Credit Union Times Magazine October-23, 2002

  • Union NCUF grants $25,000 for CDCU

    WASHINGTON - The National Credit Foundation has given the Illinois Credit Union League $25,000 for the League to use to help establish a community development credit union in the Southside of Chicago. The credit union, tentatively called the Southside Chicago CDCU, will serve 11 low-income South Side Chicago neighborhoods. There...

  • South Carolina League hopeful predatory lending bill will pass this time around

    COLUMBIA, S.C. - It's been an ongoing effort for the past four years, but the executive vice president of the South Carolina Credit Union League is hopeful the state's predatory lending bill will have better luck this time around when the state legislature convenes in January 2003. What's different this...

  • State pulls three officials of Michigan credit union; NCUA moves in

    LANSING, Mich. -State regulators have removed three officials of Birch Run Area Credit Union claiming the credit union gave preferential treatment to two of the officials. NCUA has moved in to arrange a merger or an assumption of shares. Suspended Sept. 27 were president and CEO Harold Johnson, general manager...

  • Underserved adoptions down for September

    ALEXANDRIA, Va.-According to recently released NCUA data on monthly actions delegated to the regions, the adoption of underserved areas was down for the month of September but the number of potential members still ranked in the middle. Just 15 credit unions adopted 20 underserved areas last month, NCUA data shows....

  • Credit unions vary in their approaches for filling the corner office

    WEST PALM BEACH, Fla. - When it comes to leadership are credit unions on the verge of exhausting their supply? Many experts say maybe not, but amid predictions of current CEOs retiring within the next five years it will become more challenging to find the right leader for the times....

  • Credit unions deal with mediocre lending and strong deposits; loan charge-offs, delinquencies historically low

    ALEXANDRIA, Va. - Statistically 2001 and what we have of 2002 so far are almost identical in credit union land - moderate loan growth and strong savings growth. According to NCUA's mid-year statistics, shares have increased a strong 7.68%, or by $33.6 billion. "Members are seeking a safe haven for...

  • CUNA calls HUD proposed changes to RESPA rules "problematic"

    WASHINGTON - Emphasizing CUNA's support for changes in the Good Faith Estimates form and the goal of simplifying and improving the home mortgage process for consumers, CUNA's Consumer Protection Subcommittee said the changes included in HUDs' proposed rules to the Real Estate Settlement Procedures Act (RESPA) do just the opposite...

  • CU of Pacific conversion to thrift gets membership OK

    SEATTLE - Members of Credit Union of the Pacific have voted overwhelmingly to approve converting to a federally chartered thrift institution, President and Chief Executive Officer Laurie Stewart has reported. Following a special meeting of members at the conclusion of mail balloting on Oct. 15, Stewart said 77% of those...

  • Arrowhead Credit Union dedicates day to personal development

    RIVERSIDE, Calif. - Recently Arrowhead CU employees came home armed with tools to help balance their lives. This year's Personal Development Day held at the Riverside Convention Center focused on teaching staffers how to maintain a healthy work-life balance. Nearly 700 employees attended the daylong session, which featured keynote speaker...

  • Utah court issues preliminary injunction, CUSOs allowed to continue business loans above $250,000 limit

    SALT LAKE CITY - Mountain America Credit Union is celebrating a temporary victory that bides enough time for the judicial system to determine whether limits on commercial loans pose a "competitive disadvantage" with banks here. On Oct. 10, Utah's District Court issued a preliminary injunction that prevents the Utah Department...

  • Two Wisconsin CUs are reaching out to the underserved and low-income through new wheels

    SUPERIOR, Wis. - For two Wisconsin credit unions based here, reaching out to help the underserved and low income in their communities has taken the form of engines and wheels. The credit unions have teamed up with a local social service agency to fund loans that people with low incomes...

  • With rising mortgage rates on the horizon, Hampel advises CUs to do ALM modeling

    WASHINGTON - Consider it the case of `what's been going down for awhile can't go down forever." With mortgage interest rates being at their lowest in 40 years - currently at 6.5% for 30-year fixed - CUNA Senior Vice President and Chief Economist Bill Hampel forecasts that, "From a credit...

  • Personal affinity marketing: A way for CUs to improve card penetration?

    ATLANTA - InfiBank, a noted purchaser of credit union credit card portfolios, has entered into an affiliate program with an organization which has a new model of the now familiar affiliate marketing: personal affiliate marketing. Essentially, the bank has entered into an agent bank relationship with an organization called Eufora....

  • MCUS plans credit union brand awareness drive for 2003

    ST. LOUIS - The Missouri Credit Union System is budgeting more than $50,000 to seed advertising programs across the state in 2003. The matching funds campaign will help credit unions or regional groups of credit unions pay for ad campaigns that promote a general, credit union awareness message. MCUS is...

  • Friends of Callahan and NCUF establish fund in his honor; $100 million strong already

    WASHINGTON - The National Credit Union Foundation (NCUF) and a group of Ed Callahan's friends have banded together to create a special fund established in Callahan's honor within the NCUF. Approximately $100 million has already been invested in the fund. The Foundation and the friends hope the grants made by...

  • Michigan credit unions pick up challenge in Macedonia

    NORTHVILLE TOWNSHIP, Mich. - Michigan credit unions have already started picking up on the work started in Macedonia by Martha Ninichuk and the World Council of Credit Unions (CU Times, Sept. 25). As Ninichuk winds up her stay helping form credit unions in Macedonia, Drew Egan and Carolyn Miller from...

  • NCUA Board passes corporate reg, though Matz votes against it

    ALEXANDRIA, Va.-After literally years of debate and preparation, not everyone is satisfied with the new corporate credit union rule approved at last week's NCUA Board meeting, not even one of the board members. With some concessions to the credit union industry the new Part 704 passed by a 2-1 vote,...

  • PATRIOT Act delayed; compliance may be more difficult than credit unions think

    WASHINGTON-The Treasury Department recently issued official guidelines delaying the statutory October 25 compliance date with the USA PATRIOT Act Section 326 and proposed rules by federal financial institutions regulators. CUNA and NAFCU supported the PATRIOT Act's passage but have worked toward delaying the compliance date in their comment letters and...

  • New farm bill draws attention from credit union ag lenders

    BISMARK, N.D. - Implications of a new farm bill are expected to draw attention at the North Dakota Credit Union League's Ag Lending seminar here November 6-7. Passage of the Farm Security and Rural Investment Act of 2002 earlier this year marked the first time the legislation has been reworked...

  • Dollar touts CU efforts in mortgage financing during White House conference

    WASHINGTON-In comments last week during a panel on mortgage financing, NCUA Chairman Dennis Dollar lauded credit unions' efforts to bring underserved consumers into the fold under the agency's Access Across America initiative. His remarks were part of the White House's conference "Blueprint for the American Dream." Dollar noted that credit...

  • MBL change due to regulator-regulated communication

    ALEXANDRIA, Va.-NCUA Board Member JoAnn Johnson credited two-way dialogue between the nation's federally insured credit unions and NCUA for a revision to the member business lending appraisal rules by the NCUA Board. Johnson also took partial credit for the open line of communication because of her request that the credit...

  • Credit card interest rates creeping up

    ARLINGTON, Va. - Credit card interest rates are moving higher, according to Cardweb.com, a site on the World Wide Web that tracks credit card data. The site reported that the rates are rising "despite the stable rate environment." The site blamed the rise on the "punitive" rate policies of many...

  • NW FCU in final stages of converting to state charter

    SEATTLE - By Oct. 25, there will be nothing standing between NW FCU and a state charter but counting members' ballots for or against a charter conversion. If NW FCU's members approve the CU's conversion to a state charter, the state's third largest federal credit union will become its 17th...

  • Airline CU Marketing Conference forms `alliance of ideas'

    CHICAGO - History has recently been made as United Airlines Employees' Credit Union hosted the inaugural, free Airline Credit Union Marketing Conference October 9-11. In a first, marketing representatives from six airline credit unions- American Airlines Federal Credit Union, Delta Employees Credit Union, NWA Federal Credit Union, Piedmont Aviation Credit...

  • The Redskins' Green helps raise the green

    VIENNA, Va.-When he's not busy being one of the fastest men in the National Football League-the fastest in his younger days-seven-time All-Pro defensive back for the Washington Redskins Darrell Green is one of the fastest fundraisers. Green, founder of the Darrell Green Youth Life Foundation, was on hand at Navy...

  • NAFCU inducts 300th NCCO

    ARLINGTON, Va.-NAFCU recently celebrated the graduation of its 300th NAFCU Certified Compliance Officer (NCCO). Rose Ann Bryant received the 300th NCCO designation and serves as chief operating officer and acting chief executive officer of the $170 million Freedom of Maryland Federal Credit Union. At NAFCU's Compliance School, students undergo a...

  • NCUA Board approves corporate reg

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  • CU `co-opetition' comes to Tucson

    TUCSON, Ariz. - On International Credit Union Day Pyramid Credit Union, Tucson Telco Federal Credit Union, and Desert Energy Credit Union will take cooperation to a whole new level as they celebrate the grand opening of their shared branch. Pyramid CU President/CEO Janet Banwart has coined the term "co-opetition" to...

  • FICUs need NCUA approval to guarantee another CU's deposits

    ALEXANDRIA, Va.-According to a recent opinion letter by NCUA General Counsel Bob Fenner, federal credit unions may guarantee public deposits held by other credit unions when required by state law as a condition of accepting deposits under NCUA's incidental powers rule. However, the federal credit union must receive approval from...

  • NASCUS meeting with GAO "an opportunity to explain differences between federal and state regulatory systems"

    ARLINGTON, Va. - NASCUS President/CEO Doug Duerr said the meeting Oct. 10 between four NASCUS staff with five representatives from the General Accounting Office (GAO) gave the association the opportunity to explain some of the differences between the state and federal regulatory systems and oversight and to cite examples where...

  • Huggins to retire after more than three decades of credit union service

    TACOMA, Wash. - After 32 years of service to the credit union movement, Jim Huggins has announced his plans to retire Nov. 27. Huggins has been president/CEO of American Lake CU, $34 million in assets, for the past 20 years. Before that he worked as manager of U of M...

  • Powell asks for streamlined financial services regulatory structure

    WASHINGTON-In a speech to the Exchequer Club last week, FDIC Chairman Don Powell proposed a new federal regulatory structure for the banking, securities, and insurance industries for improved efficiency and lower costs. "Why should three banks on the same street, offering the same products and services to the same customer...

  • Recently honored Ney working on legislation to remove credit union burdens

    WASHINGTON-In honor of October being National Co-op Month, CUNA President and CEO Dan Mica awarded Congressman Bob Ney (R-Ohio). Senate Majority Leader Tom Daschle also received the award separately. Ney, a member of the House Financial Services Committee, is working on legislation to remove legal and regulatory burdens on credit...

  • Household agrees to record settlement in predatory lending case

    ATLANTA - Credit unions are looking real good these days with corporate scandal after scandal and major financial firms being pounded by lawsuits. Household International, parent company for Household Finance, one of the nation's largest home lending firms, has agreed to pay $484 million to state attorneys general and regulators...

  • Idaho League steps up to help CUs help Hispanics

    BOISE, Idaho - The Idaho Credit Union League has undertaken to help the Hispanic Financial Literacy and Education Coalition. The formation of the Coalition was announced during the groundbreaking ceremony for the Hispanic Cultural Center of Idaho last month. The coalition will work to educate Hispanics about financial services and...

  • Bankruptcy destined for lame ducks, NAFCU expects

    WASHINGTON - As Congress was trying to wrap up its business by the end of last week in an attempt to get home in time for the November 5 elections, bankruptcy will most likely be reserved for a session after the elections, according to Brad Thaler, NAFCU's director of legislative...

In Other News

  • DONATIONS

    South Carolina Federal Credit Union, North Charleston, employees have donated their time and muscle to the Trident United Way's Day of Caring. Eight employees from the credit union volunteered to paint rooms at two agencies that receive funding from United Way. FAIRWINDS Credit Union, Orlando, Fla., has donated $3,000 to...

  • AWARDS

    Central Florida Educators Federal Credit Union, Orlando, has announced its second quarter employees of the month as Carl Bennett, Linda Sanabria, and Renee Christie. Individuals chosen as "Employees of the Month" are cited for outstanding performance, teamwork and service to the credit union and its members. Winners receive a plaque...

  • SCHOLARSHIPS

    Leyden Credit Union, Franklin Park, Ill., has award scholarships to three recent high school graduates. This year's Leyden CU scholarship has been presented to Laura Mc Murray, Lauren Buoniconti and Anne Masters. The recipients will be attending Milliken University, Triton College and the Cincinnati Conservatory respectively. Clark County Credit Union,...

News

  • StarTrust FCU shows the stuff of a true survivor-CU style

    HOUSTON - Star Trust Federal Credit Union is hoping that members will share a collective deep breath of fresh air as they step into its new retail full service branch. It has been a busy year for the $56 million credit union since Enron Corporation filed bankruptcy on Dec 2,...

  • Revamped HQ provides new opportunities for Anheuser-Busch ECU

    ST. LOUIS - Anheuser-Busch Employees' Credit Union is hoping a remodeled headquarters will help it become the financial institution destination spot for members here. "It was just time for a change, but we love our location because our sponsor Anheuser Busch is just around the corner and it is important...

  • Have CU will travel

    DALLAS - When the grocery store where Pegasus Credit Union was located announced it was closing, the $94 million credit union was literally able to pack up its in-store branch and move to a new site within 30 days. Atlanta-based International Banking Technologies, a retail branch design/build firm in partnership...

  • Special Report: Facilities

    This special report is all about fresh starts. Take a look at pages 18-20 and learn how a transformed space can breathe new life into a few credit union facilities.

  • Consumers looking for preferred service at branches

    ATLANTA - Initial findings of a SYNERGISTICS Research Corporation survey entitled Revitalizing the Branch finds that 79% of consumers want to be treated like royalty when visiting a branch of a financial institution. In addition,85% of consumers who visit branches four or more times per month strongly agreed with the...

  • What a difference a new design makes!

    Whether it is adding windows, changing colors or completely redesigning a space - credit unions and their members refuse to look back and are saying "Vive la difference." Here is a glimpse of some other credit unions that have updated their look:

  • Allegacy FCU unveils community room

    WINSTON SALEM, N.C. - Allegacy Federal Credit Union has gone back in time with its dedication of the R.J. Reynolds Tobacco Company Community Room. A four-panel mural on canvas designed by local artist Joanie Brown entitled "A Reynolds Legacy" will grace one wall of the room located in Allegacy FCU...

  • Affinity Plus FCU hits the skyway

    MINNEAPOLIS - There will be a new Affinity Plus Federal Credit Union branch in the downtown skyway here. Located in the Dorsey & Whitney building, the branch is one of the few credit unions on the skyway level. An ATM will be available on the first level of the building...

  • Evangelical Christian CU relocates headquarters

    BREA, Calif. -Evangelical Christian Credit Union has finally completed the relocation of its corporate headquarters. ECCU moved into the first phase of this new campus just seven months after breaking ground on the 17.5-acre site. The facility includes two buildings totaling 125,000 square feet and will house more than 230...

  • Dollar brings message to the White House

    NCUA Chairman Dennis Dollar was able to get his Access Across America message out at a White House-held event. See story page 3.

  • State Employees CU wins "TOBY" Award

    LANSING, Mich. - State Employees Credit Union's Louis B. Ebaugh Building has been selected as a winner in the 2002-2003 Office Building of the Year "TOBY" Awards Competition, sponsored by the Building Owners and Managers Association of Mid-Michigan in cooperation with Building Owners and Managers Association (BOMA) International. According to...

News Briefs

  • 50 CEOs turn out for CU Association of the West conference

    SEATTLE -In line with an expansion of programming for CU Association of the West, 50 CEOs from credit unions in four Western states recently joined in special roundtable discussions here during the annual two-day meeting of CEO Okotoberfest held at the Westin Hotel. The CEO event, sponsored annually by the...

  • Credit union/mutual savings conversion bank debate coming soon

    LOS ANGELES - The credit union-to-mutual savings conversion debate between Hans Ganz, president of Pacific Trust Bank, and Dave Chatfield, president/CEO of the California CU League is fast approaching. The debate will take place on Nov. 6 during the Southern California/Arizona CUES Council to be held in Dana Point, California....

  • Heritage Community CU partners with XCU Capital

    CARLSBAD, Calif. - Joining a growing list of credit union-partners, Heritage Community Credit Union is the latest to align with XCU Capital Corp., a credit union owned broker/dealer. Heritage, the eleventh credit union to partner with XCU Capital this year, has 32,000 members and more than $180 million in assets....

  • CUNA and NAFCU brief GAO on credit union background

    WASHINGTON-Representatives from the General Accounting Office met with CUNA and NAFCU officials to boost their general credit union knowledge before embarking on a study of the industry as requested by Senate Banking Committee Chairman Paul Sarbanes (D-Md.). The lawmaker asked that GAO look into the safety and soundness of the...

  • NYIB 2003 conference plans set

    MADISON, Wis. - The National Youth Involvement Board has announced the 2003 Annual NYIB Conference will be held August 7-9 at the Edgewater Hotel here. The 2003 theme, "Spotlight on Youth! Credit Union Stars of Tomorrow," includes fresh ideas, new vendors, a tour of the CUNA Campus, youth marketing and...

  • Great Lakes CU to host free LTC seminar

    GREAT LAKES, Ill. - Long-term care is a hot topic as more boomers not only become seniors but also care for their parents. Great Lakes Credit Union, in conjunction with the Money Concepts Financial Planning Centre will host a seminar entitled "Long-Term Care: The Crisis of the 21st Century," on...

  • CCUC names Coulter executive director

    WASHINGTON - The search for an executive director is over for the Campus Credit Union Council. Effective October 15, Gillian Coulter, will begin her duties as executive director. Coulter fills the void left by Bradford Caldwell who resigned to pursue his MBA degree. No stranger to campus cooperatives, Coulter has...

  • CU-24 Joins Member Access Atlantic

    LATHAM, N.Y. - Member Access Atlantic, the inheritor of many of the regional ATM networks which were orphaned when the Member Access Network dissolved recently, got a boost when CU-24, an important electronic ATM and Point of Sale (POS) network joined. CU-24 is a affiliate of the New York State...

  • Rosenthal named to NY Consumer Council

    NEW YORK - New York City Mayor Michael Bloomberg has named Clifford Rosenthal, executive director of the National Federation of Community Development Credit Unions to the Consumer Council that serves the city's Department of Consumer Affairs. Also named to the 12-member Council were Rhoda Karpatkin, President Emeritus of Consumers Union;...

Tech Bytes

  • Arizona FCU adds lending tools to DI relationship

    PHOENIX, Ariz. - Arizona Federal Credit Union has expanded its relationship with Digital Insight, signing up for the Internet banking firm's AnyTimeLender and ContactCenterLender solutions. The state's second-largest CU, $1 billion Arizona Federal began its relationship with DI in 1999 with the launch of AXIS Internet banking and bill pay...

  • Members Mortgage, Prime Alliance partner to bring online mortgage apps to New England CUs

    WOBURN, Mass. - Members Mortgage and Prime Alliance Solutions have partnered to allow New England CUs the ability to offer their members instant online mortgage applications. The solution, which is powered by Fannie Mae's automated underwriting tool, Desktop Underwriter, was originally created by Boeing Employees CU and Internet mortgage firm...

  • Universal 1 stays home for aggregation solution

    DAYTON, Ohio - Universal 1 Credit Union has decided to be the first account aggregation customer of one of its sponsoring companies - global financial technology provider NCR Corp. NCR's account aggregation is based on TekPortal software from Teknowledge Corp. and is part of NCR's portfolio of electronic commerce services....

  • New OSI module can help CUs with collections

    GLASTONBURY, Conn. - Open Solutions Inc. CU clients will have a new module to assist in collections. OSI announced the launch of its asset collection management system for processing and recovering non-performing loans, negative balance deposit accounts, over limit lines of credit and legal status accounts. It offers a security...

  • Spooner no longer CEO at Corillian

    PORTLAND, Ore. - Ted Spooner, founder and long time CEO of Internet solutions firm Corillian, is now the company's chief corporate strategist, a newly-created position. Spooner, who has CU roots (once serving as CFO of First Tech CU, Beaverton, Ore.), was also appointed chairman of the executive committee. Alex Hart,...

  • EDS wraps up Visions 2002; forms new relationship with Dell

    PLANO, Texas - EDS recently wrapped up its Visions 2002 conference for its credit union clients in Las Vegas. It included its largest Tech Fair ever with 31 booths. Over 250 attendees went to at least one of the training classes. EDS created a new forum this year, called CXO...

  • CU Village.com offering vulnerability assessments

    NORTHVILLE TOWNSHIP, Mich. - CU Village.com is now offering vulnerability assessments. CU Village.com partnered with VIGILANTe, an IT vulnerability assessment firm to deliver the service. It will enable users to regularly conduct vulnerability scans of their Internet connections, and test networks for security weaknesses. VIGILANTe said CUs shouldn't think they're...

  • Online Resources makes Deloitte & Touche Fast 500 list

    MCLEAN, Va. - While many Internet solutions firms targeting CUs have disappeared over the years, the ones that have hung around are doing well. Online Resources has been named one of the nation's 500 fastest growing technology companies by Deloitte & Touche for the second year in a row. The...

Opinion

  • Is your facility an asset? Six ways to know

    Facilities are capitalized improvements that represent a significant portion of a credit union's operating budget. Even though depreciated, occupancy is a significant expense in a budget, generally just below personnel and information technology. Often, the facility is seen just as the home for staff and the place where members go...

Letters to the editor

  • Another point on S-corps

    I was very pleased to see Mike Welch, in his Oct. 2 column "Bank credo: do as we say, not as we do" shed some light on the S-corporation topic which many in the industry and I would guess most credit union board members probably did not understand very well....

  • NCUSIF has the backing of the government

    The guarantee that stands behind the NCUSIF sticker on the door of Navy FCU which I joined as a midshipman at the Naval Academy in the early 1970s has always been crystal clear to me. I have no doubt that the vast majority of Americans who belong to federally insured...

Publisher's Column

  • Good things also come in big packages

    There's been more discussion about small credit unions than usual in recent weeks, much of it generated by NCUA Board Member Deborah Matz's oft-expressed concern that their number is dropping faster than she initially realized. On the other hand, there is a lot less talk about large credit unions, unless...

People

  • EAST

    ACCESS Federal Credit Union, Clinton, N.Y., has promoted Melissa O. Cousin to vice president of accounting/controller and Pam Wolcott to vice president of human resources. Merrimack Valley Federal Credit Union, Newburyport, Mass., has appointed Peter J. Matthews, Jr. president/CEO. Vermont Federal Credit Union, Burlington, has named Nicole Morris controller and...

  • MIDWEST

    Affinity Plus Federal Credit Union, St. Paul, Minn., has promoted Sarah Sackett to director of member relations. South Division Credit Union, Evergreen Park, Ill., has promoted John Denlinger to financial services supervisor. Purdue Employees Federal Credit Union, West Lafayette, Ind., has promoted Kristy Robb to marketing manager and Tracy Hudson...

  • VENDORS

    State National Companies, a collateral protection insurance solutions provider, has named Paul Cohen regional sales manager for the state of Michigan. Couvrette Building Systems, an ATM/Kiosk manufacturer, has promoted Kevin Gilbert to vice president of sales/marketing. Group 1 Software, a provider of software solutions for credit union marketing/ analytics, has...

  • SOUTH

    Envision Credit Union, Tallahassee, Fla., has named William V. Duke mortgage department manager. First South Credit Union, Memphis, Tenn., has named Wendy Stine Cordova branch member relations director; Tim Baker Hickory Hill branch member relations director; and Melissa Hemingway Millington branch member relations director. In addition, FSCU has promoted Brian...

  • WEST

    Meriwest Credit Union, San Jose, Calif., has named Melody Criner business development officer/retail lending and Jon Carlson assistant vice president of financial center delivery. Hawaiian Tel Employees Federal Credit Union, Honolulu, President Norman Okimoto has been named president for the Hawaii Society of Certified Public Accountants. Sound Credit Union, Tacoma,...

Publisher's Notebook

  • The numbers game

    As the number of credit unions continue to drop, the number of paid subscribers for most credit union publications has either been static or declining. Yet some publications are advertising growing numbers of subscribers and readers. How can this be? As everyone knows, the honest way to measure the real...

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