As Economy Hastily Improves, Workforce & Other Issues Emerge

The Bay Area, Sacramento, and far Northern California regions are all important to the entire state’s broader economic recovery as the COVID-19 pandemic continues impacting workers, households, and consumers who are integrating back into society and commerce.

After three examinations, two projects, and three two-week classroom sessions, the Western CUNA Management School (WCMS) “Sigma” Class was celebrated and honored on Thursday evening (July 29) through a virtual ceremony in lieu of the traditional event on the Pomona College campus in Claremont, CA. This ceremony for the 105 graduates marked the conclusion of the 61^st annual session and 59^th graduation commencement.

On Thursday, the Senate Banking Committee held an informational hearing on a proposed bill to extend the Military Lending Act (MLA) to all consumers, which would include an all-in percentage rate of 36 percent.

Today, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac are extending the moratorium on single-family real estate owned (REO) evictions until Sept. 30, 2021. This REO eviction moratorium applies to properties that have been acquired by Fannie or Freddie through foreclosure or deed-in-lieu of foreclosure transactions.

The  U.S. Small Business Administration (SBA) is launching a streamlined application portal to allow borrowers with Paycheck Protection Program (PPP) loans $150,000 or less through participating lenders to apply for forgiveness directly through the SBA.

This week, Nevada Gov. Steve Sisolak issued a revised Emergency Directive related to face masks (view the governor’s news release here).

Your recorded access to our Your Economy—Your Credit Union virtual conference from July 20 is HERE! Those without an eTrain log-in/account will need to create one before placing their order, which you can create within seconds for free.

Credit unions, as both employers and businesses open to the public, have been juggling competing federal, state and local COVID-19-related guidance and orders[1] since the pandemic began. The CDC initially relaxed its nationwide mask guidance for fully vaccinated individuals in May of this year, and the State of California followed suit on June 15. Cal/OSHA then modified its COVID-19 Prevention Emergency Temporary Standards applicable to employers effective June 17 to largely reflect the CDPH order, and it seemed as if everything was moving in the right direction.

Chapter Forum will take place Nov. 4 and 5 in Palm Desert, CA (following REACH 2021).  Chapter Forum touts a long history as an exclusive event for chapter leaders that promotes learning, leadership, teambuilding, and networking. Participants will celebrate chapter achievements and inspire each other to reach new accomplishments in the coming year.

Credit unions and community banks waste millions of dollars every year. The easiest, fastest way to stop wasting your money is your vendor management program. As a part of this series, Maple Street’s pros explore ways your institution could be wasting money and what you can do to fix the problem.

It’s not too late for your credit union to be part of the #ilovemycreditunion social media blitz!

In an article published this week, CreditUnions.com featured CBC FCU CEO Rick Weber and Educational Employees CU CEO Beth Dooley, both former credit union examiners many years ago. They give insight into why they switched careers and what they offer the cooperative movement (along with other industry leaders from across the nation).

On Wednesday, the Subcommittee on Financial Institutions of the House Financial Services Committee convened a hearing on financial inclusion on Capitol Hill in Washington, D.C. The objective was to examine private and public sector solutions surrounding America’s unbanked problem.

The 81st Session of the Nevada Legislature started much differently than any other session in the state’s history. The remote environment forced all interested parties to adapt, including the Nevada Credit Union League.

On Thursday, the National Credit Union Administration (NCUA) Board pulled from the agenda the agency’s draft 2022 – 2026 Strategic Plan during its monthly July meeting. According to Board Chairman Todd Harper, this was a unanimous decision to give board members additional time to reach consensus on the agency’s proposed strategic goals and priorities.

Maple Street’s best-in-class vendor management system, the Vendor Advantage System®, is joining forces with WolfPAC’s Integrated Risk Management platform to deliver a complete, integrated vendor and enterprise risk solution for credit unions and community banks. Maple Street is an exclusive business partner of the California and Nevada Credit Union Leagues. 

The power to scale and innovate has become an industry signature and is more important than ever for the future of the credit union movement. Designing a dynamic digital strategy and journey is top-of-mind for leaders across the globe.

To help families reduce their housing costs, the Federal Housing Finance Agency (FHFA) announced today that Fannie Mae and Freddie Mac will eliminate the Adverse Market Refinance Fee for loan deliveries effective Aug. 1, 2021.

The National Credit Union Administration (NCUA) Board will have its next meeting on Thursday, July 22 at 7 a.m. (Pacific). Here's what to expect:

Data released today shows California and Nevada experienced another month of employment gains as both states’ labor markets continue trudging forward under one of the messiest job situations in modern history.

Californian residents earning between $30,000 to $75,000 will see $600 payments this coming September under a budget deal signed by Gov. Gavin Newsom this past week.

On July 15, the Financial Crimes Enforcement Network (FinCEN) announced it will convene a FinCEN Exchange in August 2021 with representatives from financial institutions, other key industry stakeholders, and federal government agencies to discuss ongoing concerns regarding ransomware, as well as efforts by the public and private sectors. The FinCEN Exchange will build upon FinCEN’s November 2020 event on ransomware.  FinCEN anticipates that this FinCEN Exchange will assist its government and private sector partners to inform next steps to address ransomware and focus resources to mitigate the threat.  This announcement is part of a whole-of-government effort to combat ransomware.

Today's growing inflation trend is JUST the beginning (see video of Dr. Robert Eyler). This year’s Your Economy—Your Credit Union Conference on July 20 (just four days away) will help your credit union plan for 2022 as the job market, housing/real estate, migration patterns, loans and deposits, and state business policies shape the economy.

National Credit Union Administration (NCUA) Chairman Todd M. Harper issued a letter to credit unions regarding phase one of resuming onsite operations. 

Connect with thousands of credit union leaders across the country on Thursday, Aug. 12 for a day of Discovery!

Economy to Continue Fierce Growth, Climbing Out of Deep Hole

The combined mega-regions of Southern Nevada and Northern Nevada are key to the entire state’s broader economic recovery as the COVID-19 pandemic wanes and businesses, workers, households and consumers integrate back into society and commerce.

We’ve all been there. We’re trying to renew our car insurance, apply for a loan, or do something simple like pay a parking ticket (which we obviously didn’t deserve), and we think, this will be so easy to do over the phone or online.

To say the least, these are very different times for the banking industry — and especially community financial institutions. The past year has challenged traditional thinking and forced new ways of doing business. Making smart decisions is imperative right now, and there are some oft-heard beliefs going around that we think need to be explored deeper — so you can have the information you need.

The monthly Advance Child Tax Credit from the U.S. Treasury Department (via the IRS) is being sent to eligible U.S. taxpayers starting this month and going through December. Is your credit union and its members ready?

Credit unions are joining the #ilovemycreditunion social media blitz. Are you in?

On July 1, the U.S. Treasury Department extended the deadline for submitting an application for funding under the Emergency Capital Investment Program (ECIP).

While higher inflation is concerning local business leaders, workers and households, record-high deposits at California and Nevada credit unions continue playing a key role in the economic growth that’s driving those price increases according to first-quarter 2021 industry data released by the California and Nevada Credit Union Leagues (scroll down to view local/regional breakouts).

While travel has been challenging over the last year, people have adapted by finding new ways to explore the world beyond their front door. Americans are looking forward to fewer restrictions in the summer of 2021, but a sense of uncertainty continues to impact travel trends. Credit unions can empower members with the right tools to navigate uncertainty and pursue their dreams of summer adventure. The prepaid card in particular is a versatile tool relevant to travelers’ needs.

Senate Bill 269, authored by Senate Appropriations Committee Chair Anthony Portantino (D-La Canada Flintridge), passed the Assembly Banking Committee with unanimous bipartisan support this week.

The power of the purse was on full display this past week as the House Appropriations Committee passed the Financial Services and General Government spending bill. While the National Credit Union Administration (NCUA) and other banking regulators are not funded by the U.S. taxpayer, credit unions participate in several programs funded in this process.

The Federal Financial Institutions Examination Council (FFIEC) issued a new booklet in the FFIEC Information Technology Examination Handbook series, titled “Architecture, Infrastructure, and Operations.”

The Anti-Money Laundering Act of 2020 (AML Act) requires the Secretary of the Treasury, in consultation with the Attorney General, federal functional regulators, relevant state financial regulators, and relevant national security agencies, to establish and make public priorities for anti-money laundering and countering the financing of terrorism policy (AML/CFT Priorities). On June 30, 2021, the Secretary of the Treasury issued the AML/CFT Priorities.

On April 21, 2021, the Eleventh Circuit Court of Appeals issued a ruling in a case brought under the federal Fair Debt Collection Practices Act (“FDCPA”)[1] that could have far-reaching implications for debt collectors that utilize vendors, and also presents some difficult questions for California financial institutions. In Hunstein v. Preferred Collection and Management Services, Inc.,[2] the Court held that a debt collector violated §1692c(b) of the FDCPA when it electronically transmitted information about the consumer’s debt to a third party service provider without the consumer’s consent. While Hunstein is an Eleventh Circuit decision (i.e., Alabama, Florida and Georgia) and not currently binding on the Ninth Circuit (including California and Nevada), federal appellate cases can serve as persuasive authority for other circuits considering similar questions, so it is an important one to watch.

On June 28, 2021, the Consumer Financial Protection Bureau (CFPB) issued the 2021 Mortgage Servicing COVID-19 Final Rule. Effective Aug. 31, 2021, the rule amends certain Regulation X Mortgage Servicing early intervention and loss mitigation requirements. The rule establishes procedural safeguards for mortgage servicers that help borrowers explore foreclosure alternatives, such as loan modifications or home sales.

Credit unions and community banks unintentionally waste millions of dollars every year. The easiest, fastest way to stop wasting your money is your vendor management program.

Inflation. Housing. Labor markets. Consumers — and YOUR credit union. It’s ALL at this year’s Your Economy—Your Credit Union Conference, created for C-level executives, senior management and board directors as they strategically plan for 2022.

The California and Nevada Credit Union Leagues would like to applaud Gary Perez, CEO of USC CU, and recognize his contribution to a recent Los Angeles Times article that shows the tremendous benefits of the credit union mission. His insights embody the “people helping people” spirit.

The California and Nevada Credit Union Leagues and the Credit Union National Association (CUNA) participated in a virtual check presentation in coordination with the Congressional Hispanic Caucus (CHC) BOLD PAC for its congressional members of the House Financial Services Committee.

On Thursday, the National Credit Union Administration (NCUA) Board approved the following final rules during its monthly meeting:

The Federal Housing Finance Agency (FHFA) announced this week that Fannie Mae and Freddie Mac are extending the moratoriums on single-family foreclosures and real estate owned (REO) evictions until July 31, 2021.

Consumer Financial Protection Bureau (CFPB) Acting Director Dave Uejio recently issued the following statement on Congress establishing the Juneteenth National Independence Day Act into law:

Credit union leaders should stay on the alert after a Politico opinion piece on the topic of overdraft fees was published Thursday by a guest writer from the Brookings Institution.

Four years ago, I was forced to attend a one-hour workshop at my high school. The teacher walked in and started droning on: “Today, we’ll learn about budgeting, saving, and investing…”

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

The National Credit Union Administration (NCUA) will host credit union leaders, credit union trade and support organizations, and diversity and inclusion professionals during the NCUA’s second Diversity, Equity, and Inclusion (DEI) Summit. This three-day event will take place virtually Nov. 2–4, 2021.

The California Division of Occupational Safety and Health (Cal/OSHA) Standards Board adopted revisions to the COVID-19 Emergency Temporary Standards (ETS) during its June 17 meeting. Following the Cal/OSHA Standards Board vote, Governor Gavin Newsom signed an executive order to allow the revisions to immediately take effect on June 17.

California’s labor market continued slowly healing in May as individuals kept re-entering the labor force (adults who are willing and able to work) — which is significant to its ongoing economic recovery. Meanwhile, Nevada’s jobs data for May was still being finalized Friday afternoon (updates to this article will be made soon).

The Consumer Financial Protection Bureau (CFPB) issued an interpretive rule this week explaining the basis for its authority to examine supervised financial institutions for risks to active duty servicemembers and their dependents (military borrowers) from conduct that violates the Military Lending Act (MLA).

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

This past year has shown credit union leaders the importance of financial wellness, a founding principal in the credit union movement. This has been most apparent in low-income communities, many of which were shell-shocked by economic instability caused by the COVID-19 pandemic.

The Federal Financial Institutions Examination Council (FFIEC) announced the availability of data on 2020 mortgage lending transactions at 4,475 U.S. financial institutions reported under the Home Mortgage Disclosure Act (HMDA). Covered institutions include banks, savings associations, credit unions, and mortgage companies.

House Financial Services Committee Chairwoman Maxine Waters (D-Los Angeles) — along with Reps. Brad Sherman (D-Sherman Oaks) and Ed Perlmutter (D-Colorado) — introduced H.R. 3958 on Thursday morning, the Central Liquidity Facility (CLF) Enhancement Act.

Where is inflation going — and why? You can find out by joining Jay Prag for a deep-dive into the economy’s inflation storyline going into 2022! The “Prag-onomics” professor and 35-year credit union member is the second speaker during this year’s virtual Your Economy—Your Credit Union Conference on July 20.

This past year is widely seen as the time when everyone’s lives got at least a little more digital. The importance of undergoing a “digital transformation” has been recognized for years, even by credit unions that weren’t quite ready to tackle it. But closed doors and shelter-at-home mandates radically accelerated adoption and meant those who hadn’t gone digital yet had no choice but to dive in.

The National Credit Union Administration (NCUA) released their annual Supervisory Priorities letter to credit unions in January. For Information Systems and Assurance, the NCUA calls to attention the most pertinent cybersecurity risks to the financial industry:

The California Department of Financial Protection and Innovation (DFPI) says that all financial service providers must maintain compliance with California’s workplace standards, the COVID-19 Prevention Emergency Temporary Standards (ETS), as the state’s capacity and distancing restrictions are lifted for most businesses and activities this coming June 15.

The California Division of Occupational Safety and Health (Cal/OSHA) Standards Board held a special meeting on June 9 to consider the latest guidance regarding face-masking from the Centers for Disease Control and Prevention (CDC) and the California Department of Public Health (CDPH).

The Consumer Financial Protection Bureau's (CFPB) Office for Older Americans hosted a webinar this week for associations (including the California and Nevada Credit Union Leagues) to promote a newly developed age-friendly banking toolkit designed for financial institutions that includes information about elder financial exploration, Suspicious Activity Reports (SARs), voluntary age-friendly practices, and consumer education tools.

More than 100 students entered the first-ever national Biz Kid$ Showcase presented in partnership with the Richard Myles Johnson (RMJ) Foundation, the Southeastern Credit Union Foundation, the Illinois Credit Union Foundation, and the Credit Union Association of New Mexico. The Biz Kid$ Showcase was a unique online experience that allowed creativity for innovative business ideas among students aged 12-18.

Low-income-designated credit unions seeking Community Development Revolving Loan Fund (CDRLF) grants, including minority depository institution (MDI)mentoring grants, have until June 26 to submit their applications.

Last summer we experienced a priority shift that led many of our credit union members to a simple realization: they don’t have to go too far to have fun in the summer. Life in quarantine created the opportunity for at-home adventures by picking up old hobbies and developing new talents. Puzzles, painting, and backyard movie nights became the main event. This summer, with the vaccine roll-out well underway, credit union members will begin to expand their sense of adventure again and we predict spending on local travel and new forms of entertainment will rebound. How can your credit union help?

It's a simple equation: the better the employees you have running your credit union, the better experience your members will have. Your people are the face of your credit union. They are the ones who help close the deal with prospective members and build wallet share with current members.

SAFE CU leaders joined representatives from the City of Sacramento and California to celebrate the grand opening of the SAFE Credit Union Convention Center in the heart of downtown Sacramento yesterday.

This past Monday evening, the Nevada State Legislature finally adjourned its 81st session — and in typical fashion, there were many bills voted on in the late hours of the night leading into early Tuesday morning.

Credit Unions for Kids (CU4Kids) has launched several new program enhancements to generate awareness and provide important resources and tools to help credit unions maximize their fundraising efforts. These additions were announced during its live 25th anniversary event on June 2 that is now available for replay here.

On June 1, the National Credit Union Administration (NCUA) released a regulatory alert (21-RA-07) reminding credit unions of a recently issued Consumer Financial Protection Bureau’s (CFPB) interpretive rule which clarifies that the prohibition against sex discrimination under the Equal Credit Opportunity Act (ECOA) and Regulation B includes sexual orientation and gender identity discrimination. The interpretive rule also covers discrimination based on actual or perceived nonconformity with sex- or gender-based stereotypes, and discrimination based on an applicant’s associations. The interpretive rule became effective on March 16, 2021.

Economy Harbors Local Characteristics as Recovery Continues

The mega-region of Los Angeles, Orange, San Diego, San Bernardino and Riverside counties is key to the entire state’s broader economic recovery as the COVID-19 pandemic wanes and businesses, workers, households and consumers integrate back into society and commerce.

The National Credit Union Administration (NCUA) released its Community Development Revolving Loan Fund (CDRLF) report to Congress, highlighting the fund’s significant, positive impact on low-income credit unions, their members, and communities across the country. NCUA Chairman Todd M. Harper also requested that Congress consider increasing the fund’s appropriations in 2022.

Almost a year ago (June 30, 2020) late Justice Ruth Bader Ginsberg wrote her final majority opinion for the United States Supreme Court in United States Patent and Trademark Office, et al v. Booking.com which addressed whether generic terms used as domain names could be afforded trademark protection.

Consumer expectations are higher than ever before, and your members are expecting more convenience and personalized service. Your credit union member is comparing their experience with your brand to the easy, fast, and personalized experiences they are having with the best physical and online retailers. Consumer-focused businesses are reaping the benefits of renewed loyalty and competitive advantage. You ask, how can you keep up? Consider these five, member service-focused solutions to help your credit union stay competitive. 

First-quarter 2021 U.S. consumer finance and lending trends were released this week by TransUnion and Experian, giving credit unions insight into where household credit scores and borrowing have traversed — and possibly where they are going in the second-half of this year.

California credit unions and other employers will have to wait a little longer to know what is ultimately coming for the state's COVID-19 workplace emergency temporary standard (ETS).

This week, more than 100 women credit union leaders joined House Speaker Nancy Pelosi (D-San Francisco), House Financial Services Committee Chairwoman Maxine Waters (D-Los Angeles), and 15 other members of the Democratic Congressional Women’s Caucus for a dialogue about women leading in the credit union industry.

The California Department of Social Services has started processing Golden State Stimulus Grant payments to individuals that receive benefits under the Supplemental Security Income/State Supplemental Program and the Cash Assistance Program for Aged, Blind, and Disabled Legal Immigrants.

The "Open Your Eyes" (OYE) consumer awareness campaign is off to an impressive re-start in California and gaining traction each month. The state is one of many helping drive the national campaign forward as consumers and households ease back into society from the COVID-19 crisis over this past year.

2021 marks 25 years of the Credit Unions for Kids (CU4Kids) program, with more than $150 million raised! You’re invited to join Children’s Miracle Network (CMN) Hospitals and other credit union peers across the country for a special 30-minute (virtual) celebration Wednesday, June 2 (at 10 a.m. Pacific).

The Credit Union Times recently reported third-and-fourth quarter data released by the National Credit Union Administration (NCUA) revealed a 12-month trend in branch closings throughout the United States and its territories. This decline resulted in 449 branch closings in 2020. While branches have been declining for several years, this marks the first-time credit union branches have closed their doors in significant numbers. 

On April 30, 2021, the Consumer Financial Protection Bureau (CFPB) published in the Federal Register a final rule (April 2021 final rule) amending the Ability-to-Repay/Qualified Mortgage Rule (ATR/QM Rule) in Regulation Z.

Here’s this week’s recap of state and federal advocacy:

Join your local League Chapters for the 2021 Multi-Chapter PAC Golf Tournament — sporting a friendly game of golf, networking, and raising funds for the California Credit Union League’s Political Action Committee. You can REGISTER HERE!

California’s labor market is finally beginning to turn a corner as a noticeable number of individuals start re-entering the labor force (adults who are willing and able to work) — which is key to its economic recovery, although there is still a long way to go. Meanwhile, Nevada’s job market continued its steady recovery and has much ground to gain.

On Thursday, the National Credit Union Administration (NCUA) Board approved a final rule for derivatives, approved a request for comment on the policy for setting the National Credit Union Share Insurance Fund (NCUSIF) normal operating level, and was briefed on the share insurance fund quarterly report.

In an already complex landscape of federal, state and local workplace safety guidance, recently updated federal guidance easing mask and physical distancing requirements for vaccinated persons has raised a number of questions for credit unions about workplace safety obligations.

Andrew Davis, founder of Monumental Shift marketing agency and best-selling author, rejoins us at REACH this November where he’ll dive deep into the Loyalty Loop. 

National Credit Union Administration (NCUA) Chairman Todd M. Harper testified before the before the U.S. House of Representatives’ Committee on Financial Services during its “Oversight of Prudential Regulators: Ensuring the Safety, Soundness, Diversity, and Accountability of Depository Institutions” hearing on May 19, 2021.

Get ahead of the 2022 curve — register for the virtual “Your Economy—Your Credit Union” Conference! Join the California and Nevada Credit Union Leagues on July 20 as you navigate your state's recovering economy and implement strategic planning for next year!

The London Inter-bank Offered Rate (LIBOR) administrator announced it will stop publishing the one-week and two-month LIBOR settings immediately following the Dec. 31, 2021, LIBOR publication. The remaining LIBOR settings will cease immediately following the LIBOR publication on June 30, 2023. While the extension of the publication of certain LIBOR settings through June 30, 2023, is not an opportunity to continue using LIBOR, it will allow some legacy LIBOR contracts to mature naturally.

Five federal financial regulatory agencies announced they will extend the comment period on the request for information on financial institutions’ use of artificial intelligence (AI) until July 1, 2021.

When many credit unions were figuring out how to protect their institutions and survive during the COVID-19 pandemic of 2020, several credit unions decided to take decisive action to support the members outside of the credit union walls. With the pandemic creating a perfect storm of vulnerability for many members, especially the older members, it was apparent that everyone was facing an avalanche of attacks. 

Some notable forecasts for the future of household formation and homeownership in California and Nevada from 2020 – 2040 have been released by the Urban Institute, which has implications for both states’ housing markets, economies, credit unions and their members.

The voting period for the two special Credit Union National Association (CUNA) Board of Director elections has closed and the official results are in (with voting taking place April 26 – May 13). The California and Nevada Credit Union Leagues want to congratulate Nader Moghaddam and Jose Lara!

The Federal Housing Finance Agency (FHFA) issued a Request for Input (RFI) on Fannie Mae and Freddie Mac’s eligibility requirements for mortgages in condominium, cooperative, and planned unit development (PUD) projects where a large portion of units are offered for short-term rental (30 days or less) or are used primarily for the purpose of vacation or recreational lodging.

Economic Recovery in Motion, but Hyper-Localized by County

From Ventura to Santa Barbara, San Luis Obispo, Monterey and Santa Cruz, the central coast is at the heart of a broader economic recovery as the COVID-19 pandemic’s impact on industries, workers and consumers wanes. A brighter future is in motion, yet with the same household affordability challenges in play from years past.

This week, California Gov. Gavin Newsom previewed his $100 billion California Comeback Plan as the largest economic recovery package in California’s history.

EDITOR'S NOTE: CreditUnions.com featured Patelco CU Vice President of Consumer Lending Josh Garrison and Financial Wellbeing Program Manager Kipp Riesland. They discuss how Patelco is working to improve the situation of members with low or no credit through a small-dollar loan and financial wellness principles.

First-quarter 2021 U.S. credit union trends continue showing a changing world for the industry nationwide as they served members going from winter into spring.

Senate Resolution 27 (Monique Limón) — relative to Financial Capability Month — passed the California State Senate floor this past week. SR 27 declared the month of April 2021 as “Financial Capability Month” to raise public awareness about the need for increased financial capability in California.

Some notable cities and regions across California and Nevada that have a major credit union footprint are spotlighted in the Milken Institute’s “Best-Performing Cities 2021: Foundations for Growth and Recovery” report released this past week — something to note as credit unions soon move into the second-half of 2021.

On Oct. 21, 2021, credit unions worldwide will celebrate International Credit Union Day (ICU Day). This annual event raises global awareness for the credit union movement through outreach, volunteering, fundraising and other ICU Day-themed activities.

In the California Credit Union League’s latest Advocacy Newsletter, credit union leaders throughout the state can get up to speed on state government affairs, special elections, the recall effort, federal/congressional government affairs, and state and federal regulatory advocacy:

In September 2020, California enacted Senate Bill 908, known as the Debt Collection Licensing Act, which is set to take effect on January 1, 2022.  In a nutshell, the new Debt Collection Licensing Act (Act) creates a new category of “licensees” subject to Department of Financial Protection and Innovation (DFPI) oversight and rulemaking, and expands the DFPI’s enforcement authority over both new and existing licensees.

Credit union leaders and supporters across California are celebrating their VICTORY in telling state assemblymembers “NO on Assembly Bill 1177” over the past few weeks and seeing their tireless efforts make a difference last night!

The California and Nevada Credit Union Leagues would like to thank everyone who made this year's CU FinHealth21 Conference a success last week! In case you missed the conference, here’s a quick recap to get you caught up:

East County Schools FCU has officially launched an innovative financial wellness benefit for school district employees called "MyPayNow," an app-based service allowing these members in San Diego County early access to their earned-but-unpaid wages each month (up to $1,000) at no cost.

This week, the Consumer Financial Protection Bureau (CFPB) formally delayed the mandatory compliance date of the General Qualified Mortgage (QM) final rule from July 1, 2021 to October 1, 2022.

The California Department of Financial Protection and Innovation (DFPI) has issued a second-modification proposal to amend regulations under the California Credit Union Law.

Still in his first few months in office, Sen. Alex Padilla (D-CA) continues to express his long-term support for credit unions.

According to the U.S. Constitution, in the first year of every decade the census (or count) of every person in the United States takes place. The following year, the states will be assigned a total-population number and their allotment of seats in the U.S. House of Representatives. States then redraw the district lines based on their state laws.

The latest issue of Consumer Compliance Outlook is now available. This issue contains the following articles and features:

CU PolicyPro — a FREE league-member benefit of the California and Nevada Credit Union Leagues — has been completely rebuilt and enhanced to make customizing and managing policies easier than ever!

As we move into the second quarter, now is a great time to assess how your vendors are performing during a period when technology is critical to meeting your members’ or customers’ needs. Are you exceeding their expectations or being hindered by poor vendor service?  

The annual Credit Union SacTown Run — held virtually this year due to ongoing COVID-19 pandemic concerns — raised $200,050 for 11 Children’s Miracle Network Hospitals throughout California and Nevada!

The California Credit Union League appreciates everyone’s efforts on Assembly Bill 1177 — AND we need more credit union supporters to make our movement's voice heard!

The California Department of Financial Protection and Innovation (DFPI) hosted its inaugural Economic Equity Conference and unveiled its first-ever “Survey of Diversity in State Banking” report on 80 state-chartered credit unions and banks this week.

The Federal Housing Finance Agency (FHFA) announced this week that Fannie Mae and Freddie Mac will extend some temporary loan origination flexibilities until May 31. All temporary flexibilities were originally set to expire on April 30.

During Thursday's National Credit Union Administration (NCUA) Board meeting, the board was briefed on an interim final rule on prompt corrective action (PCA) adopted last week by notation vote, at which time the rule became effective.

Last week, the National Credit Union Administration (NCUA) took the necessary steps of supporting an interim final rule to address large deposit growth and stimulus check payouts. The California and Nevada Credit Union Leagues and the Credit Union National Association (CUNA) had engaged both the NCUA Board and prominent elected officials in Congress in an effort for them to take action.

The House of Representatives has passed H.R. 1996, the SAFE Banking Act (Secure and Fair Enforcement), this week. It provides a safe harbor for depository institutions offering financial services to cannabis-related businesses.

The California and Nevada Credit Union Leagues is seeking nominations and entries for its various awards programs.

The California and Nevada Credit Union Leagues are celebrating “April is Financial Literacy Month” by focusing on credit union financial education efforts! This week we are wrapping up our highlight on one of many credit union financial literacy programs found across California and Nevada.

The Consumer Financial Protection Bureau (CFPB) issued an interim final rule in support of the Centers for Disease Control and Prevention (CDC)’s eviction moratorium. The CFPB’s rule requires debt collectors to provide written notice to tenants of their rights under the eviction moratorium and prohibits debt collectors from misrepresenting tenants’ eligibility for protection from eviction under the moratorium. The CDC has established the eviction moratorium to protect the public health and reduce the spread of the virus. Debt collectors who evict tenants who may have rights under the moratorium without providing notice of the moratorium or who misrepresent tenants’ rights under the moratorium can be prosecuted by federal agencies and state attorneys general for violations of the Fair Debt Collection Practices Act (FDCPA) and are also subject to private lawsuits by tenants.

Read the Interim Final Rule here.

Read a Fast Facts summary of the Interim Final Rule.

The California and Nevada Credit Union Leagues are celebrating “April is Financial Literacy Month” by focusing on credit union financial education efforts. This week we highlight just a few of the many credit union financial literacy programs to be found across California and Nevada.

California continued to slowly add jobs to its labor market and economy in March; and Nevada’s job market continued reversing course and recovering — still very slowly. Meanwhile, local economists are projecting faster growth as springtime transpires.

As California’s economy and jobs market continue playing catch-up to stronger growth in other states, experts hope “sidelined” individuals/workers will re-enter the labor force at higher, quicker monthly rates. This would help boost potential economic growth even that much more from 2021 – 2022.

The National Credit Union Administration board (NCUA) approved, by notation vote, an interim final rule that temporarily modifies certain regulatory requirements to help ensure federally insured credit unions remain operational and able to provide needed financial services during the COVID-19 pandemic.

SESLOC FCU is partnering with GreenPath Financial Wellness services to offer a Virtual Financial Coach—a convenient new way for credit union members to achieve their financial goals. The Virtual Financial Coach is an easy-to-use, friendly, chat-based support platform.

It’s widely recognized in the payments industry that attempted fraud incidences increase during times of crisis, and the coronavirus pandemic is the latest example of this. We’ve seen a year over year increase in fraud attempts, with this trend continuing into 2021. Having the right tools in place to stop fraud before it happens is just one piece of the puzzle when managing the expectations your cardholders have. How your credit union responds is paramount to the experience your member has if and when fraud hits their account. 

The California and Nevada Credit Union Leagues are celebrating “April is Financial Literacy Month” by focusing on credit union financial education efforts. This week we conduct short Q&A sessions with five credit union staff who coordinate financial literacy programs for members and the community: Tyrone Conde, Downey FCU; Veronica Dangerfield, Patelco CU; Michelle Hale, Greater Nevada CU; Mike Jones, Educational Employees CU; and Kristi Longoria, San Mateo CU.

Here’s a fact that might surprise you: Nearly half of U.S. adults—46%—don’t have life insurance.[1] And many don’t have accidental death and dismemberment (AD&D) protection, which can either complement a life insurance policy or be an alternative resource depending on a member’s family and financial situation.  

The federal banking agencies, in consultation with the Financial Crimes Enforcement Network and the National Credit Union Administration, issued a joint statement addressing how risk management principles described in the “Supervisory Guidance on Model Risk Management” relate to systems or models used by banks to assist in complying with the requirements of Bank Secrecy Act (BSA) laws and regulations.  The statement further notes that it does not alter existing BSA/anti-money laundering (AML) legal or regulatory requirements or establish new supervisory expectations, and that no specific model risk management framework is required.

Today marks the end of the 2021 California Government Relations Rally (GRR) over this past week, where the California Credit Union League held a historic fundraiser for Gov. Gavin Newsom and hosted meetings between important state officials and credit union leaders.

California and Nevada Credit Union Leagues President and CEO Diana Dykstra was interviewed this past week on KGO AM-810’s “Consumer Talk,” a well-known San Francisco radio station program and online podcast helmed by the popular Bay Area ABC-7 On Your Side broadcaster Michael Finney (listen to the April 3 program here).

Senate Bill 269 (authored by California Sen. Anthony Portantino) — the Credit Union State Charter Modernization Bill — was voted off the California State Senate floor this past week and will be sent to the Assembly Rules Committee.

The Internal Revenue Service has issued guidance for employers claiming the Employee Retention Credit under The CARES Act, which was then modified by The Relief Act.

Bright Spots Emerge as Economy Settles in for Long Recovery

Wedged between the coast and inland areas, San Gabriel Valley’s economy is signaling green shoots into 2021 and sustained growth in 2022 as this region recovers faster than the entire county due to a unique mixture of businesses, households, and its geographic location.

The Consumer Financial Protection Bureau (CFPB) issued a Notice of Proposed Rulemaking (NPRM) to delay by 60 days the effective date of two final rules issued under the Fair Debt Collection Practices Act (FDCPA). The debt collection rules, issued in late 2020, are scheduled to take effect on November 30, 2021.  The CFPB is proposing to extend the effective date of both rules to January 29, 2022. The proposed delay would allow stakeholders affected by the pandemic additional time to review and implement the rules.

Economy to Play Major Catch-Up: Fully Back on Track by Late 2022

As California’s economy and jobs market continue playing catch-up to stronger growth in other states, experts hope “sidelined” individuals will re-enter the labor force (pool of adults willing and able to work) at higher, quicker monthly rates from 2021 – 2022. Such a trend would help boost economic and labor growth even that much more.

Just in time for Financial Literacy Month, San Diego County CU (SDCCU) is hosting SDCCU Biz Kid$ events online to help engage students in distance learning environments with fun and interactive ways to learn about money, finances, and business.

The California and Nevada Credit Union Leagues are celebrating “April is Financial Literacy Month” by focusing on credit union financial education efforts. This week we put the spotlight on the Richard Myles Johnson (RMJ) Foundation, the state foundation for credit unions in California and Nevada dedicated to supporting credit union efforts in spreading the financial literacy message to young people.

The California and Nevada Credit Union Leagues are celebrating “Women’s History Month” this past March by wrapping up its spotlight series on one final amazing leader who has played a vital role in the history of American women and our movement. This week we would like to recognize Diana Dykstra, president and CEO of the Leagues in Ontario, CA!

The California Credit Union League has notified credit unions of the next step in California’s “Golden State Stimulus Payments” plan. Some important provisions have been secured within committee in the current Assembly Bill 88 (the legislative package carried over from Senate Bill 88 in February).

As not-for-profit entities, credit unions ARE NOT eligible to apply for Paycheck Protection Program (PPP) loans from the U.S. Small Business Administration (SBA) even though the program received expanded eligibility within the recently passed American Rescue Plan Act, according to an alert published by the California and Nevada Credit Union Leagues.

The Consumer Financial Protection Bureau (CFPB) is warning mortgage servicers to take all necessary steps now to prevent a wave of avoidable foreclosures this fall.