SEMINAR MAY 25- California Credit Union League

Reducing & Resolving Check
Loss Situations
Brought to you by the COOP Network and
the California Credit Union League

Since every credit union issues its own cashier’s and/or teller’s
checks, and accepts checks for deposit drawn on other credit
unions or banks, every employee should know about checks
and drafts to prevent or recover losses!

The information that you’ll receive at this program will potentially
save your credit union hundreds of thousands of dollars that
would otherwise be spent to resolve errors, disputes, or losses!

Join nationally recognized credit union operations
expert Ty Parker as he tells you how to:


Defend your credit union against critical loss issues
such as fraud and insufficient funds
Establish criteria for taking checks for deposit
Resolve stop payment issues with member and
credit union checks
Determine the impact of Check 21 on existing law
Avoid losses from lost or stolen cashier’s and
teller checks
Include important provisions in your account
documentation to deal with members, credit unions,
attorneys, or third parties

Seminar bonus! Don’t miss the special demonstration of
Check Management Solutions™, a new online training,
loss prevention, and problem resolution tool
for credit unions!

Who Should Attend?
This program is designed for anyone at the credit union who is
responsible for dealing with members’ or the credit union’s
checks and share drafts or who has a checking
account, including:
Senior Management
Operations Managers
Member Service Managers
and Representatives
Tellers
Front Line Staff
Compliance Officers
Loan Officers
Accountants
Bookkeepers
Tellers
CPAs
Attorneys


Seminar Dates & Sites:

Wednesday, May 25
California Credit
Union Center
R. M. Johnson
Training Facility
9500 Cleveland Ave.,
Suite 200
Rancho Cucamonga, CA
91730
800.472.1702

Thursday, May 26
DoubleTree Hotel
Sacramento
2001 Point West Way
Sacramento, CA 95815
916.929.8855

Seminar Schedule:

Registration:
8:00 am-8:30 am

Seminar:
8:30 am-11:45 am

Lunch:
11:45 am-12:30 pm

Seminar:
12:30 pm-2:25 pm

Break:
2:25 pm-2:35 pm

Product Demo:
2:35 pm-3:15 pm

Program Concludes:
3:15 pm-3:30 pm

--------------------------------------------------------------------------------

Registration is open now!
Call toll-free at 800.472.1702, ext. 8250
or register online at www.ccul.org

News Briefs- April 2005

At Press Time "News Brief" Credit Union Times,
April 25, 2005

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- Graham out at Kinecta FCU
- New York League Raises Money for Political Action in its First Time Fundraiser
- Loan Participations Generating Record Growth for MBL Portfolios
- Business Loan Applicants Tend to Fumble with Incomplete Documents
- PCUA Sets Theme for SNAP Campaign
- Busy Legislative Week Ahead for CUs
- Truliant FCU, NC League Exchange Ideas with Suriname Credit Unions
- CUNA: Energy Bill Duplicative for Financial Services
- Top Marketing/Communication Staffers at WesCorp, U.S. Central Depart
- Americans Flocked to Bankruptcy Courts in March
- NCUA's Web Site Phished
- Card Security Breach Refocusing Attention On Cross Platform Program
- Kinecta's Interim CEO a Longtime Hughes Employee
- Michigan League Launches Big Co-op Ad Campaign
- eCU Technologies to Offer Aggregation to Symitar Member Connect Clients
- Kentucky CUs First to See End of Bank One Name
- Competition Sets Sights on Branching Out

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Graham out at Kinecta FCU

MANHATTAN BEACH, Calif. -- Tom Graham is no longer CEO of the $3 billion Kinecta FCU. According to the credit union, board member David A. Gale has been named interim CEO. Graham joined Kinecta in 1990 as senior vice president of administration -- at that time the CU was called Hughes Aircraft Employees FCU. Graham quickly moved up the ranks until landing the CEO job in 1998. He helped lead the CU through a difficult name change in that the venerable Hughes name wasn't an easy parting for members. Graham was named to the CUNA Mutual board just last January and he also serves on the board of WesCorp.

pgentile
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New York League Raises Money for Political Action in its First Time Fundraiser

LATHAM, N.Y. -- The New York State Credit Union League says its first fundraising dinner to benefit its state political action committee "far surpassed expectations." The League raised just over $7,200 to benefit CUPAC. To raise additional funds, the League also held a 50/50 raffle. The winner, Empire Corporate FCU's Kevin Brauer, donated the money back to CUPAC. All proceeds raised from the dinner will be used to make campaign contributions to legislators who vote for and support credit unions and members.

ebarr

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Loan Participations Generating Record Growth for MBL Portfolios

WASHINGTON - As word of mouth continues to spread on the benefits of loan participations, credit unions are taking notice. Since June 2004, the nation's top 20 credit unions in loan participations saw a 185% increase in the number sold and a 120% increase in the number bought, according to Callahan & Associates, Inc. At the top of the list is $640 million Evangelical Christian Credit Union, which generated 38.3% of the $1.1 billion business loan participation sellers market. The $3.5 billion Patelco CU and $1.5 billion Texans CU led the way on the buying side as both captured 19.5% of the $1.6 billion on the purchasing end. Member business lending has opened a number of avenues for growth, Callahan found, including the popularity of loans participations. The loan arrangement offers portfolio diversification and can increase the return on earning assets.

msamaad

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Busy Legislative Week Ahead for CUs

WASHINGTON--The House appears to be pushing through some bills important to credit unions prior to going on recess next week. The House is expected to take up the Expanded Access to Financial Services Act of 2005 (H.R. 749), introduced earlier this year by Congressmen Jim Gerlach (R-Pa.) and Brad Sherman (D-Calif.), on the suspension calendar. The bill would permit federal credit unions to offer money transfer and check cashing services, as well as selling travelers checks and money orders to anyone within their field of membership. The suspension calendar is typically reserved for noncontroversial measures--such as the Net Worth Amendment for Credit Unions Act (H.R. 1042), which could come before the House on the suspension calendar this week also--but the Gerlach-Sherman bill has faced some opposition from the banking community and the anti-immigration lobby. Additionally, the House Financial Services Committee plans to mark up H.R. 1185, Federal Deposit Insurance Reform Act of 2005, and H.R. 1224, Business Checking Freedom Act of 2005, on April 27. Credit unions' interest in 1185 is to ensure credit unions receive coverage parity with FDIC-insured institutions. The Business Checking Act would permit the Federal Reserve to pay interest on so-called 'sterile reserves' and include credit unions in the Fed's annual fee study.

scooke@cutimes.com


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CUNA: Energy Bill Duplicative for Financial Services

WASHINGTON--CUNA wrote Speaker of the House Dennis Hastert (R-Ill.) last week on the possible duplicative nature of the new energy bill, as written, for credit unions. Section 1287 of the Energy Policy Act of 2005 (H.R. 6) overlaps privacy provisions already included in the Gramm-Leach-Bliley Act. Part (a) of the section allows the Federal Trade Commission to issue rules to protect electric consumers' privacy from disclosure in connection with the sale or delivery of electric energy, according to CUNA's letter. The FTC is also authorized to issue "issue rules prohibiting the sale of goods and services to an electric consumer unless expressly authorized by law or the electric consumer," CUNA cited. "It is safe to say that virtually all of our credit union members are "electric consumers." By our very nature as financial institutions, credit unions are connected with " the sale or delivery of electric energy to electric consumers." Our members routinely pay their electric bills through their credit unions by check or credit card," CUNA explained. CUNA had supported an amendment to correct these provisions, but it was not permitted by the rules of debate adopted by the House Rules Committee. However, Congresswoman Deborah Pryce (R-Ohio) engaged the Energy Committee Chairman in a colloquy to clarify the scope of the provisions.

scooke

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Top Marketing/Communication Staffers at WesCorp, U.S. Central Depart

LENEXA, Kansas and SAN DIMAS, Calif. -- U.S. Central and WesCorp are each seeing some changes at the top with their marketing/communication staffs. WesCorp Director of Marketing Freda Amir is resigning her position effective Friday. Amir is moving to New York to take a job with Goldman Sachs as its vice president of business development services. Amir has been with WesCorp for two years, and said the experience has been invaluable. "WesCorp has given me a great background, great management skills that enabled me to take the position at Goldman," said Amir, who already has experience in a large brokerage company. Prior to WesCorp, she worked for Morgan Stanley in a marketing role. As far as how WesCorp is perceived, Amir said from a marketing standpoint the corporate has tried to present its members with personalized service. "The message has been warm, close knit. That's the type of marketing we strive for, to focus on the members, all the members," she said. She noted the corporate will continue to put on free Webinars so even its smallest members can participate. At U.S. Central, Director of Public Affairs/Communication Roger Dick has left the company. Details on Dick's departure are few, though Dick did stay on long enough to complete another annual report. Dick was a key figure on U.S. Central's expansive 30-year annual report put out last year.

pgentile

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Kentucky CUs First to See End of Bank One Name

LOUISVILLE, Ky. -- Savoring at the prospect of finding new business among merger-weary bank customers, Kentucky credit unions Monday were plotting a new marketing strategy to take advantage of that big take-down of the Bank One name following its 2004 merger with New York-based JPMorgan Chase & CO. A spokesman for the Wall Street megabank revealed Kentucky -- with TV ads sprouting up across the state this week -- is the launching pad for its national "makeover" of the well-known Bank One to the new Chase nomenclature. "Every time we see merges like this, it always means more business for us since you know those bank customers don't like to change their checks and don't like receiving higher fees," said William Rissel, president of the $417 million Fort Knox FCU of Radcliff, whose CU has already starting thinking ad language. One suggestion, "How about 'Do you like chasing your bank out of town?' or 'Are you tired of chasing your money?'" quips Rissel. The JP Morgan spokesman said after Kentucky other states next in line on the week-to-week list of conversion ads and signage change include Oklahoma, Wisconsin and Utah with the remaining coming throughout 2005.


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Competition Sets Sights on Branching Out

CHICAGO -- Nsight, a research project funded by design/build firm NewGround, finds that more than half of community bankers are planning to add one to five new branches in 2005-2006. According to the survey, some 41% of community bank leaders have opened free-standing branches in the last to years compared to storefront branches(6%) and branches that operate within another retailer (5%). When asked to identify the weakest feature of their branches, 25% responded merchandising, followed by employee training (15%), convenience/location (13%) and brand identity (11%).

CUNA Initiates Radio Tour on Pre-K Financial Education Effort

cutimes-

WASHINGTON—CUNA President and CEO Dan Mica is hitting the airwaves, stumping for CUNA’s new ‘Thrive by Five’ preschool financial education materials.

“Parents who don't take steps to teach their preschoolers basic spending and saving concepts and values are leaving it up to strangers, chance, or television,” Mica said. He taped interview last week with 15 radio stations in major media markets, including Atlanta, New York, Washington D.C., and parts of Florida.

“The taped interviews we’ve lined up, together with a radio news release on the Thrive by Five program already in circulation, are expected to reach a combined audience of at least 10 million consumers,” CUNA Senior Vice President of Communications Mark Wolff said. “In virtually every instance, we have been able to point parents to free materials on the CUNA web site and emphasize this unique aspect of credit unions’ commitment to youth financial education.”

The Thrive by Five materials include free activities to download to teach young children how not to lose money and how money is used to buy something, among other things. - scooke

Presidents to Sign Bankruptcy Reform Act Into Law Tomorrow

Tuesday 04/19/2005
12:01 PM

WASHINGTON—President George W. Bush will sign the Bankruptcy Abuse Prevention and Consumer Protection Act (S. 256) into law tomorrow afternoon, according to a White House spokesperson.

“I commend the House for acting in bipartisan fashion to curb abuses of the bankruptcy system,” President Bush said upon passage of the bill in the House last week. “These commonsense reforms will make the system stronger and better so that more Americans — especially lower-income Americans – have greater access to credit. I look forward to signing the bill into law.”

“This was a major legislative victory and credit unions played a very strong, very instrumental role in its passage,” CUNA Vice President of Legislative Affairs and Senior Legislative Counsel Gary Kohn stated. “We were one of actually two groups that were consistent in their grassroots activity on this bill and we actually deserve a lot of credit for its passage.”

NAFCU Director of Political Affairs Murray Chanow noted that there is a six-month waiting period before the bill becomes law. “There will be a lot of adapting for all financial institutions getting ready for the roll out of this thing, which should be toward the end of the year this year,” he said.

The Justice Department will be coming out with the implementing regulations, according to Chanow. - scooke@cutimes.com

Prime Alliance Becomes MortgageClick™ Shareholder

WOBURN, Mass. — Count Prime Alliance Solutions among some of the newest shareholders in MortgageClick™, the Web-enabled mortgage decisioning platform distributed to credit unions.

MortgageClick, which is powered by Prime Alliance, was created in 2003 as an extension of Members Mortgage Company. The technology was spun off as a separate entity in January 2004. It has built over 90 sites, experienced a 350% growth in transactions, and processed $2 billion in mortgage requests since its inception.

Five credit union recently signed on to use MortgageClick, including: New England Teamsters FCU, Pacific Northwest CU, Freedom CU, RTN FCU, and First Pioneer CU. - ebarr with credit union times

New Online Voting Poll: Do Credit Unions Have a Sensible Alternative to “Bank”?

WEST PALM BEACH, Fla. — CUNA Chairman Dick Ensweiler has challenged credit unions to stop using the word “bank” in their marketing efforts, but is there a common sense alternative?

For many credit unions “banking” is used as a generic term that describes financial transactions. Members “bank” at branches, they utilize the Web for “online banking”, and so and so on. Ensweiler believes credit unions should try and show the credit union difference and avoid “bank” and “banking” altogether.

However, some believe that will only confuse the consumer even more. Some consumers still don’t know what “credit union” means and even confuse the term with a labor union.

On the other hand the credit union vs. bank war is so fierce these days, shouldn’t CUs find alternatives?

What do you think? This is the subject of Credit Union Times latest online voting poll. The question is as follows:

Should credit unions eliminate “bank” and “banking” from their marketing vocabulary?

• Yes

• No

• Not Sure -
author- pgentile

News Briefs- March 2005

MBAA Summit Addresses "Growing Threat" of Fraud to Mortgage Industry

WASHINGTON -- Fraud against mortgage lenders has levels so high it threatens the entire mortgage industry, says the Mortgage Bankers Association. To address the crisis, the MBA last week held a summit entitled "Protecting the Real Estate Finance System: Combating Mortgage Fraud Against Lenders" that attracted a cross-section of industry plays to identify a series of recommendations to combat the issue. Addressing attendees, MBA Chairman-elect Regina Lowrie, president/CEO, Gateway Funding Diversified Mortgage Services said concern about mortgage fraud "against our home finance industry has reached such heightened levels that top management of lender has to decide how they are going to address this growing threat and protect their company, their employees' jobs and the borrowers they serve." Ann Fulmer, president of Georgia Real Estate Fraud Prevention & Awareness Coalition (GREFPAC) called fraud against mortgage lenders "bank robbery without a gun." MBA plans to launche on March 31 a Web site, "The Mortgage Fraud Against Lenders Resource Center" to help lenders identify, communicate and prevent mortgage fraud.



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Atlanta Hotbed of Bank Merger Activity in 2004

ATLANTA - With much of the spotlight on big mergers from the likes of Bank of America and other national banks in 2004, several regional banks saw record upheavals last year here. Atlanta was home to several notable bank mergers in 2004, according to the Atlanta Business Chronicle. SouthTrust Corp. merged with Charlotte-based Wachovia Corp., which is the number one bank in the metro Atlanta area, according to the FDIC. The number two ranked bank in deposits, SunTrust Banks, Inc., completed a merger with number 12 ranked National Bank of Commerce in 2004. Number nine ranked Bank of North Georgia merged with Charter Bank & Trust Co. The merger activity here is in line with a recent survey that showed 76% of bankers view other community banks, including regional and "mega" banks as their most serious competitive threat. Grant Thornton's Twelfth Annual Survey of Community Bank Executives also showed that competition from credit unions continues to grow. Of the 442 respondents to the survey, 71% felt that CUs are posing more of a threat to their operations, compared to 64% the previous year.



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ROA on the Rebound for Colorado Credit Unions, CEOs Say

DENVER - Return on assets for Colorado credit unions were at their lowest levels since 1993 but the state is poised for a rebound this year. The Colorado Credit Union League reported that ROA, which is net income divided by average assets, decreased to 0.62% in 2004 compared to 0.71% in 2003. According to a March 11 article from the Denver Business Journal, Colorado CUs had total deposits of $10.25 billion, a 4.5% increase from a year ago, trailing the 5.4% national deposit rate. The slowed economy impacted Colorado as it did most other states. Lending, for instance, totaled $8.96 billion, 10.4% less than the rate for loans nationwide. Several credit union CEOs were optimistic that as the state's economy improves, delinquency levels will decrease and ROA will rise, the article read. Colorado credit unions, as with others nationwide, are starting to impose tougher credit standards and charging off more delinquent loans. Charge-offs are a double-edged sword because while they can improve delinquency numbers, they can also negatively impact a CU's net income. Still, some CUs may be willing to operate with a lower ROA to provide more services to members, one CEO said.



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Illinois CU Fund Raid Halted by Judge

SPRINGFIELD, Ill. -- The state's practice of raiding accounts of agencies which regulate credit unions and banks has been halted temporarily by a state judge holding the funds supported by examination fees needed protection. In granting a restraining order last Friday on a request of the Illinois Credit Union League and a group of bank and thrift trade associations, Sangamon County Court Judge Leo Zappa directed the Department of Financial and Professional Regulation to stop diverting the funds for general purposes. The Illinois League and the trade groups had brought suit in December against the Department arguing the diversion would injure supervision and would force huge and unwarranted increases in examination fees to make up the difference in siphoned funds. The state maintained its action was legal to solve a budget crisis. Judge Zappa ruled that CUs would suffer irreparable harm by continuing to pay the fees, if the fees are subject to further transfers and to be used for purposes other than regulation.



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Matz Announces PALS Workshop to Combat Predatory Lenders

BALTIMORE--NCUA Board Member Debbie Matz announced today that she will be holding a free Partnering and Leadership Successes workshop in Baltimore on July 7. Panelists at the workshop will discuss the following topic --"Knock Out Predatory Lenders and Improve Your Bottom Line." At the workshop, credit union leaders will tell how they attract members who previously relied on check-cashers, payday lenders, pawnshops and other predatory lenders to meet their cash needs. "There are many shining examples of credit unions providing emergency loans, financial education, and other needed services to help new members break free from the grip of predatory lenders," Matz said. "These credit unions have found that it's not only the right thing to do - it's good business." To register for the Summer PALS workshop, visit http://www.ncua.gov and click "PALS Workshop Registration, July 7, 2005." The workshop will take place from 10 AM - 3:30 PM at the Hyatt Regency on Baltimore's Inner Harbor, just a few blocks from Oriole Park at Camden Yards, which will be hosting a four-game series between the Orioles and 2004 World Series-winning Boston Red Sox.



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Sunshine State Withdrawing Application to be a Bank

TALLAHASSEE, Fla. - Sunshine State Credit Union is withdrawing its application to become a mutual bank today, but will reapply as soon as it has a new chief executive in place. The credit union's previous CEO, Mark LeCain, left last week in what sources said was a forced resignation. Michelle Clark, a Sunshine State CU vice president, explained that in light of the credit union's termination of its CEO last week, it did not want the application to continue before federal regulators. "We wanted to get a new CEO in place and start fresh with our application," Clark said. The withdrawal leaves unclear whether the credit union will reapply but various sources speculated that it may be unlikely. The chairman of the credit union's board resigned last month citing stress related health problems and federal banking regulators have been to the credit union twice in relation to the application. Both phenomena can be considered black marks for the credit union, the sources said. The $170 million credit union's members voted in late June 2004 to become a mutual bank. Instead the institution's application has languished before federal regulators, leading to widespread speculation about both the credit union's desire to become a bank or its ability to pass regulatory muster as a bank.

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Nassau Educators Hits Member Milestone

WESTBURY, N.Y. - Nassau Educators Federal Credit Union has topped the 100,000th member milestone. Positioning its niche as providing a more personalized banking experience, the over $900 million credit union is gearing up to open two new branches this year. "It's always been about service," said Nassau Educators President/CEO Ed Paternostro. "Our service is what sets us apart, and our products are consistently among the best values anywhere, not just locally, but nationally. Word-of-mouth is our best advertising. It's made the credit union what it is today."



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OSI's Acquire/Convert Strategy

GLASTONBURY, Conn. -- Open Solutions Inc. has made a number of core processing acquisitions that affect the CU space in recent years, but it says it's strategy post-merger is quite unique. OSI Chairman and CEO Louis Hernandez said OSI spends a lot of time researching the CU clients of companies it is considering acquiring to get a feel for what kind of processing they are looking for. Hernandez said OSI looks for CUs that want to improve their systems and to that end ultimately convert to the OSI platform. In fact OSI, does absolutely no marketing of acquired systems. On the other hand OSI doesn't phase out acquired systems, it continues to support them, but hopes to see the bulk of CUs eventually move to its platform. OSI plans to implement this strategy with its latest acquisition, the U.S. CU operation of CGI. This business consists mainly of CU clients of the old C.U. Processing, based in Southfield, Mich., that CGI acquired a number of years ago.



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Power Breakfast Brings Indiana CU, Banks Together to Talk Issues

INDIANAPOLIS -- Representatives from more than 300 Indianapolis-area institutions met over a breakfast recently hosted by the Indianapolis Business Journal to participate in a panel discussion on a variety of topics. Indiana Credit Union League President John McKenzie represented credit unions at the Power Breakfast Series - Banking & Finance on Feb. 25. Other panelists represented the areas of law, banking, and venture capital. Among the topics covered by the panel were the importance of technology in the world of financial services, the role of financial institutions in the city's economic development efforts, and how to keep capital flowing so more small businesses can succeed. Also on tap for discussion was the "banks vs. credit unions' issue. According to the Indiana Credit Union League, when the issue of whether credit unions should pay federal income taxes came up, there was no argument in favor of it from other panelists who also questioned why the American Bankers Association keeps pushing for it. McKenzie said the panel was a good opportunity to showcase the credit union difference, CUs' important role in the financial services industry, and how the business community as well as consumers benefits from CUs.



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NCUA Studying Whether Sunshine State Will Have to Re-Vote

ALEXANDRIA, Va.-- NCUA is studying whether the $170 million Sunshine State Credit Union, headquartered in Tallahassee, will have to again submit disclosure statements to its members and conduct a re-vote should it re-apply with federal banking regulators to become a mutual bank. The credit union withdrew its application to change charters on March 14 in the wake of the departure of its CEO Mark LeCain. Michelle Clark, a credit union vice president, said that the credit union does not believe it will have to conduct a re-vote and Alan Theriault, a consultant with CU Financial Services agrees. "They are just going to pick the process back up again when they have a new CEO and nothing really will have changed," said Theriault, who has served as the credit union's adviser during the charter change process. But the final answer may not be that simple. The NCUA's regulations do not specifically address a reapplication for charter change after an initial member vote and the agency will merely say it is studying the issue. A lot may hinge on whether the changes in leadership in the office of the CEO, combined with a new chairman of the board and possibly other changes amount to a material change to the credit union's status, according to another source.

News Briefs- February 2005

Former CU In Ohio Prepares For Stock Offering

DUBLIN, Ohio - Ohio Central Savings, a mutual savings bank which began life in 1949 as Ohio Central FCU, has filed paperwork with the Securities and Exchange Commission indicating that it intends to issue stock and become a publicly traded firm The move is somewhat unusual in that the former credit union is leaving the mutual holding company structure which has been popular with many credit unions which change their charters to those of mutual banks. The credit union converted to a bank and adopted the mutual holding company structure in 1998 but has never issued any stock. Instead in 2001 the former credit union affiliated with another bank also in a MHC called Third Federal Savings of Cleveland. Under the plan, Third Federal handled the mortgages and Ohio Central handled auto lending. Since 2001, the former credit union told potential investors, it has not originated any conforming mortgages but has originated $117 million in auto loans, $90 million of which it sold to Third Federal. The bank plans to offer 690,000 shares at an initial price of $10.00 per share for $6.9 million.



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Despite Large Merger, Underserved Area Addition, January Stats Normal

ALEXANDRIA, Va.--A large credit union merger and underserved area adoption in Pennsylvania highlight January's bland charter activity statistics. As previously reported in Credit Union Times, American Heritage Federal Credit Union adopted the entire City of Philadelphia, population 1.5 million, as an underserved area last month and Citadel Federal Credit Union and Atlantic Credit Union merged into a nearly billion-dollar credit union. Other than those two facts, not much stood out from NCUA's January 2005 Insurance Report of Activity. Eight credit unions converted to a community charter, the largest of which was $113.5 million Central Bergen Federal Credit Union in Hackensack, N.J. that was approved for a community of 1.4 million potential members. Community charter conversions added just 2.6 million potential members in January. Federal credit unions adopted 16 underserved areas, including Campus FCU and ASI FCU, each of which adopted Orleans Parish as an underserved area with nearly half a million residents. Pacoima Development Federal Credit Union, a new charter approved last month with 178 potential members, also added an underserved area of 185,323 in Los Angeles County. Mergers continued on at a steady pace with 23 approved in January.


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Mid-Atlantic CUs Form Multiple-Owned Full Service Real Estate CUSO

HERNDON, Va. -- A new full-service realty CUSO formed by CU Realty of VA, MD, DC LLC (CUR LLC), a chapter of parent company CU Realty of Tempe, Ariz., is off to a fast start. The CU Realty program, formed by 12 charter investors, launched locally last month. Within the first 13 days, the CUSO received 518 registrations resulting in 388 mortgage leads. The CUSO is designed to assist CU members through every step of the home buying and selling process, with the opportunity to receive up to a 1% rebate on the sales price of the home. Members have access to MLS listings with additional information on the properties including photos, neighborhood maps, school, crime and demographic reports. In addition, they get to work with a network of "approved agents" who represent the member through their transaction. CUR LLC President Colleen Daly, mortgage manager for Northwest FCU said the CUSO is confident that through the CU Reality program, credit unions can secure additional first mortgage loans and crack the 2% share of the mortgage market they've held on to for several years.



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SSFCU Helps Colorado Sky Sox Play Ball

COLORADO SPRINGS, Colo. -- San Antonio-based Security Service Federal Credit Union has stepped up to the plate to help Minor League Baseball's Colorado Sky Sox. As part of a partnership agreement reached between the Pacific Coast League team and SSFCU the stadium name will now be changed to Security Service Field. According to SSFCU the partnership will boost image awareness while supporting a great team. The stadium will also undergo a $4 million renovation ranging from a state-of-the-art home clubhouse area with underground batting/pitching cages and 2,536 new box seats with cup holders, to the addition of a new five-tiered picnic terrace area and indoor banquet area. The 12-year agreement includes stadium sponsorship and advertising, special stadium benefits for some 110,000 SSFCU members living here and countless promotional and community partnerships. The two organizations have also teamed up to create a new, facility specific logo.



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PCUA Enters Litigation in Support of State Banking Department

HARRISBURG, Pa. -- The Pennsylvania Credit Union Association has entered field-of-membership litigation in support of the order issued by Secretary of Banking William Schenck approving a five-county community charter for TruMark Financial CU and providing community chartering guidance to Freedom CU and Corry-Jamestown CU. Since Schenck issued his order Dec. 22, 2004, Freedom CU has been granted their community charter and Corry-Jamestown's application is pending. The Pennsylvania Bankers Association challenged the Department of Banking's community charter approval process and Trumark's tax-exempt status by asserting that community chartered CUs should pay the state's Mutual Thrift Tax, a tax levied on mutual savings banks. While we believe there is little merit to the bankers' taxation argument, it requires a rigorous defense by our Association on behalf of all Pennsylvania credit unions and their members, said PCUA President/CEO Jim McCormack. PCUA SVP Communications and Marketing Mike Wishnow said while the case will be heard by a panel of judges who don't have credit union expertise "and who'll we'll have to start with Credit Union 101, the good news is that at the end of the day if we're successful the appellate court in Pennsylvania will have stated for the record that credit unions and mutual savings banks are not the same."



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Freddie Mac Introduces Home Possible(TM) Suite of Low Downpayment Mortgages

WASHINGTON --Freddie Mac has come out with a new mortgage program for borrowers with limited credit and savings. Home Possible(TM) Mortgages is a new suite of low downpayment mortgage products to help working families and key community workers such as police, firefighters, teachers and healthcare workers with savings issues or imperfect credit become homeowners. Home Possible Mortgage combines borrower education and early delinquency counseling, zero and 3% downpayment mortgage products and flexible credit requirements making it possible for borrowers to purchase single family property with as little as a $500 downpayment. Home Possible Neighborhood Solution(TM) Mortgages offers these features plus others designed to make home buying more possible for teachers, law enforcement officers, firefighters and health care workers. Both products - Home Possible and Home Possible Neighborhood Solution Mortgages - are available through Freddie Mac's national network of more than 2,000 lenders and 10,000 mortgage brokers using Freddie Mac's automated underwriting service Loan Prospector(TM).



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NYS League to Introduce New Online Compliance Information System

LATHAM, N.Y. -- The New York State Credit Union League on Feb. 22 will introduce its new "InfoSight: Direction for the Future " online compliance system which will provide CUs with a direct link to fast-changing CU compliance information in New York State as well as the ability to access regulatory and compliance information from other states and federal regulators. InfoSight is a shared system created by the Florida, Georgia, Michigan, Ohio and Texas credit union leagues. Among the features of the NYSCUL's new system are comprehensive compliance information for New York State, the federal government and other states; topics categorized by areas of operation for easy reference; complete text of laws and regulations; FAQs for instant answers to common questions; new rules and amendments added within 30 days of taking effect; and links to NCUA, CUNA, E-Guide and other popular compliance sites for CUs.



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ACB Undecided on Whether to Answer Tax Panel's Call for Comments

WASHINGTON--America's Community Bankers has not decided yet whether it will comment in response to the President's Advisory Panel on Federal Tax Reform recent request for public comment. One of the specific items the panel is requesting is comment on aspects of the tax system that are "unfair," according to a Treasury release. However, the panel is not looking for specific proposals at this point, it emphasized. "We haven't decided what we're going to do with that panel," ACB Executive Vice President for Governmental Affairs Robert Davis commented. If ACB does choose to "opine" to the panel, he said ACB's message has always been consistent: that large bank-like credit unions should be taxed. He noted that that Congressional Budget Office report each year indicates that credit unions avoid paying about $1 billion in taxes each year due to their exemption. The American Bankers Association and Independent Community Bankers did not provide immediate comment.

CU updates of the week

- North Carolina League Risk Management Meeting Focuses on Check Fraud

- 2005's Economy May Rely Less on Government Stimulus

- Utah League Fires Back on Schools Donation

- Wescom Resources Group Releases Integrated CUDL Upgrade

- Matz Raises CU Concerns and How They are Being Addressed

- Mortgage Bankers Association Predicts "2005 Looks to be a Strong One"

- CCUL Hires Government Relations Veteran

- Bluepoint Offers Free Webinar on Paperless Initiatives at CUs

- Newly Sworn-In Treasurer to Keynote Feb. 9 NCUA Economic Summit

- American Heritage FCU President/CEO Teams up with PCUA VP to Promote Financial Literacy on Television

- Johnson Highlights CU Capital Issues as Key Goal for 2005

- Proper Expertise Critical to MBL Program Success, Lending Experts Reiterate

- Bank of America Discontinues Foreign Exchange Fee, Transfer Fee for Cash Transfers to Mexico

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North Carolina League Risk Management Meeting Focuses on Check Fraud

ASHEVILLE, N.C. -- Check usage may be declining, but unfortunately the same cannot be said for check fraud. Strategies for fighting check fraud was the focus of the recent meeting of the Risk Management Council of the North Carolina League. About 50 security officers from throughout the state came for the conference which featured fraud fighting tips from a mix of law enforcement officials and credit union officials. In addition to advice from law enforcement, a panel discussion featuring North Carolina credit union security officers shared stories on how their credit unions prevent check fraud. Jim Odell, senior manager with CUNA Mutual Risk Protection also presented attendees with information about emerging frauds and suggestions for working with CUNA Mutual to identify risks.

ebarr@cutimes.com

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2005's Economy May Rely Less on Government Stimulus

MADISON, Wis. - Credit unions can expect the nation's economy in 2005 to "stand on its own," with much less government-supplied monetary and fiscal stimulus. This, according to the just released 2005 Economic & Market Outlook, published by MEMBERS Capital Advisors, the registered investment advisor affiliate of CUNA Mutual Group. MEMBERS Capital has a slightly less optimistic outlook than the consensus, said John Moreno, client services manager at MEMBERS Capital. Rising short-term interest rates and no new tax cuts will create more volatility in the economy and markets during the first half of the year and temper economic growth from the 4%-plus pace of the past 18 months. Another situation that could negatively affect the economy long-term is the $430 billion federal budget deficit and the $500 billion merchandise trade deficit. "Growing outlays needed to service the budget deficit can crowd out more economically productive spending," Moreno said. "The supply of government bonds required to finance the deficit must find buyers, or interest rates will rise." On a brighter note, U.S. corporations are more profitable and healthier financially than they have been in years. Rallies in equity and corporate bond markets and a financially sound banking system have significantly lowered the cost of capital.

msamaad@cutimes.com

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Utah League Fires Back on Schools Donation

SALT LAKE CITY -- The rhetoric over who gives more to Utah education -- banks or credit unions -- heated up Friday with the Utah League of Credit Unions firing a salvo charging banks are woefully behind -- $700,000--CUs. On Thursday the Utah Bankers Association blasted the League's $50,000 spending for a "stop the bank attacks" e-mail and ad campaign claiming such money would be better spent on schools by announcing a $50,000 schools donation "in lieu of a media campaign." "Instead of re-fighting a battle that was decided two years ago, we challenge the League of Credit Unions to end their attacks and use the money they are spending to mislead the public to support a truly worthy cause -- Utah's education system.," declared Howard Headlee, president of UBA. The Utah League fired back with a press releases of its own calling the UBA's claims of education donations laughable compared to contributions CUs make under the Children's Miracle Network program and outright grants totaling $751, 930 to 357 Utah schools benefiting 144,000 students. Besides, CUs, said the League, "donate a much higher percentage of their assets" than banks "and do so voluntarily." Moreover, citing size inequity, the League noted banks hold $151 billion in assets, while CUs have under $9 billion

jrubenscut@aol.com

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Wescom Resources Group Releases Integrated CUDL Upgrade

PASADENA, Calif. - Wescom Resources Group (WRG) has released a new version of its Credit Union Direct Lending (CUDL) integration solution for client credit unions of the Wescom Credit Union technology CUSO. Called CUDL 2.0, the upgrade was developed to support CUDL's own recent upgrade to version 4.2 and will be installed at all the CUSO's CUDL clients by April, WRG officials say. The new version integrates with WRG's CUIntegrator solution to make it more functional, reliable and easier to install, the CUSO says. It also helps credit unions reduce funding time by minimizing loan processing steps and adds more robust search functions for such things as Social Security numbers and charge-off information. "Our staff members can open an account and fund the loan using fewer key strokes because the software does all the work behind the scenes. There's also less chance of error because of the increased automation," says Teri Thompson at Sierra Schools Credit Union in Reno, Nev., which plans to implement CUDL 2.0 next month.

mrapport@sc.rr.com

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Matz Raises CU Concerns and How They are Being Addressed

PALM SPRINGS, Calif.--During the Winter meeting of the America Associations of Credit Union Leagues, NCUA Board Member Debbie Matz laid out five areas of concern she had for credit unions and shared initiatives that the credit union leagues are implementing to handle the issues. "My concerns are all related issues which, taken together, can threaten the future of the credit union movement," Matz stated. "Slow membership growth could lead to the disappearance of small credit unions. Reputation risks, along with the disappearance of small credit unions, could lead to taxation. And taxation could lead to more conversions to mutual savings banks." Leagues should be encouraging credit unions to reach out to the unbanked, like the Pennsylvania Credit Union Association, which started a program to help credit unions providing check-cashing services for non-members. The leagues should also facilitate partnership to aid small credit unions and avoid their disappearance. Additionally, the leagues should be educating credit unions on the reputation risks they take with certain programs like indirect lending, among other things. However, overall, Matz said she was optimistic about the future of credit unions.

scooke@cutimes.com

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Mortgage Bankers Association Predicts "2005 Looks to be a Strong One"

WASHINGTON -- The Mortgage Bankers Association released its long-term economic forecast for 2005, 2006 and 2007 yesterday, and according to the association is forecasting strong economic growth for the three years. Among the MBA's projections it forecast residential mortgage production in 2005 will be slightly down from the second biggest year on record in 2004, but it would still tie with 2002 which was the third-biggest year ever. The MBA expects purchase loans to total $1.559 trillion this year, decline slightly in 2006 to $1.517 trillion, then edge up to $1.556 trillion in 2007. Residential refinance loans will total $983 billion in 2005, $689 billion in 2006, and $559 billion in 2007. The MBA also sees the job market getting stronger. In addition, said MBA Chief Economist Doug Duncan, "There will likely be a slight uptick in the inflation rate in 2005, which will support the Fed's continued march upward with the fed funds target as the Fed maintains focus on its number one objective of keeping inflation at bay."

ebarr@cutimes.com

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CCUL Hires Government Relations Veteran

RANCHO CUCAMONGA, Calif.--The California Credit Union League has hired Shari McHugh, a partner in the Sacramento-based government relations firm of McHugh & Associates, to support the league's advocacy efforts. "With more than 14 years' experience working with California legislators, regulators and other elected and appointed officials on a wide range of issues, Shari brings extra depth and scope to League advocacy as we take credit unions into a challenging political environment," League Senior Vice President of Government Affairs Bob Arnould commented. McHugh will assist League advocacy efforts on a contract basis. McHugh & Associates was established in December 2000.

scooke@cutimes.com

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Bluepoint Offers Free Webinar on Paperless Initiatives at CUs

VISTA, Calif. -- Document management firm Bluepoint Solutions is hosting a free document management Webinar Feb.10. The event will be co-hosted by Houston Postal Credit Union, and will be geared toward looking at successful paperless strategies for credit unions. "Plenty of credit unions launch paperless initiatives," said Steve Powell, EVP at Bluepoint and co-presenter of the session. "Unfortunately, many of them are less than a smashing success. This is an opportunity to learn from a credit union that truly got it right." ww.bluepointsolutions.com.

pgentile@cutimes.com

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Newly Sworn-In Treasurer to Keynote Feb. 9 NCUA Economic Summit

DES MOINES, Iowa--U.S. Treasurer Anna Escobedo Cabral will keynote the upcoming Access Across America Economic Empowerment Summit in Des Moines, Iowa. The Feb. 9 summit will concentrate on federal and private resources available to all credit unions to assist with outreach efforts. The program will address a wide variety of topics and top government speakers will provide useful information for credit union attendees, NCUA Chairman JoAnn Johnson said. Cabral oversees the U.S. Mint and acts as a spokesperson for the Treasury Department on a range of issues. She also advises the Treasury Secretary on matters relating to coinage, currency and the production of other instruments issued by the United States and is integrally involved in the president's economic agenda. "We are extremely pleased to have Treasurer Cabral to address this summit as one of her first appearances since being sworn in as the 42nd Treasurer of the United States," Johnson said. "Treasurer Cabral recognizes the role of the nation's credit unions in empowering Americans from all walks of life to achieve the American Dream of financial independence and economic empowerment." Cabral was sworn in as Treasurer Jan. 18.

scooke@cutimes.com

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American Heritage FCU President/CEO Teams up with PCUA VP to Promote Financial Literacy on Television

PHILADELPHIA -- American Heritage Federal Credit Union President/CEO Bruce Foulke and Pennsylvania Credit Union Association Vice President Michael Wishnow will soon be making their television debut here. The two taped a segment entitled "Managing Your Money" for the local television program Public Voices with Henry Veguilla on WYBE, an independent, public television station that broadcasts to the entire Greater Philadelphia region. Public Voices, an original WYBE program, gives viewers up-to-date breaking news and events information in the tri-state area. "Financial literacy and money management education are issues that are very important to us at American Heritage," said Foulke. "We feel it's part of our responsibility to educate both our members and the public about the significance of making wise financial decisions." The segment is scheduled to air at 7:30 p.m. on Friday, February 11

mdigiovanni@cutimes.com

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Johnson Highlights CU Capital Issues as Key Goal for 2005

LAKE BUENA VISTA, Fla.--Credit union capital issues topped NCUA Chairman JoAnn Johnson's list of priorities for 2005, she told attendees of NAFCU's CEO Conference today. Producing "significant, meaningful improvements relating to capital for all credit unions," was a highlight of Johnson's speech. "While we will build on last year's successes, we must keep a keen focus and not waver on producing results in modernizing regulations relating to capital standard for credit unions." Among the capital issues she wants addressed, Johnson said, was legislative change for a risk-based capital system for natural person credit unions. She also said she wants to propose a risk-based capital system for corporate credit unions, lower the RegFlex qualifying net worth ratio from 9% to 7%, and permit well-managed low income credit unions to have the option to release the portion of secondary capital accounts that no longer count toward net worth. In addition, Johnson said she wanted to continue improving agency efficiency; enhance federal credit union's safety and soundness, as well as that of the insurance fund; and support regulatory improvements on Capitol Hill, among other items.

scooke@cutimes.com

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Proper Expertise Critical to MBL Program Success, Lending Experts Reiterate

EAU CLAIRE, Wis. - Beyond the basics of business services, best practices, market segmentation and targeting within the MBL arena, having the "proper expertise" to carry out a successful program is critical. These were the views of two lending experts at a recent lending session --Larry Middleman, president/CEO of CU Business Group and Larry Accola, senior vice president of business services at $631 million Royal CU. CU Business Group provides business lending, deposit and consulting services to 109 CUs in 23 states. Middleman highlighted several key success factors based on his view of CU best practices including a connection to the business community, executive involvement in business development, and ready access to a loan participation network. Accola's presentation highlighted Royal's 22-year history in business lending and its $190 million business loan portfolio. "I enjoy talking with credit unions to give them the benefit of our experiences and help them out," Accola said. Credit unions attending had varying levels of experience from just researching the best way to get started to those with 20 years of experience. Everyone agreed that having the proper expertise readily available is the most important factor in a successful program, both experts noted.

msamaad@cutimes.com

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Bank of America Discontinues Foreign Exchange Fee, Transfer Fee for Cash Transfers to Mexico

CHARLOTTE, N.C. -- Bank of America is eliminating its $10 remittance fees and 3% foreign exchange fees on money transfers to Mexico from branches in Chicago, effective immediately, through its SafeSend service it introduced in 2002. The bank said it intends to roll out the free service nationwide by the end of the year. However effective immediately, Bank of America is eliminating its foreign exchange fee and reducing its transfer fee from $10 to $8 for transfers of up to $1,500 from Houston and the rest of the country. BofA said it has relationships with 44% of Hispanic households in its nationwide territory. In 2004, the bank opened more than 1 million checking accounts for Hispanic customers.

ebarr@cutimes.com

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