CUNA GAC
Michigan Attendee Briefing
Hosted by
Michigan Credit Union League & Affiliates
March 14, 2012
Instructions to Access Briefing
• Call toll-free: 1-888-742-8686
• Conference ID: 7828473
• Participants can follow along with the PowerPoint.
Welcome & Opening Comments
Dave Adams
MCUL & Affiliates CEO
First Time CUNA GAC Attendees
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Jeff Trelfa, Alpena Alcona Area CU (Blue Ox)
Ted Fredrickson, Michigan Tech Employees FCU (UP)
Karen Fredrickson, Michigan Tech Employees FCU (UP)
Sheila Wright, Dow Chemical ECU (Mid-Michigan)
Karen Rawls, CO-OP Service CU (Metro West)
Teresa Santana, Wanigas CU (Mid-Michigan)
Events for First Time CUNA GAC Attendees
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There again are some different opportunities this year for first time attendees to
learn more about the CUNA GAC with regard to what to expect at the
conference and during the Hill visits:
– First-Time Attendee Orientation with CUNA CEO Bill Cheney on Sunday,
March 18 from 2-3 pm in Room 202 A-B in the Washington Convention
Center
– MCUL & Affiliates staff will also be on hand Sunday, March 18 in the Coeur
de Lion restaurant at the Henley Park Hotel at 3:30 pm (prior to the 5:00 pm
Welcome Reception) to meet with first time attendees.
• Veteran attendees that may be willing to be paired with a first time
attendee should also consider attending
– During the hospitality suite on Tuesday, March 20 (which runs from 6-7:30
pm), MCUL & Affiliates will again provide information on Hill visit changes
and a brief legislative discussion at 6:30 pm
• Great opportunity for new attendees and veterans to ask questions and
also get the most up to date information on times for Hill visits
CULAC Raffle Tickets
• Each year at CUNA’s GAC, CULAC host its Grand Sweepstakes
to raise money for CUNA’s PAC-CULAC.
• This sweepstakes is CULAC’s single biggest fundraiser of the
year.
• CULAC raffle tickets will again be sold at the Michigan Welcome
Reception on Sunday night as well as each night at the
hospitality suite.
• Tickets are $10 each-can accept cash, check, or credit card
• Howard Spencer, Lon Bone, and Don Yuvan will be selling them
on behalf of CULAC.
• If everyone bought three tickets, we would reach our goal!
• Grand Prize is an iPad 2 with a number of accessories. Other
raffle winners have the chance to win prizes donated by state
leagues.
Project Zip Code
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Project Zip Code (PZC) is a user friendly, secure computer program that
counts your credit union members and matches them by congressional
district, state legislative district and county.
These counts are then uploaded to CUNA’s PZC Web site and combined with
data from other credit unions nationwide and aids our federal and state
advocacy efforts.
Credit unions can view credit union members by geographic area, which can
be useful in placing ATMs and shared branching.
Your information is safe and secure with PZC. No personally identifiable data
or individual information leaves your computer. PZC receives only counts of
records successfully matched by the program. All of your data remains
confidential and secure with PZC.
Thanks to your participation, we were able to increase our total number of
CUs by 26 over the prior year, identifying an additional 580,000 CU members
in Michigan.
Total for Michigan, we have 138 credit unions that have used the program
identifying 3,360,029 members.
MI CU Members by Congressional District
District Name
Credit Unions
Total Members
US Population
Congressional District 1
1,409
239,725
Congressional District 2
1,270
200,587
660,404
Congressional District 3
1,243
212,022
663,223
Congressional District 4
1,331
216,849
660,629
Congressional District 5
1,128
245,356
662,616
Congressional District 6
1,379
293,880
663,525
Congressional District 7
1,330
245,895
663,385
Congressional District 8
1,356
307,960
662,720
Congressional District 9
1,315
187,031
662,050
Congressional District 10
1,151
220,862
658,762
Congressional District 11
1,347
191,061
662,599
Congressional District 12
1,144
185,068
662,241
Congressional District 13
965
97,374
661,704
Congressional District 14
960
132,538
662,122
Congressional District 15
1,404
172,293
663,727
3,148,501
9,926,899
Total
657,192
2012 PAC Lapel Pins
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2012 MCULAF (State PAC) Lapel Pins
will be available for purchase at the
CUNA GAC.
Another level of giving has been added:
$1,000. All other levels remain the
same: $25, $50, $100, $250, and $500.
The overall design has changed. In
addition, the pins now have a magnetic
backing instead of the push pin style.
As always, a payroll deduction option is
available.
Please see MCUL staff at the hospitality
suite to purchase a pin.
Get yours for the 2012 CUNA GACdon’t be caught without a pin in DC!
MCUL Staff Contact Numbers
• Henley Park Hotel
926 Massachusetts Avenue, NW
Washington, DC, 20001
• Phone: 202-638-5200 Fax: 202-638-6740
• Dave Adams:
• Drew Egan
• Jordan Kingdon:
517-304-7777 (mobile)
517-304-6556 (mobile)
517-614-6758 (mobile)
Conference Agenda Highlights
 Sunday, March 18, 2012
12:00 - 8:30 p.m. Conference Registration and Welcome Center Open
2:00-3:00 p.m. CUNA First Time Attendee Orientation
3:00-5:00 pm Small Credit Union Roundtable (under $35m)
5:00 - 7:00 p.m. MCUL & Affiliates Welcome Reception, Blue Bar and the
Wilkes Room (lobby), Henley Park Hotel
7:00 - 8:30 p.m. Exhibit Hall Grand Opening
8:30-10:00 p.m. Entertainment: Opening Concert
 Monday, March 19, 2012
7:00 a.m. – 4:15 p.m. Conference Registration
7:30 – 9:15 a.m. Exhibit Hall Open
9:00 – 11:30 a.m. Opening General Session and CUNA Annual General Meeting
11:30 a.m. – 1:30 p.m. Exhibit Hall Open
1:30-4:00 pm General Session Legislative and Political Update
4:00 – 5:30 p.m. MCUL Hospitality Suite Open, Blue Bar and the Wilkes Room
(lobby), Henley Park Hotel
6:00 p.m. Herb Wegner Memorial Awards Dinner (Grand Hyatt)
Conference Agenda Highlights
 Tuesday, March 20, 2012
7:00 a.m. – 5:00 p.m. Conference Registration
7:30 – 9:00 a.m. Exhibit Hall Open
9:00 a.m. – 12:00 p.m. General Session with Keynote Presentation
12:00 – 1:45 p.m. Exhibit Hall Open
2:00 – 3:15 p.m. Breakout Sessions
Late Afternoon MCUL Hill Visits
3:30- 4:45 pm Breakout Sessions
4:45 - 6:00 p.m. Reception with NCUA Board and Regional Directors
5:00 – 6:30 p.m. Exhibit Hall Closing Session
6:00 – 7:30 p.m. MCUL Hospitality Suite Open, Blue Bar and the
Wilkes Room (lobby), Henley Park Hotel
9:00 - 10:30 p.m. Late Night at the GAC
Conference Agenda Highlights
• Wednesday, March 21, 2012
8:00-9:30 am Michigan Congressional Breakfast (Rayburn House
Office Building B-340)
9:00 a.m. - 5:00 p.m. Hill Visits
8:30-11:45 a.m. General Session
5:00-6:30 p.m. Maxwell, Herring, and Desjardins Awards
Reception
7:00 p.m. Closing Conference Gala Reception/Dance
Credit union officials should feel free to schedule flights back to
Michigan after 5:30 p.m. if they would like to return Wednesday
night.
• Thursday, March 22, 2012
No General Session-CUNA allowing more time for Hill visits
(Note: The MCUL & Affiliates will not be scheduling Hill visits this
day)
MCUL Congressional Breakfast &
Awards Presentation
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Wednesday, March 21st from 8 am – 9:30 am.
B-340 Rayburn House Office Building.
Breakfast will be served.
2011 MCUL Federal Lawmaker and Staffer of the Year Awards
will be presented to:
– Congresswoman Candice Miller (R-Harrison Township)
– Kim Bowman, Chief of Staff for Congressman Hansen
Clarke
• Please remember to give yourself extra time to get
through security.
Capitol Hill Visits
• Up-to-date Capitol Hill meeting schedules will be emailed to all
Michigan CUNA GAC registrants on Friday, March 16.
• Copies will also be available on site with staff at the hospitality
suite in the Henley Park Hotel.
• The Hill meeting schedules are based on credit union
headquarter and branch locations.
• If your Hill schedule permits, please feel free to attend your own
(home) representative meeting.
• However, because of size limitations, only credit union officials
designated to meet with Senators Levin and Stabenow may
attend.
• The attendees for these meetings will be finalized Friday, March
16 when more Hill visit times have been confirmed.
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Hill Meeting Tips
• Arrive at least 5 minutes early for your Hill visits and wait in the
hall until other CU officials arrive.
• Provide lawmaker and their staff with a copy of federal
legislative issues briefing material included in your packet.
• Be prepared – Know the issues!
• Remember to take pictures that can be included in your CU
newsletter and in Michigan Monitor.
• Be sure to follow-up on your meetings with a “Thank You”
letter or note.
• Please pass along any important information learned in your
meetings (and pictures) to MCUL Governmental Affairs staff at
[email protected].
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Tentative Hill Visit Meeting Schedule
(In Order by Date/Meeting Time)
Dist.
7
5
3
11
Lawmaker
Tim Walberg
Dale Kildee
Justin Amash
Thad McCotter
Day
Tues.
Tues.
Tues.
Tues.
Time
3:00 pm
3:30 pm
3:30 pm
4:30 pm
Location
418 Cannon
2107 Rayburn
114 Cannon
2243 Rayburn
2
Bill Huizenga Wed.
9
Gary Peters
Wed.
13
Hansen Clarke Wed.
14
John Conyers Wed.
Sen. Debbie Stabenow Wed.
1:15 pm
1:30 pm
1:45 pm
2:00 pm
2:45 pm
1217 Longworth
1609 Longworth
1319 Longworth
2426 Rayburn
133 Hart
(with Banking LA Art S.)
Tentative Hill Visit Meeting Schedule
(In Order by Date/Meeting Time)
Dist.
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1
Lawmaker
Day
Sander Levin Wed.
Dan Benishek Wed.
10
Candice Miller
6
Fred Upton
15
John Dingell
8
Mike Rogers
4
Dave Camp
Sen. Carl Levin
TBD
TBD
TBD
TBD
TBD
TBD
Time
3:45 pm
4:30 pm
Location
1236 Longworth
514 Cannon
1034 Longworth
2183 Rayburn
2328 Rayburn
133 Cannon
341 Cannon
269 Russell
Hill Meeting Time Confirmation
• Any changes in meeting times will be posted in the MCUL’s
hospitality suite on Monday and Tuesday night.
• Please remember to stop by the hospitality suite to confirm
your meeting schedule as well as pick up any additional
materials you may need.
• MCUL staff will be on hand at the hospitality suite Tuesday
night at 6:30 p.m. to go over any last minute changes to Hill
visits and conduct another legislative issues briefing for
those that are interested.
• If you have any questions, please do not hesitate to contact
MCUL staff on their cell phones.
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Legislative Update
Federal Legislative Issues:
 About Credit Unions
 Member Business Lending
 Supplemental Capital
 Housing Finance Reform
 ATM Disclosure
 Examination Fairness
 Cybersecurity and Data Security
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About Credit Unions
Key messages for your Hill visit:
• Credit Unions are the best way for consumers to conduct their
financial services.
• Credit unions benefit everyone-whether a member or not.
• Credit union members save over $6.5 billion each year by doing
business with their credit union as opposed to a bank.
• Bank customers benefit about $3.5 billion because credit unions are in
the marketplace.
• CUNA estimates Michigan credit unions provided $200,607,265 in
direct financial benefits to the state’s 4.47 million members during the
twelve months ending June 2011.
• The not-for-profit credit union governance model relies on one
member, one vote. Unlike banks, credit unions exist to serve their
members, not investors.
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About Credit Unions (continued)
Key messages for your Hill visit:
• Credit unions weathered the financial crisis well, but are now
challenged by statutory restrictions, regulatory burdens and
inconsistent examination practices including:
– A statutory cap on business lending.
– A restrictive capital definition.
– 19 transferred regulations from various Federal agencies to the
CFPB.
– New regulatory requirements due to the Dodd-Frank Act.
• Six proposals pending at NCUA which include: loan
participations, troubled debt restructurings, CUSOs, liquidity,
RegFlex, and derivatives
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Member Business Lending
Key messages for your Hill visit:
• Raising the Member Business Lending Cap is about helping small
businesses.
• Credit unions could lend up to $13 billion in the first year if the MBL
cap was raised creating over 140,000 new jobs at no cost to
taxpayers. In 2011, Michigan credit unions increased their small
business lending by 21%.
• Credit unions have been lending to their business-owning members
for a century. There was no member business lending cap prior to
1998.
• Credit unions have a sound track record when it comes to business
loans, specializing in lower loan amounts with a national average of
$220,000.
• Banks have reduced lending to small businesses while credit unions
have expanded credit to them.
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Member Business Lending (continued)
Key messages for your Hill visit:
• We know banks oppose this and that Congress doesn’t want to
choose between friends – but Congress helped the banks already
by making $30 billion of taxpayer funds available to help small
businesses.
• The banks took only $4 billion of that and used half of it to repay
TARP obligations. They’ve had their chance. Now, it’s our turn and
H.R. 1418 is a bill that doesn’t cost the taxpayers any money.
• ASK: Co-sponsor H.R. 1418/ S. 509 and encourage leadership
to add this language to upcoming job legislation
• Current co-sponsors: Reps. Peters (D-9), Kildee (D-5), McCotter (R11), Miller (R-10), Conyers (D-14), Levin (D-12), Upton (R-6), and
Clarke (D-13). Also Sens. Levin and Stabenow.
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Supplemental Capital
Key messages for your Hill visit:
• For credit unions, the only type of capital that counts is retained
earnings. Credit unions remain healthy and well capitalized, but the
importance of having supplemental forms of capital available to credit
unions has taken on increased importance.
• Low-income designated credit unions already have the authority to
access supplemental capital. It’s important that all credit unions are
provided this authority as well.
• Under current law, the more deposits a credit union accepts, the more
its capital ratio declines. When capital ratios decline, credit unions
could face prompt statute regulated corrective action by their regulator.
• HR 3993 allows well-capitalized local and community-based credit
unions to receive supplemental capital so they may continue to meet
the needs of their growing membership.
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Supplemental Capital (continued)
Key messages for your Hill visit:
• Access to supplemental capital is useful as credit unions
rebuild capital ratios following the financial crisis and
recession.
• The NCUA will ultimately determine what forms of
supplemental capital can be offered, consistent with the
parameters established by H.R. 3993 and subject to
appropriate suitability requirements and consumer disclosure
protections.
• ASK: Co-sponsor H.R. 3993
• Current co-sponsors: Reps. Miller (R-10), McCotter (R-11),
and Upton (R-6)
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Housing Finance Reform
Key messages for your Hill visit:
• Credit unions must continue to have access to the secondary mortgage
market.
• Credit unions have traditionally been portfolio lenders, typically selling
approx. 45% of their originations. Credit unions rely on a functioning
secondary mortgage market.
• Over the last two years, credit unions have sold over half of their new
loans to the secondary market.
• The federal government has a very important role to ensure the
secondary market operates efficiently, effectively and fairly for
borrowers and lenders alike.
• Recent data shows Michigan credit unions’ total loans by year-end
2011 reached $23.2 billion, finishing the year with annual growth of 0.2
percent over 2010 (recouping all the decrease in total loans occurring
in the first quarter).
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Housing Finance Reform (continued)
Key messages for your Hill visit:
• Fourth quarter 2011 data showed that Michigan credit union consumer
lending grew by $130 million for first home mortgages.
• The MCUL and CUNA believe these are the top principles that must be
considered in any comprehensive housing finance reform
– Equal Access to the secondary market.
– Strong oversight and supervision to ensure safety and soundness.
– Durability to lend to qualified borrowers even in troubled times.
– Predictable and affordable payments.
– Affordable housing should function separately from the secondary
market.
– Transition to the new housing finance system should be reasonable
and orderly.
• ASK: Members of both the Senate and the House to support credit
union access to the secondary market.
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ATM Disclosure
Key messages for your Hill visit:
• Under current law, financial institutions which operate ATMs
are required to provide both a physical and an electronic notice
regarding ATM fees that may be assessed during any
transaction. Failure to provide both disclosures can result in
significant penalties.
• In recent years, there has been a surge in the number of
disclosure lawsuits filed against credit unions and community
banks. In some cases, vandals have pealed back the physical
disclosure and then sued the financial institutions for
noncompliance.
• To protect themselves from lawsuits, credit unions have had to
spend time and money documenting their compliance and
fighting frivolous lawsuits.
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ATM Disclosure (continued)
Key messages for your Hill visit:
• The MCUL and CUNA believe the requirement for a physical
disclosure is unnecessary and redundant. There will be no
harm to consumers if only an electronic disclosure were
required.
• We anticipate that legislation will be introduced soon to clarify
that only the electronic disclosure is required and we support
that legislation.
• ASK: Co-sponsor this bill when it is introduced and urge
its passage
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Examination Fairness
Key messages for your Hill visit:
• Credit unions strongly support fair and appropriate safety and
soundness regulation and oversight to protect the financial
resources of credit unions and their members.
• Credit unions, as a whole have concerns about the exam process.
These include exam findings that are not based on law or
regulation.
• The Financial Institution Examination Fairness Reform Act would
make the information examiners use to make decisions in their
examination available to credit unions; codify certain examination
policy guidance; establish an ombudsman at the FFIEC to which
financial institutions could raise concerns with respect to their
examination; and, establish an appeals process before an
independent law judge.
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Examination Fairness (continued)
Key messages for your Hill visit:
• The MCUL and CUNA strongly support H.R. 3461 and,
while it is not a perfect piece of legislation, we view it as a
firm step in the right direction toward ensuring the federal
financial institution regulatory agencies (regulators)
conduct fair exams which are consistent with the law and
regulation and ensure safety and soundness.
• ASK: Co-sponsor H.R. 3461
• Current co-sponsors: Reps. Benishek (R-1), Huizenga
(R-2), and McCotter (R-11)
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Cybersecurity and Data Security
Key messages for your Hill visit:
• Congress is considering legislation related to cybersecurity and
data security. While related, they are currently separate legislative
proposals. Senator Joseph Lieberman (D-CT) recently introduced
comprehensive cybersecurity legislation (S. 2105). The bill allows
Homeland Security to determine which industries and companies
should be required to develop cybersecurity policies.
• Credit unions are already subject to strict data security regulation.
In addition to the Gramm-Leach-Bliley Act (GLBA) requirements,
credit unions are subject to regulations, rules and letters issued by
the NCUA, FFIEC and Treasury regarding the safe keeping of
data and breach notification. Credit unions notify customers that a
breach has occurred, replenish any financial losses to an account,
and reissue payment cards if necessary.
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Cybersecurity and Data Security (continued)
Key messages for your Hill visit:
• In any bill considered by Congress, the MCUL and CUNA
support:
– Allowing credit unions to notify members not only that a
data breach occurred but the source of the breach.
– Requiring merchants to follow the same strict regulatory
requirements as credit unions to protect financial data.
– Requiring merchants to comply with existing regulation on
payment card data destruction.
• Because credit unions are subject to some of the strongest
cyber security requirements, Congress should focus
cybersecurity legislation on sectors that are not subject to as
strong regulation.
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Questions?
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CUNA GAC
Michigan Attendee Briefing
Hosted by
Michigan Credit Union League & Affiliates
March 14, 2012