Issues, Initiatives and Solutions - November 2008
A New Government - Same Top Priority
As Barack Obama and the new Congress get set to tackle the many huge issues facing our nation, the top priority is likely to be the economy – but there are many viewpoints on what the underlying focus on the economy should be. Our national and state economies always go through cycles and the engine for any economy is jobs and GDP, but this cycle is plagued by the unprecedented drop in home prices and the dual pressures of slowing economic output and falling household wealth resulting from the housing crisis. In turn, this fuels rising foreclosures, further pressure on home values and more economic pain.
For all depository institutions, including credit unions, this housing/foreclosure problem should arguably be our highest priority, because of the risks that it creates for credit unions and all depository institutions. The federal government has had to take a triage approach to the economic crisis. The first order of business was address the nucleus of the problem by assisting troubled investment banks that collectively held a significant portion of the nation’s mortgage debt in mortgage backed securities as the underlying mortgage collateral was diminishing in value. These five largest U.S.-based investment banks (Merrill Lynch, Bear Stearns, Lehman Brothers, Goldman Sachs and Morgan Stanley) were allowed to borrow over $4 trillion, equal to 40 percent of all outstanding first mortgage loans in the U.S. It is no wonder they all failed or converted to commercial banks in order to access government sources of credit and capital.
Once the investment bank mess was addressed, the government shifted rescue funding to large banks that held high concentrations of toxic mortgages, which were experiencing high rates of default and foreclosure. The direct capital infusion of $125 billion into large banks would allow them to acquire weakened banks and restore confidence in the banking system and the corporate finance markets. After the stock market responded with a downward thud, the Federal Reserve and Treasury Department took every action under their control to shore up public confidence in the banking system and our credit markets. Unprecedented consolidation in the banking industry is now underway as weakened giant banks and savings banks merge into healthier ones with government assistance.
What underlies this whole problem is the weakened housing market. The most recent data show that home prices fell about 16 percent in the past year in 20 major U.S. cities, and are now at the same levels as they were in the summer of 2004. In the first quarter of 2008, home prices nationally fell by 7.7 percent and the year-over-year drop was the largest since 1982. Michigan did not benefit from the housing bubble of the last 10 years since our state has been in a recession for the past seven years with over 400,000 jobs lost during that period. Michigan metropolitan areas saw large drops in home prices during the last twelve months, including a 20 percent drop in Grand Rapids and 27 percent drop in Lansing.
Foreclosure filings also continue to rise in Michigan. We have the third-highest foreclosure rate of 3.6 percent of all households in foreclosure, up from 0.9 percent in 2000. This amounts to roughly 80,000 homes in foreclosure, where a typical rate would be about 20,000 statewide. Adding to this challenging scenario are news reports that estimate anywhere from 40 to 50 percent of homeowners having negative equity. One would have to assume that Michigan leans toward the high end in this category as well.
Despite the prudent lending practices by credit unions and most community banks, the fact is that Michigan credit unions, and credit unions nationwide, have high concentrations of first mortgage loans on their books. More and more credit unions have become portfolio lenders, selling fewer mortgages in the secondary mortgage market. The June 30, 2008 Call Report data show that Michigan credit unions hold $9.5 billion in first mortgage loans and another $3.3 billion in second mortgage loans. While the vast majority of these loans are “prime” borrowers, because of Michigan’s economy, delinquency and foreclosure rates have risen, even on the prime portion of this portfolio. Helping to avoid interest rate risk, $4 billion or roughly 40 percent of these mortgages have variable rate, balloon or terms less than 5 years.
As delinquency and charge-off rates on mortgage loans rise slightly for credit unions, the bigger concern is the rise in foreclosure rates for credit unions and banks and the fact that so many homeowners now have negative equity, and therefore have a greater incentive to walk away from their mortgage obligations.
As a result, the MCUL has been working to shift the attitude in Lansing away from homeowners and more toward lenders’ interests. In fact, it may be possible to come up with a range of policy recommendations that will help people stay in homes either as owners or renters. If this can be done in a mutually-beneficial way for lenders, the whole economy will benefit. Alternatively, if public policy remedies are not adequately balanced, lenders stand to see dramatically higher losses associated with rising foreclosures given the balance sheet exposure that they have in this economic climate.
The Michigan Credit Union Foundation has commissioned the Filene Research Institute to analyze Michigan’s housing and foreclosure situation in order to formulate policy recommendations for the Michigan State legislature. These findings will also be helpful outside Michigan. The MCUL is also coordinating summit meetings with our credit union leaders to identify the best possible remedies for lenders and policymakers to address this growing problem.
Again, the housing crisis is currently the biggest drag on the U.S. economy. Coupled with the challenges of the auto manufacturing industry, Michigan faces a double hit from these two forces. We appreciate the willingness of our credit union community to work with the MCUL to explore opportunities for serving the public in this difficult economy as well as for identifying the best public policy recommendations to address the housing and foreclosure crisis.
-David Adams
MCUL President/CEO
ISSUES
Important legislation and regulations that affect credit unions and what the MCUL is doing to address them, as well as other items that are having an impact on Michigan and its economy.
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Top Federal and State Legislative Issues
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Highlights on Federal and State Legislative Issues
Updated TARP Information
CUNA had been working diligently to advocate for credit union interests as details of the Troubled Asset Relief Program (TARP) were being worked out. However, since increasing portions of the $700 billion rescue package are being earmarked for banks and with the recent announcement by U.S. Treasury Secretary Henry Paulson that TARP would no longer seek to buy distressed mortgage-backed securities, it is unclear how credit unions will be included. Credit unions could have been covered under provisions of the original troubled asset purchase plan. But, because of the credit union capital structure, to date credit unions have not been eligible for the capital infusion. CUNA has called on the NCUA to create its own asset relief program that would purchase distressed mortgage loans and mortgage backed securities from credit union. This program would be managed by the NCUSIF, which already provides emergency loans to troubled credit unions. Currently, the NCUA continues to focus on the Treasury plan and has not yet asked the Treasury to expand its capital infusion to credit unions. Click here to read the article about the asset relief plan CUNA is advocating for with the NCUA.
Congressional Lame Duck Session Economic Stimulus Package Could be Possible
While Congress debates the possibility of moving economic stimulus legislation before the end of the year, CUNA is pushing for the inclusion of credit unions in any package that may be considered. Letters were sent by CUNA to the leaders of the U.S. Senate Banking Committee and the U.S. House Financial Services Committee asking to temporarily permit credit unions to acquire alternative capital, authorize the NCUA to implement a risk-based capital system for credit unions, and eliminate the business lending cap. Click here to read the CUNA letter from Oct. 21 to the Banking and Financial Services Committee.
New Bill in Michigan House Would Provide Income Tax Relief to Buyers of Foreclosed Properties
On Oct. 29, State Rep. Richard LeBlanc, D-Westland, introduced House Bill 6589. The bill would provide to buyers of foreclosed residential properties an income tax credit equal to the amount of the Principle Residence Exemption for that purchased property after May 1 of the given year. The credit would be determined by the property’s taxable value and the 18 mills that are assessed against residential property. HB 6589 has been referred to the Tax Policy Committee, chaired by State Rep. Steven Bieda, D-Warren. For more information, please click here.
Michigan Legislature Lame Duck Session
With the close of the election season, the Michigan State House and Senate are back in session. The lawmakers came back for a few days following the Nov. 4 election and are scheduled to meet the week of Nov. 10 before taking a two week break for hunting season and Thanksgiving. The House and Senate are currently scheduled to meet during the first week of December and are tentatively scheduled the weeks of the 8th and the 15th, meaning there are very few more session days to work to get more credit union legislative priorities passed. The MCUL continues to work hard with leadership in both the House and the Senate to see action on the small claims court bill and the IDA business credit bill in lame duck. The small claims court bill would increase the size of claims over which the Small Claims Division of District Court has jurisdiction from $3,000 to $5,000 allowing credit unions a reasonable low-cost alternative to pursing claims in district courts. The IDA bill extends a Michigan Business Tax credit to businesses making contributions to IDA accounts. Currently individuals and entities making contributions are eligible for an income tax credit. To view more information on the Small Claims Court bill, click here. Click here for more information on the IDA credit bill.
Click Here for Full MCUL Governmental Affairs Update
Among the topics for November:
-New Leaders for Michigan House Democrats, Republicans
-PAC Fundraising/Grand Raffle Update
-Senate Banking Committee Moves Foreclosure Information Bill
Federal and State Regulatory Issues
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Top Federal and State Regulatory Issues
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Highlights on State Legislative and Regulatory Issues
OFIR Town Hall Meetings
OFIR Commissioner Ken Ross will be conducting two Town Hall style meetings with Michigan credit unions on Wednesday, Dec. 3. The morning session will be hosted by Rob Bava, president/CEO of Community Choice CU (OC) in Farmington Hills and will run from 9 – 11 a.m. Following this session, Ross will head to Grand Rapids for the afternoon session from 2 – 4 p.m., hosted by Andy List, president/CEO of Option 1 CU (GR). The sessions are primarily for state-chartered credit unions, but interested federal credit unions should also consider attending. Registration is requested, and to do so, please contact Mike DeFors at MCUL ext. 464 or Jami Wolfe at ext. 226.
U.S House Committee to Hold TARP Oversight Hearing
U.S. House Financial Services Committee Chairman Barney Frank, D-Mass., announced his panel will conduct an oversight hearing on Nov. 18 regarding the U.S. Treasury Department's new Troubled Asset Relief Program (TARP). The panel expects testimony from senior administration officials, institutions using or affected by the initiatives, and academic and other experts. Frank indicated the committee is interested in exploring the rationale for the specific steps already taken and to better understand how the Treasury Department, Federal Reserve and the FDIC expect their actions to work. The three primary areas of interest Frank identified include the effort to recapitalize financial institutions; the effort to reduce volatility and restore liquidity to financial markets; and the effort to reduce foreclosures and mitigate the erosion of housing values. Click hereto see the hearing announcement on the U.S. House Financial Services Committee website.
NCUA, OFIR State Position on Red Flag Rule Extension
The NCUA has clarified where federal credit unions stand following the FTC’s extension of the Identity Theft Red Flag Rule for state-chartered credit unions. OFIR has also stated its position on the matter for Michigan’s state-chartered credit unions. According to NCUA, the original Nov. 1 deadline for Red Flag Rule compliance will stand and examiners will be reviewing federal credit unions’ compliance with the rule as part of their normal examination process. But for federal credit unions not in compliance, examiners will consider the credit union’s progress and compliance efforts to date when developing appropriate plans for corrective action. OFIR has stated that for Michigan’s state-chartered credit unions, the FTC’s extended deadline for Red Flag Rule compliance of May 1, 2009, will apply. More information on the Identity Theft Red Flag Rule can be found at InfoSight by clicking here, and questions can be directed to MCUL Staff Counsel Veronica Madsen at ext. 461 or vam@mcul.org.
CU Times Reports Fryzel’s Days as NCUA Chairman Could be Numbered
Although NCUA Chairman Michael E. Fryzel’s term on the board runs through 2013, his tenure as chairman could end sooner. Presidents have the power to designate the chairs of regulatory agency boards and President-elect Barack Obama could choose to place a Democrat as chair of NCUA instead of Fryzel, who was appointed by President Bush and has been in the position since July. Obama will have an opportunity to appoint a new board member soon after taking office. Vice Chairman Rodney Hood’s term expires on April 10. Obama could designate Hood’s successor as chairman or name Board Member Gigi Hyland to the post. Hyland, the panel’s sole Democrat and only board member with credit union experience, was named to the board by Bush and has served since November, 2005. Her term expires Aug. 2, 2011. Click here for the article from CU Times.
Click Here for Full MCUL Regulatory Roundup
Among the topics for November:
-MCUL Creates Web page for Emergency Economic Stabilization Act
-NCUA Share Insurance FAQ
-NCUA Final Rules, Proposed Regulations, Letters to Credit Unions
Highlights on the Economy and Other Issues
Michigan Credit Unions Performing Well Despite Struggling Economy
As a whole, Michigan credit unions are performing well under these trying economic times. Using the most recent Call Reporting data, both ROA and Net Worth ratios were up from the same period in 2007. NCUA and OFIR also report that the number of troubled credit unions in Michigan is down from 2007 and, at this time, they do not see any Michigan credit unions asking for government funds to “bail them out.” Additionally, credit unions in the Mid-Michigan area are growing and expanding even amid the hard times. For more information, click here. MCUL staff continue to monitor the performance of Michigan credit unions on a regular basis. By analyzing quarterly call report data and holding regular meetings with state and federal regulators, MCUL staff work to identify industry issues and problems early and provide the needed solutions.
INITIATIVES
Updates on specific campaigns created by the MCUL to strengthen the credit union charter and differentiate credit unions from banks, as well as the Community Reinvestment Initiative (CRI).
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Priority Initiatives - Click Any Initiative for More Information
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Highlights on Strengthening the Charter
Senate Banking Chair Randy Richardville Featured in Video Podcast
On Nov. 6, State Sen. Randy Richardville, R-Monroe, recorded a video podcast with MCUL President/CEO David Adams. The podcast was recorded in Lansing and will be posted on the MCUL Web site. The topics for discussion included causes of the financial crisis, how credit unions have been affected, the government’s reaction, how the state of Michigan is being affected, and what we can do to assure that this doesn’t happen again. Richardville was elected to the State Senate in 2006 and is serving his first term. Prior to coming to the Senate, Richardville served three terms in the Michigan House, including a term as the Majority Floor Leader. Richardville is Chair of the House Banking and Financial Services Committee. He has been a supporter of credit unions and introduced the Credit Card Merchant Liability Bill this session. For more information on Richardville, please click here.
2008 General Election Recap
As anticipated, Michigan voters easily delivered the state to Democrat Sen. Barack Obama with a double-digit win (57-42 percent) over Republican Sen. John McCain. Nationally, Democrats fared well increasing their majorities in the U.S. House, the U.S. Senate. The story in Michigan was largely the same, with the Democrats claiming additional seats in the State House, and two incumbent Republican Congressmen were swept up in the strong voter sentiment for change. In the 7th Congressional District, State Senate Minority Leader Mark Schauer, D-Battle Creek, defeated freshman U.S. Rep. Tim Walberg, R-Tipton. And in the 9th Congressional District, eight-term incumbent Joe Knollenberg, R-Bloomfield Hills, lost to former State Sen. Gary Peters, D-Bloomfield. The nine other Michigan incumbent CURIA co-sponsors retained their seats in Congress. U.S. Senator Carl Levin (D) cruised to an easy victory for his 6th term over term-limited State Rep. Jack Hoogendyk, R-Kalamazoo. In the Michigan State House, of the 80 MCULAF-endorsed candidates, 76 won their election. To view the complete story of the General election, click here. For more information on all election results, please click here.
MCUL/CUNA Direct Mail Pieces for Congressman Joe Knollenberg
This year, in an effort to increase grassroots “Get Out the Vote” efforts, the MCUL and CUNA engaged in a direct mail program on behalf of Congressman Joe Knollenberg, R-Bloomfield Hills. Although Knollenberg was unsuccessful in retaining his seat, this program is another tool credit unions have at their disposal to support grassroots advocacy for candidates who support credit union issues. As a sort of “test run” for the program, four credit unions took part in the direct mailings, which were designed to send credit union-specific mail pieces to members in the 9th Congressional District who tended to lean toward support of Knollenberg. Three different mail pieces were sent touting Knollenberg’s record of supporting credit union efforts to offer business loans to members who own small businesses, and supporting people in underserved areas to become credit union members. Each mailing went to 4,000 individuals and no complaints or concerns were received. The MCUL and CUNA hope to utilize this plan in future elections and would encourage more credit unions to participate in an effort to get the credit union difference message out to voters.
State PAC Exceeds Goal
The MCULAF Online Auction, which ran in conjunction with credit union week in October, was a success and helped push the state PAC over its 2008 goal of $150,000. MCULAF is currently at $154,484, or 103 percent, of this year’s goal. Many thanks go to all the sponsors and participating credit unions for their part in the auction, which raised over $19,000 for the state PAC. Congratulations also go to the winning bidders who were able to receive items donated by generous sponsors. With time still left in November and December, credit unions are encouraged to continue their strong fundraising efforts. For more fundraising information, please click here.
CULAC smashes previous election cycle record
CUNA was pleased to report that as of the 2008 General Election, the Credit Union Legislative Action Council (CULAC) had raised a record $3.87 million in the 2007-2008 cycle, breaking the previous record of $3.75 million for the 2005-2006 cycle. Disbursements to candidates this cycle totaled over $2.8 million and independent expenditures over $528,000, making CULAC the 13th largest PAC in terms of direct contributions to candidates and committees. CUNA ranks fifth largest among trade association PACs. CUNA anticipates hitting the $4 million election cycle goal for receipts in upcoming weeks. More information about CULAC can be found on the CUNA website under “Political Programs” or by clicking here.
Highlights on the Credit Union Difference
Safe, Solid, and Sound Message Going to Lawmakers
In conjunction with the CU Difference Campaign, the MCUL is sending postcards to policymakers to let them know credit unions are trusted and safe financial institutions, poised to help their members now and in the future. The three postcards focused on how credit unions are federally insured and not-for-profit cooperatives, which are owned by and operated for the benefit of the members. The cards also highlight the increase in the federal share insurance to $250,000. State and federal lawmakers, lawmaker-elects, and key committee staff will receive the postcards in stages over the next month. Click here to view the postcards.
CU Difference Campaign and Media Outreach
The CU Difference Campaign supplemental radio ads will run through November. The three spots have been well received, with one credit union saying that they have gained membership from people who heard the commercials. The CU Difference Campaign ties into the 2009 advertising campaign with a theme of “Love + Trust = My Credit Union.” Click here for more details on the campaign. The launch of the Web site and radio ads tied into an extensive media outreach effort by the MCUL Public Affairs Department. The CU Journal ran a full length article on the campaign, while the CU Times ran a short article on its Web site. Additionally, a number of state media outlets ran recent stories around the safety and soundness theme including Crane’s Detroit Business. These stories are available in the MCUL Press Room or the lovemycreditunion.org press room.
November Sees Launch of CUBE TV
The MCUL unveiled CUBE TV, a full-service multimedia player for credit unions, in mid-November. CUBE TV is housed on the MCUL homepage in the featured multimedia area, and has five channels of unique content. On the CU National Update channel there is a weekly Webcast dedicated solely to credit union issues; the Michigan Priority Report channel contains a monthly, Michigan-specific webcast called League Update along with stories from the MCUL and credit union events; the Industry Leaders channel houses all MCUL video podcasts with CEOs and lawmakers; and the Special Report channel contains stories like the “Live from the CUNA GAC,” “AC&E Wrap-Up” and short stories on relevant topics. Access CUBE TV by clicking here.
2009 MCUL Committees Taking Shape
The 2009 MCUL Committees are taking shape. Letters were recently mailed asking credit unions to nominate someone from their staff to join a committee or working group. The response has been very good, but there is still time to join. Click here to learn more about the MCUL committees and their charges. For more information, or if you’re interested in joining a committee or working group, contact MCUL Director of Membership Relations Martha Ninichuk at ext. 445, or by e-mail at mjn@mcul.org or Renee Cullimore at ext. 348 or at rac@mcul.org.
Highlights on CRI
CRI Survey Remains Online After Deadline
Although the deadline for CRI Survey submissions is Nov. 14, this deadline is to give the MCUL time to gather the data and analyze for the CRI Aggregate Report, which is used on Capitol Hill visits at the CUNA GAC in February. For those credit unions that did not get their information submitted in time, the survey will remain open past Nov. 14. Data is constantly being updated for other CRI publications, like the Hike the Hill brochure in June and Congressional District fact sheets. To access the survey, click here. If a credit union gathers the data, but can’t input online, they are welcome to mail it to the MCUL’s Lansing office. Contact CRI Coordinator Judy Gardi at ext. 458 or jag@mcul.org with any questions.
Just file it! We’ll help is Quickly Approaching
“Just file it! We’ll help” is a free tax preparation service offered to Michigan residents by credit unions and other non-profit partners. An audio conference was held Nov. 14 to familiarize credit unions with the details of the online program. Participating credit unions need to place the Just file it! icon on their Web site and the link will send filers to the secure site. Last year, 86 credit unions, along with their non-profit partners, returned $12 million to filers, including $2.3 million in federal Earned Income Tax Credit (EITC) which is specifically for lower-income families and individuals. This year, the State of Michigan is providing low-wage workers a state EITC, which will equal 10 percent of their federal EITC. If you would like more details on Just file it! click here or contact MCUL CRI Coordinator Judy Gardi at ext. 458 or jag@mcul.org.
SOLUTIONS
Products, services and educational events offered by the MCUL and Affiliates that are available now to help credit unions be successful and become informed in a constantly changing financial services industry.
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Major Solutions Provided by MCUL - Click Each for More Information
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Highlights on MCUL Solutions
Filene Research Institute to Study Foreclosures in Michigan
Through the remainder of the year, the Filene Research Institute will study the cause of the foreclosure crisis in Michigan and its impact, and release their findings in a report scheduled for January of 2009. Filene has agreed to conduct the research following a request from the Michigan Credit Union Foundation. Their goal is to a) determine the major factors contributing to the rise of mortgage foreclosures in Michigan and how these factors may differ from other states, b) determine the economic impact of the current mortgage foreclosure crisis on state and local units of government broken down by county and/or census track, c) provide analysis of current federal and state programs and their expected impact on the mortgage crisis in Michigan, d) make possible public policy recommendations that the Granholm administration and Michigan Legislature could undertake to assist homeowners facing foreclosure as well as empower financial institutions to help keep consumers from losing their homes, and e) make recommendations that financial institutions could undertake outside the scope of government action to assist homeowners facing foreclosure and/or to reduce their risks associated with rising home foreclosures. Click here to visit the Filene Research Institute Web site.
CU Media Resources Updated
The CU Media Resource section of the MCUL homepage has been recently updated. Credit unions will find a number of new resources including turnkey newspaper ads from CUNA, a share insurance tool kit from the NCUA and a video clip of NCUA Chairperson Mike Fryzel’s appearance on the Fox Business channel. The resource page is constantly being updated, so look for the “new” next to the newest resources. The page can be accessed by clicking here.
Press Room Updated
Much like the CU Media Resources page, the MCUL Press Room is constantly being updated. The Press Room not only houses the latest MCUL news releases, but the latest press coverage of credit unions either in print or television, Credit Union Week ads and MCUL President/CEO David Adams’ appearances on radio. The latest updates include stories from the Ann Arbor News, Kalamazoo Gazette and Detroit Free Press; as well as two television stories out of Detroit and Lansing. You can access the press room by clicking here.
New Audio/Video Podcasts Available
The MCUL has a number of new audio and video podcasts available. Video podcasts include MCUL President/CEO David Adams’ discussions with State Sen. Randy Richardville, R-Monroe; DFCU Financial CEO Mark Shobe; and Muskegon Co-op CEO John Rupert. The video podcasts can be found on CUBE TV by clicking here. New audio podcasts include John Kolhoff, OFIR assistant director of the credit union division, who speaks with MCUL Director of Public Affairs Mike Bridges about OREO properties and the correct way for credit unions to enter OREOs in their books; and a discussion between Adams and George Isola, president/CEO of Ishpeming Federal Credit Union. The MCUL audio podcast center can be found by clicking here.
MCUL Responds to Financial Crisis with Forum for Lending, Investing and Managing Strategies
During these turbulent financial times, it’s as important as ever for credit union leaders to be mindful of their asset liability management, investments and mortgage handling strategies. In response to current economic conditions, the MCUL is hosting a one-day forum to assist credit unions with being good stewards of members’ assets. By bringing together industry experts to share information and insight, credit unions can take advantage of the opportunities and responsibilities that lay before them. Featured topics and presenters include: “Asset Liability Management and Interest Rate Risk” and “U.S. Treasury Troubled Asset Relief Program (TARP)” with Charley McQueen of McQueen Financial; “Mortgage Lending” with Dave Toepp of Mortgage Center; and the “Current Investment Environment” with Bill Walby, president/CEO of CenCorp. The session will be held Thursday, Nov. 13 from 10 a.m. – 3 p.m. at the Sheraton Detroit, Novi. The educational investment to attend is $35 per person. Online registration and details are available at keyword 2008LIM or by clicking here.
Resources Available for Executives Interacting with Media
Being in front of news cameras while remaining calm, professional and “on message” can be a difficult task, but it’s important to be ready to take advantage of any media opportunities to promote the credit union message – even on short notice. MCUL Director of Public Affairs Mike Bridges will be facilitating an educational event in December to coach credit union executives in front of “live studio cameras.” The one-day session will arm participants with the tools they need to interact with the media on-air and on-paper. Attendees will gain insights on how to write op-eds, letters to the editor and news-worthy press releases. Additional information about date and location will be available soon at www.mcul.org.
Session on HR Laws for Credit Unions Addresses Important Regulations
Keeping informed and in compliance with the latest developments in human resources laws and regulations is important for avoiding costly lawsuits and fines. On Nov. 18, Winnie Taylor will present an MCUL Internet session to review equal employment opportunity compliance and examine critical workplace issues such as religious discrimination, age discrimination, dress codes, dating policies, race discrimination, sexual harassment, wrongful discharge and more. The session takes place from 1 – 3 p.m.; the cost to participate is $169 per Internet connection. Additional information and online registration is available by clicking here.
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Major Solutions Provided by CUcorp
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Highlights on CUcorp Solutions
CU Growth Solutions Offers Turnkey Research Packages
CU Growth Solutions now offers a variety of research options to meet the diverse needs of credit unions. Turnkey research packages are available using both phone and mail methodologies to meet specific research objectives. Professional researchers develop the questionnaire, analyze the data and provide a thorough report of findings. These studies, which cost significantly less than custom studies, cover member satisfaction, brand perception and awareness, new and closed accounts, key drivers and new product and service testing. Custom studies and focus groups are also available to meet definitive research needs that require more in-depth exploration. CU Growth Solutions also offers many services that can help credit unions take the next step after learning more about their membership, through marketing and advertising, creative and production services and more. For more information, click here.
Complete Staff and Management Development Program on a Limited Budget
CUNA’s CPDOnline will have more than 250 online courses available this year. They have added e-mail notifications and the ability for subscribers to manage in-house training using the registration features on the LMS to keep track of registration, wait-lists, rosters and more. They are making changes to help with navigation to make it easier for credit union employees to get around the course catalog, sign up for courses, etc. With credit unions looking at ways to save expenses, but not cut their team short on the training, CPDOnline will provide a great deal of training at a very attractive price. Click here to learn more, and contact a CUcorp business Consultant at MCUL ext. 539 for additional information.
Medicare Creditable Coverage Notification Time
It is time again for all employers that offer health insurance with prescription drug coverage for its employees to send out a Medicare Notice of Creditable Coverage. If a group offers a prescription drug plan to Medicare-eligible employees or any Medicare eligible member on their contract, the Centers for Medicare & Medicaid Services (CMS) requires the group to send a Notice of Creditable Coverage to all members by Nov. 15 of each year. A plan’s prescription drug coverage is considered creditable if it provides the same or better coverage than Medicare Part D. An insurance company or insurance agent should be able to tell if a prescription drug is creditable or non-creditable. CMS also requires that groups notify them within 90 days after they have completed the annual Notice of Creditable Coverage. This is known as the groups “disclosure notice,” and the way to submit it is via the CMS Web site. Groups are also required by CMS to make a disclosure notice whenever any change occurs that affects whether their drug coverage qualifies as creditable. Access the link for the CMS disclosure by clicking here. Editable versions of the creditable coverage letters that go out to the employees are available on the CUcorp CU HR Solutions website by clicking here. CU HR Solutions also offers many other helpful services for credit unions that help streamline processes relating to health care and employment.
Individual Health Insurance Options for Members
Affordable health insurance coverage for individuals is a very sought-after benefit in the wake of major layoffs and early retirements. Blue Cross Blue Shield of Michigan and Blue Care Network have a variety of plans to choose from to meet the budget and health care needs of residents of the state of Michigan. CU HR Solutions has created an icon and a link of the MCUL home page for visitors to click and compare individual non-Medicare plan options. This icon and link will be available to MCUL member credit unions to add to their websites to make it easier for the credit union members to find these health care options and provide more member value. Contact a CU HR Solutions Insurance Consultant or email sales@cuhrsolutions.com for more information. For members with Medicare looking for eligible coverage options during the Nov.15 through Dec. 31 open enrollment period, they may visit www.bcbsm.com/medicare for pricing and plan options. Customized links for these Medicare options is expected to be available in mid-2009.
Security from a Trusted Partner
Despite the current economy, CUNA Mutual’s operating performance remains strong in 2008 — results that follow a three-year period of growing revenues by 25 percent, nearly doubling profitability, and increasing benefits to customers by more than $500 million. CUNA Mutual had $8.3 billion of cash and investments in its general account at the end of 2007. Their general account contains more than $800 million of government and agency securities as well as a very significant cash position. Click here for more information.
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Major Solutions Provided by CU Village
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Highlights on CU Village Solutions
Financial Education Content for Web Sites
In today’s difficult financial times, credit union members need help navigating through often confusing and challenging decisions about their money. Financial Resource Center is a syndicated content service that provides fresh content and information for any Web site. It is designed to help affordably and easily provide resources and information about personal finances to members. For more information on the Financial Resource Center, contact info@cu-village.com or visit CU Village by clicking here.
Automate Application Decisions
LoanDecision+ is an online decision and lending solution designed specifically to help meet the borrowing needs of credit union members, resulting in a better lending experience for members and a streamlined process for the lender. It can either be used as a standalone Web system, or integrates with most host processors. For more information on the LoanDecision+, contact info@cu-village.comor visit CU Village by clicking here.
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Regulatory Affairs
