works for consumers, and potential challenges facing innovators.

Highlights of the Project Catalyst report include:

• Expanding access to credit: The CFPB estimates that about 45 million Americans either have no credit history or history too scarce or too stale to generate a credit score.  There are innovators seeking to expand responsible access to credit. Some companies are exploring opportunities to expand access by looking to alternative forms of data and newer methods of analysis to assess an applicant’s creditworthiness. 
• Supporting safe consumer financial records access: Project Catalyst has uncovered innovative tools for personal financial management that help families better manage their finances and weather financial shocks. Many are dependent on consumers providing permission for companies to access their financial records, typically stored at financial institutions. The CFPB is concerned by reports that some financial institutions are looking for ways to limit or even shut off access to financial records, rather than exploring ways to make sure that such access is safe and secure.
• Better cash-flow management: Project Catalyst reveals some FinTech companies developing tools to address challenges posed by a time lag in cash flow for expenses and income. Such challenges cause consumers to incur overdraft fees or to borrow high-cost short -term loans. Some services facilitate employee access to accrued wages earlier than the regular payday. Others deduct a portion of consumers’ wages and apply it to recurring payments to help manage the timing and frequency between when income is earned and when bills are due.
• Increasing options for student loan refinancing: In 2013, the Bureau highlighted concerns around the lack of student loan refinancing options locking consumers into higher-rate student loans. Since then, Project Catalyst has discovered FinTech companies entering this market, offering borrowers with high-rate student loan debt an opportunity to refinance to take advantage of the current low interest rate lending environment.
• Modernizing mortgage servicing platforms: Project Catalyst has learned of companies that are looking to adopt or build more modern technology platforms to improve loan servicing and provide more flexibility and scalability as compared with legacy platforms. Some companies are building platforms that provide more user-friendly interfaces. Others are looking at machine learning to detect early on when borrowers are likely to suffer financial distress, in order to take steps to reduce defaults.
• Improving credit reporting engagement: Some FinTech firms are developing tools to improve consumer engagement around credit reporting and address issues around accuracy and understanding. One company is streamlining the process for consumers to dispute errors on their credit reports. Others model actions consumers might take to improve their credit standing. Increasingly, companies are also offering consumers more information about their credit scores and credit reports on a regular basis.
• Improving peer-to-peer money transfers: There exist companies working to make money transfers more consumer friendly. Some are working to provide real-time price comparison services, so that people sending money overseas can easily find the cheapest and most convenient ways to do so. Others are developing services for consumers to quickly and inexpensively transfer funds over digital channels. These channels allow money to be sent and received by consumers who do not have bank accounts and without having to rely on cash.
• Supporting consumer savings: The report also cites companies that are offering services designed to help consumers build emergency savings. These services can help consumers determine how much they can afford to save based on their income and expenses and automate their choice to save money. Other companies have developed applications that provide consumers with features to transfer money automatically to their savings accounts.

The CFPB report also highlights Project Catalyst’s other work to support marketplace innovation. Project Catalyst oversees the bureau’s “trial disclosure waiver” policy which is designed to support pilot testing of new innovative disclosure approaches that could promote transparency and improve consumer understanding. Project Catalyst also administers the bureau’s “no-action” letter policy which is designed to reduce potential regulatory uncertainty for innovative products that promise significant consumer benefits.

Project Catalyst has conducted several research pilot programs with companies of various sizes that have been designed to help inform the Bureau’s understanding of emerging issues. These pilots have focused on issues such as encouraging consumer savings and improving the effectiveness of early-intervention credit counseling.

Access the CFPB's Project Catalyst report online.

Changes Expected In NCUA’s Final FOM Rule Posted by Bryan Kent on 9:47 AM

Changes Expected In NCUA’s Final FOM Rule

http://cutoday.ssd.thinkcreativeinternal.net/Fresh-Today/Changes-Expected-In-NCUA-s-Final-FOM-Rule?utm_source=Fresh+Today+102516&utm_medium=email&utm_campaign=Fresh+Today+102516

NCUA 10/27 Meeting: Final FOM Rule, Supplemental Capital Posted by Association of Vermont Credit Unions on 2:16 PM

At their next meeting on October 27th, members of the NCUA board will vote on a final field of membership rule.  As proposed, it would provide greater choice for consumers and provide flexibility for credit unions to better serve their communities.  The rule was first proposed at NCUA’s November 2015 meeting.  It now contains a number of changes CUNA requested in a June 2015 letter to the NCUA.  A lawsuit brought by the Independent Community Bankers of America, objecting to the proposed rule, has been opposed by CUNA’s board of directors.

The agenda also includes a board briefing on supplemental capital. According to the NCUA’s rulemaking agenda, the proposal would modernize agency regulations to incorporate supplemental capital provisions in the risk-based capital context.  CUNA supports allowing credit unions to raise supplemental capital for risk-based capital purposes. This would help offset risk-based capital requirements and ease the burden on credit unions, allowing them to better meet the needs of their members.

Also on the agenda:

• Final rule on statutory inflation of civil money penalties;
• Final rule on the name change for the NCUA’s Office of Consumer Protection;
• Proposed rule on chartering and fields of membership;
• Proposed interagency rule on loans in areas having special flood hazards.

The 10/27 NCUA Board meeting begins at 10:00 a.m. and will be available online via live video stream on www.NCUA.gov

Compliance: NCUA’s revised supervisory approach to IRR Posted by Bryan Kent on 9:22 AM

Compliance: NCUA’s revised supervisory approach to IRR

http://news.cuna.org/articles/111159-compliance-ncuas-revised-supervisory-approach-to-irr?utm_source=real_magnet&utm_medium=Email&utm_campaign=Compliance%253A%2520NCUA%253Fs%2520revised%2520supervisory%2520approach%2520to

10 Mobile Facts You Won't Believe Posted by Association of Vermont Credit Unions on 2:50 PM

Although not CU-specific, this infographic about consumer mobile use by Sigma InfoSolutions should be on every credit union's radar.  The Top 10 unbelievable mobile facts should serve to motivate credit unions to keep the use of mobile apps for credit unions a priority.

ICU Day Graphic: CUs vs Banks Posted by Association of Vermont Credit Unions on 10:28 AM

A credit union vs bank infographic was featured by the Wall Street Journal yesterday, on International CU Day.  The graphic, developed by the WSJ and CUNA, depicts the difference between the nation's credit unions and banks in terms of average size, assets, etc. Among other stats, it points out that credit unions provide lower interest rates on credit cards and auto loans, and see much lower delinquency rates on home loans. 

FAQ Guide: Cybersecurity Assessment Guide Posted by Association of Vermont Credit Unions on 10:01 AM

A while back we reported on a Cybersecurity Assessment Tool created by the Federal Financial Institutions Examination Council (FFIEC), of which NCUA is a member. This week, the FFIEC also published an accompanying frequently-asked-questions guide. The guide answers questions and clarifies points in the assessment and supporting materials based on questions received by FFIEC members since release of the assessment tool.

The Cybersecurity Assessment Tool is not mandated to be used by financial institutions. The tool can be used by management to determine the institution’s inherent risk and cybersecurity preparedness. Credit unions may use the Assessment, or another framework, or another risk assessment process to identify their risk and preparedness.

See the Cybersecurity Assessment Tool FAQ online.  Detailed information about the Tool is on the FFIEC website.

4 steps to building a great team Posted by Bryan Kent on 9:56 AM

4 steps to building a great team

https://www.cuinsight.com/4-steps-building-great-team.html

ICU Day Podcast: State of CUs Around the Globe Posted by Association of Vermont Credit Unions on 1:25 PM

Brian Branch, chief executive of the World Council of Credit Unions is featured in a CU Day podcast discussing the successes and challenges of credit union in other countries.  Branch discusses his career traveling around the world and working with credit union leaders from many cultures. He also talks about working to boost cooperative financial efforts in geo-political hotspots such as Cuba, Ukraine, and Afghanistan.

The World Council is the credit union movement’s leading international trade association and development agency.

Video: CU Day Message Posted by Association of Vermont Credit Unions on 12:22 PM

CUNA President Jim Nussle delivers comments on the 2016 International Credit Union Day and looks at what sets credit unions apart from other financial institutions . . . such as a set of core principles and values that focus on making a positive difference in our members’ lives.

Jim Nussle’s 2016 ICU Day message

CDFI Application Process Streamlined Posted by Association of Vermont Credit Unions on 12:14 PM

Low-income credit unions who are eligible to be certified as Community Development Financial Institutions may be able to take advantage of a new streamlined application process.

NCUA’s Office of Small Credit Union Initiatives is contacting low-income credit unions that are not yet CDFI-certified, but that could be eligible for the streamlined application process. NCUA can do much of the required pre-qualification work, using existing AIRES data.

CDFI certification is determined by the Community Development Financial Institutions Fund, a division of the U.S. Department of the Treasury.  The program gives certified credit unions more tools with which to do local economic development. A CDFI-certified credit union becomes eligible to apply for multiple programs offered by the CDFI Fund, including direct funding through awards or grants.   

For CDFI credit unions, this means access to 5, 6 or even 7 figure grant awards that can be used to grow capabilities and further their mission to serve members and serve their community. CDFIs also can take advantage of technical assistance, training, and capacity-building initiatives to support their missions. 

Last year, the CDFI Fund funded more than $200 million in grants and awards, with just over $31 million going to CDFI-certified credit unions. The more credit unions that become CDFI-certified and successfully apply for available funding, the more available CDFI Fund dollars can flow into credit unions and help them improve their members’ financial lives.

“There is no doubt that CDFI certification and support helps credit unions better succeed to serve their members. AVCU encourages credit unions contacted by NCUA to give the CDFI program and its benefits every consideration and evaluate how it can help their CU better succeed in meeting today’s marketplace and member demands."     Joe Bergeron, President, Association of Vermont Credit Unions  

Working with NCUA assistance, interested and eligible credit unions will still be responsible for completing the few remaining data requirements and for directly submitting their applications to the CDFI Fund. However, NCUA can save these credit unions time in the process by providing many of the necessary data points. 

Several online resources are available to help you learn more about the new process and CDFI certification. They are:

• CDFI Certification - More Than One Way to Get There: A recording of the June 23 joint-agency webinar explaining the two methods a credit union can become a CDFI.

• CDFI Fund Certification: A video explaining the benefits of CDFI certification and guidance from the CDFI Fund for credit unions using the traditional application.

• CDFI-LID Fact Sheet: A quick-reference on the differences and benefits of the CDFI Fund’s certification and NCUA’s designation.

• CDFI Fund website: For information about the CDFI Fund’s award programs.

Of the 281 CDFI-certified credit unions in the nation, Vermont currently has two:  Opportunities Credit Union and Northern Lights Credit Union.

Mortgage servicing rule has Oct. 19, 2017, effective date Posted by Bryan Kent on 9:02 AM

Mortgage servicing rule has Oct. 19, 2017, effective date

http://news.cuna.org/articles/111150-mortgage-servicing-rule-has-oct-19-2017-effective-date?utm_source=real_magnet&utm_medium=Email&utm_campaign=CUNA%253Fs%2520concerns%2520echoed%2520in%2520TCPA%2520suit%2520oral%2520arguments

Vermont Governor Race a Dead Heat Posted by Association of Vermont Credit Unions on 2:12 PM

As reported by Vermont Public Radio, its latest poll shows the Democratic and Republican candidates vying for Vermont's governorship in a dead heat.  Results from the first head-to-head poll of the 2016 race for governor, conducted by the Castleton Polling Institute, show Republican Phil Scott and Democrat Sue Minter locked in a statistical dead heat with just under three
weeks until Election Day.  Scott has 39% of the vote and Minter holds 38%. That’s within the survey’s 3.9% margin of error.

Vermont tends to favor Democrats, especially in presidential election years.  According to a 2015 Gallup poll Vermont has the widest partisan spread in the nation with 52% of voters identifying as Democrat or Democrat leaning, compared to 30% favoring, or leaning, Republican.

The higher support for Scott is attributed to him being a familiar 3-term lieutenant governor who’s made inroads with Democrats. Polls show that Scott wins favor with people who don’t care for his party, and draws more heavily from the Democrats than Sue Minter does from Republicans.

Read the VPR article in entirety.

Share the CU Day Video! Posted by Association of Vermont Credit Unions on 2:02 PM

Tomorrow is International Credit Union Day and CUNA has released the video below for use by credit unions and related organizations. Post/embed it to your social media and website, in your lobby or anywhere else you desire. Help educate member and non-members about the credit union difference!

Watch the CU Day video on the Vermont Credit Unions Facebook page on International CU Day.