Archive for Management & Operations

Developing the Next Leaders Within Your Credit Union

By Peter Myers, MSC, PCC, Vice President, DDJ Myers

If I told you that you could handpick a group of leaders who would be perfectly invested in your credit union, would you jump at the chance? Now what if I told you these potential leaders may be individuals who you already interact with every day? Of course, I’m talking about looking within your own organization and identifying emerging leaders from your staff, and then providing them the training to transform into leaders and thinkers who exceed expectations for both you and your members.

Who Is an Emerging Leader in Your Credit Union?

To identify emerging leaders within your ranks, I encourage you to cast a wide net and look beyond obvious candidates such as vice presidents and other upper management. Perhaps there’s a team leader, a department manager, or a teller supervisor who has shown leadership potential by delivering excellent member service or proactively helping on team projects. By paying close attention and identifying those employees who put your credit union values into action, you may be surprised at how many of your staff have the potential to exceed expectations and grow into leadership roles. Read more

Debt: The Inheritance No One Wants

Originally posted on CUInsight.

Guest post written by Kristi Nelson, Second VP and Actuary, Securian Financial Group

Second VP and Actuary
Second VP and ActuarSecurian Financial Group

Have you thought about what would happen to your debt when you die?

When Securian Financial Group posed that question to 1,004 Americans of all ages in an online survey last September, nearly one third (31 percent) said they had not thought about it.

Lopsided personal finances

Among the respondents in Securian’s recent survey who hold debt as primary borrowers or cosigners, significant percentages could leave behind large financial obligations if they died. Twenty percent owe $100,000 or more. Forty-four percent owe $25,000 or more. Read more

Credit Unions Need to Know KBYO

Originally posted on CUInsight.com.

Guest post written by John Levonick, Chief Legal & Compliance Officer, Accenture Mortgage Cadence

Accenture Mortgage Cadence is the NAFCU Services Preferred Partner for Mortgage Processing and Fulfillment Services.

Join compliance specialists, John Levonick and Suzanne Garwood, as they discuss The 7th Rule: Unintended Consequences of the New, “Simplified” Mortgage Disclosures” on Wednesday, July 9, 2014 at 2:00 pm–3:30 pm ET.

Know Before You Owe (KBYO), the new mortgage disclosure regulation, does not take effect until August 2015.  So why talk about it now? This change in mortgage disclosures is sweeping, and, in many respects, bigger than the Qualified Mortgage (QM) and Ability to Repay (ATR) Rules.  Its complexity and broad range poses significant challenges for mortgage originators.

First things first:  Know Before You Owe, a product of the Dodd-Frank legislation, introduces two new disclosures: the Loan Estimate and the Closing Disclosure.   The Loan Estimate is designed to provide disclosures that help borrowers understand the key features, costs, and risks of the mortgage loan for which they are applying.  It must be issued within three days of loan application.  So far so good; this is the same requirement that is in place today for the Truth-in-Lending (TIL) and Good Faith Estimates (GFE).  The big change, however, is that the Loan Estimate replaces the TIL and GFE forms that every lender (and every borrower that has taken out at least one mortgage) knows well.

The Closing Disclosure is designed to provide information that helps borrowers understand all of the costs of the transaction. It must be received by the borrower three business days prior to the closing date.  The HUD-1 and TIL that is due at closing is replaced by the Closing Disclosure. These forms, too, are familiar to every lender and seasoned borrower.

The implications of KBYO are broad and touch every corner of the mortgage origination process.  So, in setting priorities in the areas of people, process and technology, where should lenders focus first?  The short answer is technology.  While QM and ATR were technologically challenging — with some platforms managing them better than others – KBYO is even more so because of the way it handles the costs borrowers typically encounter when taking out a mortgage loan.  Dealing with KBYO is a major undertaking.

People, both internal and external, should be the second focus for KBYO implementation.   Mortgage teams must re-learn and translate all they know from the Truth-in-Lending, Good Faith Estimate and HUD-1 forms.  Every mortgage lender knows them well and can explain them thoroughly.  As of August 1, 2015 these forms become a part of mortgage history.  Training staff well is a critical first step, because the next step is educating borrowers.  First-time borrowers, of course, are unaffected.  Since they have never seen a TIL, GFE or HUD-1, they will not be surprised by the new disclosures. Repeat borrowers are another story altogether, especially those who have financed or refinanced a home more than once.  The Loan Estimate and the Closing Disclosure will be completely foreign to them, so it will be essential to have a well-trained and well-prepared lending staff to put them at ease.

Know Before You Owe affects mortgage origination in a number of ways, so process should be the third area of concentration.  It is important to have the right technology (and trained people) in place before tackling processes.  Technology drives the flow of most mortgage operations and the right technology is essential to refining the processes needed to address the new regulations.

While 16 months may seem like a long time from now, objects on the horizon are closer than they appear.  Now is the time to get to know Know Before You Owe, and to start making sure that your mortgage technology is ready when – or better yet, before – this complex and sweeping regulation takes effect.

The Top 5 Myths about Executive Benefits

Guest post written by Christine Burns-Fazzi, Principal, Burns-Fazzi, Brock.

Burns-Fazzi, Brock (BFB) is the NAFCU Services Preferred Partner for Executive Compensation and Benefit Consulting.

There is a lot of mystery swirling around executive benefits. A well-designed  plan does more than pay for performance and longevity, or provide the ability to offer supplemental retirement benefits to key executives. While executive benefit plans are designed to recruit, reward, and retain senior executives, they are also arranged to have a positive impact on the credit union’s earnings. Of course, all of this must be accomplished with a constant eye on federal and state regulations.

While we all can agree on what an executive benefit plan is, it is equally as important to note what an executive benefit plan is not. Here are the top five common myths about executive benefit plans: Read more

Exercising 101 (and I don’t mean how to do a push-up)

Originally posted on quantivate.com.

Guest post written by Andrea Tolentino, Operations Consultant, Quantivate

Quantivate is the NAFCU Services Preferred Partner for Vendor and Contract Management

The auditor just left your building telling you your organization needs an exercise program for business continuity and without one you would be in trouble next time around. You are thinking to yourself, how in the world am I going to be able to accomplish completing a scenario-based exercise by the end of the year? Especially with all of the other tasks I have to do?! There is no way!

You are in luck because here are my top five tips to getting your organization on the right track for exercising. Follow these tips and you will be set for exercise success. Read more