Credit Union Times Magazine July-31, 2002

  • CUNA writes in support of FOM review

    WASHINGTON-CUNA President and CEO Dan Mica wrote NCUA Chairman Dennis Dollar in support of his comments at NAFCU's 2002 Annual Conference. "As in the past, one of CUNA's highest priorities is to pursue field of membership policies that provide credit unions the flexibility they need to reach out to new...

  • Slim chance of a dividend this year

    NONE

  • ACFE calls for new actions to fight corporate fraud

    AUSTIN, Texas - The Association of Certified Fraud Examiners, an organization dedicated to fighting fraud and white-collar crime, has recently called for four new actions to fight corporate fraud. "Fraud is like cancer. Passing a law against it won't make it go away," said ACFE President/CEO, Toby J.F. Bishop. "We...

  • ACCU backs off of corporate network study; says there's enough information already available

    WASHINGTON - In a surprising announcement, the Association of Corporate Credit Unions said it will not move forward with the planned study of the corporate credit union network. The study was supposed to look at what products and services corporate CUs should be offering in the future; how they could...

  • As CUs continue to dominate annual consumer satisfaction survey, compelling findings come with bill payment

    NEW YORK - Once again credit unions find themselves beating banks in a prominent annual consumer satisfaction survey. The news this year is how bad CUs are beating everyone in the online world. Credit unions and banks alike await the American Banker-Gallup Consumer Survey each year to see if they're...

  • Denver Postal CU changes name to Eagle Legacy CU

    DENVER - In a move to help it tap a potential member base that extends beyond its original charter, Denver Postal Credit Union has changed its name to Eagle Legacy Credit Union. The credit union is the ninth largest in the state with $170 million in assets and 28,000 members....

  • CUNA wants use of `matricula' clarified as acceptable under PATRIOT Act

    WASHINGTON-CUNA responded to a joint proposal made recently by Treasury, NCUA, and the other federal financial regulators implementing provisions in the USA PATRIOT Act requiring financial institutions to establish reasonable procedures for authenticating member and customer identities when opening new accounts. "One issue we want to make sure is clear...

  • Nebraska Dept. of Banking and Finance restructures

    LINCOLN, Neb. - The Nebraska Department of Banking and Finance has restructured its Financial Institutions Division to reflect, it said, the change of title and duties of its deputy director. Previously, the Deputy Director of Financial Institutions managed only those areas regulated by the Financial Institutions Division, such as state-chartered...

  • CUNA, NAFCU comment on broker-dealer issues

    WASHINGTON-In separate comment letters, two national credit union trade associations supported the idea of credit unions being permitted to offer sweep account services without being required to register as broker-dealers with the Securities and Exchange Commission (SEC). The issue has arisen out of an application for the Evangelical Christian Credit...

  • CUNA releases Presidential Series learning modules

    MADISON, Wis. - CUNA's Staff Training and Recognition Program has recently released three new Presidential Series modules. The series of self-paced learning modules include the following: Member Service: Exceeding Expectations lets students discover the key to providing service that exceeds member expectations. They will learn the basics of delivering courteous,...

  • Banks cry foul as N.J. CUs are exempt from new corporate business tax

    TRENTON, N.J. - It remains to be seen whether a $1 billion tax hike (S-1556/A-2501) approved by the New Jersey state legislature in an emergency session called by Gov. James McGreevey will raise the necessary money to close a $5.3 billion shortfall in a $23.4-billion, 2003 fiscal year budget. What...

  • Breakfast club gives small credit unions struggling to carve out time for training, an opportunity to network

    EASTLAKE, Ohio - As she sips her coffee and picks at the fresh fruit on her breakfast plate, Betty Rutti, explains her quandary. "We're trying to grow, we're spending money on marketing and advertising," she says, but, as manager of Reliance Mutual Inc., a credit union with $5.7 million in...

  • Seattle credit union to convert to thrift; cites business, economic reasons

    SEATTLE, Wash. - Citing economic and business considerations, the 53-year-old Credit Union of the Pacific has applied for conversion to a federally chartered thrift institution. "In order to survive and prosper, we need to take this next step," said Laurie Stewart, president and chief executive officer of the $125 million,...

  • Risk of NCUSIF premium assessment rises as the stock market falls

    ARLINGTON, Va. - Senior trade association economists said the rising tide of credit unions' insured account balances in the wake of the stock market's downturns and general economic uncertainty increases the possibility that the National Credit Union Share Insurance Fund (NCUSIF) will have to assess a premium on federally insured...

  • Subcommittee OKs CLF at $1.5 billion

    WASHINGTON-The Senate Appropriations Subcommittee on VA, HUD, and Independent Agencies, chaired by Senator Barbara Mikulski (D-Md.) approved legislation last week on the Central Liquidity Facility (CLF). The CLF provision is included in the Veterans Affairs, Housing and Urban Development, and Independent Agencies Appropriations bill. According to numerous knowledgeable sources, the...

  • USC CU staff beats the clock, meets "two minute" loan challenge

    LOS ANGELES - Talk about being under the gun. USC CU President Gary Perez challenged the CU's staff to come up with a solution to speed up USC's auto loan approval process and kept them sequestered until they had a plan. Perez even raised the stakes a bit higher -...

  • Florida SCCUs continue to expand FOMS, reach out to larger geographic areas

    TALLAHASSEE, Fla. - Like the general population in the Sunshine State, Florida's state-chartered credit unions are in the midst of a growth cycle. The numbers speak for themselves: * in March 2002, Florida-chartered CUs served 1,947,689 members. A year prior there were 1,404,527 members of Florida SCCUs. * total assets...

  • Credit unions in Utah prepare ad blitz as bankers renew tax bogey

    SALT LAKE CITY - Those Utah ad wars between credit unions and banks, highlighted in the fight three years ago over H .R. 1151 and a court suit over field of membership, are heating up again this month-this time following banker defeat in a primary campaign for a Utah Congressional...

  • CUNA reverses its position in controversial California credit card suit

    ARLINGTON, Va. - All appearances of confusion notwithstanding, a senior CUNA official defended the way the association has handled its role in a controversial financial industry suit to overturn a California credit card disclosure law. Now both CUNA and NAFCU, along with other banking trade associations and several nationwide credit...

  • CUs respond to banker's maligning statements on credit union integrity

    CU Times Washington Reporter PARKERSBURG, W.V.-In one of the latest media skirmishes between banks and credit unions, the credit union community responded full throttle to accusations by a West Virginia banker that credit unions are not as strictly regulated as banks and, therefore, are not as safe. A July 1...

  • Fixed mortgage rates hit record lows

    WASHINGTON - Fixed mortgage rates dipped to all-time lows while the refinance index reached its highest level in eight months for the week ended July 19, according to the Mortgage Bankers Association of America's weekly survey. The market composite index of mortgage loan applications increased 12.9% to 815.2 from 722.2...

  • Steel Works Community FCU houses travel agency

    WEIRTON, W. Va. - Steel Works Community Federal Credit Union has added travel services to its member offerings. As part of a partnership with MAC Travel Agency, the 10-year agency has opened an office on the first floor of the $220 million credit union's Three Springs Drive branch. MAC Travel...

  • Cabrillo CU employees beat the heat with shorts

    SAN DIEGO, Calif. - In the midst of a stage-two energy shortage, Cabrillo Credit Union is helping out by turning the thermostat up and changing its dress code to shorts. The temporary dress code of shorts will revert back to standard business when the energy alert is lifted. "As a...

  • Double-dip recession not likely, but rate outlook may not improve until mid-2003

    CARMEL VALLEY, Calif. - Erring on the side of pessimism, Callahan's Trust for Credit Unions' adviser Jan Hatzius doesn't foresee an increase in interest rates any time soon. Speaking at Callahan and Associates' annual conference in mid-July, Hatzius predicted that the Federal Reserve is as likely to raise rates as...

  • They're at it again

    The infamous ad wars between Utah CUs and banks aren't over just yet. Page 6.

  • Becker gets back his own words nicely framed

    NAFCU Chairman Jim Mills, president/CEO of Three Rivers FCU, Fort Wayne, Ind., (left) presents NAFCU President/CEO Fred Becker with a framed copy of the Congressional Record from May 17 of this year. In that issue, Congressman Steve LaTourette pledged his support to regulatory relief legislation and submitted into record the...

  • Missouri bankers appeal CU Commiss. expansion decision for EECU

    JEFFERSON CITY, Mo. - The Missouri Bankers Association has filed an appeal with the Cole County Circuit Court concerning the state Credit Union Commission's decision to deny banks standing in Education Employees CU field-of-membership expansion. According to the Missouri Credit Union System, the bankers claim the Commission cannot deny them...

  • Florida SCCU FOM expansion applications pending

    * Government Employees CU of Florida, Jacksonville; $135 million in assets; more than 30,000 members; expansion includes any person living or working in Miami-Dade County. * Coast To Coast CU, Tampa; $17.3 million in assets; 6,800 members; expansion includes employees of Brockington Group, Ocala, Fla. * 1st Credit Union of...

  • Campaign contributions heat up as elections near

    WASHINGTON-The Credit Union Legislative Action Council of CUNA (CULAC) is turning up the heat as election time nears. NAFCU PAC is also adding its two cents to the races. The August recess, traditionally used for district work, began this week for the House and starts next week for the Senate....

  • Washington's CU latest name change

    MOUNTLAKE TERRACE, Wash. - Sometimes just a small change can make a big difference. At least that is what the former Washington Credit Union hopes will happen with its new name change to Washington's Credit Union. The $262 million credit union cited its 30% asset growth and three credit unions,...

  • Seven Seventeen CU turns 45, offers free DNA fingerprinting

    WARREN, Ohio - Seven Seventeen Credit Union has celebrated its 45th anniversary with a member and community appreciation day which includes free DNA fingerprinting of children. Seven Seventeen CU is working with the DNA LifePrint National Child Safety Program, which is endorsed by John Walsh, Host of America's Most Wanted....

  • Versatility key to successful career

    MENLO PARK, Calif. - Apparently adaptability is not just for survival of the species but also vital to moving ahead at work. According to an Accountemps survey, 35% of chief financial officers said embracing change is a critical success factor for employees and 27% feel a desire to learn new...

  • Regulatory relief for Washington State's small CUs goes into effect

    OLYMPIA, Wash. - A regulatory relief measure for small credit unions that was adopted by the Washington State Department of Financial Institutions' Division of Credit Unions on June 25, went into effect July 27. The final rule allows small CUs: * to schedule special meetings of members from 10 to...

In Other News

  • MILESTONES

    Actors Federal Credit Union, New York, has recently celebrated its 40th Anniversary. Proclamations congratulating AFCU on 40 years of service were presented on behalf of NYC Council Speaker Gifford Miller and Council Member Christine Quin, 3rd District of Manhattan, by Torrence Allen, personal assistant to Miller. Notable events from the...

  • DONATIONS

    Fiscal Credit Union, Glendale, Calif., has donated $50 Savings Bonds to 12 winners of the Woodland Hills Chamber of Commerce Children's Art Contest. The winners, students of kindergarten through 6th grade were officially recognized during the Woodland Hills Festival in the Park, where their artwork was exhibited for the enjoyment...

News

News Briefs

  • House Financial Subcommittee to hear testimony on banks in real estate

    WASHINGTON - The House Financial Services Subcommittee on Financial Institutions, chaired by Rep. Spencer Bachus (R-Ala.) will hold a legislative hearing July 24 on the Community Choice in Real Estate Act, H.R. 3424. The measure, introduced by Rep. Ken Calvert (R-Calif.) addresses a proposal currently in the rulemaking process. H.R....

  • Denali Alaskan FCU buys insurance company

    ANCHORAGE - Denali Alaskan Federal Credit Union has recently purchased an interest in Alaska Business Insurance, and has re-named the agency Denali Alaskan Insurance. Denali Alaskan Insurance will offer personal lines such as home auto and health insurance in addition to business insurance including coverage for property, business liability, worker's...

  • Arizona League foundation unit donates $15,000 to fire victims

    PHOENIX - In line with its program to help out victims of last month's devastating wildfires, the Arizona Credit Union League announced July 18 that its foundation unit has donated $15,000 to three relief organizations in northeast Arizona with funds designated for the needy. "The credit union philosophy of `people...

  • WOCCU's Ito speaks on UN panel discussion on community development

    MADISON, Wis. - Lucy Ito, vice president of the World Council of Credit Unions (WOCCU) joined a distinguished panel of speakers from the Canadian Cooperative Association, the University of Leicester and the World Bank, in a United Nations-hosted discussion on "Society and Cooperatives: Concern for Community" that was held in...

  • VolCorp has a new CFO

    BRENTWOOD, Tenn. - The $1 billion VolCorp has named Rick Veach Vice President/Chief Financial Officer. Veach's background includes over 25 years in the financial services industry. His expertise includes asset liability management, investments, budgeting and financial management. Veach holds an MBA from the Owen Graduate School of Management at Vanderbilt...

  • CUNA tells OFAC to ease up on disclosure rule

    WASHINGTON-CUNA recently wrote a comment letter opposing a proposal by the Office of Foreign Asset Control (OFAC) to publicly disclose penalties imposed by the agency. The proposal was published in the June 19 Federal Register. "We have always been concerned that the ever-increasing complexity of the OFAC sanctions programs raises...

  • SunCorp/Nebraska Corporate Central FCU merger could be done deal by Oct. 31

    ARVADA, Colo. - SunCorp Corporate CU President/CEO Eric Kenealy said he's hopeful the SunCorp/Nebraska Corporate Central FCU merger can be completed by Oct. 31. Since there's no NCUA Board meeting in August, the corporates are trying to get the merger proposal on the board's September agenda. Kenealy said if it...

Tech Bytes

  • Symitar nets its first service bureau client

    MONETT, Mo. - Credit union data processor Symitar Systems - which has traditionally been a provider of in-house data processing only, but recently started offering a service bureau solution - has signed its first service bureau client. Symitar has over 300 CUs on its in-house system, and FEC Credit Association,...

  • Corporate spying alleged in CU vendor fight

    ARLINGTON, Va. - The legal battle between Digital Insight and FundsXpress is far from over. Austin based FundsXpress, a $12 million company, sued $95 million Digital Insight, based in Calabasas, California, for almost $80 million, claiming that one of its employees was also an employee of Digital Insight. The suit...

  • ITCUA elects Butler chairman

    DEL MAR, Calif. - Robert Butler, first vice chairman of Communicators FCU, Houston, has been elected chairman of the Information Technologies Credit Union Association. The ITCUA originated as a trade association for telecommunication (primarily telephone) CUs, but has moved into technology over the years. It recently announced that it would...

  • CGI's CU division launches browser-based solution set

    SOUTHFIELD, Mich. - CGI's credit union division has created of a new suite of browser-based solutions and services for CUs. The CyberSuite is comprised of a collection of applications called CyberBranch, CyberBranch@Home, CyberGateway, and CyberPlus and will be ready for general release in the first quarter of 2003. Product descriptions...

  • CUNA Network Services is one year old

    MADISON, Wis. - CUNA Network Services turned one year old this past July. The CUNA subsidiary was formed by the combination of the e-commerce assets of CUNA Strategic Services Inc. and Sunstar IP Communications. "When we began CUNA Network Services a year ago, we were determined to create a dynamic,...

  • Mid-Atlantic Corporate partners with VolCorp for EBP

    MIDDLETOWN, Pa. - Mid-Atlantic Corporate Federal Credit Union is partnering with VolCorp to offer Electronic Bill Payment (EBP) to VolCorp's 240 member credit unions through Mid-Atlantic's subsidiary, MY CU Services, LLC. Under the agreement, VolCorp will market EBP to its member credit unions. VolCorp will provide settlement services and utilize...

  • Wescom gets first disaster recovery client

    PASADENA, Calif. - Talk about branching out into new areas. Wescom Credit Union has signed Foothill Federal Credit Union as the first client for its Disaster Recovery service. The credit union is offering disaster recovery services through one of its CUSOs, Wescom Resources Group (WRG). The CUSO specializes in data...

  • Online mortgage purchases rising slowly, but still rising

    ARLINGTON, Va. - Six percent of mortgage seekers applied for their loans online recently, according to Cambridge Massachusetts based Forrester Research. CUNA's CU Environmental Scan for Strategic Planning reported that the number of online applications have risen almost 2% in the last two years, standing at 1.3% in 1999 and...

  • CUNA to market .coop to CUs

    MADISON, Wis. - CUNA said it will become the lead marketer to CUs for the new .coop domain. CUNA entered into an agreement with the National Cooperative Business Association (NCBA) to become the primary marketer of .coop domain names to U.S. credit unions. The agreement allows CUNA Network Services to...

Briefs

  • DIEBOLD introduces new ATM platform

    ARLINGTON, Va. - Diebold Inc., a major ATM provider, has released a software platform that will allow financial institutions to give their customers a familiar ATM experience even if they use a variety of different ATM machines. The Agilis Power service means consumers will have a consistent user experience every...

  • Payroll cards growing steadily in popularity

    ARLINGTON, Va. - The practice of paying employees by adding money to payment cards that they can then use at ATMs or, if the cards have card association logos, anywhere that Visa and Mastercard are accepted continues to grow. Sears Roebuck announced recently that it would allow it employees at...

  • VISA: Honor All Cards rule doesn't prevent merchant influence

    ARLINGTON, Va. - With the court drawing closer to unsealing the documents involved in the fight with Wal-Mart and other retailers, Visa officials told the American Banker that nothing about the Honor All Cards rule prevented Wal-Mart or the other retailers from influencing customers to use cards with a lower...

Letters to the editor

  • Time to put `large vs. small' argument to rest

    I have tried to keep quiet for quite awhile on this large vs. small issue, but I can't after the comment made by John Edwards that "a lot of the smaller credit unions try to perpetuate" the notion that small credit unions are the backbone of the movement. You see,...

Looking Back

  • Credit Union Times Vol. 9, No.30 June 29, 1998

    Looking back four years ago finds credit union trade associations preparing for a floor fight over business lending cap amendments to H.R. 1151. At issue is the Hagel-Bennett amendment, which would reduce the current member business cap by 43%. "It's an unreasonably restrictive amendment and we're doing everything in our...

Opinion

Publisher's Column

  • Bankers could learn a lot at NAFCU conference

    During my credit union career, I have attended a number of national banking association conferences. Included on the long list of things I learned at these meetings is that the three most popular session themes at banking meetings are profitability, profitability, and profitability. It's a shame that bankers don't participate...

NAFCU

  • CUs must carefully weigh the costs and benefits of aggregation

    SEATTLE-As unique as each credit union and its members are, so are their needs. In an education session during NAFCU's 35th Annual Conference, NAFCU Director of Regulatory Compliance Linda Dent told attendees that credit unions must make individual decisions about whether account aggregation is an appropriate and worthwhile service for...

  • Do not confuse low-income with underserved, NCUA official advises

    SEATTLE-NCUA Credit Union Development Analyst Nancy Padilla told attendees of NAFCU's 35th Annual Conference that it is important to understand the difference between a low-income area and an underserved area. By adding underserved areas, credit unions are not necessarily serving low-income areas and vice versa. In locating an investment area,...

  • Recent events have upped the ante regarding disaster recovery

    SEATTLE-Since the terrorist attacks of September 11, what to do following a disaster are at the top of credit unions' list of vital questions, particularly since several credit unions were directly affected by the events. More recently, flooding in Texas and fires throughout states in the West have brought the...

  • NAFCU takes its common sense approach to Capitol Hill

    SEATTLE-With know-how and constituents, NAFCU is able to make its presence known on Capitol Hill and prove this town is big enough for both CUNA and NAFCU. While CUNA boasts that it represents more than 90% of all credit unions and NAFCU works for just 14% of federal credit unions,...

  • Serve your employees better to better serve your members

    SEATTLE-Make work fun was the advice Jackie Freiberg, managing partner of Freibergs.com, had for attendees of NAFCU's 35th Annual Conference. She asked the audience who likes to work with fun people and nearly everyone raised their hands; however, very few raised their hands when she asked if they hire employees...

  • The bottomline: e-statements can save credit unions money

    SEATTLE-During NAFCU's Annual Conference in Seattle, ESL Federal Credit Union CEO William "Tim" Pryor advised credit unions on how to save money and maintain compliance using electronic statements. The Electronic Signatures in Global and National Commerce Act (E-SIGN) of 2000 gave electronic contracts have the same weight as paper ones....

People

  • WEST

    Kitsap Community Federal Credit Union, Bremerton, Wash., has promoted Mike Mally to technical security manager and Misty Rinehart South Kitsap branch supervisor. Meriwest Credit Union, San Jose, Calif., has elected the following officers to its board: Richard Alves, chairman; Melvin Olsen, vice chairman; Arthur Jue, secretary; and Karl Nigg, treasurer....

  • MIDWEST

    Earthmover Credit Union, Oswego, Ill., branch manager Kimberly Ekle has been elected second vice president of the North Aurora Lion's Club, which is a service organization committed to supporting people with blindness and deafness. Catholic Federal Credit Union, Saginaw, Mich., has named Alan P. Watson vice president of accounting. CUNA...

  • SOUTHWEST

    FirstCorp, Phoenix, has elected the following officers to its board: Dan Desmond, chairman; Jim Knoff, vice-chair; Gloria Mundy, treasurer; Linda Dhaemers, secretary. In addition, FirstCorp has elected the following directors: Rita Albertson; Jim Simpson; and Garth Griese.

  • SOUTH

    Keesler Federal Credit Union, Biloxi, Miss., has named Bridget Haley branch operations coordinator and Rachelle MacGregor mortgage loan originator. In addition, KFCU has promoted Cynthia Lee to ACH officer.

  • EAST

    Virginia League Central Credit Union, Lynchburg, Va., has appointed Greg McConville president/ CEO. Pennsylvania Credit Union League, Harrisburg, has promoted Elaine Royer credit union development specialist of Pacul Services, Inc., a wholly-owned service subsidiary. Maine Credit Union League, Portland, has elected the following officers to its board: Normand Dubreuil, chairman;...

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