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.

The Consumer Financial Protection Bureau (CFPB) is accepting applications to serve on the Credit Union Advisory Council (CUAC).

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.

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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.

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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.

Today’s rate environment is compressing net interest margin for community financial institutions. So generating non-interest income is more important than ever. But not just any non-interest income. Done right, the revenue you drive can add value to consumers’ lives and deepen your relationships with them. 

Long COVID Recovery Inflaming Already-Weakened Economy

Ventura County’s economy is in for a long slog as it trails behind the recoveries of both California and the United States in 2021. The COVID-19 pandemic has only exacerbated the county’s evolving problems over the past decade, including diminished housing affordability, low-paying jobs, and residential outmigration of younger workers.

A unique panel of four credit union CEOs described what they and their teams learned in responding to the COVID-19 pandemic and ensuing economic crisis earlier this year during the fifth and final day (Nov. 5) of the Virtual REACH 2020 conference.

How does design-thinking apply to a credit union? It’s all about process — and that process includes empathizing with members, defining their problems, “ideating” those issues with solutions, prototyping concepts for rectifying the issues, and testing those prototypes to deliver feedback.

“We can’t just grab our audiences’ attention. We have to grab and hold their attention,” said Andrew Davis. “That’s the key, because they have no time. But it’s our job to maintain their interest.”

Virtual REACH 2020 is over, but the thought-riveting speakers, sessions and discussions are available on-demand! You can conveniently access REACH 2020 online to discover the conference at your own pace, as well as connect and strategize with credit union industry insights and inspiring keynotes.

With the defeat of Assembly Bill 2501 earlier this year — which was intended, among other things, to prohibit a servicer of vehicle-secured credit from taking any action to use self-help to repossess secured collateral during the COVID-19 emergency until Jan. 1, 2023, with limited exception — the formal state legislative landscape for repossession remained status quo.

The job position of deputy commissioner of the office of credit unions is still vacant within the California Department of Financial Protection and Innovation (DFPI). The California Credit Union League is encouraging interested parties to apply for this position. A candidate with a wealth of credit union knowledge and experience would benefit all California state-chartered credit unions.

In mid-November, League-member credit unions across California and Nevada will receive their 2021 dues invoices via mail.

With deep gratitude and recognition, the California and Nevada Credit Union Leagues will bid farewell today to a longtime colleague in the industry who concludes 25 years in serving credit unions — Rita Fillingane, vice president of research and collaboration for the Leagues.

During annual meetings last week, leaders from the California and Nevada Credit Union Leagues' respective board of directors for each state thanked credit union leaders, professionals, and volunteers for their enduring advocacy and support during an unprecedented year in which credit unions continued spotlighting their unique “member owned” model to local communities.

Eighteen credit union leaders, volunteers, up-and-comers, as well as credit unions and organizations—including this year’s Leo H. Shapiro Lifetime Achievement Award recipient Joe Schroeder, retired CEO of Ventura County CU—were honored during the California and Nevada Credit Union Leagues’ virtual REACH 2020.

Is your credit union embedding at least one of four strategies — if not all — into your members’ payments lifestyle? Think immediacy and personalization, “no touch” experiences, protection, and always-on service.

What should credit union CFOs and long-term investors in the financial markets do in the aftermath of the U.S. presidential election? And how will national economic policies change based on the election’s outcome as November passes?

From 2021 to 2023, credit unions will need steady annual loan growth — and are forecasted to find it — to equalize their balance sheets amid a historically low-interest rate environment. The average net interest margin (net profit from loans) will fall to a record low. And cost containment, as well as operating expense management, will be key to bolstering the industry’s financials.

When hiring new employees, consider sending half of the interview questions to candidates in advance of the interview. This will create an opportunity for great candidates to shine, even if their strength is not speaking off the cuff, and may help you discover better talent in introverts, non-native English speakers, or people who appreciate a little more time to find their words.

DEI Tip of the Month: Brought to You by Humanidei + O'Rourke.

The National Credit Union Administration is hosting the Fair Lending and Consumer Compliance Regulatory Update webinar on Nov. 17 where credit unions can get valuable information on a range of fair lending and consumer compliance topics.

Take a stressful year, add some holiday pressure, and what do you get? 

A cry for help!

Economy Entering Major Inflection Period as Slow Recovery Drags On

While experts disagree over how fast California’s economy will continue recovering in 2021, late 2020 is a major inflection point as unemployed workers remain unemployed, or readjust into different jobs, or even start their own freelance careers and businesses amid the COVID-19 pandemic hangover.

Virtual REACH 2020 is not over — please tune in next week on Nov. 4 and 5 for an exciting line-up! Also, you can view mini-recaps of this week’s keynote speakers, breakout discussions, and Spark sessions.

In September 2020, Assembly Bills 1885 and 2463 and Senate Bill 898 were signed into law in California. These three bills deal with California personal and real property exemptions.

The National Credit Union Administration (NCUA) held open and closed meetings this past week. During the opening meeting, the board approved a proposed interagency rule that codifies an interagency statement on the role of supervisory guidance issued by the NCUA and other federal financial regulatory agencies in September of 2018.

On the third day of REACH 2020, breakout sessions touched on “Building an Inclusive Organization in a Divided World” and “Building a Liquidity Lifeline as the Pandemic Stretches On” — two of several discussions. Others included REACHtalks and Spark Sessions on generating revenue, preparing for what’s next in 2021, CECL issues (current expected credit loss), payment trends, real estate, and leveraging the digital landscape.

The pandemic has accelerated the digital reinvention of the world, but now is the time to make bold decisions to transform your organization into the 21^st Century. Future-focused credit union leaders can explore how artificial intelligence (AI) will change interactions, interfaces, and identity — for both members and business partner relationships.

As the second day of REACH 2020 lifted off, separate breakout sessions touched on “The New Marketing Paradigm for 2020 and Beyond” and the “Evolving Security Landscape” — just two of several mini-discussions. Others included insights from the Global Women’s Leadership Network (GWLN) and unique conversations on board governance, reputation risk, mortgage innovation, navigating members’ lives during COVID-19, contactless solutions, and business automation.

Jenny Fleiss — entrepreneur and intrapreneur, and founder of Rent The Runway and Jetblack — gave Virtual REACH 2020 attendees personal insights into innovating her ventures as the COVID-19 economy threw a curveball into consumer spending and commerce this past year.

Local Businesses Project Job Growth as Economy Works Through 2021

Although Orange County’s business activity is projecting modest-but-solid job growth over the next 6 – 12 months, local challenges in the labor market and household finances for many lower-income workers will reverberate into 2021 as the economy continues recovering from the COVID-19 recession.

How is the future of auto lending impacting credit unions? You’ll need a quick perspective of recent auto sales trends combined with ongoing innovation, according to Tony Boutelle, a breakout session speaker on Monday, Oct. 26 during the kickoff for REACH 2020.

Dozens of credit union leaders and guests logged-on to the 2020 Richard Myles Johnson Foundation (RMJ) Donor Appreciation Gala, a yearly favorite of credit union professionals dedicated to the funding and support of financial education for youth across California and Nevada.

Leaders from the boards of the California and Nevada Credit Union Leagues thanked fellow colleagues in the industry for their enduring advocacy and support during an unprecedented year in which credit unions continued spotlighting their unique “member owned” model to local communities during the COVID-19 pandemic.

Are California and Nevada’s current economic recoveries “V, U, L, W, or K shape”? They are increasingly looking K-shaped according to Dr. Robert Eyler, a breakout session speaker on Monday, Oct. 26 during the kickoff for REACH 2020.

REACH 2020 attendees were met by Dr. Willie Jolley’s inspirational, empowering and stirring message during the opening keynote general session on Monday morning, Oct. 26!

Over the past nine months, our country has experienced an unprecedented pandemic that featured a transmittable virus that spread "like wildfire" to millions of Americans. Unfortunately, the world's criminals have preyed upon this fast-spreading viral disease to create the spread of criminal activity that has moved as swiftly as the virus itself.

California and Nevada Credit Union Leagues President and CEO Diana Dykstra welcomed attendees to the first-ever Virtual REACH 2020, thanking them for their participation and celebrating their COVID-19 and natural disaster response in service to members across both states during 2020.

While this year’s Virtual REACH conference is discounted more than 60 percent from previous years, you need to register by TODAY to ensure your “Snack Box” is mailed out! Also, registrants have archived access to recorded sessions after they end.

As an additional resource for credit unions, the League is providing this reference guide — "TDR Designation and COVID-19 Loan Modifications: Section 4013 of the CARES Act" — issued by the Office of the Controller of the Currency (OCC). The guide provides a summary and flowchart to help identify whether loan modifications granted due to COVID-19 should be classified and accounted for as a Troubled Debt Restructure (TDR).

The 2020 Candidate Slate is now live. With the November election just around the corner, this interactive credit union voter guide is designed to help you make decisions on which candidates to support.

California credit unions are reminded that Unclaimed Property Holder Notice Reports due to the State Controller’s Office by Nov. 1, 2020.  See the latest Unclaimed Property newsletter for more information. 

Credit unions, just like any other businesses, are responsible for the safety of its employees and visitors. Besides that, business operations must continue in the event of an emergency while meeting National Credit Union Administration, Federal Financial Institutions Examination Council's (FFIEC) and state and local guidelines. Download Agility's Definitive Guide to Disaster Planning for credit unions to enhance your current business continuity plan.

Get the guide here.  

On Sept. 28, 2020, California Assembly Bill 2463 (AB 2463) was signed into law (effective Jan. 1, 2021), amending certain sections of the Enforcement of Judgments Division of the California Code of Civil Procedure (CCP). AB 2463 effectively prohibits a judgment creditor from seeking a sale of the judgment debtor’s principal residence to enforce a judgment lien, with certain exceptions.  Fortunately for credit unions, this new law contains an express exclusion for certain debts owed to financial institutions.

New data released this week shows California and Nevada’s respective job markets continued their slow and steady recoveries in September 2020 as the national economy continues climbing out of a recession caused by the COVID-19 pandemic.

The National Credit Union Administration (NCUA) Board has issued a proposed rule that would amend the NCUA’s derivatives rule in Subpart B to Part 703.

More than 70 individuals representing League chapters throughout California and Nevada gathered online Oct. 14 for this year’s Virtual Chapter Forum, a morning filled with inspiration and the sharing of ideas and best practices.

The Financial Crimes Enforcement Network (FinCEN) issued an advisory to help financial institutions identify and report human trafficking. It is imperative that financial institutions enable their detection and reporting of suspicious transactions by becoming aware of the current methodologies that traffickers and facilitators use.

Area's Strength Before COVID to Aid Economic Recovery Into 2021

The pace of the Inland Empire’s economic recovery is wedged between California and the United States as local labor market and housing dynamics that allowed it to outperform other regions before the COVID-19 pandemic bolster its chances of better-than-average improvement going into 2021.

The California Department of Justice has provided notice of a third set of proposed modifications to California Consumer Privacy Act (CCPA) regulations.

As credit unions wrap up their 2021 strategic business plans and the budget process to support those, this is the perfect time to put the finishing touches on your DEI business case and begin the real talk: What do you expect to get out of your DEI strategy and what resources are you prepared to commit to achieve those objectives?

The Financial Crimes Enforcement Network (FinCEN) issued an advisory to alert financial institutions to unemployment insurance (UI) fraud observed during the COVID-19 pandemic. It contains descriptions of COVID-19 related UI fraud, associated financial red flag indicators, and information on reporting suspicious activity.

Low mortgage interest rates and pent-up demand from a desire for homeownership will bolster California home sales in 2021. However, economic uncertainty caused by the COVID-19 pandemic and continued supply shortage will limit sales growth according to a housing and economic forecast released this week by the California Association of Realtors.

The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, has released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less.

The National Credit Union Administration (NCUA) Board will meet next week on Thursday, Oct. 15 at 7 a.m. (Pacific). Here's what to expect:

Hawaii USA FCU and its Foundation recently made a donation to CUAid to help credit union employees and volunteers impacted by the recent wildfires in California.

After a very successful Shapiro Summit—the California and Nevada Credit Union Leagues’ Shapiro Group is making a $1,500 donation to Feeding America to help those in need and impacted by the COVID-19 crisis and economic fallout.

Highly accessible, more affordable for credit union staff, and socially safe — this year’s multi-day Virtual REACH 2020 will be THE premier online conference of the year as new speakers are continually added, relevant sessions promise to impress, and registrants buzz with anticipation.

In the California Credit Union League’s latest Advocacy Newsletter, you’ll find status updates on bills that the League engaged on this past legislative year. The deadline for California Gov. Gavin Newsom to sign or veto all bills passing through the California State Legislature was Sept. 30.

Region’s Economic Diversification Will Continue Aiding its Recovery

The Northwest Nevada economy’s business and labor force diversification will continue carrying the region through the current economic recovery relatively well compared to other areas across the state as the post-pandemic fallout continues making its mark everywhere.

Join the World Council of Credit Unions' Young Credit Union Professionals (WYCUP) on Tuesday, Oct. 13 for a celebration of 20 years empowering, networking, and inspiring young credit union professionals.

Advances in marketing technology happen every day and your institution has probably already heard about marketing automation for banks (maybe even from us). Just look at how crowded the vendor marketplace has become in the past six years. In a single year (from 2016 to 2017) the marketplace grew by 36%.

It’s okay not to have all the answers. In fact, DEI programs that are started with the expectation of quick results that can be checked off are often more prone to failure. Instead, be prepared for a learning journey and know that mistakes will be made.

It’s okay not to have all the answers. In fact, DEI programs that are started with the expectation of quick results that can be checked off are often more prone to failure. Instead, be prepared for a learning journey and know that mistakes will be made. Be willing to ask questions, increase your personal awareness and identify your blind spots—we all have them—and move forward with a commitment to continually do better. A good DEI effort is not about making sure everyone is politically correct. It is about making sure everyone has the opportunity to feel safe bringing forward their best self. Your continued commitment to learning will contribute to creating that safe environment where everyone feels more valued and adds more value.

DEI Tip of the Month: Brought to You by Humanidei + O'Rourke.

Though this year’s Shapiro Summit was virtual due to the pandemic, the two-day event still featured a number of informative speakers discussing topics of importance to smaller credit unions, including credit union operations, the economy, and investment strategies. 

You can join experts from the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), and the Administration for Community Living at Health and Human Services (HHS) for a free webinar on Oct. 6 at 11 a.m. (Pacific).

On Oct. 14, amendments to the National Credit Union Administration's (NCUA) chartering and field-of-membership rules (12CFR Part 701 Appendix B) will go into effect. These changes will allow a credit union applying for NCUA approval of a community charter, expansion, or conversion to designate a Combined Statistical Area (CSA) or an individual, contiguous portion of a CSA as a well-defined local community (WDLC) if the area has a population of 2.5 million or less.

The U.S. Department of the Treasury issued two advisories to assist U.S. individuals and businesses in efforts to combat ransomware scams and attacks, which continue to increase in size and scope.

Uneven Recovery to Continue Marking Region as it Hangs on During COVID 

Parts of the Central Coast economy — dominated by tourism, leisure/hospitality, and seasonal farming — will continue trailing other regions as the area recovers from the COVID-19 recession. However, even as Santa Barbara and Ventura counties recover faster than the San Luis Obispo/Monterey and Santa Cruz regions, hints of silver linings are popping up for the entire coastline.

State's Economic Recovery Will Lag U.S. as COVID-19 Continues its Toll

California’s current economic recovery and the health of its labor market are lagging behind the nation’s recovery — a trend that’s expected to continue as the COVID-19 pandemic continues weighing on government policy, business decisions, and consumer activity.

The Financial Crimes Enforcement Network (FinCEN) has made available a Spanish language version of its Advisory on Cybercrime and Cyber-Enabled Crime Exploiting the COVID-19 Pandemic, which was issued in English on July 30, 2020.

Click here for the translated advisory.

The COVID-19 pandemic has made a lasting mark on literally every aspect of American life.  From our national to household economies, plans for education, to our collective mental health, the year 2020 has thrown one curve ball after the next. Maintaining a positive outlook amid the constantly changing environment has been difficult; but through it, we have proven our ability to adapt quickly and make the most of challenging times.

The California and Nevada Credit Union Leagues have developed a new and improved monthly Financial Data Update Survey, which helps the Leagues aggregate the current financial picture of credit unions in both states.

The Financial Crimes Enforcement Network (FinCEN) issued a final rule last week which establishes minimum standards for anti-money laundering (AML) programs for privately insured credit unions.

During a FREE webinar for members of the California and Nevada Credit Union Leagues on Monday, Sept. 28, Dr. Robert Eyler will discuss recent forecasts and data regarding the direction of the California and Nevada economies in light of large uncertainties as 2020 slowly draws to a close, providing credit unions with guidance during this year's strategic planning/budgeting season.

At their core, effective insurance products and financial services must be customer-centric, benefiting both credit unions and their members. Offerings need to be easy to understand and simple to apply for and administer. Most importantly, coverages need to protect customers in their time of need.

The Orange County Chapter recently held its very first virtual CEO Panel in which Financial Partners CU CEO Nader Moghaddam, La Loma FCU CEO Daniel Penrod, and Kinecta FCU CEO Keith Sultemeier discussed the impact the COVID-19 crisis has had on their credit unions.

California Department of Business Oversight (DBO) Commissioner Manuel Alvarez is inviting licensees to submit creative ideas and suggestions to make the department more efficient, including where wet signature and/or notarization requirements force the DBO and credit unions into a paper-based system.

In addition to approving changes to its real estate appraisal rule during the September board meeting, the National Credit Union Administration (NCUA) Board received a briefing on the Share Insurance Fund Quarterly Report.

Today, a bipartisan group of 50 members of the House of Representatives sent a letter to their colleagues working on this year's National Defense Authorization Act (NDAA).

This week, California Gov. Gavin Newsom signed into law two COVID-19 related employment bills — Senate Bill 1159 (authored by Senator Jerry Hill, D-San Mateo) and Assembly Bill 685 (authored by Assemblymember Eloise Gómez Reyes, D-San Bernardino).

An abundance of new lending in credit union mortgages and business loans is being met with an even higher level of incoming deposits, according to second quarter 2020 data compiled by the California and Nevada Credit Union Leagues. It means the industry’s total loans and deposits hit record highs in both states as COVID-19 inflicted economic pain on many households and businesses. But why?

New data released this week shows California and Nevada’s respective job markets continued their slow and steady recoveries in August 2020 as the national economy continues climbing out of a recession caused by the COVID-19 pandemic.

Greater Nevada CU has donated a total of $30,000 to three credit unions hit hard by recent wildfires and that are coordinating local fire relief efforts: Sierra Central CU, the Redwood CU Community Fund, and Rogue CU Foundation in Oregon.  

This year — more than ever — advocating for the credit union cause is critically important as the California and Nevada Credit Union Leagues held its first-ever virtual Hike The Hill event, or “D.C. fly-in” as it’s known.

With Congress back in session and the race to the November election on, the question over whether Congress will pass another stimulus bill is on everyone’s mind. Here are the facts about where things stand this afternoon (Wednesday, Sept. 16). These items are changing rapidly.

To ensure consistent Bank Secrecy Act (BSA) coverage across the banking industry, the Financial Crimes Enforcement Network (FinCEN) issued a final rule that requires minimum standards for anti-money laundering programs for financial institutions lacking a Federal functional regulator.  The final rule also extends customer identification program and beneficial ownership requirements to those banks.

Humanidei + O’Rourke has formed a Credit Union DEI Practitioner Network. Specifically designed for individuals working in credit unions, the Network provides a supportive and resourceful peer group for leaders who have been tasked with developing and integrating Diversity, Equity, and Inclusion strategies in their organizations. Current representation from California include Redwood CU, Farmers Insurance FCU, and SchoolsFirst FCU. San Francisco Fire CU, California Coast CU, Financial Partners CU, and SAFE CU all have had previous particpants. 

The 2020 legislative session in California began as any other. The California Credit Union League’s state advocacy team had prepared to run a state charter update bill and take positions on new legislation. Then it all came to a screeching halt in early March due to the COVID-19 pandemic.

Credit unions can learn more about potential collaborations with NeighborWorks America during an upcoming free webinar hosted by the National Credit Union Administration (NCUA).

In response to the California wildfires, the National Credit Union Foundation has been working closely with the League to evaluate the disaster relief needs of credit union employees and volunteers across California. You can read the foundation’s news release here.

The first USDA Business and Industry CARES Act loan, intended to protect America’s small farms and businesses amidst the COVID-19 pandemic, went to an aquaculture farm in Iowa and was brokered by Carson City, NV-based Greater Commercial Lending (GCL), a subsidiary of Greater Nevada CU. These CARES Act loans provide working capital to help rural businesses prevent, prepare for, or respond to the effects of the coronavirus pandemic.

Nominations for the California Credit Union League’s 2020-21 Board of Directors and Audit Committee elections opened on July 1, 2020. There were ONE (1) Asset Group C Director, TWO (2) At Large Director, and ONE (1) Audit Committee Member positions available this year.

With new fires burning through forests and foothills across California, credit unions—though impacted—continue to serve their members and do their part to help affected communities.

Eighteen credit union leaders, volunteers, up-and-comers, as well as credit unions and organizations—including this year’s Leo H. Shapiro Lifetime Achievement Award recipient Joe Schroeder, retired CEO of Ventura County CU—will be honored during the California and Nevada Credit Union Leagues’ virtual REACH 2020.

It is that time of year when students' vulnerability for ID theft attacks goes up exponentially as they head back to school.  And this year, they face a dramatically more substantial threat posed by the increased time they spend online taking virtual classes.

Treat your diversity and inclusion efforts just as you would any other mission-critical business goal. This means setting clear goals, measuring progress toward those goals, and holding senior executives accountable for achieving these goals. This also means making sure the ownership of this initiative sits with a senior leader who has significant authority and influence over the organization.

DEI Tip of the Month: Brought to You by Humanidei + O'Rourke.

After working with California Gov. Gavin Newsom over the past several weeks, his bill — Assembly Bill 3088 — passed on the floors of the California State Assembly and State Senate this past week and was immediately signed into law.

Comments are due in the coming weeks on multiple regulatory proposals that will affect credit unions, including the following:

Does your compliance and risk team feel overwhelmed juggling multiple projects at once? Are you curious to learn how other credit unions are streamlining their compliance and risk programs?

Over the past several decades, as formalized business continuity plans (BCPs) achieved ubiquity in the credit union industry, financial cooperatives around the world have had several opportunities to put their preparations to the test. From core outages to hurricanes, each disaster after the next helped governance, risk and compliance (GRC) leaders finetune their BCPs for the next inevitable curve ball.

The California Credit Union League is encouraging every credit union supporter and staff member to continue sending messages to their state Senators through Connect for the Cause regarding the devastating impact Assembly Bill 1436 would have on credit unions.

On Aug. 24 the U.S. Small Business Administration issued the 24th Paycheck Protection Program interim final rule (IFR). The IFR — Treatment of Owners and Forgiveness of Certain Nonpayroll Costs — addresses the ownership percentage that triggers the applicability of owner compensation rules for forgiveness purposes.

As Northern California credit unions deal with staff being evacuated from their homes and the closure of branches due to mandatory evacuations or hazardous air quality, they are also pivoting to help those affected by the wildfires still raging in the region.

Four California credit unions and one Nevada credit union received first-place honors at the state level in the Desjardins Adult and Youth Financial Education, Dora Maxwell Social Responsibility Community Outreach, and Louise Herring for Philosophy in Action award programs. A total of six entries will now move forward to the national competition.

Millions of people have been financially affected by the recent circumstances of the coronavirus. Many of those people have looked toward their credit unions for help. The credit unions have not hesitated when answering the needs of their members and their communities. Many of the needs are request for loan modifications and forbearances. For most credit unions there is a back log of request due to the sheer volume and given the work from home environment or limited staff in the office.

New data released this week shows California and Nevada’s respective job markets continued their slow and steady recoveries in July 2020 as the national economy continues climbing out of a recession caused by the COVID-19 pandemic.

As of Thursday evening, Assembly Bill 1436 had been referred from the California Senate Appropriations Committee to the Senate Rules Committee. The situation in Sacramento can always change rapidly at the end of session.

The numerous wildfires now raging in the state are impacting credit unions throughout Northern California.

California Attorney General Xavier Becerra has announced approval by the Office of Administrative Law (OAL) of final regulations under the California Consumer Privacy Act (CCPA).

Fifty years ago, the law we now call the Bank Secrecy Act (BSA) was passed, and the war on financial crimes truly began.

In the midst of the pandemic, families still seek entertainment and adventure. With states in various phases of stay-at-home orders, families are forced to get creative and bring fun home for the summer.  However, because of the financial crisis and elevated occurrence of fraud, members are cautious and remain hesitant.  Members want a fun-filled summer, but need reassurance that their finances will remain secure.

California credit union staff, volunteers, and supporters have sent more than 4,000 Connect for the Cause messages to California state senators asking them to protect credit unions as Assembly Bill 1436 is scheduled to be heard in the California Senate Judiciary Committee on Tuesday of next week (Aug. 18).

The U.S. Small Business Administration has released an interim final rule (IFR) that informs Paycheck Protection Program (PPP) borrowers and lenders of the process for a PPP borrower to appeal certain SBA loan review decisions to the SBA Office of Hearings and Appeals (OHA). The IFR establishes a new subpart L for 13 CFR part 134.  Click here to read the IFR.

Experts from CUNA Mutual Group and Callahan & Associates discussed this past week where U.S. credit unions have been during the first-half of this year, and where they may be going in late 2020 and early 2021.

Practicing COVID-19 precautions, the Richard Myles Johnson (RMJ) Foundation/Origence Golf Classic was held Aug. 10 at the Monarch Beach Resort in Dana Point, CA and raised approximately $80,000 for the state foundation for credit unions in California and Nevada. 

On the day that Western CUNA Management School (WCMS) third-year students would have celebrated their 2020 graduation, the school hosted its first-ever virtual colloquium instead due to the COVID-19 pandemic.

The Consumer Financial Protection Bureau (CFPB) has released FAQs on the Small Dollar Lending Rule. The CFPB had issued the final rule in July. The questions and answers pertain to compliance with the Payday Lending Rule and are a meant to serve as a Compliance Aid. To go along with the FAQs, the CFPB published a Policy Statement on Compliance Aids, that explains the CFPB’s approach to Compliance Aids.

During Virtual REACH 2020, the California and Nevada Credit Union Leagues will honor and remember those who had a significant impact on their credit union, credit union community, or credit union organization and who passed away in the last year.