National Credit Union Administration (NCUA) Board Chairman Todd M. Harper has been named chairman of the Federal Financial Institutions Examination Council (FFIEC). His two-year term runs from April 1, 2021, through March 31, 2023.

The Home Mortgage Disclosure Act (HMDA) Modified Loan Application Register (LAR) data for 2020 were published on the Federal Financial Institutions Examination Council’s HMDA Platform for approximately 4,400 HMDA filers.  The published data contain loan-level information filed by financial institutions, modified to protect privacy.

Recently, our firm has noticed an uptick in requests for an explanation of the process of enforcing a defaulted loan secured by a mobilehome being used as a residence, including how to take possession of the mobilehome to dispose of it.  That process is intricate and involves an interface between multiple California codes as well as coordination with the mobilehome park. The result is a labyrinthine route to the credit union’s end goal of simply collecting on a nonperforming loan.  An overview with some practical considerations is outlined below.

Text Messaging is ubiquitous, not only in our personal communications, but in our business correspondence as well. 

LA Financial CU was in search of a modernized solution to manage its vendors, and the Los Angeles-based credit union wanted more than a product that simply inherited information, but enhanced its vendor management program for its team members to utilize.

This week, Sen. Catherine Cortez Masto (D-NV) co-hosted Nevada’s Virtual Job Fair to help get local workers back to work. The senator hosted the event with Rep. Susie Lee (D-NV), Washoe County Commissioner Alexis Hill, Clark County Commissioner Justin Jones, and leaders from local employment training and workforce connection departments and organizations.

Californians who have experienced a financial hardship because of the COVID-19 pandemic and are most at-risk of eviction can now apply for the CA COVID-19 Rent Relief program to help pay past due rent. Both renters and landlords can check eligibility and apply by visiting HousingIsKey.com or by calling 833-430-2122 (seven days a week).

California not only added a noticeable amount of jobs in February, it also saw an uptick in individuals reentering the labor force (the pool of individuals willing and able to work). Meanwhile, Nevada’s job market continued reversing course — yet very slowly.

The California and Nevada Credit Union Leagues are celebrating “Women’s History Month” this March by spotlighting some amazing leaders who have played vital roles in the history of American women and our movement. This week we would like to recognize Patsy Van Ouwerkerk, former CEO of Travis CU in Vacaville, CA!

The 16th annual California and Nevada "Credit Unions for Kids" Wine Auction event raised $1.17 million for the 11 Children’s Miracle Network Hospitals (CMN) in both states. One of the largest single fundraising events for Credit Unions for Kids, this is the seventh consecutive year that the wine auction has raised more than $1 million for these hospitals, bringing the total raised since 2006 to more than $11 million.

A surge in record-high savings deposits at local credit unions across California and Nevada will play an integral part in economic growth and consumer spending as the second quarter of 2021 kicks into gear, with experts saying the economy is poised to outperform original expectations.

In a joint letter with other state credit union leagues and the Credit Union National Association (CUNA), the California and Nevada Credit Union Leagues petitioned the National Credit Union Administration (NCUA) to uniformly act to provide additional relief to credit unions facing prompt corrective action (PCA) challenges caused by congressional stimulus funds as a part of the American Rescue Plan Act.

Humanidei + O’Rourke, a human capital strategies firm serving the credit union industry, is proud to announce that Oscar Porras will join the company as Senior Consultant: Diversity, Equity, and Inclusion.

EDITOR'S NOTE: Below is an excerpt from an article in CreditUnions.com featuring an interview with Firefighters First CU CEO Dixie Abramian discussing how the credit union handled patronage dividends and rebates this year.

Digital banks—often referred to as neobanks—are on the rise. These “challenger banks,” only accessible via their online platforms, have streamlined business models, and attractively simple services that are pulling customers away from long-established banks and credit unions.  

California’s Office of Administrative Law (OAL) has approved additional California Consumer Privacy Act (CCPA) regulations, which were effective as of March 15.

On Thursday, Rep. Ed Perlmutter (D-CO) reintroduced his landmark legislation to reform federal cannabis laws. The bipartisan Secure and Fair Enforcement (SAFE) Banking Act of 2021 (supported by the California and Nevada Credit Union Leagues and co-sponsored by more than 100 members of Congress) would allow marijuana-related businesses in states with some form of legalized marijuana and strict regulatory structures to access the banking system.

In the California Credit Union League’s latest Advocacy Newsletter, credit union leaders will find updates on California state government affairs, special elections, federal government affairs, and regulatory advocacy:

The following is a recap of the National Credit Union Administration's (NCUA) board meeting from this morning:

The California and Nevada Credit Union Leagues are celebrating “Women’s History Month” this March by spotlighting some amazing leaders who have played vital roles in the history of American women and our movement. This week we would like to recognize Marla Shepard, former CEO of California Coast CU in San Diego, CA!

The Global Women’s Leadership Network (GWLN) is calling on the worldwide credit union movement to advocate that “we can all choose to seek out and celebrate women's achievements” by encouraging industry women to apply for a 2021 GWLN Scholarship!

Consumer Financial Protection Bureau (CFPB) Acting Director Dave Uejio issued a statement regarding consumers’ access to Economic Impact Payment (EIP) funds distributed through the American Rescue Plan:

Since 1971, Autoland LLC has been delivering new and pre-owned vehicles to credit union members. With a focus on convenience, Autoland is committed to a simplified and personally tailored auto buying experience for today’s value driven consumer.

The Consumer Financial Protection Bureau (CFPB) announced it is rescinding its Jan. 24, 2020 policy statement, “Statement of Policy Regarding Prohibition on Abusive Acts or Practices.” Going forward, the CFPB intends to exercise its supervisory and enforcement authority consistent with the full scope of its statutory authority under the Dodd-Frank Act as established by Congress. The CFPB has made these changes to better protect consumers and the marketplace from abusive acts or practices, and to enforce the law as Congress wrote it.

The California and Nevada Credit Union Leagues are celebrating “Women’s History Month” this March by spotlighting some amazing leaders who have played vital roles in the history of American women and our movement. This week we would like to recognize Sue Longson, advocacy specialist for Boulder Dam CU in Boulder City, NV!

Both California and Nevada’s job markets continued reversing course in January as they were slowly recovering. Individuals have been leaving the labor force (pool of candidates willing and able to work) for many weeks.

A third round of Economic Impact Payments (EIP) will be issued soon due to this week's congressional stimulus-and-relief package signed into law by President Joe Biden. However, some credit union members’ accounts on file with the IRS from the first and second rounds of stimulus in 2020 are no longer active for a variety of reasons.

The California Credit Union League-sponsored State Charter Modernization bill has unanimously passed through the Senate Banking and Financial Institutions Committee within the California State Legislature and is now headed to the Senate Appropriations Committee for consideration.

Five federal regulatory agencies are requesting public comment on 24 proposed Interagency Questions and Answers Regarding Private Flood Insurance.

The 2021 Credit Union SacTown Run will be virtual this year! So, what does that mean?

On Feb. 17, 2021, the Consumer Financial Protection Bureau (CFPB) published in the Federal Register a final rule implementing a requirement of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). The final rule exempts certain insured depository institutions, including some insured credit unions, from the requirement to establish escrow accounts for certain higher-priced mortgage loans (HPMLs).

The National Credit Union Administration (NCUA) and federally insured credit unions must do all they can to advance economic equity and justice, NCUA Chairman Todd M. Harper said.

The Consumer Financial Protection Bureau (CFPB) issued an interpretive rule clarifying that the prohibition against sex discrimination under the Equal Credit Opportunity Act (ECOA) and Regulation B includes sexual orientation discrimination and gender identity discrimination. This prohibition also covers discrimination based on actual or perceived nonconformity with traditional sex- or gender-based stereotypes, and discrimination based on an applicant’s social or other associations.

EDITOR'S NOTE: The COVID-19 pandemic turned so many things upside down, including credit unions having to maintain employee engagement and do onboarding of new employees—all within the virtual space. Below are excerpts from two recent articles in CreditUnions.com in which representatives from Santa Clara County FCU and SafeAmerica CU share their success stories on building productive teams and welcoming new hires, respectively.

A recent CUNA forecast predicts credit unions’ ROA will fall over the next two years. The study revealed credit union earnings would remain depressed because of lower interest rates and less non-interest income. Even if the economy improves, CUNA is pessimistic about ROA.

The 2021 Credit Union Legislative Action Council (CULAC) raised more than $204,000 through its Grand Sweepstakes — with California credit union leaders raising the most funds (first place), Nevada leaders breaking their last record, and both states combined raising 36 percent of total national CULAC contributions, nearly $72,700!

PSCU Senior Vice President of Strategic Business Development Chris Gunnare and Patelco CU Financial Educator Veronica Dangerfield recently joined the Richard Myles Johnson (RMJ) Foundation Board of Directors.

With the COVID-19 crisis impacting all aspects of daily life, the Financial Crimes Enforcement Network has released a Supplemental Advisory on Identifying and Reporting Human Trafficking and Related Activity in response to the potential growth in illicit activity during the pandemic.

Credit union advocates from across the nation educated members of Congress this week about the industry's response to the COVID-19 pandemic, the need for federal charter modernization enhancements, and how “now” is the time to act on a national data security law that protects all consumers.

National Credit Union Administration (NCUA) Vice Chairman Kyle S. Hauptman and Board Member Rodney E. Hood spoke during the Credit Union National Association’s Governmental Affairs Conference on March 3. 

The Consumer Financial Protection Bureau (CFPB) released a notice of proposed rulemaking (NPRM) to delay the mandatory compliance date of the General Qualified Mortgage (QM) final rule from July 1, 2021 to Oct. 1, 2022. The CFPB is proposing to extend the compliance date to ensure homeowners struggling with the financial impacts of the COVID-19 pandemic have the options they need.

Inclusiv, in collaboration with Coopera Consulting and Border FCU, will hold its first Juntos Avanzamos Webinar of 202 on March 25: “Expanding Your Service to the Hispanic Community as a CDFI Credit Union.”

This year, California legislators are making up for the reduced number of bills during last year's legislative session due to the COVID-19 pandemic. State lawmakers have introduced nearly 2,400 bills, and there are numerous bills that will impact the credit union movement.

Return to Normal on Distant Horizon as Economy Recovers

Home to a slice of coastal and inland Northern California — as well as the upper Bay Area — the unique “North Bay” region’s economic recovery continues to come at varying costs (yet new opportunities) to workers, households, and businesses as they return to normal over the next couple of years.

National Credit Union Administration (NCUA) Chairman Todd M. Harper has appointed Board Member Rodney E. Hood as the agency’s representative on the Board of Directors of NeighborWorks America, one of the nation’s leading affordable housing and community development organizations.

For more than a decade, the need for retirement savings and the level of focus needed on an individual’s investment plans has changed dramatically. The world around us has pivoted away from providing traditional retirement programs and pensions - putting the onus on the individual. This has become even more important during this time of global pandemic and economic uncertainty.

California and Nevada credit unions launched into this year’s extended virtual Governmental Affairs Conference (GAC) by meeting with National Credit Union Administration (NCUA) Board Chairman Todd Harper, participating in a fundraiser for Sen. Alex Padilla (D-CA), and awarding an important annual scholarship this past week.

The Federal Financial Institutions Examination Council (FFIEC) has released updates to four sections of the Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Examination Manual. These updates affect the following manual sections:

2021 is a Key Economic Year for Lower-Income Households

Although Los Angeles County’s recovery will gain notable traction in 2021 for lower-income workers, it may take until 2024 for certain industry employment levels to reach where they stood before the COVID-19 pandemic threw local households into an economic tailspin.

When the West Coast Chapter of the African American Credit Union Coalition launched in September 2019, its mission was to further the mission of the national organization—the African American Credit Union Coalition (AACUC), a non-profit organization of professionals and volunteers whose mission is to increase diversity within the credit union community through advocacy and professional development.

Outmigration and Vacancies Impacting Economic Recovery

As the Bay Area’s economy recovers, it’s residential and commercial real estate markets continue feeling the bifurcated impact of the COVID-19 pandemic: high demand for suburban homes, declining demand for downtown office space and apartments, and the potential for more residents migrating out of city centers.

EDITOR'S NOTE: Below is an excerpt from an article in CreditUnions.com featuring an interview with San Mateo CU CEO Wade Painter discussing how the credit union quickly launched a non-profit fund to grant much-needed assistance to the communities it serves when the pandemic hit last year.

The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) has opened the fiscal year (FY) 2021 funding round for the Community Development Financial Institutions Program (CDFI Program) and Native American CDFI Assistance Program (NACA Program). Inclusiv is providing assistance for those interested in applying for funding via its website and two webinars.  

As if the COVID-19 pandemic and its ramifications haven't given members enough to worry about, it is now the time of year when criminals also focus on tax fraud, and they're using several schemes to attack your members.

In recent articles in this space, I discussed the evolving law on whether a holder of a retail installment sale contract is liable for a consumer’s attorney fees incurred when successfully suing the holder for the car dealer’s wrongful conduct, and the immunity from liability social media platforms, such as Twitter, Yelp and Facebook, have under Section 230.  Since those articles, courts have decided cases in both areas – one adding more confusion on the attorney fee issue and one confirming the broad scope of  Section 230 immunity.

California state leaders have announced an upcoming round of direct-stimulus payments within a larger economic relief package for households and businesses suffering from the state’s lingering economic hardships due to the COVID-19 pandemic.

This week, the National Credit Union Administration (NCUA) board adopted a final rule that amends its share insurance regulation governing the requirements for a share account to be separately insured as a joint account by the National Credit Union Share Insurance Fund (NCUSIF).

With the new year and tax season here, your members are likely thinking of ways to develop their financial health so they can meet their goals. LSC's partner GreenPath Financial Wellness shares that the journey to financial wellness is smoother when people take the time to create a budget. This step helps better identify each unique financial situation.

If your credit union makes residential mortgage loans and meets all four criteria outlined below, you must comply with the Consumer Financial Protection Bureau’s (CFPB) Regulation C, which implements the Home Mortgage Disclosure Act (HMDA).

Regulation C requires you to collect HMDA data associated with mortgage loan applications processed during 2021 if:

1. Your credit union’s total assets as of Dec, 31, 2020, exceeded $48 million;
    
2. Your credit union had a home or branch office in a Metropolitan Statistical Area on Dec. 31, 2020;
    
3. Your credit union originated at least one home purchase loan (other than temporary financing such as a construction loan) or refinanced a home purchase loan, secured by a first lien on a one-to-four-unit dwelling during 2020; and
    
4. Your credit union originated at least 100 covered closed-end mortgage loans in each of the two preceding calendar years (2019 and 2020) or at least 500 covered open-end lines of credit in each of the two preceding calendar years (2019 and 2020).

If your credit union meets all four criteria, you must collect HMDA data during calendar year 2021 and submit the data to the CFPB no later than March 1, 2022.

If your credit union does not meet all four criteria, you are exempt from filing HMDA data for mortgage loan applications processed in calendar year 2021.

Click here for the Regulatory Alert.

Nevada credit union leaders took the opportunity to participate in the virtual Nevada Government Relations Rally (GRR) this week to meet with state legislators, officials, and Nevada State Treasurer Zach Conine and discuss the industry's COVID-19 financial relief response to members, as well as the state's continuing economic recovery.

Join the California Credit Union League this year for its online virtual 2021 California Government Relations Rally (GRR)!

Dave Roughton, CEO of SAFE CU in Sacramento, was featured this week in the Sacramento Business Journal for his new chairmanship at the Sacramento Metropolitan Chamber of Commerce where he plans to direct the chamber’s efforts toward “diversity and inclusion” in the local workforce.

U.S. credit unions’ fourth-quarter 2020 financial results show a nearly identical trend coming out of the previous quarter. Refinance mortgages, purchase mortgages, and used auto loans were reinforcing the industry’s lending growth as it continued socking away higher loan-loss provisions and bracing for a possible uptick in delinquencies and charge-offs in 2021.

Credit unions located in metropolitan areas that engage in certain types and volume of residential mortgage lending, and that had assets exceeding $47 million as of Dec. 31, 2019, must file a report this year on mortgage loan applications received during 2020. The filing is required under the Home Mortgage Disclosure Act (HMDA), as implemented by the Consumer Financial Protection Bureau’s (CFPB) Regulation C.

On Feb. 10, the Federal Reserve adopted as a final rule, without change, its March 24, 2020 interim final rule amending its Regulation D (Reserve Requirements of Depository Institutions) to lower reserve requirement ratios on transaction accounts maintained at depository institutions to zero percent.

EVERFI has launched the Black History Month Challenge to promote youth education on race and equity—and we want your credit union to be part of it!

This week, California Sen. Anthony Portantino (D-La Canada Flintridge) introduced Senate Bill 269, the 2021 Credit Union State Charter Modernization Bill — which is identical to SB 1031 from last year.

Region on a Roll in its Recovery, Although Economic Issues Persist

Northern Nevada’s unique business diversification will aid its economic recovery in 2021 as workers and households experience what other regions are going through: a bifurcated economy with lower-wage employment playing catch-up to the higher-wage, stable workforce.

EDITOR'S NOTE: Lending was interesting and challenging in 2020 amidst the COVID pandemic. Below are excerpts from two recent articles in CreditUnions.com in which representatives from Star One CU and Clark County CU shared their experiences and lessons they have learned throughout this time.

The Small Business Administration (SBA) and the Financial Crimes Enforcement Network (FinCEN) have issued separate Paycheck Protection Program (PPP) FAQs.

2021 Economic Recovery Will be Unique, Just Like Local Region

Aided by its unique geography and period in history, the Inland Empire’s economy will outrun other regions in 2021 as jobs are added, businesses reopen or start for the first time, and households and workers continue recovering from last year’s COVID-19 recession.

The payments landscape is evolving and changing rapidly. In order to stay top-of-wallet, you need to ensure you are keeping up with digital payment modernization.

Labor Force Growth to Fuel 2021’s Continuing Economic Recovery

As San Diego County’s economy is poised for significantly better growth in 2021, the local labor force (individuals willing and able to work) is expanding — a positive sign for businesses as many unemployed workers “rejoin” the job market in a vote of confidence against COVID-19’s lingering impact.

This week, California Gov. Gavin Newsom announced that once the state distributes all priority COVID-19 vaccinations to seniors, health care workers, agricultural workers, teachers and school staff, it will move to an age-based eligibility system.

‘Near Normal’ Economy by Late ’21, but Unemployment to Remain

The ongoing hit to retail, leisure, and hospitality workers — and future concern for local and state government employees — will continue impacting the greater Sacramento region’s economy as it slowly recovers and starts to return to “near normal” by late 2021.

Economy One Step Ahead, but Should Focus on Pre-COVID Efforts

Northern California’s continuing economic recovery in 2021 is highly dependent on past years’ wildfire rebuilding efforts that were in play before COVID-19 arrived, as well as fostering a more skilled local workforce and getting the spread of the pandemic under control.

When it comes to compensation, there are always so many factors to consider. From your budget to performance ratings, current compensation, peer compensation, the current market, survey data, and more, it can be a lot to handle. 

Security is paramount when communicating sensitive information with credit union members. As Enterprise Text Messaging continues to gain traction—research has found that the majority of professionals are already using SMS for business purposes (often from personal devices)—yet information security and privacy concerns are top of mind. Despite these concerns many would agree that SMS response rates are reportedly significantly higher than the rates from traditional outreach efforts of phone calls and emails.

President Joseph R. Biden, Jr. has designated National Credit Union Administration (NCUA) Board Member Todd M. Harper as the twelfth chairman of the NCUA board.

California’s job market reversed course in December for the “wrong reasons” as it continued its recovery, and Nevada’s employment scene was still nearly stagnant. While both states’ economies have recuperated differently from the COVID-19 recession, today their pace of labor markets seem similar: just trudging along.

Recently, California state cannabis licensing authorities — including the Bureau of Cannabis Control, California Department of Food and Agriculture, and California Department of Public Health — provided notice to the public of proposed emergency regulations to implement the provisions of Assembly Bill 1525 (Jones-Sawyer, 2020).

As a reminder to credit unions, the California Office of Administrative Law (OAL) reviewed and approved the temporary emergency COVID-19 regulation proposed by the state’s Division of Occupational Safety and Health (Cal-OSHA) in November.

The U.S. Small Business Administration’s Paycheck Protection Program (PPP) portal is now open to all participating PPP lenders to submit first- and second-draw loan applications. Additionally, SBA and the U.S. Treasury Department released additional PPP guidance and resources for borrowers and lenders:

The Consumer Financial Protection Bureau (CFPB) and National Credit Union Administration (NCUA) have both approved a final rule on the role of supervisory guidance.

The Community Development Financial Institutions (CDFI) Fund will soon award funds through the CDFI Rapid Response Program (CDFI RRP) to help communities respond to economic hardships created by the COVID-19 pandemic.

The Financial Crimes Enforcement Network (FinCEN) and federal banking agencies have issued responses to Frequently Asked Questions (FAQs) regarding suspicious activity reporting and other anti-money laundering (AML) requirements.

Click here to view the FAQs.

The application deadline for crashers to "Crash the GAC" has been extended to Jan. 31, which means there's still time to get your credit union's emerging leaders into one of the most exciting events of 2021!

On Dec. 29, 2020, the Consumer Financial Protection Bureau (CFPB) published in the Federal Register two final rules amending the Ability-to-Repay/Qualified Mortgage Rule (ATR/QM Rule) in Regulation Z. These final rules are:

National Credit Union Administration (NCUA) Chairman Rodney E. Hood released selected accomplishments since he was sworn in as the eleventh Chairman of the NCUA in April 2019.

The evolving world of customer experience (CX) is pushing credit unions to adopt a broader view of engagement, one that focuses on being there for members—analyzing every part of their journey—beginning the moment consumers first encounter your brand.

Annualized loan and deposit trends for California and Nevada credit unions at the end of third-quarter 2020 were nearly identical to the prior quarter: residential mortgages, loans to businesses, and consumer and business deposits continued their steep climb higher, according to data compiled by the California and Nevada Credit Union Leagues.

California state lawmakers have started returning to the state capitol. After an extended recess due to spiking COVID-19 cases, the California State Legislature must move quickly to address issues facing residents and households.

The National Credit Union Administration (NCUA) and the Consumer Financial Protection Bureau (CFPB) have signed a memorandum of understanding agreement to improve coordination between the agencies related to the consumer protection supervision of credit unions with more than $10 billion dollars in assets.

After slowing in late 2020, California’s economic recovery is expected to kick into higher gear during early 2021 — although much hinges on the state’s reaction to weekly COVID-19 numbers, the vaccine distribution effort, and persistent restrictions on businesses and gatherings.

Credit union leaders can view presentation slides from the U.S. Small Business Administration (SBA) and Treasury Department’s Jan. 11 webinar on the latest Paycheck Protection Program (PPP) — "Basics of New Paycheck Protection Program (PPP) Loan Programs".

Federally insured low-income credit unions seeking Community Development Financial Institution (CDFI) certification can apply to use the National Credit Union Administration's (NCUA) streamlined qualification process beginning Jan. 24, the agency announced this past week.

The Nevada Department of Health and Human Services' Division of Public and Behavioral Health has released its "NV COVID-19 Playbook Version 3: Prioritization and Eligibility for COVID-19 Vaccination".

First-Half 2021: Faster Growth Potential, Yet Slow Return to Normalcy

After slowing in late 2020, California’s economic recovery is expected to kick into higher gear during early 2021 — although much hinges on the state’s reaction to weekly COVID-19 numbers, the vaccine distribution effort, and persistent restrictions on businesses and gatherings.

National Credit Union Administration (NCUA) Chairman Rodney E. Hood has assigned Vice Chairman Kyle S. Hauptman as the NCUA Board’s liaison to the Defense Credit Union Council and the National Association of State Credit Union Supervisors.

In a recent letter, the National Credit Union Administration (NCUA) encourages any federal credit union with a multiple common bond field of membership to include in its field of membership, without regard to location, underserved communities as defined by the Federal Credit Union Act. 

From COVID-19-related financial crime to industry calls to modernize the Bank Secrecy Act, 2020 has been an unconventional and influential year in our industry. In this special, year-end blog, we highlight how your institution can confidently transition into 2021, successfully predicting emerging criminal trends, remaining compliant, and effectively and efficiently combating financial crime.

Click here to read the complete article. 

The U.S. Small Business Administration (SBA) will restart the Paycheck Protection Program (PPP) this Monday. Lenders targeting underserved communities will have exclusive access to offer loans to new borrowers Monday and Tuesday. They will then be able to offer second loans to existing borrowers on Wednesday. Then PPP will open widely a few days later.

The California and Nevada Credit Union Leagues would like to congratulate Sarah Canepa Bang, who has been appointed senior advisor to National Credit Union Administration (NCUA) Vice Chairman Kyle Hauptman!

As many credit unions wait for their frontline staff to have the opportunity to receive the COVID-19 vaccine, it was announced this week by the California Department of Public Health that financial institutions will be prioritized as Phase 1C (third tier) in the ongoing vaccination distribution to essential workers.

In late December, California Gov. Gavin Newsom announced his intention to appoint California Secretary of State Alex Padilla to fill the vacancy of U.S. Sen. Kamala Harris’ seat when she is sworn in as vice president of the United States on Jan. 20.

Regulatory and compliance news that credit unions should be aware of came to light as 2020 transitioned into 2021, including issues addressed by the National Credit Union Administration (NCUA), the Federal Reserve, the Federal Housing Administration (FHA), and the Financial Crimes Enforcement Network (FinCEN).

The National Credit Union Administration’s (NCUA) latest letter to federally insured credit unions provides information about the provisions of the Consolidated Appropriations Act of 2021 that directly affect credit unions and their members.

The California and Nevada Credit Union Leagues have signed an agreement with Florida-based Maple Street, Inc., a recognized leader in providing wide-ranging vendor management services to credit unions and community banks.

CUNA Mutual Group, in collaboration with Inclusiv, today announces the launch of the Community Development Credit Union CDFI Awareness and Certification Campaign for credit unions. The program aims to educate credit unions not currently CDFI certified about the benefits of certification in serving members and local small businesses, and to create a network for existing CDFI credit unions to learn about and access additional resources.

On Dec.18, 2020, the National Credit Union Administration (NCUA) board approved changes to its regulations and associated methodologies for computing the annual operating fee charged to federal credit unions, as well as the resultant Operating Fee Schedule for 2021. The operating fees charged to federal credit unions will decrease by an average of 19.6 percent in 2021.

2021 Growth Will Lag Other Regions as Recovery Limps Along

Although Orange County’s economic growth will severely lag the state and nation in 2021, the coming year is destined to provide a positive foundation for local businesses, workers, and households as the recovery limps along after the COVID-19 recession in spring of 2020.

The National Credit Union Administration (NCUA) has provided updated guidance and templates to assist federal credit unions seeking to convert to a community field of membership or expand their existing community field of membership. This letter replaces the guidance previously provided in NCUA Letter to Federal Credit Unions 11-FCU-03, Community Charter Conversions and Expansions.

Words matter. Watch where gender-biased language may enter your conversations or even your policies. Expressions like “you guys” may seem harmless but can send exclusive messages to anyone who does not identify with the male gender. Job postings that indicate what qualifications a candidate should have by using the pronoun “he” or “he/she” also send messages about what are accepted genders at your organization. Here are  some examples of alternative language that is more inclusive in conversation and in documents: you all, everyone, he/she/they, the individual.

DEI Tip of the Month brought to you by Humanidei + O'Rourke.

2021’s Economic Recovery is About Location, Jobs, Housing

Although the Bay Area’s economic recovery will kick into high gear during the first-half of 2021, certain localities within the nine-county region are still playing catch-up in their respective job markets and industries compared to others that are faring much better as of late 2020.

The Federal Reserve Board issued a notice of proposed rulemaking that requests public comment on proposed amendments to Regulation D (Reserve Requirements of Depository Institutions). Under the proposal, references to an "interest on required reserves" ("IORR") rate and to an "interest on excess reserves" ("IOER") rate would be replaced with a single "interest on reserve balances" ("IORB") rate. The proposed amendments would make other conforming changes, such as simplifying the formula used to calculate the amount of interest paid on balances maintained by or on behalf of eligible institutions in master accounts at Federal Reserve Banks. Comments on the proposed rulemaking will be accepted for 60 days after publication in the Federal Register, which is expected shortly.

The Financial Crimes Enforcement Network (FinCEN) is inviting nominations for membership on the Bank Secrecy Act Advisory Group (BSAAG). BSAAG membership is open to financial institutions, trade groups, federal and state regulators, and law enforcement agencies.

On Dec. 29, 2020, the Internal Revenue Service and the Treasury Department announced that it will begin delivering a second round of Economic Impact Payments as part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 to millions of Americans who received the first round of payments earlier this year.

Amidst the news of the COVID-19 Stimulus and Government Funding bill being signed into law this week, the California and Nevada Credit Union Leagues have notched a small but significant win for credit unions in the battle of data and payments security.

The National Credit Union Administration (NCUA) board unanimously approved a proposed rule that would amend the agency’s Suspicious Activity Report (SAR) regulation.

The Internal Revenue Service issued its 2021 standard mileage rates.

The National Credit Union Administration Board (NCUA) held its December monthly board meeting over two days (Dec. 17 – 18). The following is a recap:

The Consumer Financial Protection Bureau (CFPB) issued a final rule to implement Fair Debt Collection Practices Act (FDCPA) requirements regarding certain disclosures for consumers on Dec. 18.

California’s job market was making much slower headway in November as it continued its recovery, and Nevada’s employment scene was still sluggish. While both states’ economies have recuperated differently from the COVID-19 recession, today their pace of labor markets seem similar: just plodding along.

Despite the challenging market conditions brought on by the COVID-19 pandemic, the California and Nevada Credit Union Leagues and credit unions banded together with greater urgency to advocate for members and to ensure a better operating environment.

The Cybersecurity and Infrastructure Security Agency (CISA) has issued an alert in response to a known compromise involving SolarWinds Orion products, as well as the subsequent breaches to its customers, which has impacted every corner of the economy, including the federal government, banks, credit unions, and other entities.

The National Credit Union Administration (NCUA) Board — which included Kyle Hauptman, who was sworn into his seat earlier this week — held the first of two consecutive open meetings today.

CUNA Mutual Group, in collaboration with Inclusiv, has announced the launch of the Community Development Credit Union CDFI Awareness and Certification Campaign for credit unions. The program aims to educate credit unions not currently CDFI-certified about the benefits of certification in serving members and local small businesses, and to create a network for existing CDFI credit unions to learn about and access additional resources.

The California and Nevada Credit Union Leagues have been working with our Congressional Delegation, as well as the Credit Union National Association (CUNA) and others, to identify the likelihood of a congressional spending deal that includes stimulus measures that impact both your credit union and your members. The below update is based on facts that we know as of this morning, verified through several Members of Congress and others.

Federally insured credit unions experienced double-digit asset and share-and-deposit growth over the year ending in the third quarter of 2020, according to the latest NCUA Quarterly U.S. Map Review.

Federally insured credit unions experienced double-digit asset and share-and-deposit growth over the year ending in the third quarter of 2020, according to the latest NCUA Quarterly U.S. Map Review.

As we enter the holiday season and transition to a new year, Your CU Store would like to extent its heartfelt gratitude to the credit union community for facing the challenges of 2020 and honoring its continued commitment to help their members in this time of uncertainty and need. Your CU Store continues its honored tradition in providing your credit union’s regulatory forms, both paper and electronic. Start your 2021 with Your CU Store and let us do the heavy lifting, working to ensure you don’t have any added concerns about maintaining updated disclosures and compliance reviews.  

COVID-19 caused a lot of people to put plans on hold this year. Credit union leaders across the country pressed pause on major organizational initiatives from branch construction to brand rollouts, and even revised planned retirements (as evidenced from a significant slow down in executive recruiting over the summer months). After a fairly inactive spring and summer on the recruitment front, credit unions seem to have picked up their pace on hiring, though. If a new job is on your wish list this season or your “New Year, New You” plans for 2021 include a career change, that could be good news for you!

Comedian Dana Carvey’s character Grumpy Old Man once said, “when I was a boy, the only toy we had was a rock and a stick, and we liked it.”  As a young boy and teenager in the late 60’s and early 70’s, I had more than rocks and sticks to play with, but compared to today’s sophisticated electronic toys, including computers, video games and social media to pass the time, it seems like my toys were closer to rocks and sticks than today’s means of entertainment. 

The California Credit Union League is requesting the California Department of Financial Protection and Innovation’s (DFPI) assistance with Gov. Gavin Newsom’s office in working to increase the state’s recent 20 percent business capacity restriction to 35 percent for credit unions.

The Consumer Financial Protection Bureau (Bureau) issued final rules related to qualified mortgage (QM) loans.

The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac will extend several loan origination flexibilities until Jan. 31, 2021. The changes are to ensure continued support for borrowers during the COVID-19 national emergency. The flexibilities were set to expire on Dec. 31, 2020.

Irene Oberbauer, 64, retired CEO of San Diego County CU (SDCCU), passed away on Nov. 21, lovingly surrounded by her husband and two sons.

On Nov. 30, the Office of Administrative Law (OAL) reviewed and approved the temporary emergency COVID-19 regulation proposed by the California Occupational Safety and Health Standards Board (Cal/OSHA).  The emergency regulation is effective immediately and will be in effect for 180 days unless OAL approves a re-adoption of the emergency regulation during this time period.

The National Credit Union Administration (NCUA) Board’s December meeting will occur over two days next week from Thursday to Friday (Dec. 17 – 18). Each open meeting begins at 7 a.m. (Pacific).

Yesterday, Financial Crimes Enforcement Network (FinCEN) Director Kenneth Blanco discussed how information sharing is critical to identifying, reporting, and preventing financial crime.

Select Job Industries to Bridge Economic Recovery During 2021

Southern Nevada’s economic recovery will gain more momentum by late 2021 and finally reach a pace of growth commensurate with what local business leaders and consumers have been expecting. Until then, very select job industries will help bridge the region to fully recuperating from the impact of the COVID-19 recession.

Western CUNA Management School (WCMS) honored those students who excelled in their completed projects during a virtual ceremony held on Nov. 20.  Following the conferring of honors, the school hosted its first-ever virtual roundtable with alumni discussing the impact of the COVID-19 pandemic on credit unions.

OnPoint Community CU sought help converting its loyal online banking users to a new online banking platform. OnPoint Community CU's biggest priority was to deliver on its brand promise of providing extraordinary experiences and value to the community it serves. OnPoint Community CU knew it would need help, so it sought the right supplier to provide a strong client-focus with experience in adapting to the credit union’s existing operations and culture.

Use panel interviews made up of leaders with different perspective, backgrounds, and demographics. This may increase comfort for the interviewees from your diverse candidate pool when they do not walk in a room where everyone else looks the same, and it will also help ensure more broad consideration of the entire value a candidate may bring. Different interviewers identify with and value different strengths, behaviors, and traits of your candidates. When this diversity of perspective is used to vet candidates, it often leads to more thoughtful evaluation.

DEI Tip of the Month brought to you by Humanidei + O'Rourke.

Credit unions won a decisive victory yesterday afternoon as the House and Senate released the compromised language for this year’s National Defense Authorization Act (NDAA).

On Thursday, California Governor Gavin Newsom outlined a “stay at home” COVID-19 public health order for five designated regions across the state when their hospital capacity declines to a level that overwhelms intensive care units (ICUs).

California Governor Gavin Newsom has announced the opening of the California Rebuilding Fund to help impacted small businesses rebuild from 2020’s economic crisis and aid local economies.

The California Occupational Safety and Health Standards Board (OSHSB) voted to adopt a temporary emergency regulation under the state’s Division of Occupational Safety and Health (Cal/OSHA) related to COVID-19 prevention in the workplace. The new emergency standards impose some significant requirements on California employers, including credit unions.

Kyle Hauptman was confirmed by the Senate this week for a seat on the National Credit Union Administration (NCUA) Board. Once he is sworn in, Hauptman will serve a term through August 2025.

Economic Recovery to Gain More Momentum in First-Half 2021

Southern California’s economy won’t take another meaningful step forward in its economic recovery coming out of the COVID-19 recession until sometime during the first-half of 2021. As it does so, different counties will recover quicker versus slower depending on employment demographics and other factors.

Early 2021 is Pivotal Point for Region to Regain Economic Footing

The Central Coast economy is finally starting to turn a corner as it enters the end of a long 10 months of suffering under COVID-19 and fluctuating statewide government restrictions. In 2021, the first few months remain critical for the job market to take its next meaningful step forward.

The Consumer Financial Protection Bureau (Bureau) issued on Nov. 30 its final advisory opinions policy to publicly address regulatory uncertainty in the Bureau’s existing regulations and provide guidance to credit unions and other entities on outstanding regulatory uncertainty.  Under the final policy, credit unions and other entities seeking to comply with regulatory requirements can submit a request to the Bureau where uncertainty exists.

The Federal Reserve Board, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency issued a joint statement encouraging banks to cease using the U.S. Dollar (USD) LIBOR on new transactions by Dec. 31, 2021 in order to facilitate an orderly—and safe and sound—LIBOR transition.

The Federal Reserve Board has extended four of its lending facilities through March 31, 2021.

The Consumer Financial Protection Bureau and other agencies announced that the threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans during 2021 will remain at $27,200, as it was in 2020. Click here to review the notice.

Lots of businesses have cut back on their marketing during the pandemic. But for credit unions thinking about cutting back on marketing, the answer is “no!” Reassuring your community that you’re here and ready to help is an excellent way to grow your member base and enhance your brand. Read on to learn the four reasons you should keep marketing – especially now.

Click here to read more. 

Financial organizations represent a critical sector of business, and the reduction of risk from threats to confidentiality, integrity, and availability (CIA) should be the highest-priority undertaking for these organizations. The intrinsic liquidity of financial organizations makes them desirable targets of unauthorized parties wishing to gain quick capital from a breach.

Economy Plays Catch-Up Into 2022 as Recovery Remains Lopsided

Although Nevada’s economy will fully recuperate by mid-2022, a major split is noticeable in the pace of recovery between the northern region versus the southern region where a large concentration of gaming, leisure, and hospitality-related businesses are navigating the fallout from the COVID-19 pandemic.

New data shows that although California and Nevada’s respective job markets made noticeable headway in October, they continue their slow and steady recoveries as local economies across both states recuperate differently from the COVID-19 pandemic recession earlier this year.

Federal financial institution regulatory agencies, including the National Credit Union Administration (NCUA), issued a joint fact sheet this week clarifying that credit union compliance efforts to meet Bank Secrecy Act (BSA) due diligence requirements for customers that are charities and other nonprofit organizations should be based on the money laundering risks posed by the customer relationship.

Below is this week's regulatory update on actions by the National Credit Union Administration (NCUA), including the extension of COVID-19 regulatory flexibilities, the capitalization of interest proposed rule, NCUA Board briefing on credit union diversity and self-assessment, a briefing on the agency's 2020 budget update and reprogramming, and an update on the National Credit Union Share Insurance Fund (NCUSIF) Quarterly Report. 

With one unified voice to state and federal legislators and regulators, credit unions in California continued building “political capital” and winning victories for their members by partnering with the California Credit Union League during a turbulent 2020.

San Mateo CU and Delta Schools FCU were among the national winners in the Desjardins Youth Financial Education Program, the Credit Union National Association recently announced.

Leisure Industries Remain a Drag on Economic Recovery in 2021

Orange County’s economy will continue recovering in 2021, although the region’s pace is burdened by its above-average concentration in the leisure, hospitality, and tourism industries. Combined with an otherwise robust labor market before the COVID-19 recession, the bounce-back will be bumpy.

Mixed Job Demographics to Drive Slow Economic Recovery in 2021

The Bay Area’s economy will continue exhibiting the “haves versus have-nots” storyline in 2021 as higher-wage workers positively cushion the economic fallout from the COVID-19 recession unlike any other region across the state, while their lower-wage peers slowly recover from the brunt of unemployment.

We’ve known for some time that credit union members would prefer accessing financial services at a credit union. While more than half of members report that, only 3% of members utilize their credit unions for investment services. That’s according to research from Kehrer Bielan, sponsored by CUNA Brokerage Services, Inc. (CBSI).

Mobile banking is experiencing a growth spurt. The Covid-19 pandemic has forced many people into quarantine, and while businesses have had to shut their doors temporarily, financial transactions must continue. As a result, the global crisis has proven to be the catalyst for a large number of people to “go digital.”

Over the past eight months, I have studied and written on the impact of Covid-19 on inclusive workplaces. This involved examining the necessity of credit unions to provide remote work options, acknowledging the need for managers to be intentionally inclusive during uncertain times, and exploring how COVID might impact women’s professional gains and what employers could do to help.  Something has nagged at me throughout it all: Regardless of how much talk there has been on the need to extend empathy and grace during this time, it has felt like there is an increasing sense of polarization. Despite so much attention on Diversity, Equity, and Inclusion in the workplace, your organization is not likely free from this division.

The National Credit Union Administration (NCUA) will vote on a proposed rule involving capitalization of interest at its Nov. 19 board meeting. In several letters to the agency and letters to Congress, the Credit Union National Association (CUNA) has called on NCUA to permit credit unions to capitalize interest on consumer mortgage loans in connection with loan modifications made during the COVID-19 pandemic.

California credit union leaders can watch the recap video and discussion from the California Credit Union League’s “2020 Post-Election Review” this past week by clicking here (use passcode 0rCJ1yj#), where the League’s political advocacy team provides critical updates after the Nov. 3 election and going into 2021.

From home inventory, performance, prices, foreclosures, household confidence, and the COVID-19 pandemic, the following is a quick housing market roundup of news and trends from this past week to help your credit union navigate the market going forward.

U.S. credit unions’ third-quarter 2020 financial results show a nearly identical trend coming out of the previous quarter. Refinance mortgages, purchase mortgages, and used auto loans are bolstering the industry’s lending growth as it continues stashing away higher loan-loss provisions and bracing for a possible wave of delinquencies and charge-offs in 2021.