CDCU Institute - Training for Growth, Effectiveness Sustainability

1. CDCU Institute�-Training for Growth, Effectiveness & Sustainability 32nd Annual Meeting June 9, 2006 Durham, North Carolina Pamela Owens Director of Education and Training Terri J. Fowlkes Director, CDCU Mortgage CenterTM

2. The Institute History Mission Structure Institute Curriculum Expanded Workshops/Bonus sessions One-Day Workshop: Succession Planning Benefits Financing the Institute New Program- Development Educators Exchange Program Reflections from the students Dates for 2006 Questions

3. Institute History In 1999, Federation formed a partnership with CUNA-Center for Professional Development (CPD) and Southern New Hampshire University- School of Community Economic Development (SCED) to plan and implement a state-of-the-art training program specific to the needs of community development credit unions Continuation of Federation�s mission of strengthening credit unions serving low and moderate income communities through education & training Provide workshops specific to the needs of small credit unions and credit unions that are interested in providing services to low-and moderate-income communities

4. Institute Structure Staff Training- One week-long training session for three years Board Training- Intensive weekend session for three years Students who complete the three years of training graduate with a Certificate in the Management of CDCU's Provides �nuts & bolts� training necessary to run an effective credit union

5. Institute Curriculum Board Workshops Roles & Responsibilities of Board Members Board Assessment Effectiveness & Capacity: Insuring Continuity Leadership Development Board/Management Relations Asset Building Credit Union Regulations Staff Workshops Financial Management I Lending for CDCU's Marketing and Cross-Selling Business Writing Intro. to Comm. Eco. Dev. Volunteer Management Asset Building for CDCU's Fundraising & Grantwriting Credit Union Regulations

6. Expanded & Bonus Workshops Marketing basics and strategies to serve low- and moderate-income communities Financial Education and Outreach to the Disability Community Bank Secrecy Act (BSA)-How small credit unions can be effective and stay compliant Credit Union Disaster Preparedness Antidotes of Predatory Lending: Best Practices from CDCU's Mortgage Lending- CDCU Mortgage Center and the Secondary Market

13. CDCU Institute� Mortgage Module Why we do it? To grow mortgage lending among credit unions serving low- and moderate-income members in the communities you serve To increase awareness of credit unions as mortgage lenders

14. CDCU Institute� Mortgage Module Importance of Mortgage Lending for Your Credit Union? Home ownership = wealth creation for your members Expand member services Revenue potential for your credit union

15. CDCU Institute� Mortgage Module The mortgage transaction creates the strongest bond between the member and the credit union Without a mortgage program, a credit union cannot be a full-service financial institution Without an understanding of the pivotal role mortgages play in the member relationship, a credit union puts itself at risk of losing not only mortgage to the competition, but also other loans, savings accounts and other business

16. CDCU Institute� Mortgage Module Stats Credit union mortgage lending accounts for only 2% of the U.S. mortgage origination market Less than 10% of credit union member who own a home hold a mortgage through their credit

17. CDCU Institute� Mortgage Module Being in the mortgage business is a major commitment for a credit union A successful mortgage program must start with a clear commitment from the board and senior management Must develop a mortgage marketing plan for your credit union We Can Help!

18. CDCU Institute� Mortgage Module Topics to be Covered? How to Implement a Mortgage Lending Program for your Credit Union The Mortgage Loan Process Mortgage Loan Underwriting Mortgage Technology

19. CDCU Institute� Mortgage Module Topics to be Covered? Mortgage Insurance � The Myths / The Reality The Mortgage Secondary Market Mortgage Loan Servicing Affordable Mortgage Programs

20. CDCU Institute� Mortgage Module Topics to be Covered? Mortgage Fraud Manufactured Home Lending Co-op Share Lending Home Equity Lending Mortgage Lending Rules & Regulations

21. New Initiative- Credit Union Development Corps The Federation will work closely with the Development Educators (DE) Network to create a domestic peer exchange program between large credit unions and CDCU's. Conceived as a short-term, �mini-Peace Corps,� the Credit Union Development Corps would pair staff from two different credit unions for exchanges lasting approximately one week each; the participating DE would be stationed at a CDCU for a week, and later host a CDCU representative.

22. Succession PlanningOne-Day Workshop Overview Offers CU staff and board officials an opportunity to learn about and begin work on a succession plan tailored to their organization and prepare for leadership transition Address issues of sustainability and strengthening organization before and after succession occurs Content Detailed framework that provides map for personal and organization preparation for succession Opportunity to begin work on key how to prepare for planned and unplanned transitions Emergency Succession Planning Outcomes Safe forum to explore in-depth questions regarding succession Network of peers facing similar issues Price $245 for members/associates/CD Partners $345 for non-Federation members

23. BENEFITS for Staff� Trained staff with new information to revamp/start new programs Network of peers for Board� Focused training specific to needs of BOD Network of peers for Credit Union� Vision and pathway for the future, broader service to members

24. Financing the Institute Credit union resources NCUA CDFI Fund State leagues and credit union foundations Local credit union, banks and sponsor organizations Federation *Will work with credit unions/chartering group to help you obtain funds. Federation staff will work with you to assure that no credit union is turned away due to a lack of funds.*

25. Institute Costs Staff Training $2,500 Board Training $1,500 Will give a 10% discount to groups registering 2 or more students.

26. Reflections from the Students �As a 2005 graduate of the CDCU Institute� I can say that the subject matter taught was not only a culmination of the two prior years, but the teaching methods used were fun as well as thought provoking.� Gregg H. Brown, South Side FCU (Chicago, IL) �I spent 30 years in investment banking, so when I agreed to come to the credit union environment I though I made a drastic mistake until I attended the Institute. I met wonderful people who shared information that is making my credit union experience better each day. Hats off to the Institute.� Ann J. Williams, Church Koinonia FCU (Chattanooga, TN) �When I came back from the CDCU Institute� I was very excited. I felt empowered and encouraged. I was ready to go to work at my credit union.� Jair Sanchez, La Casa FCU (Newark, NJ)

27. CDCU Institute� Staff Training August 13-19, 2006 Board Training August 18-19, 2006 Special one-day workshop Succession Planning August 18, 2006 Madison, Wisconsin

28. 2005 Graduates

29. Comments Comments/Questions Thank You See you in August!!