We are only 16 days away from Summit time, and everything is in place for another great event on May 9 – 10. Registration and turnout from credit union professionals, volunteers and our business partners is exceptional. The annual Summit is our premier event here in the Dakotas, and we’re looking forward to connecting with you all soon in Fargo. Don’t forget to download (or refresh) the DakCU Mobile App prior to the Summit, and be sure to allow push notifications so you will receive important event updates, changes, and announcements. ND credit unions file lawsuit to recover funds held by NCUA. A group of North Dakota credit unions have taken the next step in an attempt to recover their rightful funds following the U.S. Central Federal Credit Union (U.S. Central) liquidation by filing a lawsuit in the U.S. District Court earlier this month. The 25 credit unions, all capital holders of the now dissolved Midwest Corporate Federal Credit Union (Midwest Corporate), are advancing their claim against the National Credit Union Administration (NCUA), the liquidating agent of U.S. Central. Midwest Corporate FCU was a membership capital account (MCA) holder of U.S. Central. We were hoping to avoid litigation, however, the NCUA chose to put our members through an endless bureaucratic process of appeals and denials. You can read full story in this Memo issue. ND Legislative Management Committee removes credit union taxation study. The North Dakota Legislative session is in its final days, and last week it produced some good news as the Legislative Management Committee removed the study on the impact of credit union taxation. If you recall, the study was added as an amendment to HB 1092, the North Dakota DFI’s clean up language on credit union liquidation. The North Dakota Bankers Association brought the idea of study to the House Industry Business and Labor committee in early March. New FHFA Rule means monthly mortgage payments will increase for new mortgages. The Federal Housing Finance Agency (FHFA) is implementing a new rule that will force home buyers with good credit to pay more for their mortgages and fees. This effort is supported by the administration which will subsidize loans to higher-risk borrowers who are also in the market to buy a home. Some experts in the mortgage industry report that homebuyers with credit scores of 680 or higher will pay about $40 more per month, almost $500 a year more on a $400,000 mortgage. Those who make down payments of 15 to 20 percent will get stuck with the largest fees. The rule would allow consumers with lower credit ratings and less money for a down payment to qualify for better mortgage rates than they would have previously. The FHFA explained that these rules are meant to “increase pricing support for purchase borrowers limited by income or by wealth.” However, many experts have spoken out against this rule, arguing that it will do more harm than good to both the market and the consumers. Is this just one more rule that overcomplicates the entire home-buying process? The housing market is already struggling in the wake of interest rate increases by the Federal Reserve. Penalizing borrowers with good credit scores with larger down payments will not go over well with credit union members seeking mortgage applications moving forward. SWAP Update. I am absolutely thrilled to share that the numbers from our 2022 State-Wide Awareness Program (SWAP) not only met – but exceeded our expectations. We hit over 24.4 million impressions in the Dakotas, and that number doesn’t even include the monthly printed newspaper ads that have been running in published newspapers across both states, and it doesn’t include the social media posts. Be sure to check out the related article from Lindsey Hefta in today’s Memo for a breakdown of those results. It is not too late to participate for this year, and we have more great CU awareness plans that are being put into action right now. If you would like to engage in this program, please reach out to Lindsey. DakCU joins CUNA in letter to Federal Reserve about privately insured credit unions. Last week, the Dakota Credit Union Association joined CUNA, AACUL, and more than 40 state credit union leagues and associations in a joint letter to the Federal Reserve regarding the exclusion of privately insured credit unions from participation in the Fed's new Bank Term Funding Program (BTFP). In March, the Federal Reserve Board announced the creation of the BTFP, a temporary facility to make additional liquidity available to depository institutions designed to ensure that financial institutions have the ability to meet an unexpected and unordinary demand for withdrawals from their depositors. In part, the letter stated, “We strongly encourage the Federal Reserve to allow all credit unions, regardless of the source of their deposit insurance, to access the BTFP. Privately insured credit unions have historically been included in government liquidity programs and their exclusion in this instance is a significant shift in government policy regarding access to liquidity.” Credit unions agree that this action will enhance the security and soundness of the banking system by providing additional safeguards for deposits, and ensure that credit remains available to address any liquidity pressures that may arise in the economy. You can read the entire letter here. CUNA Awards open. One final reminder – CUNA Awards for 2023 are now open. The CUNA National Award programs are designed to encourage and recognize credit unions for their efforts in social responsibility (the Dora Maxwell Award), credit union philosophy (the Louise Herring Award), and financial education (the Desjardins Awards). Applications are due by Friday, June 23, 2023; the 2023 awards will be presented at the 2024 Summit. You can find additional information here, or contact Paige Langhoff for assistance. Have a great week! DakCU President/CEO
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