November 2014
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FOCUS is the monthly e-Newsletter of the Office of Small Credit Union Initiatives (OSCUI). It focuses on helping small credit unions achieve success by providing news and highlighting opportunities. Click here to subscribe to FOCUS. |
 Featured this Month (Click on a heading to go to the article.)
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Last chance for Consulting
Deadline for credit union nominations - Nov. 30, 5 p.m. Eastern
The next consulting cycle will run from January through June 2015. To take advantage of this opportunity for free consulting services by an Economic Development Specialist, a credit union must meet one of these criteria:
- have assets below $50 million,
- be a low-income designated credit union, or
- self-identify as a Minority Depository Institution.
If your credit union meets the criteria and desires consultation, complete a nomination form
We expect high demand for the upcoming cycle based on the number of nominations we've already received. We will review the nominations and notify the credit unions selected for enrollment shortly afterward. Our selection criteria and process were explained in the Consulting column of the May 2013 issue of this e-newsletter.
Recent comments we received on our Consulting Service:
I just wanted to thank you again for the great program that NCUA has within OSCUI. [EDS Sherita Jones] is very good at her job and helped us tremendously. The strategic planning session was very informative and we can't wait to put all of our plans in action.
CEO Julie McMillan
Knox County Teachers FCU
EDS Bob Jones submitted a well-documented consulting report. His assessment accurately detailed the credit union's financial position. Further, the report appropriately provides sound business recommendations to improve the credit union's financial performance.
Examiner Bradley Biere
NCUA Regional Office II
EDS Tom Penna was very helpful and gave us many great marketing ideas, and lending strategies which we are quickly putting in to place.
CEO Roberta Connolly
Maiden City Employees CU
Don't miss this opportunity to secure free consulting service for your credit union! Click here to learn more about OSCUI's Consulting Program or email us at [email protected].
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2014 OSCUI
Training Events |
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WEBINARS
Webinars begin at
2 pm Eastern
Click here to register
Nov. 19
Building a Loan Portfolio
Dec. 17
Internal Controls |
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Share Your Ideas!
We value your input. Share your ideas for services you'd like us to offer or topics and locations for our training events. Contact OSCUI's Training Division at
[email protected]
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In FOCUS with Bill
Serving the underserved
In this column, OSCUI Director Bill Myers offers insight to small, low-income, new and minority credit unions based on his role as Director and past experience in the credit union field.
October was a great month for examining the low-income side of our financial system.
First, the release of the 2013 FDIC National Survey of Unbanked and Underbanked Households set the tone. My favorite data point is that 20 percent of credit union members also use Alternative Service Providers (payday lenders, pawn shops, auto title lenders, buy-here-pay-here auto lenders, and check cashers). That percentage is 40 percent for Hispanics and a critical 55 percent for African-Americans.
Next, BankOn is being revived by the Cities for Financial Empowerment. BankOn is a partnership program to bring unbanked residents into the financial mainstream. Partners include cities, banks and credit unions, and community partners. Their current initiatives include identifying, designing and piloting safe and affordable financial services and products.
Credit unions are examining fundamental questions about outreach to low-income members and potential members:
- What are fair rates for weak, thin or no-file borrowers?
- What are predatory terms in a loan?
- When does a financial product catch a consumer in a trap or negative cycle?
One of the areas in which credit unions have taken leadership is payday alternative loans, or PALS. There is a fundamental need for short-term credit. For those without savings or a wealthy uncle (or a credit card or courtesy overdraft), for those with a thin or no credit file, payday loans provide a high-cost solution. Credit union leaders have used PALs as a way to attract new members: youth, immigrants and low-income potential members. Often the PAL product is priced for transition or member migration to more traditional products. Credit unions have found that new members have to build trust before cross-selling can be achieved. Credit unions make PALs better with limited rollover, credit builder features, savings add-ons and financial education.
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OSCUI in the news
Recent citings about our office and services
NCUA Vendor Portal Goes Live
Credit Union Times - Online
The NCUA's Office of Small Credit Union Initiatives opened its Credit Union Service Provider portal up for access Tuesday.
NCUA portal facilitates search for providers
NAFCU Update
NCUA's Office of Small Credit Union Initiatives on Tuesday announced a new Credit Union Service Provider site aimed at helping credit unions research and find better product and service vendors to meet their needs.
NCUA hosts loan portfolio webinar
NAFCU Update
NCUA is reminding [credit unions] that registration is still open for its Nov. 19 webinar on building a loan portfolio, hosted by its Office of Small Credit Union Initiatives.
NCUA releases 5 videos to combat insider fraud
CUNA News Now
The videos were developed in partnership with CUNA Mutual Group and feature staff from NCUA's Office of Small Credit Union Initiatives. The series "provides real-world scenarios that can help managers and employees identify the warning signs of potential fraud or employee dishonesty at a credit union," according to the NCUA.
NCUA videos focus on fraud detection
NAFCU Update
The series, "Deterring, Preventing and Detecting Employee Dishonesty," comes out of NCUA's Office of Small Credit Union Initiatives. The first three videos gave an overview of the series and focused on developing a policy on employee fraud and doing surprise cash counts. The five videos released this week focus on separation of duties, employee and family member accounts and behavioral red flags, among other issues.
44 Credit Unions Fined for Late Call Reports
Credit Union Times - Online
"The situation is improving, but full compliance remains the goal," NCUA Board Chairman Debbie Matz said. "As most of the credit unions that file late are small credit unions, the NCUA's Office of Small Credit Union Initiatives has been working with smaller institutions, and we think that has helped several credit unions file on time. Our efforts on compliance and assistance will continue until we get to the point where no credit union files a late call report."
Number of CUs Fined for Late Call Reports Drops 30% in Q2: NCUA
Credit Union Journal
"The situation is improving, but full compliance remains the goal," NCUA Chairman Debbie Matz said in a statement. "As most of the credit unions that file late are small credit unions, NCUA's Office of Small Credit Union Initiatives has been working with smaller institutions, and we think that has helped several credit unions file on time. Our efforts on compliance and assistance will continue until we get to the point where no credit union files a late Call Report."
44 CUs to pay total $17,111 for late filings
CUNA News Now
In fact, the OSCUI has dedicated an economic development specialist to assist small credit unions in filing their reports on time. The NCUA also has produced a video describing how to file call reports.
44 CUs to pay 2Q late-5300 penalty
NAFCU Update
In the first quarter, 62 credit unions were penalized for filing their call reports late. "The situation is improving, but full compliance remains the goal," NCUA Board Chairman Debbie Matz said in a statement. "As most of the credit unions that file late are small credit unions, NCUA's Office of Small Credit Union Initiatives has been working with smaller institutions, and we think that has helped several credit unions file on time."
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For Your Attention
Available online - Resource Manual
The Resource Manual was designed by OSCUI to be a desk reference for busy credit union CEOs. The manual offers tips and identifies opportunities to support a variety of objectives and strategic initiatives.
Download it from OSCUI's website.
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Grants and Loans
Tips to ease grant reimbursement
As the end of the CDRLF grant cycle approaches, we typically experience an increase in grant reimbursement requests. To help us more quickly process your credit union's request, the following is a checklist of items and actions to remember when submitting a request for grant reimbursement:
Grant Reimbursement Checklist
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ITEM / ACTION |
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Follow the step-by-step instructions contained in the grant reimbursement guidelines to complete your request. Reference the guidelines attached to your grant approval letter or click here. |
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Submit the request by the commitment expiration date provided in your grant approval letter. If your credit union was awarded multiple initiatives, the commitment expiration date for the latest initiative will govern. Reimbursement requests submitted after the commitment expiration date will not be accepted.
Commitment expiration dates for the 2014 Grant Round 2 initiatives are:
1/15/2015: CDFI, Staff Training
2/15/2015: New Product
8/31/2015: Collaboration |
| Submit only one reimbursement request. If your credit union received funding under multiple initiatives, consolidate your requests into one. |
| Use Adobe PDF to upload documents into CyberGrants; it is the preferred file format. |
| If using ACH, also submit wire instructions showing payment to the vendor. |
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If a check is your proof of payment:
- Provide a copy of the check made out to the vendor, and
- Provide evidence the check has cleared. Acceptable evidence includes:
- A bank statement listing the check transaction OR
- The front and back of the check showing a clearance stamp.
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We are unable to process incomplete reimbursement requests. Examples of such requests include submission of any of the following:
- An outcome summary without information on the project's impact on the credit union's members or operations.
- A proof of purchase without a corresponding proof of payment.
- A check as proof of payment without evidence that it has cleared.
- A copy of general ledger transactions as proof of payment.
Email your questions about grant reimbursement or to request an extension to [email protected].
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Partnerships & Outreach
Rare opportunities for CUs
"The credit union had to be open in 60 days!" recalled Samuel Hall, the then-organizer of what would become First Unity Federal Credit Union. "This was another point that I realized, that God was truly blessing this project because of the assistance we received from the Mississippi Credit Union Association, the Office of Small Credit Union Initiatives, our mentor credit union, and the various vendors."
After a lengthy chartering process Hall reflected, "We could not relax long; because the post chartering procedures created some new challenges." The organizer group galvanized support from its community and eventually got down to the final To Do items toward realizing its goal of obtaining the new charter. One of the final items needed was fireproof filing cabinets. Before the organizers purchased the cabinets, NCUA stepped forward with good news.
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Training
Five new videos to fight fraud
"Deterring, Preventing and Detecting Employee Dishonesty" is an eight-part series of videos, five of which were recently released by OSCUI. The new videos address separation of duties, employee and family member accounts, file maintenance transactions, and vault cash counts. Click here to view the videos.
Developed in partnership with CUNA Mutual Group and featuring staff from OSCUI's, the videos provide real-world scenarios that can help managers and employees identify the warning signs of potential fraud or employee dishonesty and ways to deter such acts. The first three episodes, released earlier this year, include an overview of the series, the importance of maintaining a fraud policy for your credit union and conducting surprise cash counts. Other video highlights include behavioral red flags and warning signs of potential fraud and additional resources.
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Happening in OSCUI
Information and updates
Outreach
OSCUI Director Myers attended the FDIC Committee on Economic Inclusion biannual meeting and BankOn 2.0 revival meeting.
OSCUI Deputy Director Martha Ninichuk gave a presentation at the Massachusetts Credit Union League Small Credit Union Conference.
On detail to OSCUI
Region III Examiner Brian Pope recently completed a detail with our Partnerships and Outreach division. Brian began his career with NCUA three years ago after graduating from the University of Southern Mississippi. He is stationed in Jackson, Mississippi. Of his reason for selecting a detail assignment with OSCUI Brian explained, "I would like to gain knowledge of all services provided by OSCUI..."
Program updates
The Credit Union Service Provider (CUSP) portal went live Nov. 4. CUSP provides credit unions the ability to identify credit union service providers. To learn more about accessing this resource, read the Headliner in last month's issue.
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Announcements
Non-NCUA sponsored events and opportunities
Partner Events
CDFI Fund Opens FY 2015 Funding Round for CDFI Program and NACA Program: The deadline for submission of the CDFI Program and NACA Program applications is Monday, Nov. 24, 2014. The CDFI Fund strongly encourages the submission of applications at least three days before the deadline.
Language Access Plan: The Consumer Financial Protection Bureau requests comments on steps it can take to ensure persons of limited English proficiency have access to its programs and activities. Comments must be received by Jan. 6, 2015.
Training
Financial Literacy Seminar Series: The Board of Governors of the Federal Reserve System and the Global Financial Literacy Excellence Center at George Washington University will sponsor this initiative, bringing together academics, practitioners, policymakers and other experts to present and discuss cutting-edge research in financial literacy.
Native IDA Convening and Training Program: First Nations Oweesta Corporation and Christina Finsel Consulting will host this two-day instructor training to help Native CDFIs, tribes, and other Native organizations to establish Native IDA programs or to improve their existing programming efforts.
Other
"The Impact of Two-Tiered Banking": Filene Research Institute just released a study about payday lending. It examines the product's evolution and provides an opportunity to learn about other markets' experiences.
HOPE Global Forum: Jan. 15−17, 2015 in Atlanta. Operation HOPE sponsors this conference where leaders outline a vision for the future of the modern global economy.
Fotonovelas: As part of its ongoing effort to raise awareness about scams targeting the Latino community, the Federal Trade Commission (FTC) has developed a series of "fotonovelas," in Spanish. The stories are based on complaints to the FTC from Spanish speakers throughout the nation and offer practical tips to help detect and stop common scams.
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NATIONAL CREDIT UNION ADMINISTRATION
The Office of Small Credit Union Initiatives
1775 Duke Street, Alexandria, VA 22314 |
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