Credit Union Times Magazine January-24, 2007

In Other News

IN OTHER NEWS

By Staff Writer

AWARDS Bayer Federal Credit Union, Elkhart, Ind., was recently awarded first place in the Desjardin Youth Financial Education Award program and second place in the Dora Maxwell Social Responsibility Award Program by the Indiana Credit Union League. For the Desjardin award, Bayer FCU was recognized for its continual dedication to...

News

Privacy, Incidental Powers, MBL Regs Up for Review in 2007

By Staff Writer

NCUA has announced its 2007 Regulatory Review List of rules it will review for possible additional flexibility or being obsolete.
Northeast Credit Union Volunteers Seek to Form New Group, Subset of National Association of Credit Union Chairmen

By Jim Rubenstein

Seeking to raise both education levels and networking skills of volunteers, the chairman and vice chairman of two New Jersey credit unions disclosed plans for a new Northeast "Chairmen's Group."
Utah Radio Station Airs CU/Bank Fight

By Staff Writer

It may have been the opening day of the Utah Legislature, but it did not take long for the perennial bank/credit union-clash to hit the media.
A Big Deal for Allpoint, Links Up with Fiserv's ACCEL/Exchange

By Staff Writer

Credit unions and other financial institutions that are clients of Fiserv's ACCEL/Exchange ATM and POS networks will now be able to join the Allpoint Network as well as ACCEL's own surcharge free alliance called No SUR!. The expanded surcharge-free access is expected to complement ACCEL/Exchange's own surcharge-free alliance, No SUR!,...
Pennsylvania Sends Guidelines to Mortgage Lenders and Brokers

By Staff Writer

The state's 3,000 mortgage lenders and brokers have been informed of new conduct guidelines via a letter from Acting Banking Secretary Victoria A. Reider.
Las Vegas Car Dealers' Negotiation Resistance Helps Clark County CU's Auto Buying CUSO Build Successful Out-of-State Alliances

By Michelle A. Samaad

Local car dealerships here have caught on to Members Auto Brokerage and some may not appreciate how it might be cutting into their profit margins.
Barinaga Named Top Investment Rep

By Staff Writer

The November 2006 edition of Bank Investment Consultant Magazine has named Martin Barinaga among its top 50 financial institutions representatives.
Legg Re-Elected To CUNA Marketing Council

By Staff Writer

Cabrillo Credit Union Marketing Vice President Anne Legg has been re-elected to the CUNA Marketing and Business Development Council Executive Committee. She will serve as vice chair for two years.
Governor Bies Backs Risk-Based Capital, Need to be Mindful of Smaller Institutions

By Sarah Snell Cooke

Federal Reserve Board Governor Susan Schmidt Bies told a room full of credit union representatives that she personally was supportive of the idea of risk-based capital in general.
On The Inside

By Staff Writer

Another Major Card Breach Credit unions will be picking up the pieces from yet another serious credit card breach that will likely result in millions of cards being reissued. See story page 4. Special Report: CUSOs The CUSO special report on pages 20-24 looks at a few CUSO success stories...
Corporate CU Panel: Successful ALM/ERM Requires Team Effort

By Sarah Snell Cooke

A panel of corporate credit unions during NCUA Vice Chairman Rodney Hood's Jan. 11 Risk Mitigation Summit advised attendees that everyone must be involved in enterprise risk management for it to work.
Lowest Ever Bank Deposit Drop Partly Due To High-Yield Investments

By Staff Writer

Consumers shifting away from traditional bank accounts to higher-yielding investments may be one of the reasons for the lowest level of bank deposits in the Federal Deposit Insurance Corp.'s 74-year history.
Hyland Announces NCUA Outreach Task Force Membership Complete

By Sarah Snell Cooke

SARAH SNELL COOKE CU Times Senior Washington Reporter
Sub S Tax Relief Legislation Introduced, ICBA Pleased

By Staff Writer

Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Minority Member Charles Grassley (R-Iowa) have introduced legislation to further reduce the tax burden on Subchapter S companies, including banks.
Sunshine State Members Vote for Charter Change for Second Time

By Staff Writer

Members who voted in recent balloting approved changing the charter of the $136 million Sunshine State Credit Union to a mutual bank for the second time, the credit union has announced.
Merger of Wickliffe Community CU, Eaton Family CU Complete

By Staff Writer

Members of Wickliffe Community Credit Union are now members of Eaton Family Credit Union thanks to a just-completed merger.
SAFE Rewards Members Again with $1 Million Dividend

By Staff Writer

SAFE Federal Credit Union members were recently rewarded for a productive 2006.
Texas Credit Unions Top Lists of CUSO-Generated Revenue

By Michelle A. Samaad

When it comes to the amount of money loaned to CUSOs, Texans Commercial Capital, LLC is leading the pack, according to the most current data from Callahan & Associates, Inc. The CUSO formed by $1.7 billion Texans Credit Union in May 2004 has loaned out nearly $144 million as of...
Cooperative Structure a Strength and Weakness of Corporate Credit Unions, Moody's Says

By Staff Writer

Moody's Investors Service looks at corporate credit unions with the same eye it does all the organizations it rates, according to Senior Vice President Blaine Frantz.
NYSCUL On-Site for Swearing in of 110th Session of the U.S. Congress

By Staff Writer

New York State Credit Union League Vice President of Governmental Affairs Amy Kramer spent Jan. 4 running the marble halls of Congress. Kramer visited with nearly every New York representative. "Both members and their staff were in festive moods with many offices holding open houses for friends and family following...
Growth Comes at Rapid Clip for CU*NorthWest, Next Phase Calls for Sustainability, Renewed Focus on Small Credit Unions

By Michelle A. Samaad

Growth is almost always a good sign that financial and strategic goals are being met, but for CU*NorthWest progress has come so quickly that the CUSO may have to pull back the reins this year.
Multi-Owned and Wholly-Owned CUSOs Focus in Different Areas

By Staff Writer

They are both cooperative organizations owned by credit unions, but multi-owned CUSOs and wholly-owned CUSOs have different focuses.
IRS Offers More Details on Possible CUSO Tax Break

By Staff Writer

A state-chartered credit union with a majority stake in a CUSO will not owe unrelated business income tax on interest or rental income received from its CUSO under certain conditions.
The Dangers of Idle Cash: With Today's Tight Spreads, Setting Efficient Cash Levels at Branches Can Boost the Bottom Line

By Staff Writer

Prior to 2005, the $2.3 billion Bethpage Federal Credit Union was holding an excessive amount of cash in reserve in its vaults. An internal auditor was concerned from a security perspective, but the New York-based FCU was also missing out on trimming the fat and turning its excess into an...
Ongoing Operations Recovery CUSO Helps Business Continuity Move to Top of Priority List

By Michelle A. Samaad

On the eve of its one year anniversary, Ongoing Operations, LLC has quickly discovered that the behind the scenes, proactive work to ensure that a credit union can continue running in case of a natural disaster or operational shutdown has become a priority for many.
Oregonians CU Merger Spree Helps Grow Membership 650% Over Two Years, Push Now to Decrease Inactive, Low Balance Accounts

By Michelle A. Samaad

The delicate strategy of giving members with low-balance or dormant accounts the option of either using more products and services or taking their business elsewhere has become a necessary cost-saving move for Oregonians Credit Union.
CUDL and Manheim to Hold Second Annual Remarketing Conference

By Staff Writer

Point-of sale and indirect lending network for credit unions CUDL and Manheim, a provider of automotive remarketing services, will partner to present the second annual Auto Remarketing Conference for Credit Unions on March 7-9 at Manheim's DRIVE Center in Atlanta.
Three More CUs Complete CU BizSource MBL Fund Certification

By Staff Writer

CU BizSource has certified three more credit unions for participation in the Credit Union System Fund.
ERM Allows CUs to Better Handle Capital, Serve Modest Means

By Staff Writer

NCUA Director of Capital Markets & Planning Owen Cole told credit unions during NCUA's Risk Mitigation Summit Jan. 11 that better risk management will help credit unions use their capital more wisely to serve members of modest means.
MnCUN Welcomes Cummins with Open Arms

By Staff Writer

More than 100 credit union leaders turned out for a reception Jan. 11 to welcome Mark Cummins as the new president of the Minnesota Credit Union Network.
Capital CUSO Offers Prepaid Cards

By Staff Writer

The Credit Union Service Center is now offering prepaid Visa cards through its division Capital CUSO, LLC.
CUNA Board Adds Non-Voting ACCU Seat

By Staff Writer

In line with a recommendation from its Renewal Review Committee, CUNA members voted "overwhelmingly" in favor of a bylaw to add the chair of the Association of Corporate Credit Unions to CUNA's Board as a non-voting, ex officio member. CUNA reported in its online News Now news that ACCU Chairman...
United Teletech Financial FCU Named 'Best of The Best'

By Staff Writer

United Teletch Financial Federal Credit Union has been recognized as a "Best of the Best" performer by Mount Laurel, N.J.-based PHH Mortgage. United Teletech Financial works with PHH to fund members' first mortgages.
Bacino: Credit Unions Not Using FHLBs as Much as They Could

By Sarah Snell Cooke

Federal Housing Finance Board Member Geoff Bacino, a former NCUA Board member, expressed his hopes that credit unions will take greater advantage of what the Federal Home Loan Banks have to offer.

Front Page News

Lafayette Withdraws Conversion Proposal; Blames Accounting Firm For Errors

By David Morrison

In a surprising change of course the $320 million Lafayette Federal Credit Union has withdrawn its application to change its charter to that of a mutual bank.
CO-OP Financial Services and CUSC to Merge, CUSC to Run Shared Branching Arm

By David Morrison

The already small credit union shared branching world just got smaller. CO-OP Financial Services and Credit Union Services Corporation have signed a letter of intent to merge two of the three nationwide credit union shared branching networks. CO-OP Financial Services' current shared branching arm is the former Service Centers Corporation,...
DFCU Financial Board Candidate Appeals to NCUA; Says CU Ignoring Election Bylaws

By David Morrison

A candidate for the board of the $1.7 billion DFCU Financial has appealed for help from the NCUA in getting the CU to, in her view, abide by its own bylaws in a coming board election.
Sale Looms on Centrix Case; Credit Unions Hope to Avoid Delays

By Jim Rubenstein

The sale of subprime lender Centrix Financial ILC to an East Coast insider group appeared close to a conclusion last week as the U.S. Bankruptcy Court was slated to hear final arguments at a hearing on Jan. 18.
Hood's Innovation Comes to Life

By Staff Writer

NCUA Vice Chairman Rodney Hood said he was excited to see his idea of holding a summit on risk mitigation become a reality Jan. 11. With credit unions and other lenders holding concentrations of mortgage loans, they need to deal with the risks involved from interest rate risk to credit...

News Briefs

Centra's New Prize-Based Program Encourages Saving

By Staff Writer

Offering money and prizes may be among the only motivations to get Americans to save more.
Hampel Forecasts Slower Consumer Spending on Bloomberg

By Staff Writer

During a five-minute interview with Bloomberg Television, CUNA Chief Economist Bill Hampel said despite favorable retail sales in December, he still foresees slower consumer spending for 2007. During the interview, which aired Jan. 12, Hampel said he anticipates slow consumer spending for 2007 regardless of the strong December retail sales....
WOCCU's Annual Conference Back in North America

By Staff Writer

For the first time since 2000, the World Council of Credit Unions' World Credit Union Conference is coming back to North America.
City CU in Dallas Names its First Female CEO

By Staff Writer

For the first time in its history, the $175 million City Credit Union will have a female president/CEO, Sharon Moore. Moore, who has been serving as interim president since July, started with City CU two-and-a-half years ago as senior vice president. She succeeds Michael Kelly, who resigned. Moore previously had...
CUMAnet Supports NJCUL's 'Bob the Credit Union Guy'

By Staff Writer

The Credit Union Mortgage Alliance Network, is standing behind the New Jersey Credit Union League's credit union awareness advertising campaign by making a donation.
NAFCU Endorses America Saves

By Staff Writer

NAFCU praised the Consumer Federation of America's America Saves program, a national campaign that encourages consumers to reduce debt and save money.
Body Discovered in Mass. River Identified as Indicted D. Edward Wells Figure

By Staff Writer

The body of Douglas L. Smith, one of those indicted in the fall of D. Edward Wells Federal Credit Union, was found in the Chicopee River on Jan. 16.

Marketing

Alliant CU Delivers Financial Literacy Lessons to Public Schools

By Staff Writer

Alliant Credit Union employees have been busy teaching financial literacy in public schools through a partnership with Operation Hope, Inc.
Matadors Community CU Marketing VP Makes '40 Under 40' Cut

By Staff Writer

The San Fernando Valley Business Journal has named Matadors Community Credit Union Vice President of Marketing Marnie Nemcoff a "40 Under 40" award recipient.
Mountain America Sponsors Unique Youth Employment Program

By Staff Writer

Mountain America Credit Union, a partner of the Salt Lake Neighborhood Housing Services, recently sponsored the YouthWorks graduation.
Desert Schools Helps Immigrants Fight Back Against Fraud

By Staff Writer

Desert Schools Federal Credit Union is stepping up its local educational outreach efforts to the local immigrant population in an effort to help them fight back against financial fraud.

Regulatory/Compliance

NCUA, FinCEN Announce Joint BSA Webinar

By Staff Writer

NCUA and the Financial Crimes Enforcement Network recently announced a joint Bank Secrecy Act Webinar to help credit unions understand their BSA obligations. The Feb. 6 Webinar, entitled BSA: A Year in Review and Setting the Table for 2007, will cover a wide range of areas regarding BSA compliance, including:...
FCUs Can Use Impermissible Investments To Fund Benefit Plans

By Staff Writer

NCUA recently said that federally-chartered credit unions are allowed to invest in impermissible investments to fund an actual or potential employee benefit plan obligation within limits.
NCUA Letter to FCUs Outlines Operating Fee Scale

By Staff Writer

NCUA recently issued Letter to Federal Credit Unions 07-FCU-01, which gave federal credit unions a heads up on the operating fee schedule.
Boston Fed President Cathy Minehan Announces Retirement

By Staff Writer

Federal Reserve Bank of Boston President/CEO Cathy E. Minehan announced earlier this month that she would retire from the Bank in 2007.
Vermont Governor Names Thabault Banking Commissioner

By Staff Writer

Vermont Governor Jim Douglas has appointed Paulette Thabault commissioner of the Vermont Department of Banking, Insurance, Securities and Health Care Administration.

Tech Bytes

WesCorp Purchases CIA Studios, Commits To Building Webcast Business

By Staff Writer

WesCorp wants to be in the Webcast business and it has the acquisition to prove it.
RSA Exec: Fighting Online Fraud to Continue on Multiple Fronts

By Marc Rapport

Foiling online fraudsters will continue to be a job for multitaskers in the years ahead, according to Chris Young, vice president and general manager of the Consumer Solutions Business Unit for RSA, the Security Division of EMC.
SecureWorks Fends Off 37 Million Attacks

By Staff Writer

Security firm SecureWorks announced that it blocked over 37 million Web application hacker attacks attempted against its 1,600 banking, credit union and utility clients in 2006. "Beginning last spring, we saw a significant increase in the number of SQL Injection attacks being attempted against clients," said Erik Petersen, vice president...
Passageways is Bullish on 2007

By Staff Writer

Portal/intranet provider Passageways is hoping to build on a strong 2006.

Special Report

NewGround White Paper Examines High Price of Building

By Staff Writer

Design/build and retail services firm NewGround has recently released a white paper examining why the cost of building financial institutions is on the rise.

Opinions

Investment Programs Can be a Wise Move for Future of Credit Unions

By Staff Writer

It is not a stretch to say that these are challenging times for the credit union industry. Credit union growth overall is generally stagnant, as evidenced by an aging, dwindling membership base and the harsh reality that there have been few new credit union charters issued in the past 10...

Looking Back

Looking Back

By Staff Writer

Looking back seven years ago finds Plano, Texas-based Community Credit Union winning the right to service 23,000 McDonald's Corp employees at 510 restaurants throughout the state. The move is one of the largest SEG affiliations in Texas history.

Publisher's Column

Should NCUA Be in the Bylaw Business?

By Staff Writer

Ever since the bylaw dispute at DFCU Financial there have been a lot of questions about NCUA's role in bylaw enforcement.

People

PEOPLE

By Staff Writer

First Financial Credit Union, Wall, N.J., has announced that its Director Emerita Erma Dorrer passed away recently at the age of 101. Dorrer served on the board for many years and was honored with the director emerita title upon retiring from actively serving on the board. In honor of her...