InTouch is a member service of the Mississippi Credit Union Association. Published twice per year, it contains broad credit union movement news & updates with the addition of items of interest to volunteers. Subscribe to InTouch or other MSCUA publications here.

InTouch 2024 Issue One

FEATURED

MESSAGE FROM THE PRESIDENT/CEO
Regulatory Advocacy & Compliance Resources

MSCUA President/CEO
Charles Elliott, CLE, CUDE

The NCUA recently released its 2024 supervisory priorities. An article highlighting those priorities is provided in this InTouch issue.

As part of MSCUA’s ongoing regulatory advocacy, we recently sat down with an NCUA examiner to discuss the general Mississippi credit union regulatory environment and stay connected with the agency’s field experiences and expectations of credit unions.

Mississippi has 11 CAMEL “3” credit unions and 2 CAMEL “4s.” These higher risk ratings stem mainly from accounting and record-keeping issues, management and board activity/inactivity, and repeat findings.

The following were some of the common compliance issues noted in Mississippi credit unions:

  1. BSA-related findings, including filing late CTRs, SARs, and failing to download FinCEN searches within 14 days. Also, failing to properly document beneficial ownership and collecting enhanced due diligence.
  2. Third-party vendor management – failing to regularly monitor or perform regular due diligence on third parties.
  3. Succession planning – failure to provide formal timelines with detailed short-term and long-term plans should the President/CEO become unavailable.
  4. Disaster recovery/business continuity plans should include notifying the NCUA’s regional director in the event of a catastrophic act/disruption.

It was also noted that overdraft programs will become a focal examination point for credit unions with $100M – $500M in assets. Examiners may also perform high-level reviews on GAP insurance practices in credit unions.

During the conversation, the examiner also noted the excellent quality of the compliance resources available to credit unions through their membership with the Mississippi Credit Union Association:

  1. InfoSight is a user-friendly compliance solution created to help credit unions navigate the rapidly changing regulatory landscape. The content is designed to simplify complex laws and regulations, providing a clear understanding of the issues, their significance, and the steps credit unions must take to ensure compliance.
  2. CU Policy Pro is an industry leader in policy creation and management. It contains a comprehensive collection of over 230 model policies and procedures authored by industry experts, ready to be customized to your operations.
  3. MSCUA’s compliance email hotline, compliance@mscua.com, is another solution powered by MSCUA’s compliance consultants and backed up by the compliance experts at AUX. The compliance email hotline was added as a member benefit service last year through our cooperative strategic alliance with the Tennessee Credit Union League.
  4. MSCUA’s complimentary, on-demand annual BSA training webinar for staff and volunteers is an additional resource.

All of these resources are available to MSCUA member credit unions at no charge as an added-value benefit of membership. If your credit union is not taking advantage of these member resources, I encourage you to start. Details are available at https://mscua.com/knowledge/compliance/.

Please don’t hesitate to reach out to me if you have questions.

Questions or comments?  Reach out to Charles at president@mscua.com.

Registration is open for MSCUA Annual Meeting & Convention

Hotel rooms are nearing sell-out, and may be gone BEFORE the April 16 deadline, so don’t delay!

Join us May 15 – 17 at the Beau Rivage in Biloxi for three days of collaboration, learning, inspiration, and more for credit union leaders, volunteers, and industry professionals!

Featuring:

Turning Obstacles into Opportunities

Hoan Do, Speaker, Author & finalist in NBC’s American Ninja Warrior

Moving Metal: The Future of Car Buying

Alain Nana-Sinkam, Principal at Triple Double Auto Consulting and Co-Founder of Remarkit Automotive

Risk Management and Governance Topics for CEOs, Directors, and Committee Members

Ancin Cooley, Founder & Principal of Synergy Bank Consulting, Inc.

Crisis Leadership & Decision-Making

Robert J. Darling Lt. Col USMC (Retired), Speaker & Author

Mississippi leaders join thousands to advance CU priorities at 2024 Governmental Affairs Conference (GAC)

Thousands of credit union advocates from every state and the District of Columbia conducted more than 600 meetings on Capitol Hill in conjunction with the 2024 Governmental Affairs Conference (GAC), bringing the credit union difference directly to legislators and regulators.

Thirty-two credit union leaders attended this year’s event, advocating for and representing all Mississippi credit unions.

Learn how to become a Community Development Financial Institution (CDFI)

Wednesday, May 1
11:00 – 3:00 (lunch included)
MSCUA Office, 1400 Lakeover Drive, Jackson
There is no fee to attend, but PLEASE REGISTER HERE

Goal: To help credit unions understand the certification process and requirements established by the CDFI Fund and increase the number of certified CDFI credit unions in Mississippi.

Content will include an Introduction to CDFI Certification, Understanding the CDFI Requirements, Inclusiv’s Supporting Role, and How to Get Started.

Merger approved: Historic vote sets up transformation to America’s Credit Unions

The new organization launched Jan. 1, 2024.

In the fall of 2023, members of CUNA and NAFCU approved the associations’ merger into America’s Credit Unions. The new organization launched Jan. 1, 2024, and will spend the next several months aligning products and services to meet members’ needs, and committing to a culture that emphasizes accountability, transparency, and responsiveness.

NCUA’s 2024 supervisory priorities

In January, the National Credit Union Administration released Letter to Credit Unions 24-CU-01, outlining the agency’s 2024 supervisory priorities.

Priorities included credit risk, liquidity risk, consumer financial protection, information security (cybersecurity), and Interest Rate Risk.

New, free small CU business strategy resource now available

TruStage’s Select Credit Union Council, which is devoted to providing resources and input directly from credit unions under $100M, recently sponsored a research project in collaboration with America’s Credit Unions. The resource, curated by the America’s Credit Unions Small Credit Union Committee, compiles successful business strategies sourced directly from small credit unions nationwide.

What makes this resource particularly beneficial is that each shared practice includes a designated contact person whom you can reach out to for further information. The ideas and strategies within this resource are both insightful and practical. Business areas range from lending to technology, operations to marketing, so there is something in it for everyone, no matter where you need help within your organization.

Research: Expectations & concerns drive borrower behaviors

By Erika Romenesko, Strategy Manager, Lending Member Experience, TruStage™

Money matters are top of mind for a lot of people today. Clickable economic headlines, charismatic financial influencers and the rising costs of nearly everything are definitely contributing to consumers’ increased financial anxiety.

Worry often sparks action. Indeed, new research from TruStage™ indicates that consumers are taking financial steps that address their unique expectations and concerns. Interestingly, these steps appear to differ based on several nuances of the borrower journey, including the type of loan borrowers are considering.

Twists and Turns Along the Borrower Journey
It’s perhaps no surprise that today’s borrowers expect to research and apply for loans when and where they want, which for many, is online. However, TruStage researchers found that the type of loan a borrower is pursuing can change where they turn for answers.

The more complex a loan, the more borrowers appear to seek out human vs. digital sources. When comparing recent auto, personal and home equity borrower experiences, TruStage observed that borrowers who had recently obtained a personal loan were more likely to use an online search engine to research their options. Those who had recently obtained a home equity loan, on the other hand, were more likely to ask friends and family about their options.

As they move from planning to actively seeking a loan, borrowers appear to take different actions than originally planned. TruStage uncovered this finding by comparing the action steps of consumers who plan their loans for multiple weeks to those who had recently borrowed. For instance, 38 percent of survey respondents who were planning to apply for a loan expected to use a website to compare different loan options, such as rates, fees and term length. Yet, just 22 percent of those who had recently applied for a loan reported actually using a website to track down this information.

The research uncovered similar disparities in how borrowers expected they would engage with lenders as compared to how they actually did. Among those planning for a home equity loan, 44 percent expected to contact their financial institution via phone. Among those who recently obtained a loan, though, just 29 percent said they’d used the phone.

The speed and convenience of financing at the dealership continues to drive the difference between consumer intent and actual behaviors. While 62 percent of individuals looking for a new auto loan planned to secure their loans from their trusted credit union or bank, only 41 percent who recently obtained their auto loan actually did so from a financial institution.

Planning for Financial Obligations, in Good Times and in Bad
Underlying the functional decisions of how to research and apply for a loan are more holistic considerations. This includes concerns about the loan itself, such as whether a monthly payment or interest rate will meet their expectations. Borrowers also face more emotional considerations, like being able to consistently afford and make a monthly payment, in good times and in bad.

When TruStage asked consumers about their top concerns across loan and repayment categories, several insights came forward. For starters, the monthly payment was the most or second-most important loan concern considered by more than half of survey respondents. In terms of repayment concerns, 8 in 10 consumers have one or more concerns about their ability to make their loan payments, with unexpected expenses that come up being the highest concern.

Here again, there are differences in the worries expressed by borrowers based on the type of loan they are considering. For example, whereas 22 percent of personal loan borrowers in the TruStage survey had concerns about potential financial difficulties, just nine percent of auto loan borrowers said the same. This makes a lot of sense in context with what borrowers told TruStage researchers about previous financial problems. Nearly 20 percent of personal loan borrowers said they have missed a payment previously; a mere four percent of auto loan borrowers said the same.

Interestingly, borrower concerns appear to serve as a motivator for certain kinds of financial decisions. For example, despite variations in member preferences across different loan types, interest in payment protection solutions remains consistently high. Specifically, 64 percent are likely to consider payment protection for auto loans, 67 percent for personal loans and 65 percent for home equity loans. This is a highly actionable insight for all lenders who have the opportunity to provide debt protection solutions to assuage member worry.

Borrower Sentiment Supports Relationship-Based Growth Strategy
For credit unions that hope to gain trust through fiduciary relationships and member-centered experiences, it’s critical to understand as much as they can about how personal financial decisions are motivated and made. Research into consumer sentiment serves a meaningful purpose for our industry, which continues to grow thanks to its commitment to meeting people where they are, not where we expect them to be. Borrower insights are particularly important for credit unions lenders today when money anxieties can either freeze a member with fear or motivate them to action.

To learn more about borrower expectations and concerns, credit unions may download the 2023 TruStage Lending Consumer Preferences Survey.

The views expressed here are those of the author and do not necessarily represent the views of TruStage.

All data in this report is sourced from the 2023 Consumer Lending Preferences Research, conducted by TruStage in partnership with Epsilon, 2023.

TruStage™ is the marketing name for TruStage Financial Group, Inc. its subsidiaries and affiliates. Corporate headquarters: 5910 Mineral Point Road, Madison WI 53701.
© TruStage

LPS-6400054.1-0224-0326

Board of Director: Delegable vs. non-delegable duties

By America’s Credit Unions

Someone told me that tomorrow is Valentine’s Day. If you’re looking for love advice, you’ve come to the right place. Word on the street is the quickest way to make someone fall for you is a stare down from Chuck Norris… and probably roses.

What would not be a good idea is to delegate the responsibility of impressing a love interest to a friend, because you just might lose the girl. This is analogous to a federal credit union’s Board of Directors (board) delegating direction and control of the Federal Credit Union to an employee.

As the National Credit Union Administration (NCUA) discussed in this opinion letter, directors have certain general duties when serving a federal credit union.

The final rule contains the following six key provisions:

NEWS

News and photos from Mississippi’s credit union community are now curated on our member news pages!

Latest Headlines

2024 Credit Union-Sponsored Shred + Med + Device Disposal Days Schedule Announced (Read > >)

HOPE to Host Economic Mobility Forum in Cleveland, MS on April 16 (Read > >)

Jackson, Meridian CUs collaborate to host Easter Egg Hunt community events (Read > >)

Statewide FCU’s Milner selected as Mississippi’s 2024 GAC Crasher (Read > >)

1st Mississippi shares money management tips (Read > >)

Keesler Federal recognized as regional standout by community members (Read > >)

Keesler Federal Names Jerrica Griffin Director of Operations-Northern Region (Read > >)

Rivertrust helps student learn more about budgeting (Read > >)

Ferguson FCU hosts blood drive (Read > >)

Mutual CU recognized by community as ‘best’ (Read > >)

1st Mississippi FCU celebrates reading, science with local schools (Read > >)

Mutual CU receives ‘Spirit of Vicksburg’ award (Read > >)

Pine Belt FCU helps students learn about careers with credit unions, money management (Read > >)

Keesler FCU assists organizations helping homeless community (Read > >)

Keesler Federal Credit Union partners with Saints, Pelicans as official credit union of the teams (Read > >)

TRAINING & EVENTS

Register Now: 2024 MSCUA Annual Meeting & Convention

April 16 Registration Deadline

The 2024 MSCUA Annual Meeting and Convention will be held May 15 – 17, 2024, at the Beau Rivage in Biloxi.  REGISTER NOW> >

Registration Open: Southeast Directors Conference

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The Southeast Regional Directors’ Conference is designed for credit union directors and committee members. This year’s conference is set for July 28-31, 2024 at the beautiful Williamsburg Lodge in Colonial Williamsburg, VA. MORE > >

More Events

NACUC Leadership Development Seminar, May 19 – 21, Nashville  GET DETAILS > >

NACUC 48th Annual Chairs’ Roundtable Forum, Oct. 15-18, New Orleans GET DETAILS > >

Upcoming Webinars

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