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The Equifax Breach and Credit Union Involvement
The Equifax breach has resulted in a landslide of opinions, articles and media coverage. While the wealth of information is helpful, talking about what the breach may mean specifically for credit unions is critical. This webinar will provide a base for ongoing discussions relating to future CU impact due to regulatory and legislative changes. Slide […]
Comprehensive Credit Risk Management at Credit Unions
The process of taking a loan from application to funding is important but it is only 50% of the job of lending. The other 50% is portfolio management which means managing the ongoing risk in the portfolio to assure that loans are repaid and losses are controlled. To do this, credit unions must employ tools […]
Responsible and Profitable Banking of MSB and MRB Clients
Below is a link to a webinar presented by Hypur, Inc. Guy Messick, general counsel for NACUSO, had the pleasure of introducing Hypur and their presentation.
How do Credit Unions Begin the Process of Collaboration?
This presentation is for credit unions that know they need to consider CUSOs and collaborative solutions but do not know how to get started. How Do Credit Unions Begin the Process of Collaboration? from Messick Lauer & Smith P.C. on Vimeo.
Countdown to the New MBL World
The revised Member Business Lending Rule takes full effect on January 1. The revisions are substantial and introduce a completely new regulatory framework. This is a high level discussion of what to expect and how to prepare for the changes. Countdown to the New MBL World from Messick & Lauer on Vimeo.
NCUA Meeting Provides CUSO Guidance
On June 14, Jack Antonini, NACUSO President and Guy Messick, NACUSO General Counsel met with NCUA Staff on the results of the CUSO Registry and the thinking on how CUSO Reviews will be handled. The CUSO Registry sign-up period and the follow-up by NCUA found there were approximately 900 CUSOs. NCUA believes that there are […]
CUSO Registry Clean Up Period
As most of you know, all CUSOs are obligated under the NCUA Regulations to register certain information directly with NCUA on an annual basis. Over 800 CUSOs did so in February and March. NCUA is now in the process of making sure all CUSOs have registered. Their new deadline is April 30, 2016. They are […]
Save the Frog: Collaborating to Survive and Thrive
I am constantly trying to get the attention of credit unions to persuade them that even successful credit unions need to collaborate and they need to start now. With every Tom, Dick and Harry competing to take away the traditional business lines of financial institutions, credit unions cannot sit back and wait for things to […]
Stop Apologizing and Start Advocating
It is time that we remember who we are as credit unions and what we stand for. It is time to revisit our core principles and value and advocate how credit unions have made America and Americans financially stronger. It is time to stop apologizing for our desire to grow credit unions and give more […]
Attorney Escrow Accounts Are Now Insured
The President approved legislation that enables federally insured credit unions to offer insured IOLTA accounts. These are escrow accounts held by an attorney which contain clients’ funds. Since the money held in escrow by the attorney were the funds of the clients, the previous rule would only extend share insurance to those funds held by […]
Loan Participations – Eligible Obligations and Purchase of Indirect Loans
When the loan participation regulation was amended in 2013, it stipulated that the originator (the lender whose paper the loans are written on) has to stay in the loan participation for the life of the loan and hold at least 10% of the principal amount if the originator is a federally chartered credit union and […]
CUs Link for Compliance
The following is a link to an article published in the Credit Union Times wherein a member of our firm is quoted. CUs Link for Compliance by Michelle A. Samaad 4/22/2012 http://www.cutimes.com/2012/04/22/cus-link-for-compliance
Irish CU’s Lent a Helping Hand
The following is a link to an article published in the Credit Union Times wherein a member of our firm is quoted. Irish CU’s Lent a Helping Hand by Candice Reed 9/24/2012 http://www.cutimes.com/2012/09/24/irish-cus-lent-a-helping-hand
Experts Discuss How to Make CU Link Ups Succeed
The following is a link to an article published in the Credit Union Times wherein a member of our firm is quoted. Experts Discuss How to Make CU Link Ups Succeed by Peter Strozniak 10/22/2012 http://www.cutimes.com/2012/10/22/experts-discuss-how-to-make-cu-link-ups-succeed
These FAQ’s are based upon Part 701.22 of the NCUA Regulations and apply to federal credit unions. State chartered credit unions follow their state law but most states follow the NCUA Rules for loan participations. What organizations are eligible to participate loans with credit unions? Credit unions may only participate loans with other credit unions, […]
What is a CUSO?
What is a Credit Union Service Organization (CUSO)? The term “CUSO” means that the business entity is qualified for and has a credit union investment. A CUSO must be a Subchapter-C corporation, limited liability company or limited partnership in which a credit union has an investment or loan. A CUSO cannot be a Subchapter-S corporation […]
Forming New Credit Unions to Meet Our Mission
We lose approximately 250 to 300 credit unions per year to mergers, liquidations, and conversions. Only a handful of credit unions have been formed in the last ten years that survive today. While I understand that credit union assets and members are growing despite the reduction in the number of credit unions, I submit that […]
We Must All Hang Together or We Will Surely Hang Separately
“We must all hang together or we will surely hang separately.” Benjamin Franklin uttered these words as he signed the Declaration of Independence and faced the wrath of King George. The colonies were at a crossroads. Despite divergent and competing interests, the colonies recognized that together they had a chance for survival and alone they […]
Turing the Regulator into Your CUSO’s Marketing Director
The vast majority of people who work at NCUA and the state credit union regulatory agencies fully appreciate that credit unions need economies of scale and more expertise in order to survive and thrive in today’s regulatory climate. Combining operational services can be very effective. Many credit unions have collaborated in such services as business […]
CUSO 101 – CUSO Basics – Video
This is a 5:38 minute presentation on the basic rules of CUSO organization for those who are new to CUSOs. CUSO Basics from Messick & Lauer on Vimeo.
Writing an Effective Comment Letter – Video
This is a 5:27 minute presentation on how to write effective comment letters to proposed regulatory changes. Writing an Effective Comment Letter from Messick & Lauer on Vimeo.
Why Collaborate – Video
This is a 6:45 minute presentation on why credit unions should consider collaboration and CUSOs as part of their business model. Why Collaborate from Messick & Lauer on Vimeo.
Structuring Multi-Owned CUSOs – Video
This is a 5:19 minute presentation on the considerations in organizing and operating a CUSO owned by multiple credit unions. Multi-Owned CUSOs from Messick & Lauer on Vimeo.
Protection of the CUSO Corporate Veil – Video
This is a 5:32 minute presentation on the considerations in protecting the CUSO’s corporate veil so that an error in the CUSO does not adversely affect the credit union owners. Protection of the CUSO Corporate Veil from Messick & Lauer on Vimeo.
Our Services – Video
This is a 3:06 minute presentation of the services provided by Messick & Lauer P.C. Our Services from Messick & Lauer on Vimeo.
Managing Risks in Investment Services – Video
This is a 4:40 minute presentation on managing the credit union’s risks in providing investment services. Managing Risks In Investment Services from Messick & Lauer on Vimeo.
How to Begin to Collaborate – Video
This is a 5:06 minute presentation on how credit unions can begin the process of collaboration and using CUSOs.
Generating Net Income – Video
This is a 5:29 minute presentation on how CUSOs can help generate more net income for credit unions through additional revenue sources and reduction of operational costs. Generating Net Income from Messick & Lauer on Vimeo.
Expanding CUSO Ownership – Video
This is a 6:36 minute presentation on the process of adding new owners for your CUSO to meet your objectives. Expanding CUSO Ownership from Messick & Lauer on Vimeo.
Credit Union Merger Agreements – Video
This is 6:32 minute presentation on the credit union merger process, including the agreements and due diligence. Credit Union Merger Agreements from Messick & Lauer on Vimeo.
Top Ten List of Things Ongoing Operations Learned in Their CUSO Exam
This is a post by Kirk Drake (with a little input from me) on the Ongoing Operations Blog which you should check out. http://ongoingoperations.com/blog/ Earlier this year, the National Credit Union Administration (NCUA) conducted a voluntary CUSO exam of Ongoing Operations. Overall, the experience was a positive one with the Regulators having the opportunity to […]
We Have Met the Enemy and It Is Us
The title character in the Pogo comic strip once uttered the now famous line, “We have met the enemy and it is us.” He could have been talking about credit unions. There are many external threats to the industry (e.g., threat of taxation, diminishing margin spreads, excessive regulation) but the real threat is our inability […]
The Evolution of the Credit Union Model – Why Collaboration is Necessary
Sometimes things are so clear that they are almost self-evident. For credit unions it is clear that the credit union business model is transforming in front of our eyes. For most of the 20th Century consumer financial services were offered on a local scale by community banks and credit unions. There was a simple set […]
Cooperative CUSOs – Relationship Advice for Credit Unions Interested in Dating, Getting Married and Getting Divorced
There is a lot of interest in cooperative CUSOs these days, CUSOs that are owned by multiple credit unions. Most of these CUSOs provide operational services which can significantly reduce operating costs while increasing operational efficiencies. Some cooperative CUSOs provide non-traditional financial services which drive alternative revenue streams and offer valuable services to members. The […]
Comment Letter to Reg Flex Rule
February 27, 2012 Mary Rupp, Esquire Secretary of the Board National Credit Union Administration 1775 Duke Street Alexandria,VA 22314-3428 Re: Proposed Amendments to 12 CFR Parts 742 Pertaining to the Regulatory Flexibility Program Dear Ms. Rupp: My comment is not in opposition to the proposed changes to the Regulatory Flexibility Program. My comment is to […]
Messick & Lauer Comment Letter to the Loan Participation Amendment Proposal
THIS IS THE COMMENT LETTER SUBMITTED BY MESSICK & LAUER P.C. COMMENTS ARE DUE BY FEBRUARY 21, 2012. January 25, 2012 Mary Rupp, Esquire Secretary of the Board National Credit Union Administration 1775 Duke Street Alexandria,VA 22314-3428 Re: Proposed Amendments to 12 CFR Parts 701 and 741 Pertaining to Loan Participations Dear […]
The Risk of Doing Nothing
We are at a critical juncture in the history of credit unions. Negative events seem to be piling up on us. There is enough denial, over-reaction, semi-panic, and name calling to fill our days. It is time for all of us to take a deep breath, reflect and consider where our behavior is leading credit […]
Loan Participations: The Industry Perspective
Loan participations are extensively used by credit unions, principally in member business loans and consumer mortgage loans. Loan participations provide an attractive investment alternative and help credit unions manage liquidity, lending risk and regulatory constraints. However, the loan participation regulation needs to be amended to keep up with the changing financial marketplace. In today’s environment, […]
Loan Participations: Mitigating the Risks
The advantages of loan participations to an originating/seller credit union are that the seller obtains liquidity to serve other members, has a tool to manage regulatory loan caps and spreads its lending risks. The advantage of loan participations to a buying credit union is the ability to earn a good return on assets. Getting a […]
Due Diligence and CUSO Relationships
There was a day when credit unions relied on internal staff to perform most of their member services and backroom operations. This “internal model” has evolved into a “blended model,” where many functions are outsourced to third-party service providers, often to credit union service organizations (CUSOs). The National Credit Union Administration (NCUA) announced last year […]
Corporate CU Network Fallout Reveals CUSO Opportunities
What has the diminished role of corporate credit unions meant for CUSOs of natural person credit unions? The answer is some challenges but lots of opportunities. Some CUSOs benefited from corporate credit unions as investors and lenders. However, the loss of the corporate credit unions as a capital and liquidity source is not of great […]
Collaboration 3.0 – The Integrated Network CUSO – The Next Generation of CUSOs
Collaborations, through CUSOs and otherwise, hold the promise of earning non-interest income from non-traditional financial products and of significantly reducing operating costs. Both opportunities are welcomed in an industry where the average net interest income is less than the costs of running a credit union. If collaborations are not extensively used by credit unions, the […]
Letting Go of Our Myths
The stories we tell ourselves frame how we view the world, our place in it and how we respond to it. I call this internal viewpoint our myths, our prisms that interpret the world. The myths we create for ourselves have a profound impact on our ability to recognize and respond to change. The prism […]
Bellco UBIT Case Victory
Judge Christine M. Arguello has issued her decision in Bellco Credit Union versus the United States of America. This is one of the UBIT cases. The IRS assessed Bellco Unrelated Business Income Tax (“UBIT”) on certain income items and Bellco paid the tax and has sued for a refund. By doing so, Bellco is able […]
CUSOs Move From Collaborations to Collaborating
We really are fortunate to be working in an industry where collaboration and sharing of ideas are still prevalent. During the first part of my career in the brokerage world, it seemed like collaboration was the negotiation of a settlement after one firm pirated another’s top producer or back office personnel. In that business of […]