JUNE 26, 2015
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Calendar Georgia Hosts International Delegation on Cooperatives (Issue 1 of 6)
GCUA and several Georgia credit unions hosted representatives of cooperatives from the Dominican Republic and Peru during a study tour in the Atlanta area.

  South GA Chapter State Issues Night (Issue 2 of 6)
State Rep. Penny Houston gave the South Georgia Credit Union Chapter a statewide perspective on industry issues during a chapter meeting dealing with legislative matters.

  Educating the Speaker's Office on Credit Unions (Issue 3 of 6)
Representatives of two metro Atlanta credit unions and GCUA held a Hike at Home meeting with the general counsel for Georgia Speaker of the House David Ralston, helping expand his understanding of credit union issues.

  MBL Rule Proposed by NCUA (Issue 4 of 6)
NCUA proposed a modernized rule for credit union member business lending; the agency said the rule is intended to replace arbitrary regulations with a broader, principles-based approach.

  Idea Institute: Early Bird Registration Ends July 1st!
(Issue 5 of 6)

July 1 is the early-registration deadline for the 10th Idea Institute, scheduled for August 17-19 in Asheville, N.C. The event will feature insight and ideas from credit union leaders from around the country.

  Registration Open for NCUA Virtual Town Hall (Issue 6 of 6)
NCUA Board Chairman Debbie Matz is scheduled to hold a virtual town hall webinar at 3 p.m. EST July 28, dealing with a range of topics including credit union system performance, regulatory relief and more.

1st ChoiceGeorgia Hosts International Delegation
on Cooperatives (Issue 1 of 6)

From June 22nd through June 24th Georgia credit unions and GCUA were host to a group representing cooperatives from the Dominican Republic and Peru. The World Council of Credit Unions reached out to Georgia to coordinate a study tour in the Atlanta metro area to explore how credit unions – specifically  smaller credit unions – can be sustainable, compete and thrive well with large financial institutions. GCUA was delighted to host this international delegation to help grow the cooperative system around the world, and it speaks volumes about the entire credit union industry in this state that they chose Georgia.

PlatinumDuring the study tour encompassing individuals representing financial and non-financial cooperatives, they met with 1st Choice Credit Union and Platinum Federal Credit Union on June 22nd, United Methodist Connectional Federal Credit Union on June 24th, and joined the Small Credit Union Advisory Committee meeting on June 23rd for a comprehensive understanding of the resources and partnerships credit unions utilize in this state.

United Methodist ConnectionalOur thanks to all the credit unions for sharing their time, and to the three credit unions that opened their doors to this international group to discuss their specific tools and strategies in creating success for the members. This was a unique opportunity to learn from each other and share how credit unions of all size utilize a variety of partnerships to help people afford life!

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South GA Chapter State Issues Night (Issue 2 of 6)

So. Ga. chapter meetingOn Tuesday, June 16th the South Georgia Credit Union Chapter hosted their local state Representative Penny Houston (R-Nashville) who was a part of their state-legislative themed meeting. Credit union leaders heard firsthand on the top industry issues addressed at the state Capitol from GCUA, and received a broad statewide perspective from Rep. Houston. During the meeting the various bills that touch the credit union industry were outlined and the strong value of creating legislative connections, something this chapter did through inviting their local legislator to be a part of the event. Rep. Houston shared that she “was with friends and neighbors” and was happy to be a part of the event to learn more about credit union issues at the state Capitol herself.

At the end of the evening, the chapter had a special presentation and donation for Georgia CUPAC to help grow credit union influence around the state. Our thanks to the entire chapter for engaging with their local legislator, and utilizing their meeting to learn about the issues addressed on behalf of credit unions at the state Capitol.

There are chapters around the state that hold similar meetings throughout the year, and many credit unions want to share this information with their board and/or staff meetings. A quick way to educate your team or your board on how elected officials stand on issues of importance to credit unions can be found on the GCUA website. Click here for the Federal Profile and here for the State Profiles.
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Hike at Home - Speaker's OfficeEducating the Speaker's Office on Credit Unions
(Issue 3 of 6)

On Thursday, June 25th credit unions sat down with Terry Chastain, General Counsel for Speaker of the House David Ralston (R-Blue Ridge). This strategically different Hike at Home was targeted not with the legislator, but with Mr. Chastain to help grow his understanding of credit unions, given his position’s direct level of influence on legislation. The knowledgebase of key staff in the state Legislature shapes many of the legislative initiatives, and this meeting was timely for credit unions as the previous General Counsel has moved on to a higher role as Clerk of the House.

Credit union leaders from Atlanta Postal Credit Union, Emory Alliance Credit Union and GCUA shared their insight on legislative issues, industry issues, and the lending and foreclosure process in Georgia. Each year there are hundreds of bills in the state legislature that if left unchecked would drastically impact the way credit unions operate and serve their members. This meeting with Terry Chastain helped illustrate the prudent lending practices credit unions have, and the regulatory burdens already on top of the industry.

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NCUA logoMBL Rule Proposed by NCUA (Issue 4 of 6)

On June 18th NCUA unanimously proposed a modernized rule for member-business lending (MBL), one the agency says removes prescriptive and arbitrary limits and replaces them with a "broad principles-based regulatory approach.” And, it’s one that American Banker stated on June 19th makes "credit unions set to become a formidable business lending threat." The proposed MBL rule is intended to give credit unions freedom and flexibility to determine their best approach to business lending, and NCUA noted that the credit union system’s total member business lending portfolio has grown to $51 billion in 2015 from $4 billion in 2000.

Among the restrictions removed or modified by the proposed rule are:

  • The requirement for a personal guarantee;
  • The 80% limit on loan-to-value ratios;
  • The limit on unsecured MBLs;
  • The requirement that staff have two years of direct experience;
  • Detailed limits on construction and development loans;
  • The restrictive definition of "associated borrower;" and
  • The 15% of net worth limit on loans to one borrower, which will now increase to 25% if the additional 10% is supported by readily marketable collateral.

Under the proposed rule, credit unions would be able to write their own policies and limits on collateral and security requirements, equity requirements and loan limits. Nearly 700 credit unions that hold a small portfolio of commercial loans would be exempt from the requirement to establish a policy.

If the proposed rule is adopted, NCUA would conduct specialized training for examiners at a one-time cost of about $1.9 million before implementing the rule.
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Idea Institute: Early Bird Registration Ends July 1st! (Issue 5 of 6)

Idea InstituteDon’t miss out: The early bird registration for the Idea Institute ends on July 1st. This 10th anniversary of the Idea Institute will be held from August 17th through the 19th at the Omni Grove Park Inn in Asheville, N.C. For those who have never attended this event, it’s an opportunity to hear insight and ideas from credit union strategists and leaders around the country, and in an environment that offers repose and rescue from the summer heat! Several credit unions share that this is their one event they mark on their calendars early – but be sure not to miss the early discounted price. Please click here for more information, agenda and registration details.

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Virtual town hallRegistration Open for NCUA Virtual Town Hall (Issue 6 of 6)

NCUA Board Chairman Debbie Matz will host a town hall webinar with credit unions on Tuesday, July 28th at 3 p.m. EST. The webinar will feature updates on a range of subjects, including but not limited to:

  • Credit union system performance;
  • NCUA’s Regulatory Modernization Initiative;
  • Efforts to provide regulatory relief;
  • A forthcoming proposed rule on member business lending; and
  • Cyber security and interest rate risks.

To register, please click here.

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