“We Are Better Together” Resolution Adopted

Gem
Gem
Volume 54, No. 12
A Publication of the Idaho Credit Union League
“We Are Better Together” Resolution
Adopted
On November 13, 2015, the Idaho Credit Union League Board of Directors considered the idea
of dual membership or choice in relation to maintaining the most effective advocacy structure
for credit unions and their members. Until now, credit unions choosing to affiliate with their
state league were also required to affiliate with the Credit Union National Association (CUNA)
and vice versus. Now, some states have adopted a choice option under which credit unions can
choose to belong to either their state league, CUNA, both or neither.
IN THIS ISSUE
Uber and Similar Services May Pose
Risk to Vehicle Loan Collateral 2
Compliance News 3
Cottonwood Community FCU Joins
Shared Branching Through CU Service
Network 4
This Holiday Season Help Your Members
Give the Right Gift the First Time 4
Credit Unions in the News December 2015
The Idaho Credit Union League Board determined that “We are better together” and adopted
the resolution below reinforcing the concept of dual membership. It believes that maintaining the ties between Idaho credit unions, the Idaho Credit Union League and CUNA provides
the best path forward for credit unions and their more than 103 million members in a united,
cooperative and collaborative Credit Union System with shared goals and strategic emphasis.
Together we create an environment for success for all. No one person, credit union or trade
association can create that environment alone.
Resolution
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Events Calendar 8
WHEREAS, the leadership of the Idaho Credit Union League is committed to unite and coordinate with credit unions, CUNA and the League System to advance world-class advocacy
promoting credit union ideals; and
WHEREAS, cooperation amongst credit unions, leagues and CUNA creates the necessary
synergies to protect and advance the cooperative credit union charter and the unencumbered
access for credit union members across the nation and around the globe to these not-for-profits rights; and
WHEREAS, the most effective and efficient advocacy can be achieved for cooperative not-forprofit credit unions when intentional interdependence exists between credit unions, leagues
and CUNA;
NOW THEREFORE BE IT RESOLVED, that the Idaho Credit Union League, supports the interdependent system of CUNA and leagues requiring dual membership in both organizations and
commits to CUNA and its fellow leagues the following:
• To inspire cooperation within the system on engaging and utilizing member credit union interests and feedback for setting advocacy policy.
• To work together to promote regulatory and statutory enhancements to the credit union
charter.
• To coordinate on establishing policy, setting priorities, information exchange and execution of
federal and state legislative and regulatory advocacy.
IDAHO CREDIT UNION LEAGUE
A N D A F F I L I AT E S
© 2015 Idaho Credit Union League
The Gem is a monthly publication of the Idaho Credit
Union League, 2770 Vista Avenue, Boise, ID 83705
Telephone (208) 343-4841
Fax (208) 343-4869
www.idahocul.org
Click here to Like us on facebook
Board Chair: Shane Berger, Beehive FCU
President/CEO: Kathy Thomson
Editor: Nancy Bernhard
• To coordinate closely on membership communications related to critical issues.
• To promote a positive working relationship between key government affairs, communications
and compliance staff.
• To advance all trade association membership affiliation/re-affiliation efforts.
The Idaho Credit Union League hereby acknowledges the power of one united system which is
better together. The combined forces of engaged credit union members, credit unions, state/
regional Leagues and CUNA will be more effective in achieving results for not-for-profit credit
unions and their members.
It has been said that our Credit Union System is the envy of other associations across this
great nation. By connecting a strong local presence, your Idaho Credit Union League, with a
national association focused on national legislative and regulatory advocacy, we can have a direct impact for credit unions in their communities and in Washington, D.C. By working together,
we create an operating environment where credit unions can thrive in the future and where
every American has the opportunity to choose a credit union as their best financial partner.
Uber and Similar Services May Pose Risk to Vehicle Loan Collateral
By Al Olson, Staff Underwriting Specialist, CUNA Mutual Group
The rapid growth of Uber, Lyft and other Transportation Network Companies (TNCs) seems to be outpacing the efforts of
local, state and federal agencies to regulate these services. One result is that responsibility for losses to TNC drivers’ vehicles
isn’t always clear.
Private auto insurance generally excludes coverage for a vehicle when it’s being used as a cab (or “livery” service). And don’t
expect the TNC to pick up the tab.
What is the risk to your auto loan portfolio caused by borrowers driving their uninsured or underinsured vehicles for a TNC?
How TNCs Work, and Why That Could be a Problem for Lenders
TNCs arrange transportation for a fee. Customers access the service online, often through a mobile phone app that connects
riders and drivers.
Drivers typically use their own cars, and although regulations are beginning to change, they’re often not subject to many of
the same rules as licensed livery drivers. Drivers sign up with the TNC and provide proof of ownership and insurance for their
vehicle. They gain permission to use the TNC’s software to find and bill passengers, and the TNC takes a portion of each fee.
People who want to use TNCs usually download an app and create an account by providing credit card information, just as
they would for Amazon or eBay.
Here’s the part that concerns lenders: The terms and conditions of the agreements with drivers can place primary responsibility on the driver—not the TNC—for certain vehicle damage losses. Some larger TNCs provide limited comprehensive/collision
coverage. But even with those TNCs, certain types of losses won’t be covered by the TNC or the driver’s personal insurance
policy.
So if your member walks away from a vehicle loan after the collateral is damaged, and neither the TNC nor the borrower’s
personal insurance covers the damages, you may have to absorb that loss.
Assess the Risk to Your Credit Union
It can be difficult to assess your auto portfolio’s level of risk from TNC-related vehicle damages, because you don’t know how
many of your members are TNC drivers.
However, don’t assume the communities you serve aren’t using these services. Uber published an analysis1 of the labor market for its drivers in the U.S., and reported that from next to zero drivers at the start of 2012 through the end of 2014, it had
added more than 160,000 active drivers.
Uber dominates the TNC market, but the competition is growing. The second-largest U.S. TNC is Lyft. According to a
Bloomberg.com article2, Lyft grew from 400 drivers giving an average of 40,000 rides per month in December 2012 to 51,000
drivers and 2.2 million monthly rides in 2014.
A market growing this quickly is likely to continue spawning new competitors. Joining Uber and Lyft so far have been Sidecar,
Wingz, Summon, and Hailo, among others.
The point is, the risk to your auto loan portfolio from TNC drivers may be a moving target—even if you think it’s not significant now, it may be before too long.
Review Your Collateral Protection Plan
The first step in understanding your risk is to understand the terms and conditions of your Collateral Protection (CP) program.
Review your CP coverage with your provider, and confirm whether losses caused by collateral damaged while in use for a TNC
are covered.
If you don’t currently have a CP program, the increasing risk that TNCs represent may be a tipping point as you consider
potential CP options.
As with any young, dynamic industry, the TNC marketplace appears to be shifting quickly as new players emerge and legislation is introduced. Stay informed, so your credit union doesn’t go along for the ride in a bad way.
For more information about CUNA Mutual Group’s Collateral Protection products, visit
https://www.cunamutual.com/collateralprotection.
1
“An Analysis of the Labor Market for Uber’s Driver-Partners in the United States,” January 22, 2015, Uber Technologies.
2
“Leaked Lyft Document Reveals a Costly Battle With Uber,” April 30, 2015, BloombergBusiness
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Compliance News
The Idaho Credit Union League partners with PolicyWorks. Through this partnership, the League’s member credit unions have access to the PolicyWorks’ compliance hotline, which provides email and telephone access to PolicyWorks’ regulatory team for answers to compliance questions. As well,
member credit unions have access to up-to-the-minute compliance news and information. Call 866-499-7350 or email Idahocul@policyworksllc.com
CFPB Report Focuses on Debt Collection, Mortgage Origination
The CFPB has released the Fall 2015 edition of Supervisory Highlights, a report on major findings from its supervision of
financial institutions, as well as the enforcement actions that resulted from those findings. Credit unions can gain valuable
information from this report, as it provides insight to what examiners may be looking for. This report covers supervisory activities between May and August 2015. Recent CFPB findings include:
• Failure to establish and implement written policies and procedures regarding the accuracy and integrity of information furnished to
consumer reporting agencies;
• Failure to state that a call is from a debt collector;
• Failure to comply with the requirement that charges at settlement not exceed amounts on the GFE by more than specified tolerances;
• Failure to comply with requirements for completion of HUD-1 settlement statements;
• Failure to provide homeownership counseling disclosure and accurate loan servicing disclosure statement; and
• Failure to require employees engaged in loan originator activities to register with the NMLSR.
Credit unions are encouraged to use the information provided by the CFPB’s findings to ensure their operations remain in
compliance with federal consumer financial law.
Click here to view the Supervisory Highlights report.
NCUA Credit Union Complaint Portal Goes Live
The NCUA has opened its Consumer Assistance Center (CAC) portal to help credit unions better resolve consumer complaints.
The portal is located on NCUA’s consumer website, MyCreditUnion.gov, and allows consumers to submit inquiries and complaints about credit unions. After an issue is submitted, credit unions can utilize the portal to submit complaint response
information securely, and check the status of complaints concerning their institutions.
Information contained within the portal is not accessible by the public, and participation is voluntary; however, registration is
required. Credit unions that would like to use the portal must request access by emailing the CAC at consumeraffairs@ncua.
gov. The email requesting access must be sent by the credit union’s CEO, or its senior manager if a CEO is not employed by
the credit union. The registration process will take NCUA between 10 and 15 business days to complete.
Details on the portal and complaint handling procedures can be found in a Letter to Credit Unions issued by the NCUA in
June. In addition, the NCUA has created a series of FAQs, which are available on its website.
Click here to view the portal FAQs.
Click here for more information about the updated complaint process.
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Cottonwood Community FCU Joins Shared Branching Through CU Service
Network
Cottonwood Community FCU, located in Cottonwood, ID, has joined CO-OP shared branching through CU Service Network.
They will provide access to over 5,300 branches to their members and will also open their doors to members of other shared
branching credit unions.
Cottonwood Community FCU President/CEO Greg Sonnen commented, “Shared branching is one way we can return a significant value to our members, which is a primary goal the board of directors has established. We hope this provides additional
convenience to our members and essentially adds thousands of branches where members can conduct routine business.”
Sonnen also brings up two strong points in the case for shared branching, one being the often-overlooked disaster recovery:
“[Shared branching] also bolsters our ability to maintain member service in the event of potential disasters or even just some
inconvenient power outages.”
Secondly, for credit unions in small towns in particular, the threat of losing college-age accounts is present. “We also hope to
retain all or most of our members, especially the younger members, who may move out of the area. Shared branching keeps
their accounts accessible through the network,” adds Sonnen.
For more information on shared branching, visit: www.cusn.com/shared-branching
For more information on Cottonwood Community FCU, visit www.ccfcu.coop
This Holiday Season Help Your Members Give the Right Gift the First Time
Last winter, Time magazine released a story claiming the average American spends 14
hours shopping for holiday gifts. Yet that article also pointed out almost three-quarters
were disappointed with a gift they received. Imagine that, you spend the better part
of a day shopping only to have the person not even like what you gave them. Most of
these disappointing holiday gifts get put aside somewhere and forgotten, usually still
partially wrapped. The rest will be re-gifted or donated if there’s no receipt to return
them for cash. All that time wasted. All those expectations being let down. Happy
holidays indeed.
You know members want to give their loved ones a gift they’ll truly appreciate and get
to enjoy. Credit unions can provide the simple answer – gift cards. Yes, it’s true there
was a time when gift cards were viewed as cold and impersonal. Times have changed. We live in the fast-paced, digital, online world where time is money. And that’s exactly what everyone wants more of – time and money. With a gift card, members can give their loved ones both!
Gift cards might be the most thoughtful gift your members can give. They say “I cared enough not to give you that random
sweater I noticed on my way out of the store and thought you might like but had to guess on the size!”
Plus by advising your members to give gift cards to everyone on their list, you’re saving them time and relieving the stress of
fighting crowds, scouring the internet for deals, and wrestling with wrapping paper and awkwardly shaped boxes. They won’t
even need to ask for a gift receipt. Your members are busy people too. They’ll appreciate being able to knock out all their
holiday shopping in about 4 minutes at your credit union, as opposed to 14 hours in the mall.
If your credit union isn’t stocked up on holiday gift cards or needs help getting ready for the season, gift cards are always
available through LSC®. If you’re already a customer you can order through Prepaid Access. If your credit union doesn’t
have a gift card program, we can help you too! Just call our own Holiday Helpers at (800) 304-2273, option 4 or email us at
prepaid@lsc.net.
2016 IDAHO GAC • JANUARY 13 • BOISE CENTRE ON THE GROVE
Be In-the-Know! Please join the Idaho Credit Union League to kick off the 2016 legislative session
Fa
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o f Memb
ers
T
GAC
Idaho 2016
The registration fee is $149, which includes the luncheon. The registration deadline is December 30, 2015.
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On January 13, 2016, we will gather at the Boise Center on the Grove for the 18th Annual Governmental
Affairs Conference from 9:00 a.m. to 4:00 p.m.
We will be joined by experts presenting on such topics as campaign finance and politics and marijuana
banking. We will also hear from state legislators and pundits about hot topics and priorities for the
Idaho 2016 legislative session.
In addition, Sen. Crapo will join us remotely to talk about banking legislation in the U.S. Senate.
The day will also include a Legislative Luncheon with state legislators, where you will have an opportunity to discuss credit unions and the
work they do every day to improve the lives of Idahoans and their communities. This is also a great opportunity to highlight the differences
between credit unions and banks.
Click here to register online
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Credit Unions in the News . . .
The ISU Bengal Dancers Recently Got a “New Look” Thanks to ISU CU
ISU CU recently helped purchase new branded jackets and backpacks for the dance team. The team hasn’t had new jackets
for over 10 years. It was time for an update, and ISU CU was excited to help out.
“We were excited to receive such a generous donation from ISU CU, Bengal Dancer instructor and coach Kolissa Manchan
said “Donations of this caliber relieve a lot of the financial stress for us come competition time.”
It isn’t uncommon for ISU CU to support Idaho State with donations of every caliber, including athletics.
“We were happy to help the Bengal Dancers out with new, branded gear. It’s been a while since they got an upgrade. The
Bengal Dancers are passionate about community involvement and that aligns with what we believe here at ISU CU. The final
product turned out great,” says ISU CU Marketing Manager, BJ Fillingame.
“The jackets and backpacks turned out really well. It’s important to us that the team looks sharp on and off the performing
floor,” Manchan says.
P1FCU Participated in the Smart Women, Smart Money Conference
We had a great time participating in the Smart Women,
Smart Money Conference held at the University of Idaho.
Smart Women, Smart Money is an organization that offers
inspirational education to empower women towards financial
freedom and stability. P1FCU strongly believes in financial
literacy for everyone and we were excited to have the chance
to sponsor this beneficial event that was free to the public. Our CEO, Chris Loseth was also in attendance as a key
speaker discussing Current and Future Technologies in the
Financial Industry.
From left to right Virginia Roetcisoender, Consumer Loan
Officer; Shanda Brown, Moscow Branch Manager; and Kelly
Hunt, Community Relationship Specialist.
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Credit Unions in the News Continued
Warm Coats for Winter
Idaho Central CU teamed up with KTVB, Fred Meyer, Clothesline Cleaners and Vogue Cleaners, to help children and teens
stay warm this winter. The Green Team helped by volunteering their time at donation stations, sorting coats after they had
been donated and then delivering them for the 7Cares coat drive.
New this year, cash donations were accepted at all Idaho Central CU locations in the Treasure and Magic Valley. The money
went to the Salvation Army, who purchased and distributed the coats for the 7Cares coat drive. Team Captain, Chase Ediger,
said, “It was great to be able to help kids find a warm coat for the winter. This is a start of a great partnership with KTVB and
7Cares. We are excited to volunteer more with them.”
CapEd CU Raised Funds for Breast Cancer Awareness
CapEd CU held a month-long campaign to raise funds for Breast Cancer Awareness. CapEd touches lives by financially empowering, educating and enriching individuals and communities. CapEd held four open houses to help educate individuals
and our community on early detection, and treatment of breast cancer. Our lives are enriched by the many cancer survivors.
Through community donations, CapEd staff contributions and a CapEd match of in-branch donations, the Susan G. Komen
Foundation of Idaho received a check in the amount of $2,300 from CapEd to provide mammogram services to women in
Idaho.
From left to right: Dave Marquart, CapEd Board; Mike Hill,
CapEd EVP; Hilarie Engle, Susan G. Komen Foundation; Todd
Christensen, CapEd VP; Liz Brodie, SGKF; Jodi Weak, SGKF;
Katy Kempton, CapEd Board; Todd Erickson, CapEd CEO;
Barbara Olic-Hamilton, CapEd Board; and Rainey Pieters,
CapEd Board.
Susan G. Komen Foundation’s Liz Brodie and Eagle Police
Chief, Patrick Calley, wearing his pink “Big Wig”.
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Credit Unions in the News Concluded
Pioneer FCU Donates to the Food Drive
Pioneer FCU moved Thanksgiving forward for deserving families in need by hosting a food drive in all branch locations.
Members of the community were able to donate food and money towards the cause. In addition to donating towards the
meals, Pioneer employees took nominations for deserving families in need of a Thanksgiving meal.
PFCU facilitated our communities in raising over $1,147.93 for the meals! Recipients of the meals were provided all the fixings for a meal, including a turkey.
Our PFCU employees lived out our Core Value #7, Build a Positive Team and Family Spirit, during this food drive and were
excited to assist in moving Thanksgiving forward for those who may not have the means to do so on their own.
Happy Holidays from Pioneer Federal Credit Union!
PFCU employees packing their food items; branch locations with their collected food items
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Events Calendar December 2015
1 The 12 Days of Leadership - QuickBite
1 Call Report Preparation: Financial Statements, Including Schedule B Investments, C CUSOs & D Derivatives - Webinar
2 Appraisals for Non-Performing Assets - Webinar
3 Reg E - QuickBite
3 Advanced ACH Specialist Series: Reg E Error Resolution Rules Versus NACHA Operating Rules: Obligations, Consumer
Disputes & Case Studies - Webinar
7 Examining the Proposed Federal Changes to Overtime Pay Exemptions & the Potential Impact to Credit Unions - Webinar
8 Interviewing Skills - QuickBite
8 Safe Deposit Issues: Drilling, Unpaid Rent, Death & Unclaimed Property - Webinar
9 BSA Compliance Series: BSA Special Risks: Policy, Law Enforcement & Regulator Issues - Webinar
10 How To Appeal to Your Members in Their Prime Lending Years - QuickBite
10 Managing Accounts & Records for Nonresident Aliens: Opening, Identifying, Monitoring & Tax Reporting - Webinar
14 Revised TRID Mortgage Exam Procedures: Reviewing September 15, 2015 Changes - Webinar
15 Required Compliance Series: Robbery Prevention, Apprehension & Recovery - Webinar
16 Dodd Frank Mortgage Disclosure Update - QuickBite
16 New Accounts Series: Opening Donation, Benevolent & Other Accounts for Nonprofit Organizations & Corporations - Webinar
17 Exercising the Right of Setoff on Deposit Accounts & Loans - Webinar
22 Website Security Audit Tips - QuickBite
29 BAH! HMDA - Regulation C - QuickBite
Idaho Credit Union Philosophy Certifications
We believe that credit unions are unique. When our staff and volunteers understand and are comfortable speaking about
this, we will thrive. We urge you to make reading of the Philosophy Manual mandatory for all new employees and volunteers. For more information please contact the Idaho Credit Union League at (800) 627-1820.
Certificate Recipients
Crystal Floyd
Brian Harrington
Shari Bonus
Janet Bullock
Beehive FCU
Icon CU
Potlatch No.1 FCU
Potlatch No.1 FCU
Cassie Chandler
Tyler Presby
Beth Renfro
Alisha Watson
Potlatch
Potlatch
Potlatch
Potlatch
No.1
No.1
No.1
No.1
FCU
FCU
FCU
FCU
THE FACES OF MEMBERSHIP
Idaho Credit Union League
80th Annual Meeting May 11-13, 2016
The Coeur d’Alene Resort
www.idahocul.org
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