SCUNet News

August 2012

NCUA Small Credit Union Exam Changes

NCUA is implementing a streamlined exam program for FCU’s with assets less than $10 million and a CAMEL rating of 1, 2, or 3.

This relieved burden reflects a reduced scope aimed at focusing in on the most pertinent areas of risk in small credit unions – lending, recordkeeping and internal audit functions.

The program also includes a streamlined Examination Overview to highlight significant issues in an easy-to-read table format. This means that much of the guidance and direct assistance examiners previously provided small credit unions during the examination process will now be provided by the Office of Small Credit Union Initiatives (OSCUI) Economic Development Specialists (EDS).

To enroll in OSCUI’s National Small Credit Union Program (NSCUP), contact your examiner and request assistance. In most cases, an OSCUI EDS can assist you with implementing corrective actions outlined in the Document of Resolution developed during your examination.

NCUA Letter No: 12-FCU-03 highlights the changes and can be found here.


Collaboration Corner

Westho FCU & PACUF – A Success Story

While the Pennsylvania Credit Union Foundation (PACUF) serves credit unions with assets less than $30 million, PACUF offers a special grant for credit unions less than $10 million.

Strategic Planning Lite (SPL) combines strategic planning with the preparation of a marketing plan or adding technology to increase membership. Westho FCU, Greensburg, PA, received an SPL Grant for marketing and implemented a direct mail loan campaign in March.

“Results were beyond our expectation,” said CEO Nadeen Bartlett. Monthly loans have grown 50% since March and have continued at that level through June.

Westho’s grant includes a second direct mail campaign set for September. Nadeen states, “we are grateful to the foundation for their help! Small credit unions like us don’t have the expertise or the extra funds for marketing.”

Contact Nadeen at 724-832-4333 for more information on the process and promotion. Complete information on this grant and others offered through the PACUF can be found here.

Questions, contact Rick Myxter at 1-800-932-0661, ext. 5214.


CU PolicyPro Tip of the Month

Word from the recent NCUA Workshop in Pittsburgh is that among others, NCUA will be looking for policies on Interest Rate Risk, Liquidity and Concentration Risk in the upcoming exams.

Your CU PolicyPro manual contains these policies; all of which can be easily customized to fit your credit unions specific needs.

5300 - Interest Rate Risk Management
5200 - Liquidity Risk Management
7110 - Loan Concentrations

For further assistance with CU PolicyPro or to schedule a FREE training session, contact Elaine Royer at 800-932-0661, extension 5341, or elaine.royer@pcua.org.

Compliance Q&A

Q: . Mary Member just brought in a check made out to:

Mary Member
Marvin Member

We know that if a check contains an “and” both parties are required to endorse it and if it contains an “or” either party may endorse it. In this case it does not have an “and” or an “or” what do we do?

A: When it is unclear if it is an “and” or an “or” the UCC says it can be treated as if it contained an “or”. Whenever possible, however, it is a good idea to obtain the endorsement of every party named as payee.

 

Payment Systems Conference

Registration Reduced!
ONLY $129
Credit unions under
$20 million in assets
pay just $97!

Innovation in the payments market is in constant motion, and our members are demanding more purchase options and all point access to their funds.

What steps are you taking to develop your payment programs? Will your credit union be on the forefront or viewed as playing catch up to the competition?

Join us for an in-depth look at THE ROAD AHEAD in the payments industry, and leave better prepared to compete in an ever-evolving payments market.

Click here for all the details and to register.

 

 

Sprint Pays

Adding new revenue streams is always a top priority for credit unions. Loans and investment income growth has been modest so far, while new opportunities to grow income, especially non-interest income have become particularly intriguing to many.

Credit unions like yours are also consistently trying to enhance the value of membership to further differentiate from other financial institutions.

What if you could do both? You can with the Sprint Member Discount Program through Invest in America. Benefits include:

  • Effective tool to promote the added-value of membership
  • Noninterest income potential for your credit unions
  • FREE marketing materials for statement mailings and lobby distribution
  • Sprint handles all member service needs

The Pennsylvania Credit Union Association joins more than 42 state credit union leagues nationwide to bring this valuable program to its credit unions.

Currently, there are more than 1,700 credit unions participating in the Sprint program. If you would like additional information on the Sprint discount program, please contact the PCUA Account Executive or visit www.lovemycreditunion and start earning revenue now!

Click here for enrollment form. Don't delay, must be enrolled by September 30, 2012 to receive full 2013 incentive.

 

CU Protection Webinar

CUNA Mutual Group is holding a complimentary webinar for all bond policyholders on Wednesday, August 15.

The session, Director’s Risk Oversight and Liability, is an overview of the extent and nature of the board’s responsibilities as it relates to risk oversight and key items to be considered when adopting a risk oversight approach.

To register, click here.
Sign-in is required.

For more information on all CMG’s available webinars, visit
www.cunamutual.com/education.

 

Pennsylvania Credit Union Association