5 things CU leaders need to know
NAFCU's widely-read NAFCU Today is credit union leaders' go-to source for the latest on issues impacting the credit union industry. For those short on time, here's a roundup of this week's need-to-know news bits:
Is it true, Santa? Has the government reached a funding deal?
According to Politico, lawmakers involved in talks to avoid a potential government shutdown announced Thursday that they have reached a bipartisan "deal in principle" to fund the federal government through the rest of fiscal year 2020.
House Appropriations Chairwoman Rep. Nita Lowey, D-N.Y., Senate Appropriations Chairman Sen. Richard Shelby, R-Ala., ranking member Sen. Patrick Leahy, D-Vt., and House Appropriations Ranking member Rep. Kay Granger, R-Texas, announced the agreement and indicated that a vote in the House could take place as soon as Tuesday.
If the agreement is not passed, federal government funding is set to expire next Friday, Dec. 20. A similar situation happened last year, and the resulting partial government shutdown made history as the longest ever at 35 days. NAFCU will continue to advocate against any lapses in funding and for full funding of programs used by credit unions.
Cyber threats elevate banks' risk, says OCC
The Office of the Comptroller of the Currency (OCC) this week released its semiannual risk report that includes a special section related to cybersecurity. Due to "an evolving technology environment and persistent cybersecurity risks," the agency categorized banks' operational risk as "elevated."
Of note, the OCC flagged use of third-party vendors and fraud threats as main drivers, in addition to constant system updates to keep up with technology.
NAFCU is a leader in calling for national data security and privacy standards. The association works diligently with the NCUA on exam-related cybersecurity issues and has myriad resources available to ensure credit unions can effectively identify and address cybersecurity concerns.
Budget concerns: Deficit hits $209B
The U.S. budget deficit hit $209 billion in November, rising 2 percent over the month. November is just the second month of the fiscal year, and Congress has yet to pass about a dozen funding bills before the Dec. 20 deadline to avoid a government shutdown.
Last year's government spending ran up a $984 billion deficit – a seven year high. The Congressional Budget Office predicts 2020's deficit will reach $1 trillion and stay above that mark for the next decade. The Associated Press notes that the U.S. ran $1 trillion deficits between 2009 and 2012 as it recovered from the financial crisis.
No deal on tax extenders
The House and Senate remain at odds over a year-end tax bill to extend or fix various tax issues. Among the expiring tax breaks under discussion are some related to renewable energy, ObamaCare, and retirement savings. The package could be included in funding legislation that needs to pass by Dec. 20.
Last year, NAFCU worked closely with the House to include a technical fix to address a provision in the Tax Cuts and Jobs Act that puts a 21 percent excise tax on certain not-for-profits. While the Senate didn't take up that bill, the House Ways and Means Committee included it again in legislation this year.
NAFCU remembers Ron Snellings
Ron Snellings, retired CEO of PenFed Credit Union and former NAFCU Board Member, passed away last month. He served on NAFCU's board from 1989-1998, and previously as president of PATELCO and as general manager at Navy Federal Credit Union.
"Ron was a driver of credit union growth and an ardent advocate in Washington, whose commitment to the credit union industry is evident in his many years of service on our board and leadership at several credit unions," said NAFCU President and CEO Dan Berger. "Our thoughts and prayers go out to his friends and family."
Add to Calendar 2021-04-20 14:00:00 2021-04-20 14:00:00 Driving Auto Loan Success: 3 Risk Challenges Credit Unions Are Facing About the Webinar The auto industry continues to show signs of growth and opportunity even through the pandemic. But new risks have also emerged in the last year. During this webinar we'll explore the latest trends and future prospects in the auto market, the risks you need to be aware of, and how to update your strategy for growth. We'll discuss how your credit union can get in the best position possible to monitor and mitigate future risk. Key Takeaways: How risk management changed in the face of a pandemic Strategies to anticipate and prepare for risk vulnerabilities and exposure Practical tactics for credit unions to implement in 2021 Watch the Webinar On-Demand Web NAFCU firstname.lastname@example.org America/New_York public
Add to Calendar 2021-04-20 14:00:00 2021-04-20 14:00:00 A Death in the Family: Working with Deceased Accounts Daniel Defoe was clearly correct when he noted that “nothing is certain but death and taxes.” Fortunately, credit unions don’t have many questions regarding taxes. Death, however, is another issue. Every credit union needs to make sure their operational processes are properly coordinated in the event of a member’s death. From the disposition of deposited funds to the collection of loan balances, is your credit union prepared? This webinar will review the essential elements of successfully navigating the credit union and the member’s family through the deceased member account process. Join industry veteran attorney David Reed as he takes you on a carefully coordinated tour of the process your credit union needs to master to ensure you are honoring the member’s requests, following applicable laws, and not putting the credit union at risk to pay a claim twice. Key Takeaways: Review account notations and declarations Gain a clear understanding of probate Discuss the impact on credit union deposit accounts and loans Walk through deceased account claims and remedies Register Now $295 Members | $395 Nonmembers (Additional $50 for CD)One registration gives your entire team access to the live webinar and on-demand recording until April 20, 2022Already registered? Go to the Online Training Center to view. Who Should Attend? NAFCU Certified Compliance Officers (NCCOs) NAFCU Certified Risk Managers (NCRMs) Legal Staff Compliance staff Education Credits NCCOs will receive 1.5 CEUs for participating in this webinar. NCRMs will receive 1.5 CEUs for participating in this webinar. CPA credit information is below; recommended 1.5 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: Review account notations and declarations. Gain a clear understanding of probate. Discuss the impact on credit union deposit accounts and loans. Walk through deceased account claims and remedies. Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.5 credits Recommended Field of Study: Specialized Knowledge – Technical National Association of Federally-Insured Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU email@example.com America/New_York public
Credits: CPE, NCCO, NCRM
Add to Calendar 2021-04-19 14:00:00 2021-04-19 14:00:00 CU Insurance Agency Builds Record Non-Interest Income About the Webinar Join us for this panel discussion about how Michigan First’s Insurance Agency generates non-interest income well ahead of their original 5 year plan. Hear how their agency was built to increase member share and create barriers to competitive advantage. Watch the Webinar On-Demand Web NAFCU firstname.lastname@example.org America/New_York public
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