Dollar Associates Pulls The Plug on Who's Who
The book, which included profiles of 8,804 credit union professionals and volunteers, was published by a subsidiary of the Alabama-based consulting firm. Former NCUA Chairman Dennis Dollar is a principal partner of the firm.
"Who's Who is a long overdue recognition program for the credit union industry," Dollar said in a statement. "But it takes a lot of time and resources to put out a quality annual publication like we were committed to providing through Who's Who. We just couldn't justify continuing to put in hours on Who's Who when our bread and butter consulting business is growing exponentially. Our decision was to keep our focus on what we do best-helping credit unions and the organizations that serve them."
Dollar said the remaining inventory would be discounted significantly with price reductions as much as 70%, and all recognition items will be sold on a "first come, first served" basis through the Who's Who Web site at www.wwacu.org.
Henmueller New CEO
Illiana Financial Credit Union has tapped James Henmueller as its new president/CEO.
Henmueller replaces longtime President/CEO Walter E. Kopacz who retired after 32 years of service.
Henmueller has almost 25 years of senior executive management experience in the credit union industry, including serving as president/CEO of Chief Financial Federal Credit Union and CEO of International UAW Federal Credit Union prior to joining Illiana Financial.
During his time at Chief Financial FCU, Henmueller is credited with changing the organization's performance, structure and culture. As a result of his changes, the credit union achieved the highest regulatory ranking for safety and soundness while increasing its field of membership, asset size and capital ratio.
The Claumet City, Ill.-based Illiana Financial credit union has over $160 million in assets.
New Rules Proposed on
Financial institutions that originate mortgages must submit background information and fingerprints so the federal government can perform a background check to support the licensing of loan originators, under proposed rules issued last week by the NCUA and five other regulatory agencies.
The regulators are also seeking input on issues such as whether the rules should apply to those who modify existing mortgages and whether there should be an "asset threshold" for institutions that have to comply.
These regulations would meet the registration requirements of the SAFE Mortgage Licensing Act of 2008, which requires the regulators to develop and maintain a system for registering residential mortgage loan originators who are employees of credit unions, national and state banks, savings associations, and Farm Credit System institutions and some of their subsidiaries. These mortgage loan originators must be registered with the Nationwide Mortgage Licensing System and Registry, a database established by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators to support the licensing of mortgage loan originators by state governments.
There is a 30-day comment period and the rules will take effect 180 days after they receive final approval from all the agencies.
A copy of the proposal can be found at www.federalreserve.gov/newsevents.
In addition to the NCUA, the agencies issuing the regulations are the Federal Reserve System, the FDIC, Office of Thrift Supervision, Farm Credit Administration and Office of the Comptroller of the Currency.
Judicial Panel to Hear
Heartland Class Action
A panel of federal judges drawn from around the country were scheduled to meet in Louisville, Ky. to hear oral arguments on whether lawsuits brought against Heartland Financial for its data breach should be rolled into class action cases.
Altogether, there are roughly 30 cases against Heartland in different federal courts, primarily in New Jersey and Texas. Matadors Community Credit Union headquartered in Chatsworth, Calif; GECU, headquartered in El Paso; and MidFlorida Federal Credit Union, headquartered in Lakeland, are parties to one of the cases filed in New Jersey. PSECU, in Harrisburg, Pa., is a party to another filed in Houston.
The U.S. Judicial Panel on Multidistrict Litigation was created by Congress in 1968 to determine whether civil actions pending in different federal districts involve one or more common questions of fact such that the actions should be transferred to one federal district for coordinated or consolidated pretrial proceedings. The panel also selects a judge or judges to handle the case, should it decide to proceed as a class action.
XCEL FCU, U.N. FCU in
Through a partnership with United Nations Federal Credit Union, members of the $104 million XCEL Federal Credit Union will now have access to investment and insurance services.
UNFCU Financial Advisors, a subsidiary of $2.8 billion United Nations FCU in New York, will provide financial planning and consulting, investment management, tax planning and life, home, auto, long-term care and pet health insurance to XCEL's field of membership, which consists of employees of the Port Authority of New York and New Jersey and other select employee groups.
The subsidiary said it will also work closely with Secaucus, N.J.-based XCEL to expand its existing SEGs and promote new SEG development.
SBA Debuts Dealership
Financing Pilot Program
Starting July 1, the Small Business Administration will offer government guaranteed loans to finance inventory for eligible auto, recreational vehicle, boat and other dealerships through a new pilot program.
Under the dealer floor plan, the SBA will provide loan guarantees for lines of credit through its 7(a) program. DFP loans will be made through SBA lenders only for titled inventory, including autos, RVs, manufactured homes, boats and motorcycles. Floor plan financing is a line of credit that allows dealers to borrow against their inventory and then repay that debt as they sell their inventory or borrow against the line of credit again to add new inventory.
The DFP loans will be available for a minimum of $500,000 up to the $2 million allowable under the 7(a) program. With a maximum repayment term of five years, the loans will come with a 75% government guarantee and temporary elimination of fees on 7(a) loans made possible by the America's Recovery and Reinvestment Act of 2009.
The pilot program will be available through Sept. 30, 2010, at which time the SBA will make the determination of whether or not to extend the program, the agency said.
As Budget Woes Loom,
CU Aids State Employees
To help employees caught in a budget crunch, the Pennsylvania State Employees Credit Union is offering 60-day, interest-free loans to cover lost paychecks, which might occur past a July 1 state budget deadline.
Recognizing the impasse over state funding, PSECU said it has established a new 0% loan program for up to 60 days after the governor signs the new budget into law. After 60 days, the loan will begin accruing interest at 3.9% APR until paid in full.
All PSECU members participating in the loan program will have the option of borrowing up to $1,000 per pay period, said the CU.
"We are proud to be able to offer this product to our members," said Gregory A. Smith, president/CEO. "We are giving our members the chance to gain assistance through the budget situation without any additional net expense to themselves."
The loan, said Smith, "is an example of how we haven't lost touch with our history and purpose to help one another through hard times."
PSECU said also it is encouraging state employees experiencing financial hardship with their accounts to contact the CU about other avenues PSECU may be able to assist.
Affinity Federal CU OKs
Its First SBA Loan
The $2 billion Affinity Federal Credit Union recently marked its first-ever Small Business Administration loan.
At a May 28 press conference, the credit union announced that it approved a $150,000 loan for Cryogenic Processing Solutions, a New Jersey technology firm. The SBA loan came by way of the recently enacted American Recovery and Reinvestment Act, which allows the agency to offer a 90% guarantee and the elimination of several fees. The technology company's owners said they can now open a lab and hire up two more employees.
Affinity FCU President/CEO John Fenton said the Basking Ridge, N.J.-based credit union, which started offering business loans in 2006, has $60 million in commercial loans. Since the passage of ARRA, more than 260 SBA loans have been made in New Jersey saving businesses $2 million in fees, said William Boone, assistant district director at the SBA's New Jersey's office.
Tinker Opts for New Suite
Oklahoma's largest credit union has committed to account-opening and lending services from Online Resources Corp., the company said.
Tinker FCU at Tinker Air Force Base will use the Virginia-based company to allow new and existing members of the $1.8 billion credit union to open accounts and apply for loans through www.tinkerfcu.org.
Credit and identity verification, instant approval and automated funding were cited as reasons for the conversion, along with seamless integration with the 197,000-member credit union's Symitar Episys core processing solution.
Online Resources now serves about 350 credit unions, including 25 using its account-opening solution, the company said.