Credit Union Times Magazine August-07, 2002

• Banker-backed loser in Utah primary charges credit unions `bought' race

  By Staff Writer

  SALT LAKE CITY - The Salt Lake City, banker-backed businessman and chairman of the First National Bank of Layton who ran unsuccessfully in Utah's GOP primary in June for a U.S. congressional seat against credit union-backed Rob Bishop, a one-time Utah House speaker and credit union lobbyist, accused the Utah...

• Consumer groups launch campaign against insurance price gouging

  By Myriam DiGiovanni

  NEW YORK - From complaints about homeowner insurance and toxic mold coverage, to the lack of health insurance coverage nationwide, many say that it is past time for insurance reform. A group of more than 60 consumer organizations around the country agree and have joined forces to show they are...

• CUNA reaching out for legislative help from regulator, but Dollar says NCUA's role is not legislative

  By Sarah Snell Cooke

  WASHINGTON-In its recent letter to NCUA Chairman Dennis Dollar commending his speech at NAFCU's Annual Conference regarding field of membership updates, CUNA also requested the regulator's help pushing the issue on the Hill (CUTimes, July 31, 2002). Dollar, while willing to offer up the agency as a resource for the...

• CUs: FDIC proposal should quiet banks about CU tax exemption; Bankers: LLC not overly beneficial

  By Sarah Snell Cooke

  WASHINGTON-A recent proposal by the Federal Deposit Insurance Corp. (FDIC) would allow federally insured, state banks to register as Limited Liability Companies (LLCs) and open up new avenues of tax avoidance for the for-profit institutions. Currently, banks are also seeking legislatively to expand Subchapter S eligible companies, another tax avoiding...

• After third failed attempt to pass CU bill, Wisconsin League explores its options and strategies

  By Staff Writer

  PEWAUKEE, Wis. - For the third consecutive year, the Wisconsin Credit Union League tried to get state lawmakers to pass a financial modernization bill, and for the third time the League came up empty handed. Frustrated, but not daunted, no final decision has been made as yet for the League's...

• CO-OP Network returns $6 million to members

  By Staff Writer

  ARLINGTON, Va. - CO-OP Network, the largest credit union owned ATM network in the U.S. has announced that any of its member credit unions, which have been "shareholders of record" from 1996 to 2001, some 88% of its membership, have been granted an additional sum of money from the Network's...

• CUNA meets with new SBA general counsel

  By Staff Writer

  WASHINGTON-CUNA senior staff met today with the Small Business Administration's new General Counsel David Javdan to discuss one of his first issues, which is of high importance to credit unions regarding greater access to the agency's 7(a) lending program. Attending the meeting from CUNA were General Counsel Eric Richard and...

• Hot stuff

  By Staff Writer

  nuVision Financial FCU's latest loan promotion was anything but typical. Find out why on page 10.

• CUs get few complaints, Fed report finds

  By Staff Writer

  WASHINGTON-The Federal Reserve Board's 88th annual report found that very few consumers filed complaints against credit unions during 2001. Last year the Fed received a total of 4,502 consumer complaints against financial institutions, but only a mere 39 concerned credit union activities. The majority of the credit union complaints were...

• Existing home sales drop after four months of record highs

  By Staff Writer

  MADISON, Wis. - Is the mortgage bubble lenders have enjoyed over the past year deflating? Does a down swing in existing home sales for the first time after months of record highs portend an economic recession? Following four months of the highest months on record for existing home sales -...

• Second time's the charm-Mid-Hudson Valley FCU approved to serve potential 800,000 members

  By Michelle A. Samaad

  KINGSTON, NY - It took NCUA rejection and three years of regrouping and redefining for Mid-Hudson Valley Federal Credit Union to have its latest application for a community charter approved. The credit union got the green light on July 25 to serve nearly 800,000 residents in Dutchess, Ulster and Orange...

• Patelco CU moves full steam ahead with what would be the largest conversion to private insurance ever

  By Sarah Snell Cooke

  SAN FRANCISCO- Ballots are racing back to Patelco Credit Union from members anxious to vote on the issue of converting from a federally insured state chartered credit union to private deposit insurance coverage. The conversion has caught the attention of the credit union community not only because it is the...

• Western CUNA Management School student severely injured in golf cart accident, dies

  By Staff Writer

  CLAREMONT, Calif. - A student attending Western CUNA Management School who was severely injured in a golf cart accident has died. Helen Hosea, 40, was a consumer lending and operations manager with Burbank City Employees FCU. She was a first year student at the Western CUNA Management School (WCMS) which...

• WesCorp getting into asset securitization; laying the groundwork now to meet demand later

  By Staff Writer

  SAN DIMAS, Calif. - WesCorp says over the past year it has been gearing up to start securitizing credit union loans. This would be a first for the corporate network. WesCorp Chief Investment Officer Bob Burrell said while it may not look needed now because of all the liquidity in...

• Number of Muslim credit unions small as Islamic ban on interest poses some challenges

  By Michelle A. Samaad

  AUSTIN, Texas - Predatory lending, critics blast, targets the poor, charging exorbitant interest rates with sticky conditions worded in the fine print. Its roots can be traced back thousands of years, so rampant that many of the world's religions banned the practice of usury or interest. In particular, Muslims who...

• Future of "Honor All Cards" rule in doubt

  By David Morrison

  NEW YORK -Despite protests from card association lawyers, there is a consensus among other attorneys familiar with credit card anti-trust cases that VISA and MasterCard's fight with retailers could cost the associations, and other card issuers, their so-called "Honor All Cards" rules. As the name suggests, the Honor All Cards...

• In an aggressive move, MBNA says it is ramping up its card portfolio acquisition program for credit unions

  By David Morrison

  BOSTON - Officials with Kessler Financial Services, the firm that handles credit union card portfolio purchases for MBNA, and an MBNA official, confirmed this week that the firms are revamping the overall structure of the credit union card-purchasing program, partly in response to the increased competition for valuable credit union...

• IT execs in credit union land face mixed bag of changing challenges

  By Marc Rapport

  COLUMBIA, S.C. - While the American economic engine continues to lurch, IT managers in credit union land say their work force has stabilized and that the softened labor market has helped them find and keep good help. That's the take from a quick check Credit Union Times did with executives...

• A number of financial transactions are clear about how the obligation will be met in accordance with Islamic law:

  By Staff Writer

  * Murabaha - The Islamic credit union/bank purchases goods in its own name and sells them to a businessperson at an agreed-upon mark-up. Because they actually take title and re-sell, the credit union/bank are performing a legitimate service and earning a legitimate profit. * Mudaraba - The Islamic credit union/bank...

• HUD publishes proposed RESPA reforms in Federal Register

  By Staff Writer

  WASHINGTON - The U.S. Department of Housing and Urban Development published in the July 29th edition of the Federal Register, the agency's long-awaited proposal to reform the Real Estate Settlement Procedures Act (RESPA) that includes new rules intended to simplify and improve the mortgage process and reduce settlement costs for...

• U.S. Central PR exec leaves to start PR firm

  By Staff Writer

  OVERLAND PARK, Kansas - Margaret Blankers, vice president of public affairs and communications for U.S. Central Credit Union, is leaving U.S. Central to start her own PR firm, Margaret J. Blankers Public Relations Group, LLC. Blankers has been with U.S. Central for four years. Previously, she served as vice president...

• Florida SCCUs get parity with FCUs on official family members loans

  By Staff Writer

  TALLAHASSEE, Fla. - In a move the Florida financial administrator for the Division of Banking said is designed to make it easier for state-chartered credit unions to make loans to official family members, the state regulator approved an Order of General Application that addresses Section 655.061 of the Florida statute...

• Helen Hosea Memorial Fund

  By Staff Writer

  Burbank City Employees FCU has established the Helen Hosea Memorial Fund for the Benefit of Charles (10) and Christopher (11) Hosea. Member donations to the memorial fund can be made by check, telephone transfer, or in person at the credit union to the following credit union account number: 18558-00. The...

• Public Debt Parkersburg FCU gets new name, charter

  By Staff Writer

  PARKERSBURG, W. Va. - Public Debt Parkersburg Federal Credit Union, has recently been granted a community charter. Under terms of the new charter, any person who lives or works in Wood County West Virginia is now eligible for membership. To better reflect the new field of membership, effective September 1,...

• Hershey Foods on auction block not likely to affect Hershey FCU's future

  By Michelle A. Samaad

  HERSHEY, Pa. - As executives at chocolate giant Hershey Foods Co. recently announced that the company had put itself up for sale, its outcome will probably not affect Hershey Federal Credit Union, at least in the short term. The credit union's president/CEO, Diana Roberts, is confident that its "well diversified"...

• New York Life launches LTCSelect Premier

  By Staff Writer

  NEW YORK - New York Life Insurance Company may be kicking off a new insurance trend with the inclusion of an inflation rider on its long term care policy LTCSelect Premier. The Benefit Increase Option Rider is based on the Urban Consumer Price Index and the company says by providing...

• CUNA Mutual's SVP of Communications leaving after brief tenure

  By Staff Writer

  MADISON, Wis. - After just nine months on the job, CUNA Mutual SVP of Communications John Nelson is leaving the company. Nelson took over the position in November, replacing Larry Blanchard who is now SVP Corporate and Legislative Affairs, dealing with legislative issues that affect the insurance industry. Nelson came...

• Arrowhead CU's "Payday Program" helps state employees facing paycheck crisis

  By Staff Writer

  SAN BERNARDINO, Calif. - Members of Arrowhead Credit Union who are state employees and face the prospect of having their pay suspended because of the state budget crisis may be eligible to take advantage of Arrowhead CU's Payday Program. Arrowhead CU has offered the program to members since 1995 to...

• CUNA, others urge Senate forward on CARE bill

  By Staff Writer

  WASHINGTON-In preparation for Senate consideration this week, CUNA has joined with 30 other groups in sending a letter to the Senate supporting the passage of the CARE Act (H.R. 7), which includes a provision for Individual Development Accounts (IDAs). Other groups include America's Community Bankers, the Consumer Federation of America,...

• CUs continue strong performance despite national economic roller coaster

  By Staff Writer

  WASHINGTON - Despite the ups and downs the national economy is going through, credit unions posted strong balance sheet growth in the second quarter 2002, continuing a trend they showed in the first quarter of the year, according to Callahan & Associates' First Look Program. The data is based on...

• Two Fed nominees approved

  By Staff Writer

  WASHINGTON-The Senate Banking, Housing, and Urban Affairs Committee approved two nominations for the Federal Reserve Board of Governors and forwarded them on to the full Senate. The vote was 20-1 with Senator Jim Bunning (R-Ky.) casting the sole "no" vote. Ben S. Bernanke, of New Jersey, was approved by the...

• Deadline nears for Desjardins Youth Financial Education Award entries

  By Staff Writer

  MADISON, Wis. - The deadline for the Desjardins Youth Financial Education Award is quickly approaching. Entries should be sent to league award coordinators for state-level judging. National judging of state winners will occur later this year. "The Desjardins Award was designed to recognize the credit union movement's leadership in improving...

• More than 600 CUs now offer MEMBERS FOLIO Investing

  By Staff Writer

  VIENNA, Va. - Through an alliance with, FOLIOfn, a provider of investment services, MEMBERS FOLIO Investing program is now used by more than 600 credit unions nationwide. Through its registered broker-dealer subsidiary, FOLIOfn Investments, Inc., the company offers an integrated brokerage platform featuring its "basket-trading" capability and execution, clearance and...

• Flash data demonstrate that CUs may not understand privacy responsibilities

  By Staff Writer

  ARLINGTON, Va.-NAFCU used privacy issues as the focus subject of its Flash Report with a new bolder look and more concise economic information. The study of a random sampling of its members looked into credit union members' satisfaction with the institutions' privacy policies after the Gramm-Leach-Bliley Act. An overwhelming 82%...

In Other News

• AWARDS

  By Staff Writer

  Midwest Association of Credit Unions, has presented Heritage Corridor Credit Union President Deborah Bachmann the first annual Ronald P. Boots Distinguished Service Award. Bachmann has been honored for her service to the credit union and the credit union movement. Boots was a long-time president of MACU who died earlier this...

• SCHOLARSHIPS

  By Staff Writer

  Kitsap Community Federal Credit Union, Bremerton, Wash., Marketing Specialist Cathy Brorson has been awarded the 2002 Robert L. Curry Scholarship by the National Youth Involvement Board. This scholarship is awarded annually for an individual's outstanding contributions in the area of youth financial literacy efforts.

News

• Advancial FCU beefs up online services with inter-institution money transfers

  By Eileen Courter

  DALLAS - Put money directly into the day care center's checking account. Transfer money from your credit union to your son's bank account near the college he's attending more than 1,000 miles away. Transactions like these are becoming more common as financial institutions and vendors work to tear down traditional...

• Symitar partners with Pinnacle to offer NSF protection solution

  By Marc Rapport

  SAN DIEGO - Symitar Systems is now offering its clients a software add-on to its core system that will allow credit union members to enjoy the same bounced-check protections that bank customers have long had. In fact, Joe Gillen had credit unions in mind when he created Houston-based Pinnacle Financial...

• Vermont State Employees CU features RTS technology

  By Jim Rubenstein

  MONTPELIER, Vt. - Marking its first expansion move since being approved last March to branch into six counties, Vermont State Employees Credit Union said a debut facility that opened recently in Rutland includes those remote walk-up teller stations which have become popular lately at CUs across the country. At the...

• Member focus continues to drive functionality growth

  By Marc Rapport

  COLUMBIA, S.C. - Sixteen percent of online consumers cited a credit union as their primary financial provider, up sharply from 9% in 2001, according to a recent survey by Forrester Research. "With superior service, higher deposit rates and lower fees, credit unions are gaining as the preferred financial provider among...

• Forrester, Yodlee at sharp divergence on aggregation

  By Marc Rapport

  COLUMBIA, S.C. - Catherine Graeber pulls no punches in her just-released Forrester Research piece on aggregation. "A year ago, aggregation was the hot topic. But muted consumer adoption and poor data has led some firms to discontinue their offerings," she writes in a brief paper titled "Aggregation: The Emperor Still...

• IT DEMAND: CU IT professionals not as hot as they were in dot-com days, but still very marketable

  By Marc Rapport

  COLUMBIA, S.C. - While the American economic engine continues to lurch, IT managers in credit union land say their work force has stabilized and that the softened labor market has helped them find and keep good help. That's the take from a quick check Credit Union Times did with executives...

• Special Report: Data Processing & Technology

  By Staff Writer

  Some people are already counting out aggregation. Web site innovations are not as plentiful, but still exist. Read about these and other hot tech topics in the special report on pages 18-26.

Letters to the editor

• CUs need to document low-income service

  By Staff Writer

  Publisher Mike Welch's column in Credit Union Times is always a must-read, and in the July 3rd issue, he asks an important question - "Why should credit unions document their service to low-income people?" After reading his column I wondered, "why wouldn't credit unions want to document their services to...

Publisher's Column

• Credit unions do good but could do better

  Every year about this time, at least for the past 14 years, credit union spokespersons start to crow loud and long about how much more consumers are satisfied as members of a credit union than as customers of a bank. Focal point of the annual good news since 1989 for...

People

• MIDWEST

  By Staff Writer

  Affinity Plus Federal Credit Union, St. Paul, Minn., has named Nancy Nelson chief development officer. In addition APFCU has promoted Elizabeth Hayes to chief relationship officer/senior vice president of Member Services.

• EAST

  By Staff Writer

  Affinity Federal Credit Union, Bedminster, N.J., has named Jeff Burns vice president of human resources. Franklin Mint Federal Credit Union, Broomall, Pa., has promoted Rick Durante to assistant vice president training/development; Stefanie Henson to vice president/controller and Liza Mattis to vice president support services.

• VENDORS

  By Staff Writer

  Credit Union 24, Incorporated, the cooperative that owns the regional Credit Union 24r ATM/ POS network, has elected the following officers to its board: Campus USA CU President/CEO Larry Scott, chairman; Virginia Credit Union Services, Inc. Vice President Terry Childress, vice chairman; and Mississippi Credit Union System Vice President Mansel...

• SOUTH

  By Staff Writer

  Keesler Federal Credit Union, Biloxi, Miss., has named Kim Balch accounting manager. Alabama Credit Union Administration, Montgomery, has elected the following board directors: Charlotte Williams, Listerhill Credit Union; Hillard Sparks, Valley Credit Union, Tuscumbia; Preston Pratt Jr., Alabama Telco Credit Union; Sal A. Marino, APCO Employees Credit Union; Sharon Downing,...

• WEST

  By Staff Writer

  Water and Power Community Credit Union, Los Angeles, Calif., has promoted Nora Yusa to vice president of operations/risk management and Mike Tufegdzich to vice president of sales. Washington State Employees Credit Union, Olympia, has appointed Alice Collins CEO and Ric Bean asset/liability management program manager. In addition, WSECU has promoted...

News Briefs

• Lattimore, NASCUS chair, to run for second term

  By Staff Writer

  ARLINGTON, Va. - Jerrie Lattimore, administrator for the Credit Union Division, North Carolina and current NASCUS chair, has decided to run for a second one-year term. Lattimore was elected to the position during NASCUS' 2001 Annual Conference. NASCUS bylaws allow the chair to run for a second term. This year's...

• San Diego Metropolitan CU offers members legal plans

  By Staff Writer

  SAN DIEGO, Calif. - With the number of lawsuits multiplying, and the growing demand of legal services, San Diego Metropolitan Credit Union has added legal services to its member service menu. Through a partnership with Oklahoma-based Pre-Paid Legal Services, Inc., for a $17.00 monthly charge, which is automatically debited from...

• New survey finds CFOs sitting pretty

  By Staff Writer

  MENLO PARK, Calif. - Looking for high job satisfaction? Consider becoming a Chief Financial Officer. A new survey developed by RHI Management Resources, a consulting services firm, finds that many chief financial officers are quite happy with their jobs. Thirty-six percent of finance executives say they plan to stay in...

• Most ATM users in it only for the money

  By Staff Writer

  ARLINGTON, Va. - Seventy-seven percent of automated teller machine (ATM) users have told surveyors that they are primarily interested in the money the ATM offers, which might explain why only 5% of the nation's over 320,000 ATM have been outfitted to be able to sell stamps as well as other...

• Potential Maryland CU members soon to be able to search online for CU they're eligible to join

  By Staff Writer

  COLUMBIA, Md. - Residents of Maryland who are interested in joining a credit union will soon be able to locate one they're eligible to join by accessing the Maryland Credit Union League's Web site (www.mdcul.org). The League is putting the finishing touches on Maryland Search, a user-friendly service that searches...

• Appropriations Committee passes CLF funding

  By Staff Writer

  WASHINGTON-The Senate Appropriations Committee passed a favorable report on to the full Senate concerning the Veterans Affairs, Housing and Urban Development, and Independent Agencies (VA-HUD) appropriations legislation, which encapsulates the Central Liquidity Facility (CLF). The NCUA's CLF was permitted to retain its $1.5 billion borrowing authority for fiscal year 2003...

• New York State League Counsel appointed to CUNA advisory panel

  By Staff Writer

  LATHAM, N.Y. - Michael Lanotte, senior vice president of governmental and regulatory affairs/general counsel for the New York State Credit Union League, was appointed to CUNA's new Legislative Advisory Panel. The advisory panel, made up of six credit union league attorneys, was created to assist CUNA's State Credit Union Subcommittee...

• Beach joins CU Association of the West

  By Staff Writer

  FEDERAL WAY, Wash. - Carroll Beach, former president of the Colorado Credit Union System, has been named executive consultant with the CU Association of the West, an umbrella organization for credit unions on the West Coast, it was announced Monday. Beach, who was with the Colorado league for almost 30...

Opinion

• Electronic communications with members: Effective and easy, but do it right

  By Staff Writer

  I am an admitted e-mail junkie. As managing director of CUES Tech Port for the past three years, I fielded a hundred or so e-mail requests per day. On top of that, I receive another few hundred e-mails a week in the form of financial services industry news, electronic newsletters...

Marketing

• nuVision Financial FCU new loan promotion goes extreme..to put it lightly

  By Myriam DiGiovanni

  HUNTINGTON BEACH, Calif.- Monster trucks, the Playboy X-treme team and a $556 million federal credit union? As odd as it may sound, the combination helped make nuVision Financial Federal Credit Union's Xtreme Loans campaign kick-off an "extreme" success. With a recent name change in February, (the credit union was formerly...

Staking Out the Stats

• STAKINGOUTTHESTATS

  By Staff Writer

  With fraud scandals and crimes on the rise, here is a look at a few facts from the Association of Certified Fraud Examiners' 2002 Report to the Nation: *

Tech Bytes

• Summit and Raddon develop MRM solution

  By Staff Writer

  CORVALLIS, Ore. - Credit union data processor Summit Information Systems and Raddon Financial Group have developed a Member Relationship Management (MRM) solution for credit unions. The solution ranks each member's value according to his or her total experience with the credit union including transaction activity, service methods and account balances....

• Metavante to acquire Spectrum EBP

  By Staff Writer

  MILWAUKEE - Metavante, a subsidiary of Marshall & Ilsley, has signed a definitive agreement to acquire Spectrum EBP, LLC, a switch for exchanging online payments. Spectrum came on the bill pay scene with a lot of fan fare as it was founded a few years back by a group of...

• Marshall to keynote TechMecca 2002

  By Staff Writer

  AUSTIN, Texas - TechMecca 2002 - a joint technology conference sponsored by the PULSE EFT Association, the Independent Bankers Association of Texas and the Texas CU League - will be keynoted by Ruth Ann Marshall, president of MasterCard North America. Marshall will discuss how companies can remain successful in the...