CrossState Daily…02/15/23

Valentine’s Day Gift Flop? Flip it with a Trip to Hershey in May 

Did Valentine’s Day sneak up on you and you forgot? Maybe you were still mourning the defeat of the Philadelphia Eagles or perhaps you just want to add to your gift and spoil your sweetheart a little more. No matter the case, CrossState suggests a surprise trip to Hershey for you and your sweetheart on May 18-20 for CrossState Connect Annual Convention — plus you can do it on sale for this week only. Use code SWEETHEART at checkout for a $30 savings on a Guest Pass. Click here to save now. 

When you come to Hershey for Convention, you can bring a guest with you to enjoy sessions and the evening celebrations. But, if there is a session they don’t want to attend, they can spend the day enjoying some of the many amenities at the Hershey Lodge and surrounding area before rejoining you for each evening’s festivities. We have a few ideas for your guest’s entertainment while you hone your skills and increase your knowledge. They could: 

• Enjoy exclusive Dark Chocolate Treatments at Meltspa by Hershey. 
• Embrace their inner-child at the indoor pool and waterpark. 
• Hit the Links on the East & West Golf Courses at Spring Creek. 
• Find souvenirs to remember the getaway at the Sweet Memories Gift Shop or visit the Hershey Outlets. 

Maybe you want to have a date night (or day) and you could come in early or stay late to: 

• Explore the history of Hershey at the Hershey Story and Chocolate World. 
• Indulge in your favorite foods at local taverns. 
• Enjoy one of Hershey’s fine dining establishments. 

• Find out what it means to be “Hershey Park Happy” with a trip to the largest amusement park in Pennsylvania. 

Take advantage of this sweetheart special and make up for a gift (or add to it). Register you and your guest today. 

Deadline Approaching for Prestigious Professional of the Year and Volunteer of the Year Awards 

Credit union leaders and volunteers across New Jersey and Pennsylvania have been making a difference in the movement and their communities, committing themselves to the “People Helping People” philosophy. It’s time to recognize these individuals with a Lifetime Achievement Award nomination through February 28. Nominate a difference maker today. 

Each year at CrossState Annual Convention, we recognize one credit union professional and one volunteer who has made a significant impact on the movement. The professional is presented with the William W. Pratt Lifetime Achievement Award. Pratt was a former Association Executive Director whose credit union career spanned over 30 years. The Credit Union Professional of the Year Lifetime Achievement Award recognizes an outstanding professional involved in daily credit union operations.    

In addition, the Credit Union Volunteer of the Year award is given in honor of Calvin H. Jackson, an outstanding citizen and credit union volunteer for St. James A.M.E Church credit union. The Credit Union Volunteer of the Year Lifetime Achievement Award recognizes a volunteer who has selflessly given time, effort, and talent to the betterment of the movement with little or no monetary compensation.     

Recognize the excellence in your credit union leaders and volunteers by nominating them for a Lifetime Achievement Award.   

Click here to download the application.  

Berks County Credit Unions Host Financial Reality Fair 

Several credit unions in Berks County recently hosted a Financial Reality Fair for 11^th graders at Governor Mifflin High School. Staff from Utilities Employees Credit Union, Discovery FCU, Visions FCU, Riverfront FCU, Diamond Credit Union, Members 1^st FCU, and Bellco FCU came together to teach the next generation about the importance of financial education. 

“This opened me up to my possibilities after college. It gave me a good idea of what I can expect once I finish schooling and how I can balance finances and lifestyle,” said junior Joey Berg.  

After doing virtual Financial Reality Fairs or none at all thanks to the pandemic, all the volunteers remarked how nice it’s been to be back in their local schools and helping students prepare for life after college.  

To participate in a Financial Reality Fair in your area or learn how to host one, contact CrossState Credit Union Foundation Executive Director Sue Ward-Diorio. 

Gov. Murphy Explores Workplace Shortages During NGA Panel 

During the Winter Meeting of the National Governors Association (NGA) in Washington, D.C., New Jersey Gov. Phil Murphy participated in a panel discussion to explore solutions for workplace shortages, a major issue plaguing businesses. 

 In addition to NGA Chair Murphy, the panel included Republican Montana Gov. Greg Gianforte, Microsoft Vice Chair and President Brad Smith, Cognizant CEO Ravi Kumar, and AECOM Global Transportation Chief Executive Jennifer Aument. The discussion focused on strategies to address workforce shortages – such as including broadband access, digital skills training, and apprenticeship programs – while ensuring that workers can adapt to a changing and rapidly evolving job market. 

 Murphy spent late last week and this past weekend at the Winter Meeting – one of the two marquee annual events from the bipartisan NGA – meeting with federal officials and leaders from a number of different sectors, such as business and academia, and of course, fellow governors, for solutions-driven conversations about critical issues. 

Learn About Updates to the Federal ABLE Law and PA ABLE Savings Program 

The federal government recently updated aspects of the federal ABLE law and these webinars hosted by the Pennsylvania Treasury Department will provide information about these important changes. These do not cover every aspect of the ABLE savings plan, just the updates.  

• Overview of Updates to the PA ABLE Savings Program for individuals with disabilities, family members, and professionals. Wednesday, February 22, 2023 12:00 p.m. – 1:00 p.m. 
• Overview of Updates to the PA ABLE Savings Program for Professional Representative Payees. Thursday, February 23, 2023 12:00 p.m. – 1:00 p.m. 
• Learn about the important features and benefits of PA ABLE, Thursday, March 30, 2023 12:00 p.m. – 1:00 p.m. – (With ASL Interpreter) 

 NJ Awards $1.8M Through Financial Empowerment Pilot Program, 1st Bergen FCU Among Beneficiaries 

The state of New Jersey recently announced the award of $1.8 million in funding to 10 nonprofit organizations through the Financial Empowerment Pilot Program. 

Administered through the state’s Department of Community Affairs, the Financial Empowerment Pilot Program continues the administration’s dedication to the financial resiliency of New Jersey residents. Last spring, Treasurer Elizabeth Maher Muoio and the Department of the Treasury launched NJ FinLit, a free online financial wellness platform, available to all adults across the state. Thousands of residents have taken advantage of the site’s highly personalized and interactive learning experience. 

Awards were given to nonprofit organizations with demonstrable success using the field of financial empowerment services to mitigate the effects of structural poverty. The programs must focus on serving traditionally underserved cultural or linguistic communities and those communities historically disenfranchised from access to banking and wealth-building tools, including: 

• Youth transitioning from foster care or the juvenile justice system 
• Veterans 
• Seniors, especially those raising their grandchildren 
• People with behavioral health needs 

• People with disabilities 
• Re-Entry participants 
• Survivors of domestic violence 

Selected programs may be an expansion of existing, successful services or may be the creation of an adjacent service. 

Greater Bergen Community Action, Inc. (GBCA) was among the awardees. GBCA, the sponsor of Hackensack-based 1st Bergen FCU, is receiving $250,000 to provide financial literacy and banking services to low-income Bergen County, Paterson, and Jersey City residents. 

National News 

People with Reported Medical Debt Declines 18% Since 2020   

The number of people with medical debt on their credit reports fell by 8.2 million — or 17.9% — between 2020 and 2022, according to a report released yesterday by the U.S. Consumer Financial Protection Bureau. 

White House officials said in a separate draft report that the two-year drop likely stems from their policies. Among the programs they say contributed to less debt was an expansion of the Obama-era health care law that added 4.2 million people with some form of health insurance. Also, local governments are leveraging $16 million in coronavirus relief funds to wipe out $1.5 billion worth of medical debt. 

There has also been a persistent effort by the CFPB to reduce medical debt. The major credit rating agencies said last year that they will no longer include in their reports medical debts under $500 or debts that were already repaid. The agencies will also extend the time it takes to add medical debt to reports from six months to one year, possibly giving families more time to repay before being penalized with lower credit scores. 

While economic measures such as the unemployment rate and inflation can swing up and down, the decline in medical debt shows that steady progress is being made. Some 13.5% of the 279 million people with credit reports had at least one medical debt, down from 16.4% in 2020 and 19.4% in 2014. 

Still, unpaid medical bills account for more than half of all debt in collections, according to the White House report. As a result, medical debt exceeds credit cards, personal loans, utilities, and phone bills combined. 

The full report is available here.

Regulatory News 

FHA Republishes Expansion of COVID-19 Recovery Loss Mitigation Options Mortgagee Letter 

The Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2023-03, Corrected and Republished: Expansion of the COVID-19 Recovery Loss Mitigation Options. 

This ML makes three corrections or clarifications in Mortgagee Letter 2023-02 and restates the policies in ML 2023-02, as originally published on January 30, 2023. Specifically, the ML: 

• Corrects the date when mortgagees may submit COVID-19 Loss Mitigation incentive claims. Mortgagees remain eligible for incentive payments for COVID-19 Loss Mitigation Options executed on or after January 26, 2023. 
• Corrects an error in Section III.A.2.o.iii(B)(3), Additional Evaluation for COVID-19 Recovery Options, by replacing bracketed language with the appropriate date, January 30, 2023. 
• Adds language to COVID-19 Recovery Modification, Target Payment Not Achieved, Handbook 4000.1, Section III.A.2.o.iii(C)(2)(c), Step 7, to clarify the offer of a COVID-19 Recovery Standalone Partial Claim is subject to its availability. 

Updates in the ML will be incorporated in a future version of the Single Family Housing Policy Handbook 4000.1.  

Chapter News 

Montgomery County Chapter of Credit Unions Holds Regular Meeting 

The Montgomery County Chapter of Credit Unions gathered last week at the Spring House Tavern in Ambler, PA, to collaborate and learn about Information Security from Tom Costello, President and CEO of UpStreme, Inc.  

Costello provided training on Information Security and Top Priorities that credit union boards of directors should be aware of for 2023. He discussed Information Security Checklists that credit unions can use to ensure that their Information Security Programs are meeting the requirements. He offered a great perspective to the directors who were in attendance regarding what their responsibilities are and what is required of them. Costello also encouraged the volunteers to ask questions about the information that is being provided to them.  

Rounding out the presentation, Costello discussed how credit unions should weigh the cost of hiring qualified IT Staff versus using a third-party. 

CrossState Solutions Compliance Consultant Brittany Beh attended the meeting and provided association updates.  

Find out how to get involved with your local chapter. Contact Member Engagement Consultant Nick DiFrancesco for details. 

Northwest Susquehanna Chapter Meets on Valentine’s Day 

The Northwest Susquehanna Chapter of Credit Unions met yesterday at DRIVE in Danville, PA. Credit union professionals in the Northwest Susquehanna area met to network and learn from Attorney Matt Urban of Weltman, Weinberg, and Reis. 

Attorney Urban presented on a variety of issues that credit unions frequently encounter, including POA documents, decedent issues, and right of setoff. The session was very informative and those in attendance were able to ask Matt a number of questions as well. 

The chapter will meet again on March 14. CrossState Compliance & Regulatory Affairs Officer Ann Renfrew attended and shared Association updates. 

Find out how to get involved with your local chapter. Contact Member Engagement Consultant Nick DiFrancesco for details. 

Newsmakers 

American Heritage Credit Union Launches First-Time Homebuyer Programs 

Philadelphia, PA — American Heritage Credit Union is offering first-time homebuyer programs to help members afford and better navigate the homebuying process. Collectively, American Heritage members can receive up to $5,500 in combined offers through the annual First Front Door grant and American Heritage’s First-Time Homebuyer lender credit. American Heritage will also offer a gift card to first-time homebuyers when purchasing a home through a First Heritage Realty Alliance agent. These programs are designed to give prospective home shoppers a one-stop solution for all their homebuying and financing needs.   

First Front Door (FFD) $5,000 Grant: 

American Heritage is once again partnering with the Federal Home Loan Bank of Pittsburgh to offer members up to $5,000 in grants through its annual First Front Door program. The program officially opens March 15, 2023, however prospective homeowners may begin applying now for the program simply by completing a mortgage pre-qualification application. These grants are designed to help first-time homebuyers, who meet certain income requirements, with down payments and closing costs associated with the purchase and financing of a home. For every $1 contributed towards the purchase of a home, qualified homebuyers could receive up to $3 in FFD grant assistance, up to $5,000.   

American Heritage First-Time Homebuyer $500 Credit Promotion: 

American Heritage Credit Union’s First-Time Homebuyer Credit is a lender credit program for first-time homeowners who fund their mortgage with American Heritage Credit Union. Eligible members can earn up to a $500 lender credit at the time of closing. Available for primary occupancy homes located in Pennsylvania, New Jersey, or Delaware, this program allows first-time homebuyers to utilize their $500 credit in conjunction with other community grant programs such as First Front Door.   

Realty Services, Educational Resource, and $250 Gift Card: 

Additionally, American Heritage’s realty service, First Heritage Realty Alliance, provides personalized concierge services to prospective home shoppers. American Heritage encourages home shoppers to visit their website to apply for a free pre-qualification, which allows first-time homebuyers to understand their home affordability. Finally, American Heritage offers educational resources on home shopping as well as home financing. American Heritage Credit Union members will also receive a $250 gift card to The Home Depot® when they purchase their first home through a First Heritage Realty Alliance agent. 

“We are excited to provide our membership and community with unique educational, home shopping, and financing programs to help fulfil their dreams of home ownership,” said Bruce K. Foulke, President & CEO of American Heritage. “We know how challenging home affordability is right now, and our mortgage team is excited to once again partner with the Federal Home Loan Bank of Pittsburgh to offer the FFD grant alongside our First-Time Homebuyer Credit promotion to help our members start their home ownership journey on the right foot. Our First Heritage Realty Alliance team is here to provide guidance to our members who are embarking on this home ownership journey for the first time. We are proud to provide all the necessary tools under one roof to help make the homebuying process affordable, personalized, and simple.”