Credit Union Times Magazine August-11, 2004

  • CU Groups End DNC with a Bang-or At Least the Crack of a Whip

    BOSTON - On the eve of the official nomination of Senator John Kerry (D-Mass.) as the Democratic presidential candidate, CUNA hosted an Indiana Jones-themed event in honor of Democratic Whips Senator Harry Reid (Nev.) and Congressman Steny Hoyer (Md.). "The event created a lot of goodwill," CUNA Vice President of...

  • Credit Unions Weigh in on Broker/Dealer Proposal as Banks Decipher `Most Complicated' Regulation on Record

    WASHINGTON - Nearly three weeks remains before the SEC pours through the hundreds of comment letters it has received on its proposal that would extend a number of exemptions to credit unions without them having to register as broker/dealer. A number of credit unions and trade groups as well as...

  • Economic Expansion the Call for Near Term, CUEG Says

    ARLINGTON, Va.-The Credit Union Economics Group has said that the remainder of this year through 2005 should bring increased lending and slower deposits for credit unions. CUEG's latest report shows an anticipated GDP growth of 4.4% in 2004, and 3.9% in 2005, a slight improvement from their previous forecasts. "The...

  • FASB Rethinking Ban on Sales of Loan Participations by Rights of Setoff

    NORWALK, Conn. - The Financial Accounting Standards Board may be reconsidering its proposed ban on the sales aspect for loan participations indicated by rights of setoff. At its July 27 meeting, the majority of FASB Board members were in agreement to allow credit unions to continue treating loan participations as...

  • Lessons Learned: CU VITA Program on the Move for Next Tax Season

    NEW YORK - With all the numbers tallied - 2,600 patrons served, 595 new credit union members recruited, more than $3 million in tax refunds filed - partners in the 2003 Volunteer Income Tax Assistance (VITA) sites organized by the New York City Financial Network Action Consortium (NYCfNAC) are calling...

  • Fed's Plan to Close Nine Check Processing Centers Reflects Continuing Shift from Check to Electronic Payment

    WASHINGTON - In an indication of the Federal Reserve's recognition of consumers' continuing decline in use of paper checks in favor of electronic payment, the agency last week announced further changes designed, it stated in a release, "to increase the efficiency of their check-processing operations while maintaining high-quality services to...

  • Credit Unions Must Create "Passionate Culture" to be Competitive

    NASSAU, Bahamas - No credit union brags about being mediocre, but mediocre credit unions do exist and are endangered by competitors such as banks and new players such as Wal-Mart that are hungry for credit union members. To remain competitive, says Roxanne Emmerich, a keynote speaker at the World Council...

  • Wisconsin Latest State to be Preempted by NCUA; FCUs Covered by HOEPA

    ALEXANDRIA, Va. - NCUA Associate General Counsel Sheila Albin informed the Wisconsin Credit Union League in a legal opinion letter (04-0606) that the state's new anti-predatory lending law is preempted by federal law for federal credit unions, but the preemption does not extend to credit union service organizations. Because 2003...

  • Bianchini, Oklahoma Bankers Association President Exchange CU Tax Talk in Newspaper Article

    OKLAHOMA CITY - Once again, the ongoing credit union/banker battle has made it into the media. This time it's an article in the Aug. 3rd edition of The Journal Record, "Bankers open new front in battle with credit unions" which quotes both Oklahoma Bankers Association President Roger Beverage and Oklahoma...

  • Pennsylvania CUs Help Tornado Victims

    HARRISBURG, Pa -The Pennsylvania Credit Union Foundation, through the requests from Hershey Federal Credit Union and Lebanon Federal Credit Union is lending a helping hand to recent tornado victims. The $1,000 donation to the Campbelltown Volunteer Fire Department is in addition to the efforts already underway by Hershey FCU and...

  • Technology CUSOs Beginning to Make Their Mark

    COLUMBIA, S.C. - Credit union service organizations are nothing new, but emerging on the scene now are a new breed of CUSOs that are extending the "do-it-yourself" attitude and aptitude to the world of new technology delivery. "One of the most positive trends in credit union technology has been the...

  • Successful Credit Union Mergers Dependent on Several Factors

    NASSAU, Bahamas - Credit union mergers are neither bad nor good, opines Bob Hoel. It depends on the circumstances surrounding the merger. That's the core message the president of the Filene Research Institute delivered to the more than 1,000 delegates to the World Council of Credit Union's (WOCCU) Seventh Annual...

  • Terror Threat Level Raised to Orange for D.C., N.Y., N.J. Financial Institutions

    WASHINGTON-On Aug. 1, Department of Homeland Security Secretary Tom Ridge made the chilling announcement that his office had received more specific terror threat information from more sources than ever before. At the same time, he elevated the terror threat level from yellow, or "elevated," to orange, or "high," for financial...

  • Tri-Co FCU Hires Banking Veterans for New Business Lending Group

    RANDOLPH, N.J. - Tri-Co Federal Credit Union has launched its Business Lending Group to cater to members who own small, home-based and mid-sized businesses. The $125 million credit union has hired Margaret Frey as vice president of lending/chief lending officer for the new division. Frey is a 35-year commercial banking...

  • Will Terrorism Spark New Security Issues For CU Facilities?

    WEST PALM BEACH, Fla. - As the third anniversary of 9/11 approaches, architects and builders are still wrestling with techniques to make structures more secure from terrorist attacks. Financial institutions, including credit unions, have for decades - indeed, centuries - taken steps to thwart armed robbery. But they may now...

  • Should Members Know What the CEO is Making? What's at Stake if Compensation Goes Public?

    WASHINGTON - Trying to find out what a CEO earns at a federally-chartered credit union has traditionally been protected under tax-exemption shelters, but compensation figures may be among the next layer of disclosures banking groups are pushing to expose. For several years, FCUs had to file IRS Form 990 or...

  • NCUA Approves California FCU for 10+ Million Member Community

    PASADENA, Calif.-LA Financial Credit Union made history in July by being approved for the largest federal community charter ever. NCUA's Region V gave the OK to LA Financial to serve a field of membership encompassing all of Los Angeles County with a population of more than 10.1 million, the highest...

  • NAFCU Makes Suggestions for NCUA's 2004 Regulatory Review

    ARLINGTON, Va. - NAFCU applauded NCUA for publishing the list of rules it plans to review each year and took advantage of the opportunity. "NAFCU commends the agency for its decision to inform credit unions and the public about regulations to be reviewed each year.NAFCU encourages NCUA to make every...

  • NACUSO Clears up Confusion on CUSOs Moving Investment Programs in House

    NEWPORT BEACH, Calif. - NACUSO recently sought to alleviate confusion among network investment programs concerned about when they should move out of their CUSOs and into their credit unions. As a result of the 2001 Incidental Powers Regulations, the SEC has said that CUSOs no longer have a networking exemption...

  • New Jersey League Names Rekant to Governmental Affairs Position

    HIGHTSTOWN, N.J.-Scott Rekant, counsel for the New Jersey State Credit Union League (NJCUL) for the last two-and-a-half years, has been named director of governmental affairs. Rekant replaces Evan Childs, who left the league to pursue career opportunities outside the credit union field. Credit Union Times had the opportunity to speak...

  • Potential NCUA Board Nominee Stang Out of the Running as he Takes Post at CDFI

    WASHINGTON - The Community Development Financial Institutions Fund recently announced Texas Credit Union League Vice President of Staff and Public Relations Troy Stang as its new director of legislative and public affairs. This may be good news for the CDFI Fund, but Stang had been on the short list for...

  • Oregon CUs Deservingly Pat Themselves on the Back for CU for Kids Involvement

    BEAVERTON, Ore. - What is it with Oregon and southwest Washington credit unions giving so generously to Credit Unions for Kids? "Remember this is where Credit Unions for Kids all started back in 1986 and I guess it's kind of like `the perfect storm' with three great children's hospital units...

  • Northwest Airlines Claims it Owns the `Wings' in Wings Financial Federal Credit Union Name

    APPLE VALLEY, Minn. - On the heels of officially changing its name from NWA Federal Credit Union to Wings Financial Federal Credit Union, the new moniker is coming under scrutiny from Northwest Airlines. "It appears to Northwest that the credit union intends to continue utilizing the NWA name and at...

  • Minnesota Credit Union Network Survey Refutes Inaccurate Stats Published in Local Newspaper

    MINNEAPOLIS - The Minnesota Credit Union Network is using findings from a survey it conducted to refute an article published in the July 18 edition of the Minneapolis Star Tribune that asserted that small banks and local credit unions are "costlier" than U.S. Bank. A counter op ed piece authored...

  • Voting Poll Results: Getting Widespread CURIA and Tax Exemption Support Will be Tough

    WEST PALM BEACH, Fla. - It seems every other day a congressman either signs on as a co-sponsor for the Credit Union Regulatory Improvements Act or backs up the credit union tax exemption. Credit Union Times' just expired voting poll asked just how much of this support CUs will be...

  • New Voting Poll: When is It Too Much? Ten-Million Member FOM Approval Sure to Raise Eyebrows

    WEST PALM BEACH, Fla. - The $300 million LA Financial CU has been approved for a community charter in Los Angeles county that offers it potentially 10 million members. Is this a good thing for credit unions? The addition of a county the size of Los Angeles County is obviously...

  • CMM's SHAREXT Partners with MortgagebotT to Simplify Mortgage Lending for CUs

    MADISON, Wis. - SHAREXT, a mortgage servicing and delivery venture launched by CUNA Mutual Mortgage last month and which is owned and managed by the company, has partnered with mortgage applications specialist MortgagebotT to offer credit unions an opportunity to purchase Mortgagebot's streamlined and economical Internet-based loan origination system at...

  • Vantage CU Teaches Kids Safety

    ST. LOUIS - Agent Sterling Redfox, Secret Savers Club mascot for Vantage Credit Union, was on the prowl for new Secret Savers at the credit union's recent Safety Fair. The credit union hosted the day of fun and learning at Tiemeyer Park which included visits from the DePaul Health &...

  • Credit Union ONE Sponsors Future Nurses

    FERNDALE, Mich. - Credit Union ONE is doing its part to stave the current nursing shortage. The $695 million credit union has recently sponsored two Detroit High School students who spent their summer experiencing the rewards and challenges of nursing during the Detroit High School Minority Student Oncology Nurse Mentorship...

  • September 30 Last Day For Share Plus FCU

    PLANO, Texas - September 30 will be the last day that the $173 million, 19,000 member Share Plus FCU will serve its members as a credit union. When it opens its doors on Friday, October 1, it will do so as Share Plus Federal Mutual Savings Bank. Over 2,000 members...

  • Wincor-Nixdorf Gets Nod From U.S. Postal Service

    AUSTIN, Texas - Wincor Nixdorf, a manufacturer which has supplied machines mostly across Europe but which has been courting U.S. credit unions, has announced a contract to put versions of its Procash ATM machines in over 2,500 post offices across the U.S. The APC is based on Wincor Nixdorf's machines...

  • Kerecman, to Leave Position as CCUL's Federal Governmental Affairs VP for SVP Spot at California CU

    RANCHO CUCAMONGA, Calif. - California Credit Union League nine-year veteran Chris Kerecman, federal governmental affairs vice president, will start work Sept. 8 at California Credit Union as senior vice president of business and community development, a new position at CCU. Kerecman said the move will allow him to spend more...

  • FEMA guidelines

    WASHINGTON - The Federal Emergency Management Agency has published a primer on"Terrorism Risk Management in Buildings." It's available online by logging onto the FEMA Web site at www.fema.gov, then entering publication number FEMA 429 into the search option. Here's a sampling of some of the questions the publications poses as...

  • Taxpayers Have $2.4 Trillion in IRAs, IRS Reports

    WASHINGTON - More taxpayers are opting for traditional individual retirement accounts than other related plans, the IRS report. From its Spring 2004 Statistics of Income Bulletin, the IRS reported that at the end of 2000, 46.3 million taxpayers held IRAs worth $2.6 trillion in fair market value. The bulk -...

  • Social Security Number Use to be Limited?

    WASHINGTON - With identity theft on the rise, when Congress returns to session after Labor Day the Social Security Number Privacy and Identity Theft Prevention Act of 2003 (H.R. 2971) may reach the House floor for a vote. "The wide availability and easy access to this very personal information has...

  • Newtek Gets into Insurance

    NEW YORK - Newtek Business Services, Inc., a provider of business services and financial products to the small to medium-sized business market, has recently acquired Vistar Insurance Services, doing business as Financial Keyosk. Financial Keyosk is an alternative insurance distributor, which through its turnkey Web-based application solutions for all lines...

  • JDCU Weighs in for Financial Literacy

    LOWELL, Mass. - Jeanne D'Arc Credit Union is joining the fight against financial illiteracy. JDCU Assistant Treasurer/ High School Branch Administrator Kathryn Dame will be working with Girls, Inc., a national non-profit youth organization committed to preparing girls to lead productive, independent, and rewarding lives. Once a week, participants will...

  • CDCUs In The News

    NEW YORK - Two more community development credit unions have been recognized in the media for their work helping underserved and low income people in their communities, according to the National Federation of Community Development Credit Unions. The article, titled "An Asset To Community", ran in the New York Daily...

  • More About Jeff Holley

    CUNA Mutual Acting CEO Jeff Holley has been with CUNA Mutual since 1994, starting as a manager of financial reporting in the finance division. He became CFO in 1999. Interestingly, Holley isn't just a numbers guy. His responsibilities also include Public Relations, Corporate Communications and Quality Management for the company....

  • Shell Employees FCU Seminar Offers Finer Points of Car Buying

    HOUSTON - Shell Employees Federal Credit Union is offering members a free seminar on the topic of Car Buying. Open to the public the seminar will focus on how easy it is to buy a new or pre-owned automobile. Speakers will include Bert Savage from Fred Hass Toyota World and...

  • Credit Unions Ride for Children's Hospital

    LEADVILLE, Colo. - Hundreds of credit union staffers from Colorado and Wyoming recently rode bicycles over 162-miles for a good cause. "Once again it was a great year for the Courage Classic and the riders and volunteers who made this a safe and successful event," said John Dill, Colorado CU...

  • Florida Launches Your Money, Your Life

    TALLAHASSEE, Fla. - The state of Florida is weighing in on the issue of financial literacy and Florida's Chief Financial Officer Tom Gallagher is hoping a new statewide public education initiative called Your Money, Your Life will help consumers here up their money management IQ. According to a recently released...

  • People's Alliance FCU Sponsors Canine Assistant

    HAUPPAUGE, N.Y. - A dog sponsored by People's Alliance Federal Credit Union is more than just a best friend for nine year-old Nicholas Connors but a real help. Connors, who has Cerebral Palsy and a seizure disorder, frequently drops items and is unable to pick them up because of the...

  • Maine CUs Finish Merger Deal

    WESTBROOK, Me. - In what appears to be a healthy outcome for both Insurance Services FCU (ISFCU) and Medical Services FCU (MSFCU), the merger of the two entities was recently completed. Going forward, both CUs will operate under the MSFCU name. ISFCU members-primarily the employees of UnumProvident Corporation and their...

  • CO-OP Signs Municipal

    NEW YORK - The $1.2 billion credit union that had to prosecute some members to recover funds they had stolen from its ATMs in the wake of the September 11 attacks has joined the CO-OP Network. Almost a year after the September 11 attacks, the Municipal Credit Union, headquartered in...

  • Judge Rules That Postal Community Cannot Become Bank

    ARLINGTON, Va. -The Appeals Court of Massachusetts has reversed a previous court ruling and declared that the $128 million Postal Community Credit Union, headquartered in East Boston, Massachusetts, cannot change its charter to that of a mutual bank. The Court found that the Commissioner of Banks' argument that the Commonwealth's...

  • Workers' CU Protects Slice of History

    FITCHBURG, Mass. - Workers' Credit Union is helping preserve Townsend history with a $10,000 pledge to the Townsend Historical Society's capital campaign. The proceeds from the capital campaign will be used to improve the historic properties of the Townsend Historical Society. "It is an important and worthy cause and we...

News

  • CU Business Group Completes Private Placement; Eight Corporates Are Now Owners

    PORTLAND, Ore. - Looking back, Northwest Corporate bringing corporates into the world of helping their member credit unions serve business was a good move to say the least. When Northwest started the CUSO - CU Business Group - a few years ago it was a first for corporates. The gamble...

  • Charlie Mac Completes First Loan Securitization; Reaches the $1 Billion Mark in Loans Purchased

    LENEXA, Kan. - July 21 was an historic moment for Charlie Mac. It completed its first loan securitization made up of credit union loans, a long standing goal for the secondary market player. This particular security was worth $160 million and consisted of 30-year credit union loans from six credit...

  • ACCU Hopes to Keep Dues in Check

    ARVADA, Colo. - The Association of Corporate Credit Unions' Executive Committee held its strategic planning meeting in Colorado last week and among other things, dues were on the agenda. SunCorp President/CEO Eric Kenealy is currently ACCU's chairman so he is hosting this event so to speak at SunCorp's headquarters, said...

  • A Directory of the Corporate Network

    The who's who of the corporate network Credit Union Times last ran this feature in its April 10, 2002 issue, but a year in the corporate network is almost like a dog year because so many changes happen in a short period of time. Since 2002 there have been a...

  • August is Check 21 Month at WesCorp

    SAN DIMAS, Calif. - WesCorp has declared August Check 21 month, and it is planning a lot of education efforts to get member questions answered. Check 21 of course is the law that encourages electronic image exchange. Corporates and item processors throughout the country have been gearing up for the...

  • EasCorp Forms New CUSO; Name Honors Massachusetts CU History

    WOBURN, Mass. - EasCorp has formed a new CUSO that might sound like its name is derived from a tax form, but for the credit union faithful it's an historical name. The new CUSO is dubbed 1909 Financial Advisors, LLC. The name honors the year the first credit union law...

  • Corporate One Transmits Check Images Through Endpoint Exchange

    COLUMBUS, Ohio - Corporate One has successfully transmitted and accepted its first set of check images to and from the Endpoint Exchange Network. The exchange was part of a test of Corporate One's new electronic deposit automation solution. Corporate One partnered with Endpoint Exchange as part of its efforts to...

  • Special Report: Corporates

    Corporates are poised to assist member CUs in this rising rate environment. Read about that and other corporate news on pages 24-29.

  • A Lofty Dispute

    The spat between Wings Financial CU and Northwest Airlines continues. See story on page 4.

  • Highmark FCU Sells Auto Loan Pool Through CARPooL

    BISMARCK, N.D. - Highmark FCU recently completed a $2.97 million transaction through Midwest Corporate FCU's CARPooL program. The CARPooL program is a Charlie Mac product that corporates offer their member credit unions. The $2.97 million transaction allows Highmark FCU to clear its balance sheet and offer new loans. "A strategic...

In Other News

  • SCHOLARSHIPS

    Orange County's Credit Union, Santa Ana, Calif., has awarded $5,000 in scholarships to graduating seniors at Santa Ana's Century High School. This year's recipients include Geronima Garcia, Julie Houth, Stephanie Murrietta, Alejandra Magana and Isaias Castro. BECU, Seattle, Wash., through its BECU Foundation has awarded a record 48 $2,000 scholarships...

  • AWARDS

    Denali Alaskan Federal Credit Union, Anchorage, Alaska, Vice President of Internal Audit/Compliance Lily Li has completed the series of examinations necessary to earn the designation NAFCU Certified Compliance Officer (NCCO). The program is organized by NAFCU, covering all of the major federal regulations that govern credit union operations: lending, discrimination,...

News Briefs

  • McKechnie Op-Ed Blasts Bankers for Buying Support

    WASHINGTON - CUNA Senior Vice President of Governmental Affairs John McKechnie wrote an op-ed published in the July 30 American Banker slamming the banking industry for bribing banks and employees to attack credit unions. "The campaign is not in favor of anything," he pointed out. "It is not for increased...

  • Credit Union Times Banned From Covering D'Amours' Banker Speech

    JOHNSTON, Iowa - There isn't a press pass around that will get Credit Union Times in to hear the speech given by former NCUA Chairman Norman D'Amours at an upcoming banker meeting. Credit Union Times has been informed by the Iowa Bankers Association that it is banned from covering D'Amours'...

  • McCormack Responds to Banker Attacks

    HARRISBURG, Pa. - Pennsylvania Credit Union Association President/CEO Jim McCormack responded to recent attacks against by the Pennsylvania Association of Community Bankers and the Pennsylvania Bankers Association against the Credit Union Regulatory Improvements Act (CURIA) by writing to the state's 19 congressional delegates urging them to support CURIA (H.R. 3579)....

  • InfiCorp Signs Another Couple of CU Portfolios

    PETERBOROUGH, N.H. - The $43 million Springfield Teachers Credit Union has sold its $2 million credit card portfolio to InfiCorp, according to Brookwood Capital, the fledgling credit card portfolio broker headquartered in New Hampshire. Asset Exchange, the card brokerage firm headquartered in Portland, Oregon, also announced that InfiCorp has purchased...

  • Centrix Financial Loan Portfolio Hits $2 Billion Mark

    CENTENNIAL, Colo. - Centrix Financial, a capital management and financial services company that develops and manages products and investment strategies for the auto finance industry, has surpassed the $2 billion mark for its loan origination. The company said it is on track to underwrite $1.3 billion in loans this year...

  • Arkansas Federal Credit Union Aligns with MEMBERS Trust Co.

    JACKSONVILLE, Ark. - Arkansas Federal Credit Union is the latest to partner with MEMBERS Trust Co. to offer its members an array of estate planning services. Mike Van Bokhoven, vice president and financial advisor at Arkansas FCU, recently completed training and will now have the additional role of trust liaison...

Opinion

People

  • SOUTHWEST

    Mobiloil Federal Credit Union, Beaumont, Texas, has named Debra Boumans, internal auditor. Security Service Federal Credit Union, San Antonio, has named Jose Cruz 281/1604 Service Center branch manager. River City Federal Credit Union, San Antonio, has elected the following officers to its board: Nancy Davidson, chair; Bob Saucedo, vice chair;...

  • WEST

    Nevada Federal Credit Union, Las Vegas, has named Russell Torge vice president commercial real estate lending; Beth Galofaro human resources manager; Dan Duffy financial advisor/consultant; Aspen Taylor Ventano, real estate marketing representative; and Gloria Phillips-Thompson auditor. 1st Pacific Credit Union, Vallejo, Calif., has named Mayra Mena branch support services. Denali...

Publisher's Column

  • Don't Jump To Conclusions Regarding CEO's Pay

    CEO compensation has been a sensitive subject for as long as there have been CEOs. It's especially sensitive for credit union CEOs because they work for unpaid volunteer boards. Human nature being what it is, people love to find out exactly what someone else is making. One of the most...

Publisher's Notebook

  • Corporates Make News

    The amount of news being made by credit union corporates is exploding. It seems to Editor Paul Gentile, who is the Credit Union Times point person for the corporate news beat, that not a day goes by where one or more corporates doesn't do something that is worthy of prominent...

Letters to the editor

  • Billion Dollar CU CEO Compensation Casts Shadow on CUs

    My jaw literally dropped when I visited www.cutimes.com and learned that the CEO of $1.6 billion asset Portland Teachers Credit Union earned $1.6 million in salary and bonuses last year. Have I just awakened from a Rip Van Winkle experience? When did credit union CEOs start making these bank-like earnings?...

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