October 2014
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.
topFeatured this Month (Click on a heading to go to the article.) 
Headliner:  Coming soon - CUSP! 
In FOCUS with Bill:  Top 5 for small credit unions
HeadlinerComing soon - CUSP!

  

Have you ever wished for an "Angie's List" of companies that provide products and services for credit unions?

 

Has your credit union ever needed outside help with compliance or operational issues?

 

We may have a solution for you. OSCUI will soon add a new feature to its website that will provide credit unions the ability to research credit union vendors or credit union service providers (CUSPs). We're piloting this service to help you generate time- and cost-efficient leads for delivering member services. Through this service credit unions can obtain contact information on registered vendors that serve credit unions.

 

Information available from the CUSP is unbiased and permits access to all registered vendors. Use of the CUSP vendor data is free and so is vendor registration. Notify your favorite vendors and encourage them to register.

 

CUSP may be the tool to help you identify the right supplier of products and services your credit union needs. The next time you're looking for a vendor, think of the CUSP first.  Release is scheduled for November, check the OSCUI website.

   

CUSP is open now for vendor registrationOnce registered, vendor information may be accessed in approximately 30 days.

 

For questions about the CUSP, visit our website or email us at OSCUImail@ncua.gov.

 

 
 2014 OSCUI
Training Events

 

 WEBINARS

Webinars begin at

2 pm Eastern 

Click here to register 

 

November 19

Building a Loan Portfolio

 

December 17

Internal Controls

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We value your input. Share your ideas for services you'd like us to offer or topics and locations for our training events. We'd love to hear from you! Contact OSCUI's Training Division at

oscuitraining@ncua.gov

 

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inFocusIn FOCUS with Bill

Top 5 for Small Credit Unions

         

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.

 

Recently, the CUNA Small Credit Union Committee sent me a question, "What are the Top 5 for small credit unions to survive and thrive?" Cathy Morrison, a field examiner on assignment from Region I, sat down with me to compare notes.

 

Here is what we agreed were the Top 5 actions for small credit unions: 

  1. Grow. The shortest cure for what ails a small credit union is membership growth. Perhaps your credit union's field of membership is stale or the credit union is not attracting young members. Maybe its products are out-of-date, or they are not marketed well. Whatever the case, scale (i.e., growth) cures small.
  2. Watch. Credit unions are transparent organizations; their financial statements are published quarterly. Each board and management member should know and monitor her/his credit union's performance in at least a half a dozen of these reported areas (such as earnings, capital adequacy, asset quality and growth).
  3. Lend. Credit unions with a loan-to-share ratio of less than 60 percent are rarely sustainable. Those with a ratio over 80 percent are hard to stop. If your credit union's lending has stalled, look beyond "A" paper as a possible strategy to increase lending.
  4. Train. A knowledgeable board and staff keep the credit union on track. The movement is full of training opportunities, many are inexpensive and some are free. The Training Events and Announcements columns of this e-newsletter are good resources for such opportunities.
  5. Engage. This is a tough one. We find small credit unions that don't succeed are frequently unfocused, not networked and not interested. Contact fellow credit unions in your area and local non-profit organizations to explore ways to work together.

 

There are more issues we could cite and catchy phrases we could write. But, we think this Top 5 is enough to move most small credit unions toward survive and then to thrive.

 

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NewsOSCUI in the news

 Recent citings about our office and services

 

NCUA Guides Credit Union Start-Ups

Credit Union Times - Online

The guide also includes answers to frequently asked questions about the amount of time required to obtain a charter, the amount of start-up capital necessary and the availability of consulting services from NCUA's Office of Small Credit Union Initiatives

 

NCUA offers how-to guide on starting an FCU

NAFCU Update

The Federal Credit Union Charter Application Guide also describes how long the chartering process takes, how much start-up capital is needed and how to consult the Office of Small Credit Union Initiatives.

 

NCUA Schedules Strategic Webinars

Credit Union Times - Online

The free webinars will be hosted by employees from the NCUA's Office of Small Credit Union Initiatives at 2 p.m. Eastern. Registration for each webinar is open and available online. 
  

NCUA webinars eye pricing, loans, internal controls

NAFCU Update

All webinars, noted below, begin at 2 p.m. Eastern and are hosted by staff from NCUA's Office of Small Credit Union Initiatives.

 

NCUA fall webinar series will cover product pricing, loan portfolios and internal controls

CU Insight

Hosted by staff from NCUA's

Office of Small Credit Union Initiatives, all of the webinars are free and begin at 2 p.m. Eastern.

 

Three webinars remain on OSCUI's schedule this year

CUNA

The webinars will be hosted by staff from the NCUA's Office of Small Credit Union Initiatives.

 

AdvisoryFor Your Attention
This is National Cyber Security Awareness Month

   

 Cyber Security poster 


Cyber security for Small and Medium-Sized Businesses and Entrepreneurs:
Small and medium-sized businesses are an important part of our Nation's economy, but they often do not see themselves as a target for a cyber attack. Strong cyber security practices are vital within these organizations. Entrepreneurs are recognizing the cyber security field as a burgeoning marketplace. This week will focus on what emerging and established businesses can do to protect their organization, customers, and employees.  Click here for more information.

 

Source: U.S. Department of Homeland Security

 

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ConsultingConsulting
Reducing member complaints
  

This is the first of two series on the most frequent complaints members file against credit unions.

 

Credit unions have a reputation of providing higher levels of customer service to their members than other financial institutions. Still, members do complain about credit union service. The majority of member complaints stem from [click here to read the entire article].

 

Email your Consulting questions to us at oscuiConsulting@ncua.gov.
  
PartnershipsPartnerships & Outreach
Resources for Consumers
  
International Credit Union Day was recognized on October 16 by the World Council of Credit Unions. According to its website, the goal of the annual commemorative is to "raise awareness about the great work that credit unions are doing around the world and give members the opportunity to get more involved." Feel free to forward to your members the free resources available on NCUA's website through the Office of Consumer Protection.
Flyer consumer website 1 
Flyer consumer website 2 
  
  

For more information on NCUA resources for consumers, visit the MyCreditUnion.gov website.

 

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TrainingTraining

Autumn Leaves You Wanting More...

 

Webinars

Building a Loan Portfolio - Nov. 19, 2:00 p.m. Eastern

And what about shrinking loan portfolios? Yesterday's lending practices won't sustain today's competitive product mix. Building strong, sustainable portfolios is a challenge in today's market. Learn how to grow balanced, profitable loans for your credit union.

 

Internal Controls - Dec. 17, 2:00 p.m. Eastern

A challenge for all credit unions, but especially small ones, is effective internal controls. How can you maximize your protection against fraud and minimize personnel costs? Learn practical suggestions your credit union can employ to deter employee dishonesty.

 

Click here to register for a webinar.

 

Second Series of Fraud Videos to be released!

Credit unions have really benefited from our initial fraud videos. This month, we will release our final series on preventing employee fraud. These short videos will cover the following operational areas:

  • File Maintenance Transaction Reports
  • Vault Cash
  • Employee & Family Member Accounts
  • Separation of Duties

Email us at oscuiTraining@ncua.gov to share your suggestions for training topics.   

   

HappeningHappening in OSCUI

Information and updates

 

Outreach

OSCUI Director Myers Director Myers met with the Georgia Credit Union League and participated on a press conference call to discuss mergers. 

 

OSCUI Deputy Director Martha Ninichuk recently traveled to Macedonia to celebrate the 15th year of the FULM Savings House, a credit union institution that she helped establish in that country.  Deputy Director Ninichuk also attended the Brookings Institution, Leading Through Influence program. 

 

On detail

Region II Examiner Michael Copen recently completed a detail with the Training division. Michael has worked for the NCUA for five years as a Field Examiner in West Virginia. As such, he works with several small credit unions that are challenged to maintain a profitable business model. "I was happy to work with OSCUI because it provided me the opportunity to learn more about the services provided to small credit unions. Smaller credit unions struggle to stay current on emerging issues and changing regulations. OSCUI's efforts to provide training are very beneficial to our industry."

 

Principal Examiner Marquita Lewis of NCUA Region III assisted with the Training Program.  Marquita began her career with NCUA in 2007 and is stationed in Jackson, Mississippi.  She requested an OSCUI detail because, "Mississippi  has a lot of small and low-income designated credit unions (LIDs)."  Through the detail, Marquita hoped to learn how OSCUI served small and LIDs so she can share this information with credit unions and fellow field examiners in the state.

 

Region I Examiner Cathy Morrison served a detail with the Partnerships and Outreach division.   Cathy has 27 years of experience in the financial services industry, including working for a bank and credit unions.  She began her NCUA career in 2008 and is stationed in Buffalo, New York.  Of her experiences Cathy offers, "Working as examiner and a credit union manager has given me a unique perspective on the challenges small credit unions face.  It is important that small credit unions use all the information and resources available in order to grow and prosper. I requested a detail to OSCUI, so I could gain a greater understanding of the services offered to small credit unions and to be able share that information with credit unions in need of assistance."

  

Recent Comments About Our Services

EDS Lisa Bills-Terrell provided the credit union with valuable information to move it financially forward. Recent discussion with the CEO reports appreciation for the hard work, dedication and recommendations provided. As an examiner, I am looking forward to seeing how the credit union's financial position improves once the recommendations are implemented.

Examiner Bradley Biere, Regional Office II

Regarding consulting service provided to a credit union he examines.

 

We have worked diligently on the FOM expansion with EDS Dong Zhang. We appreciate all her assistance and support she has given us on this project.

CEO Sandra White, Vermont VA FCU

 

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announcementsAnnouncements  

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 all applications be submitted at least three days before the deadline.

 

CFPB has resources available to assist the people you serve to avoid foreclosure. You can find a wide range of our materials for both consumers and housing counselors and advocates at consumerfinance.gov/mortgage.

 

Education and awareness campaign to help parents and caregivers talk with their children about money: The CFPB and the Federal Deposit Insurance Corporation launched a joint education and awareness campaign to help parents and caregivers talk with their children about money and prepare them for a bright financial future.

 

Virtual VITA: Promising Practices: The Center for Economic Progress (CEP) is proud to announce the release of this report. The Virtual Volunteer Income Tax Assistance pilot program used technology to connect low- and-moderate-income taxpayers with critical tax preparation services free of charge, without requiring them to be present with the preparer and wait hours at a traditional community-based VITA site.

 

Training

 

The Effectiveness of Pre-Purchase Homeownership Counseling: This webinar on October 23 will focus on the impact pre-purchase counseling has on improving creditworthiness over time. The session will include an overview of the key findings from the Philadelphia Federal Reserve Bank's recently released longitudinal study on this topic.

 

Citi Foundation supports a series of free community economic development trainings: November 3 - 7, 2014, in San Jose. Focused on economic and community development finance conducted by the National Development Council, the cost of the tuition for this course will be provided at no cost to staff from non-profit 501c3 organizations, including CDCs, CDFIs, and local government agencies serving low to moderate income individuals.

 

Financial Literacy Seminar Series: The Board of Governors of the Federal Reserve System and the Global Financial Literacy Excellence Center (GFLEC) at George Washington University sponsor this initiative bringing together academics, practitioners, policymakers, and other experts to present and discuss cutting-edge research in financial literacy. Events will be held in Washington, DC, September-December 2014.

 

Other 

 

Anti-Fraud Outreach: The U.S. Commodity Futures Trading Commission's Office of Consumer Outreach is actively seeking to collaborate on local anti-fraud outreach. The agency provides materials and speakers and can potentially cover promotional and logistical costs. 

 

 

 

 

Bank On 2.0 Conference in D.C.: November 6, 2014, Washington, D.C. The Cities for Financial Empowerment Fund sponsors this conference on the Bank On 2.0 initiative to continue coordinating the national conversation and remove barriers to basic, safe, and affordable financial products and services nationwide. This conference will bring together local Bank On administrators, financial institutions, regulatory agencies, and other partners to share best practices in serving unbanked and underbanked populations and provide information on the direction of the initiative. 

 

 

Effectiveness of Pre-Purchase Homeownership Counseling and Financial Management Skills: The Federal Reserve Bank of Philadelphia offers this study on the effectiveness of pre-purchase homeownership counseling and financial management skills.  

 

 

 

US Household Finance Initiative releases 'Financial Products Innovation Fund' Publication: The report details the seven products and product features piloted during the first round of the Fund, as well as some information about the results and lessons learned. 

 

 

 

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Pamela L. Williams
Editor
NATIONAL CREDIT UNION ADMINISTRATION
The Office of Small Credit Union Initiatives
1775 Duke Street, Alexandria, VA 22314
     

Website: www.ncua.gov/oscui   

Email: oscuimail@ncua.gov