By The Way

The By The Way newsletter is a great way to keep Kentucky credit unions informed of the latest updates in governmental affairs, compliance and regulations, education and training.  In addition, By the Way highlights the difference credit unions are making on a daily basis.

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If your credit union would like to share an announcement, please email your article to Janet Garrett.

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HB 139, Financial Literacy Empowerment Commission, Passes the House

On Tuesday, February 26th, HB 139, Financial Literacy Empowerment Commission, passed the House 98-0.  Kentucky’s Credit Unions received 3 shout-outs on the floor from Rep. Phil Pratt, Rep. Walker Thomas and Rep. Kevin Bratcher – each thanking Kentucky’s Credit Unions for stepping up and fully funding the Commission. 

The bill sponsor, Rep. Jim Duplessis also took time to thank our industry. 

When you have an opportunity, please send a thank you to Reps. Duplessis, Pratt, Thomas and Bratcher for all their help. 

[email protected]

[email protected]

[email protected]

[email protected]

It was a great day that included good publicity and positive messaging for our credit unions!

You can view video coverage of the floor proceedings at: https://www.ket.org/legislature/?archive&nola=WGAOS+020101.

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Credit Union Day at the Capitol

On February 6th Credit Union representatives from institutions around the Commonwealth gathered at the Capitol in Frankfort to discuss the state of the Credit Union industry and to advocate for the passage of HB139.  Attendees had the opportunity to speak with many legislators including the Chairs of both the Senate and House Banking & Insurance and the Senate and House Appropriations & Revenue Committees. The group also had the opportunity to hear from Administration officials including the Secretary of the Public Protection Cabinet and the Governors Deputy Chief of Staff. Thanks to these efforts and many others HB139 was passed out of the State House, but we cannot afford to stop now. HB139 still must make its way through the Senate and be signed by the Governor before the Financial Empowerment Commission can begin to serve Kentuckians.

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GLI Luncheon with Speaker Osborne

On February 4th Debbie Painter and Kyle Hagerty had the opportunity to attend a luncheon hosted by the Louisville area chamber of commerce at which State House Speaker David Osborne was the keynote speaker.  

Speaker Osborne laid out his legislative priorities for the attendees.  Those priorities consisted of Pension Reform, which he admitted would be a challenge to take action on in this short session, school safety, Welfare Reform, Kinship care, bail reform and some changes to election law.  He also stated that one of his top priorities would be an update or modernization of the tax code.  In the 2019 legislative session, that means working to clean up the unintended consequences from the tax reform legislation enacted in 2018. 

 

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Links for CUNA Awards are now Active

We are happy to announce the CUNA awards websites are ready and open for your submissions.  Nominations are open from now until June 30.  

Administered by the Kentucky Credit Union League & Affiliates and CUNA, the Louise Herring, Dora Maxwell and Alphonse Desjardins awards programs are a wonderful way for credit unions to showcase all the great things they do for their members and their communities.

Below you'll find a brief description of each of the programs:

Louise Herring Award
The purpose of this award is to promote credit union philosophy by formally recognizing credit unions that demonstrate in an extraordinary way the practical application of that philosophy for their members.

Dora Maxwell Award
The purpose of this award is to promote social responsibility among credit unions by formally recognizing their community service achievements.

Alphonse Desjardins Award
Alphonse Desjardins was a credit union pioneer who was instrumental in forming the Canadian and U.S. credit union movements. Besides helping to found the first credit unions in Canada and the U.S., Desjardins pioneered youth savings clubs and in-school "banks", known as caisses scolaires. This award honors leadership within the credit union movement on behalf of youth and adult financial literacy.

In an effort to streamline the submission process for our member credit unions and to reduce financial and human resources spent on the submission process, CUNA and the Leagues have collaborated to produce one standardized format and online submission process for our member credit unions.

Submission Instructions
You will automatically establish an account when you create an application to submit your first project by clicking on the designated link below. You may save your work and return to the submission site as often as needed as long as you complete and submit all parts of the project submission by the due date of June 30, 2019. State winners will advance to national competition for judging.

KY Homepage

KY Louise Herring

KY Dora Maxwell

KY Desjardins

If you have any questions you can contact Vicki Hall at the League office at 502-855-8202 or [email protected].

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During shutdown, CUs provided more than $46M in low- or no-interest loans

More than 500 credit unions around the country provided support, including more than $46 million in low- or no-interest loans, to over 60,000 credit union members affected by the 35-day government shutdown that ended Jan. 27.

CUNA recently conducted a survey of credit unions who assisted members during the shutdown and recorded the data from approximately 500 responses.

Survey responses to CUNA showed: 

  • More than 60,000 credit union members turned to their credit union for support;
  • More than 11,000 members were afforded loan extensions and other loan modifications, often with associated fees waived; and
  • More than 3,000 people joined a credit union during the shutdown to help them weather the shutdown’s financial uncertainty.

Responses also indicated that, while banks offered to defer existing loans, few, if any, were able to help customers deal with day-to-day costs, while many credit unions were able to tailor products explicitly for that purpose.

A recent poll from Prudential polling found that 62% of families affected by the shutdown depleted most or all their savings. A poll conducted by Fox News in January found that 54% of Americans are within two paychecks of severe financial stress, and the Prudential poll mentioned previously found 63% of Americans can’t cover a $500 emergency.

CUNA Chief Advocacy Officer Ryan Donovan reached out to all 535 Congressional offices to share the results of CUNA’s research into credit union shutdown efforts.

“We were there. And that’s what we mean when we talk about our people helping people philosophy. Our mission and structure are to serve our members; not investors, not a corporate board, but the men and women who have committed to joining a movement that will be there when times are good to help build personal wealth, and who will be there when things get rough,” Donovan said. “We were there for the shutdown. We were there for the wildfires, the floods, and the hurricanes. And we were there for the daily misfortunes. And we’ll continue to be there.”

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CUNA Regulatory Compliance Certification School

March 31 – April 5, 2019 | Omni Hotel | Louisville, KY

Be a Credible Voice of Compliance

When your credit union is compliant, operations run smoothly and unnecessary risks are reduced. However, maintaining a regulatory foundation and learning new approaches is easier said than done.

To meet the educational needs of new and experienced compliance professionals, CUNA offers two schools, Introduction and Update. 

Introduction delivers the fundamentals of credit union compliance in easy-to-understand terms, helping those who are newer understand regulatory complexities. Those with more experience will appreciate the basic review and renew their confidence. Attendees will have the opportunity to earn the Credit Union Compliance Expert (CUCE) designation.

Update incorporates a new focus to assist you in solidifying your foundational knowledge, taking a risk approach to compliance, and learning by asset size. Current CUCE designees can also recertify their designation. Highlights of this year's event include: 

  • Hear from keynote speaker Holly Hoffman, the last woman standing on “Survivor Nicaragua,” who will share how compliance professionals can face their challenges in intuitive, honest and adaptable ways.
  • A recommitment to the foundation of compliance, including a new two-part general session diving into regulatory changes in the last three years and deep dive breakout sessions covering Regulation Z, share insurance and mortgage
  • An experiential learning trip to Louisville's Federal Reserve Administrative Branch. Learn more about who they are and what they do.
  • Risk-based approaches to compliance, including sessions like 2019 Litigation Trends Affecting Financial Institutions, Melding Audit and Compliance and a peer panel 
  • Deep dive breakout sessions in specialized areas like auditing for fair lending and identifying risks within disclosures
  • Asset-sized breakouts for risk management and cybersecurity topics

Who Should Attend?

This school is beneficial for credit union compliance, operations, CEOs, internal auditors and lending professionals.

REGISTRATION INFORMATION 

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Spring Pre-Conference: CUNA Best Practices in Business Continuity Planning

March 31, 2019 | Omni Hotel | Louisville, KY

Time: 1:00 P.M. - 4:00 P.M. ET

Educational Investment:

$345 (CUNA Member Price)

$690 (Non-CUNA Member Price)

Does your credit union have a sound Business Continuity Plan (BCP)? Having one in place can help ensure that your credit union stays open in a time of emergency.

In this pre-conference, you’ll learn the fundamentals of business continuity planning. Already have experience? No problem. We will be diving into meeting regulatory requirements, involving others in business continuity planning and serving your members and community through business continuity.

Please visit the CUNA Regulatory Compliance Certification Schools website for additional information. 

Who Should Attend

This pre-conference is beneficial for credit union compliance, operations, CEOs, internal auditors and lending professionals.

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A Message from Eileen

As envisioned – 2019 is off to a great start! I’ve already made additions to the calendar since itS debut on Facebook at the beginning of the year and so far, I’ve:

  • Hosted trivia night for the Louisville Chapter at the new League office
  • Had the privilege of speaking to staff and board at the annual training day at Member's Choice CU
    • What a blast! Thank you for the warm welcome and for all the lovely thank you cards!
  • Packed the room for IRA Essentials and Advanced IRA Training!
  • Presented BSA Training for the staff at Ashland CU
    • Thanks for having me ACU!
  • Confirmed speakers for two of our upcoming conferences:
    • The Leadership Conference - Co-Hosted by KCUL & ICUL at the Doubletree by Hilton in Lawrenceburg IN.
    • The Southeast Regional Directors Conference - Hosted by KCUL this year at the Seelbach Hilton Hotel in Louisville KY. 

I’m also incredibly excited to see all the headway our industry is making with HB 139!

Last, but not least, I’ll leave you with a reminder of what’s coming up.

Our next workshop, ‘The Culture of Credit Union Lending,’ is scheduled for March 20th. Whether you have an experienced lender who needs to be reinvigorated – or – a brand new lender, who needs to learn the basic skills necessary to interact confidently with a member – or – someone in between – this is the perfect workshop!

Here’s the link: https://www.kycul.org/workshops---seminars#LENDING. Contact me with questions.

I look forward to the opportunity to connect with more of you and share my passion for the credit union movement and all that we can do to make a positive impact on our member’s lives. 

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Cybersecurity Training: Make an Impact in Cybersecurity

Cybercrime is on the rise and the NUMBER ONE concern for credit union regulators.  Is your credit union prepared?

  • Offered by Radford University, designated a National Center of Academic Excellence in Cyber Defense Education by the National Security Agency and Department of Homeland Security.
  • Delivered online, self-paced for the busy professional. Learners have 12 months to complete programs.
  • Aligns with industry workforce standards (e.g., NIST) and employs research-based practices from cognitive science, analytics, simulation-based- learning and gamification to ensure it is highly effective and engaging.

Choose from two programs: 

18-Credit Hour Cybersecurity Certificate ($6,000)

This intensive cybersecurity training is designed for IT staff responsible for keeping your credit union’s data secure. Optimally, the ideal candidate has day-to-day responsibilities that are related to data or network security. Courses include:

  • CBIT 100: Ethics and Laws of Cybersecurity
  • CBIT 101: Foundations of Cybersecurity
  • CBIT 240: Data and Web Security
  • CBIT 250: Network Security Fundamentals
  • CBIT 475: Penetration Testing and Incident Handling
  • CBIT 476: Cyber Defense

4-Credit Hour Cyber Defense Course ($1,250)

This course is designed for those responsible for developing policies or managing strategies to keep your credit union’s data secure. An IT background is not necessary if the learner has basic knowledge of terms and concepts in computer networking.

Program topics include principles in secure design, network defenses, secure protocols, host and perimeter security mechanisms, and other associated topics.

 

Student Testimonial

“The course material that I have completed so far provides a great foundation in terminology, theories and tools of data security. I have already learned concepts and tools that can help strengthen our network security. The knowledge and concepts included in the curriculum should give us a huge advantage when completing security and regulatory audits, which are increasingly focused on cybersecurity assessments. Some of the lectures are only a few minutes, so it is quite manageable to work on the courses whenever you have some free time in your schedule.”

Andrew Burnett, Director of Information Systems, Call Federal Credit Union, Richmond, Virginia, $400 Million in Assets (2018)

About TRGroup

A collaboration between seven state credit unions Leagues including Indiana, Kentucky, Louisiana, Mississippi, Tennessee, Virginia and West Virginia formed to bring innovative products and services to credit unions. Visit TRGroup.org.

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FREE Webinar: Best Practices for a Successful Overdraft Program

Thursday, March 07, 2019
10:00 AM - 11:00 AM EST

REGISTER

Overdraft revenues have risen year over year and are projected to increase again in 2019. Is your credit union part of the turbocharged growth? Cheryl will address the key elements of a successful program. Learn the major types of overdraft issues being brought up by regulators and identify common audit issues and violations noted with respect to overdraft programs. Discover best practices that credit unions can utilize to help avoid or reduce issues and provide a valuable service to members.

KEY LEARNING POINTS:

I. Overview of the regulatory landscape on overdraft programs and insight on how to prosper
II. Potential compliance exam issues, litigation around overdraft services, and how financial institutions across the nation are handling things
III. Measuring program effectiveness, service impact and value to members

SPEAKER:

Cheryl Lawson
Executive Vice President-Compliance
[email protected]
713-562-0091 

Cheryl has more than 30 years of experience in information technology and financial operations, as well as consulting, communications, training and project management.  She serves as JMFA’s principal compliance liaison for regulatory requirements of overdraft services, including consumer protection issues, and strategies that enhance safety and soundness.

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The Culture of Credit Union Lending 1-Day Workshop

Kentucky Credit Union League Office
5111 Commerce Crossings Drive, Suite 210
Louisville, KY 40229

Educational Investment: $239 per person

Who Should Attend?

  • Employees new to consumer lending.
  • Existing lenders who want to enhance their knowledge.
  • Experienced lenders looking to be reinvigorated.
REGISTER

Session Summary

The culture of credit union lending is in a class of its own.  What makes it so different?  Because it’s not just about numbers, it’s about members — and the relationships we build with our members.

Members come to you for your expertise and guidance when making major life purchases: their first car, a college education, a big wedding, a new house.  YOU are the person that is going to help them change their lives. 

And, the best part about the culture of credit union lending is that if the answer is a “Not right now,” then it is followed up with a “Let’s look at the changes you can make” to turn that no to a yes.

During this one-day workshop, we will cover:

  • The Challenges of the Loan Interview
    • How to turn the interview into a conversation
    • Asking the right questions to determine the member’s needs and wants.
  • Applications… Complete or Not Complete?
    • Review of your credit union’s loan application
    • Real-world examples and scenarios
  • Building the relationship
    • Using personality and what makes sense
    • Techniques to build member relationships with loan products
    • Dealing with adversity on the loan decision
  • Best Practices
    • Debt ratios
    • Why the letter "C" is most important
    • Red flags 

 

Bring your credit union’s blank consumer loan applications and rate sheet and be prepared for a down-to-earth exploration on consumer credit.

Don’t miss this opportunity to build or assure you understand the culture of credit union lending.

Meet the Instructor:  John Baptista, Jr.

John Baptista Jr., knows the financial industry and the business world. John left the world as a commercial banker and entered the private business sector. Having the financial background made the transition to being a successful business owner an easy one.

As a trainer and consultant, his background links his experiences to be a highly sought after speaker. With a strong knowledge of customer relations and “real world” experiences, he brings a unique learning dimension to each of his programs. He is an alumnus of the University of Southern California and the University of San Diego. 

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Save the Date: 2019 Leadership Conference

May 8-10, 2019 | Doubletree by Hilton | Lawrenceburg, IN

Educational Investment: $450 per person

We can expect that 2019 will be full of challenges – and opportunities – for credit unions. The question is: How will you meet them?

Kentucky and Indiana are once again joining forces to bring you a conference that is full of informative and engaging speakers meant to equip you with the knowledge and perspective to view some specific challenges – unique to the credit union industry – as opportunities to better serve your members and grow as an organization.

Who Should Attend?
This conference is designed for credit union CEOs, Executive Management Teams, and Board Chairpersons.

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Registration for 2019 Southeast CUNA Management School is open!

The 2019 session of the Southeast CUNA Management School will be held Friday, June 7, 2019 – Friday, June 14, 2019 at the University of Georgia Center for Continuing Education in Athens, GA. Registration is now open for the 2019 session; click here to register online.

SCHOLARSHIPS ARE AVAILABLE – Contact Eileen Burden for further details. 

Through collaboration with CUNA and Affiliates, the first SRCUS Management School was established in 1970 and has a long history of providing quality programming to credit union professionals. The two-week school was initially held at Oglethorpe University in Atlanta had an original first-year class of 30 plus students.

Since the school’s formation, it has graduated over 1,200 credit union management professionals from 21 states and the District of Columbia. The curriculum is reviewed and revised each year to continue meeting the ever-changing needs of today’s credit union professionals. The program provides a well-rounded curriculum and experiential opportunities for professional and personal growth, challenging each participant to achieve their highest potential by engaging them in learning activities that stimulate critical thinking and increase confidence. The school is currently held each year in June at the University of Georgia, Georgia Center for Continuing Education in Athens, GA.

During the three years of SRCUS, participants focus on coursework that helps develop their operational, managerial and leadership abilities.  The curriculum addresses the following topics: 

Financial Analysis

  • Interest Rates & Financial Markets
  • Financial Ratios
  • Budgeting
  • Lending
  • Asset Liability

Leadership

  • Organizational Behavior
  • Executive Communication
  • Strategic Planning

Management

  • Negotiation Skills
  • Marketing
  • Personality Styles and Teamwork
  • Working with your Board
  • Ethics
  • Motivation
  • Employment Law
  • Performance Management
  • Business Development
  • Compliance
  • Fraud

 

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2019 Southeast Director’s Conference

Registration is NOW OPEN

July 21 – 24, 2019 | The Seelbach Hilton | Louisville, KY

Save the date and make plans to join your peers from credit union boards across the Southeast for two-and-a-half days of education designed for credit unions’ volunteer leaders. The 2019 Southeast Director’s Conference, set for July 21 – 24, 2019, features a full range of informative sessions on critical, timely issues, with first-rate speakers to address the economy, lending environment, and much more.

Click here for detailed conference information, including agenda, speakers, hotel information, and more!

Click here to reserve your room.

The Southeast Regional Directors’ Conference is designed for credit union directors and committee members. The conference location rotates among the ten Southeastern states, giving each state an opportunity to host their fellow credit union volunteers and showcase the best of what their state has to offer. This conference features a full range of informative educational sessions that provide a conduit for learning about critical issues important to today’s ever-changing financial industry.

The 2019 program will be hosted by the Kentucky Credit Union League and held at The Historic Seelbach Hilton, in the heart of Downtown Louisville, Kentucky; conveniently located 10 miles from Louisville International Airport.

At the Seelbach Hilton, you’ll experience modern amenities wrapped in a storied past that delivers distinct character. The Seelbach Hilton is equal parts historical landmark and architectural masterpiece. A stay at this grand luxury hotel appearing on the National Register of Historical Places will never be described as “ordinary.”

Louisville is home to iconic attractions that visitors can’t experience anywhere else. Here, you can bet on the ponies at Churchill Downs (home of the Kentucky Derby), get inspired at the Muhammad Ali Center, see the craftsmanship firsthand at the Louisville Slugger Museum & Factory, go back in time on the Belle of Louisville, tour Bourbon distilleries and more. 

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Cove Federal Credit Union Expands Membership Eligibility

Thomas W. Burns, Chief Executive Officer of Cove Federal Credit Union (Cove), announced that Cove has received approval from the National Credit Union Administration (NCUA) to expand its field of membership to all persons who live, work, worship or attend school in, and businesses and other legal entities located in Hamilton County, Ohio and Boone, Kenton, Campbell, Grant, and Pendleton Counties in Kentucky.

Cove was originally founded in 1970 as St. Elizabeth Medical Center Credit Union and has grown to $62 million in total assets.  Mr. Burns stated that Cove is looking to continue a steady, stable growth plan while being able to offer its low-cost loans and competitive deposit products to most of the greater Cincinnati community.  Mr. Burns added that despite having only one office location in Edgewood, KY, Cove is capable of serving new and existing members through its sophisticated call center, its membership in a wide area ATM network and its participation in the credit union shared branching network.

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CFPB Issues Reference Tool for 2019 HMDA Data Collection

On January 31, 2019, the Consumer Financial Protection Bureau issued the 2019 edition of the Reportable HMDA Data: A Regulatory and Reporting Overview Reference Chart. The chart is a reference tool for credit unions and includes information on data points required to be collected and recorded in 2019, and reported to the CFPB in 2020 under the Home Mortgage Disclosure Act, as implemented by Regulation C.

The 2019 edition of the chart includes the revisions incorporated in the 2019 Filing Instructions Guide, along with changes from Section 104(a) of the 2018 Economic Growth, Regulatory Relief, and Consumer Protection Act. 

You can access the 2019 edition of the reference chart here

You can find additional information about HMDA reporting requirements on the NCUA’s Consumer Compliance Regulatory Resources page. If you have questions about this information, please contact the NCUA’s Office of Consumer Financial Protection at (703) 518-1140 or by email at [email protected]. You can also contact your NCUA regional office or your state supervisory authority.

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Advertising rules have failed to evolve as quickly as technology.

While social media opens many doors, it can also raise serious compliance hurdles. 

In this episode of the CUNA News Podcast, Kristen Tatlock, senior compliance manager for Credit Union Service Network, looks at common mistakes credit unions make when using social media, how social media risks are evolving, and some social media do’s and don’ts. 

“Advertising rules are an area that has failed to evolve as quickly as technology has,” Tatlock says. “At the pace which social media platforms are being developed and as credit unions expand the platforms they use, it’s going to provide exposure for potential violations. 

“Not only will credit unions need to understand the rules and regulations for advertising their products and services via social media,” she continues, “they have to be aware of the specific rules, regulations, and terms of service that each platform has.” 

You can listen and subscribe to the CUNA News Podcast in Apple’s iTunes Store, Google Play, and Stitcher Radio. 

Source:  CUNA

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NCUA Review Finds No Bank Secrecy Act Data Breach

The National Credit Union Administration makes protection of sensitive data a top priority, and the agency uses a defense-in-depth approach to monitoring and shielding its systems and information. 

Upon learning of the recent spear phishing campaign targeting Bank Secrecy Act officers at credit unions, the NCUA conducted a comprehensive review of its security logs and alerts. This review is completed, and it did not find any indication that information was compromised.

The most recent information available indicates the campaign extends beyond credit unions to other parts of the financial sector.

The NCUA encourages all credit union staff to be wary of suspicious emails, and credit unions may report suspicious activity to the agency. Additional information about phishing and other information security concerns is available on the agency’s Cybersecurity Resources webpage.

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