Credit Union Times Magazine November-26, 2008

Wisconsin Credit Unions Tap Into 529 College CDs

By Jim Rubenstein

MADISON, Wis. -- Under a deal brokered by the Wisconsin Credit Union League and an Illinois-based corporate, credit unions here can now bid on insured certificates of deposit offered under a state-backed 529 college savings plan.

Fryzel Asks for Help In Staying Proactive

By Claude R. Marx

WASHINGTON -- NCUA Chairman Michael E. Fryzel reiterated his pledge to take an active role in preventing problems before they occur during a speech before the suburban chapter of the Maryland and D.C. Credit Union League.

Ignoring Pressure From Mortgage Industry, HUD Unveils New GFE Form

By Staff Writer

WASHINGTON -- The Department of Housing and Urban Development Nov. 13 issued long-awaited rules to reform the Real Estate Settlement Procedures Act requirements.

Full-Repayment Program Finds Huge Need for Partial Payment Settlements

By Heather Anderson

AN DIEGO -- Mitch Ronco, spokesman for consumer credit counselor InCharge Debt Solutions, said he's been turning more and more struggling consumers away because they don't qualify for InCharge's full-repayment program.

Affinity FCU Awards Essay Writers $5,000 Toward Home Purchases

By Staff Writer

ST. PAUL, Minn. -- A Minnesota CU recently decided to help its members into home purchases by encouraging them to use their writing skills.

Aiming to Stanch the Tide, Large Mortgage Holders Agree to Modifications

By Staff Writer

WASHINGTON -- In an attempt to stem foreclosures and set industry guidelines, federal officials have set up a mortgage modification program for the loans controlled by Fannie Mae and Freddie Mac.

Current Challenge for CU Marketers: Selling Old-Fashioned Thrift

By Heather Anderson

SAN DIEGO -- As members face a new era of unprecedented household debt and economic uncertainty, will the credit union marketing message change as a result?

PCI Standards Include Data Storage Elimination

By Staff Writer

SAN FRANCISCO -- The first significant revision to the payment card industry data security standards (PCI DSS) since they're implementation includes a deadline for the largest card processing merchants

New Affinity Card Issuer Says Economic Downturn Has Proven Good for Business

By David Morrison

NEW YORK -- CardPartner.com, a card issuer that specializes in small affinity groups, reported that the recent economic downturn has been good for business as small organizations consider issuing as a way to boost income in a down economy.

Kenyan CU Leaders Visit Mass.

By Jim Rubenstein

BROCKTON, Mass. -- A delegation of Kenyan credit union leaders found their U.S. visit uplifting on two fronts.

CUs Continue to Flock to VITA Network

ATLANTA -- The IRS' volunteer income tax assistance program has grown to include 535 credit unions, more than double the 250 figure for 2007.

Advisers at CUNA Brokerage Meeting Dig Deep to Give Back

By Michelle A. Samaad

MADISON, Wis. -- What was supposed to be a routine, annual financial adviser meeting in Florida a few weeks back turned into an impromptu collection of more than $4,100

Foundation Honors Central CU Fund

By Heather Anderson

WARRENVILLE, Ill. -- Members United Corporate Federal Credit Union is putting $250,000 toward a new foundation that will benefit members of the former Central Credit Union Fund.

Souvenir Edition's Obama Ad Proves a Big Draw for Arizona CU

By Jim Rubenstein

PHOENIX -- The $1.1 billion Arizona State Credit Union was still reaping a deposit windfall last week from a 4%, $25,000

Praise for Father of NCUA Director

By Claude R. Marx

WASHINGTON -- In his Veterans Day remarks, President Bush recalled the heroic actions of Alonzo A. Swann Jr. during World War II that resulted in him being awarded the Navy Cross.

BrightLeaf Financial Hires Business Development Manager

WINSTON-SALEM, N.C. --Anne Knopp has been hired as a business development manager to help credit unions build an online financial planning presence through BrightLeaf Financial Network.

CUs Do Not Typically Seek Out Banks as Investment Safekeepers

By Michelle A. Samaad

ALEXANDRIA, Va. -- Even though NCUA allows federal credit unions to use federal and state banks and state trust companies to serve as safekeepers of their investments, the practice may not be a common practice.

Economy Taking Its Toll on NCUSIF

By Claude R. Marx

ALEXANDRIA, Va. -- The net income of the NCUSIF fell $21.6 million in October, as the woes of the economy took their toll on credit unions.

HARP Based, In Part, On CU Housing Roundtable Proposal

By Heather Anderson

WASHINGTON -- There's a reason the NCUA's HARP initiative looks an awful lot like the member mortgage relief initiative the CU Housing Roundtable presented to Chairman Michael Fryzel on Oct. 21.

San Francisco FHLB Confirms Credit Line Reductions

By Heather Anderson

SAN FRANCISCO -- The Federal Home Loan Bank here confirmed as many were whispering during breaks at the California Credit Union League annual meeting earlier this month: it has reduced some lines of credit.

After FDIC Move, NCUA Considers Offering Insurance on Gift and Other Prepaid Cards

By David Morrison

ALEXANDRIA, Va. -- The NCUA acknowledged that it is considering defining money placed on credit union-issued gift and other prepaid cards as deposited funds covered by share insurance.

Alabama and Florida League Consolidation on Track for 2009

By Jim Rubenstein

TALLAHASSEE, Fla. -- In the latest example of state league consolidation, the Florida and Alabama credit union leagues appeared ready this month to move forward with combining the trade groups.

Tinker FCU Web Site Urges Gen Y to 'Buck the Norm' and Make a Budget

By Myriam DiGiovanni

OKLAHOMA CITY -- It's a thumbs up for Tinker Federal Credit Union's bid to financially empower Gen Y by encouraging them to 'Buck the Norm.'

Fryzel Fashions Mortgage Relief Plan

By Claude R. Marx

WASHINGTON -- Credit unions could have access to $2 billion from the Central Liquidity Facility to help members who are having trouble with their mortgages.

NCUA Increases FCU Fees on Average By 6.7% and Abbreviates Exam Cycle

By Claude R. Marx

ALEXANDRIA, Va. -- Federal credit unions will pay the NCUA an average of 6.7% more next year in operating fees and possibly as much as 12% more, based on asset size, according to the rate structure approved by the agency at its Nov- ember meeting.

Fryzel Bypasses Treasury, Takes Pitch For TARP Funds Directly to Congress

By Claude R. Marx

WASHINGTON -- Frustrated by the inaction of the Treasury Department, NCUA Chairman Michael E. Fryzel asked Congress for money to help his agency set up a program for the agency to buy troubled assets from credit unions.

TARP a Key Factor That Has Tipped the Scales in Favor of Bank Charters

By Heather Anderson

SAN DIEGO -- It wasn't just the Treasury's TARP offer of cheap and abundant capital infusions that convinced the likes of Goldman Sachs, American Express,

Share Insurance Webinar Archived

By Claude R. Marx

ALEXANDRIA, Va. -- Those wanting to learn the basics of the NCUSIF can consult the archived version of last month's Webinar on the subject, moderated by NCUA Board Member Gigi Hyland.

SBA Changes Loan Programs in Hopes of Increasing Capital Access

By Michelle A. Samaad

WASHINGTON -- Several of the Small Business Administration's loan programs will undergo changes in an effort to help the agency's lending partners increase access to capital for small businesses.

NCUA: CUs Free to Recoup Waived Costs and Fees From Business Loans

By Staff Writer

WASHINGTON -- If a federal credit union gets back waived settlement costs and fees from member business loans it is not considered a prohibited prepayment penalty, the NCUA stated in a legal opinion.

New Filene Study Provides Insight to Classic Card Question: Debit or Credit?

By David Morrison

MADISON, Wis. -- The Filene Research Institute has released a report examining how cardholders make the decision to use their credit or debit card at point of sale.

MasterCard, Canadian Agency Release Plain-Language Application

By David Morrison

OTTAWA, Canada -- A major card brand and Canadian consumer regulator have collaborated to develop a credit card application aimed at cutting through the usual confusing language.

TNB Conference Speakers Remain Optimistic Despite Economic Woes

By David Morrison

DALLAS -- Speakers at TNB Card Services' 2008 payments conference emphasized the strength and profitability of credit union card programs amid the economic turmoil.

American Express Converts to a Bank

NEW YORK -- Longtime card issuer American Express has received federal approval to become a bank holding company and has reportedly sought $3.5 billion in bailout money from the U.S. Treasury Department, according to the company and press reports.

Next Year's Consumer Confidence May Hold Key to Credit Card Profitability

By David Morrison

NEW YORK -- No other statistic may be more important to credit union card issuers for the coming year than the measure of consumer confidence. With consumer spending accounting for more than 70% of U.S. economic growth

Data Compromises: Not Just for Merchants Anymore

Visa recently reported that over 80% of U.S. level one merchants (those with more than six million transactions yearly) have achieved PCI DSS compliance.

At a Difficult Time, CUs Should Give Thanks

By Sarah Snell Cooke

The credit union industry is going through difficult times right now. True, not as bad as the rest of the financial services sector, but rough enough. Oddly enough-or perhaps appropriately enough-this is a time for giving thanks.

CUNA Asks NCUA for a Role in Mortgage Originator Registry

By Staff Writer

WASHINGTON -- CUNA has asked the NCUA to allow it to have a role in the set up of the national licensing and registry that will include credit union loan origination staff.

SecureWorks Releases Trojan Fighter

ATLANTA -- SecureWorks recently announced the availability of a tool designed to fight Torpig, one of the most widely used Trojans designed to steal financial information.

Prospera CU Is Rolling Out National Payday Lending Program

By David Morrison

APPLETON, Wis. -- The $146 million Prospera Credit Union is rolling out a program that promises to help credit unions all over the country offer their members an alternative to high-interest payday loans.

Thanks, but I'll Pass on the Conversion Kool-Aid

On Nov. 18 you published an article online (www.cutimes.com) by Heather Anderson

Looking Back

By Staff Writer

HOBOKEN, N.J. -- With most Americans looking to save rather than spend this holiday season Credit Union Times looks back at last year's expected consumer holiday spending.

The Employee Initiative: To Train or Drain?

Budgetary concerns plague us all in times of economic uncertainty. We focus on the essential and drop what we can live without.

Corporate System Is Only as Strong as Its Natural Person CU Support

It is crucial that a dynamic and strong American credit union system have a dynamic and strong corporate credit union network. It is equally crucial that credit unions and corporates support each other in challenging times.

PEOPLE

GFA Federal Credit Union, Gardner, Mass. announced the hiring of Miguel A. Sensano as community education coordinator.

awards

Affinity Plus Federal Credit Union, St. Paul, Minn., was chosen as the winner of the 2008 Minnesota business ethics award.