Credit Union Times Magazine October-15, 2008

News

Indiana Gov. Cites CUs

By Staff Writer

INDIANAPOLIS -- Indiana credit unions got a renewed pat on the back from the state's Republican governor for the industry's campaign to emphasize deposit insurance and regulatory protection.
FHA Reminds Lenders of Triple Money Damages on Loss-Mitigation Failure

By Staff Writer

WASHINGTON -- The Federal Housing Administration issued a mortgagee letter last week reminding lenders that it can hit them with treble damages if they don't try to work with distressed borrowers.
Sunmark FCU Starts Networking Site to Help Members Save on Energy

By Lindsey Siegriest

LATHAM, N.Y. -- Sunmark Federal Credit Union is bringing its members together to help combat expected high energy costs this winter.
Wright-Patt Sets Savings Race Rivals

By Lindsey Siegriest

FAIRBORN, Ohio -- Wright-Patt Credit Union revealed the five competitors in its Savings Race yesterday.
Florida League Shines Spotlight on the CU Alternative

By Michelle A. Samaad

ORLANDO, Fla. -- The Florida Credit Union League is among those in the industry encouraging consumers to consider credit unions as an alternative.
Software Co. Wins Vancity

By Marc Rapport

CHICAGO -- Vancouver City Savings Credit Union has become the first credit union to use the Master Data Service platform from Initiate Systems Inc.
Dow Jones Industrials Set Another Record Plunge Before Recovery

By Michelle A. Samaad

NEW YORK -- The Dow Jones industrial average experienced another one-day record drop on Oct. 7, plunging 800 points, and then recovering some of that ground but closing down nearly 370 points.
Most Small Business Owners Are More Likely to Save Business Than Home

By Michelle A. Samaad

ATLANTA -- Small business owners behind in their mortgage payments are more likely to save their businesses rather than their homes according to a new study from Experian.
Synergent Lands First New York

By Marc Rapport

WESTBROOK, Maine -- Synergent said it is expanding into New York with the signing of a Watertown credit union to a core processing contract.
Metro CU, Air Academy FCU Sign Up for DeposZip

By Marc Rapport

BURLINGTON, Mass. -- Two more credit unions have signed up to use the DeposZip remote-deposit capture service from Eastern Corporate Federal Credit Union.
Federal Housing Finance Agency Releases Mortgage Metrics Report

By Staff Writer

WASHINGTON -- The good news is that 99% of the loans backed by Fannie Mae and Freddie Mac are performing well. The bad news is that 1% of the loans are 90 days or more past due, according to a report issued by the Federal Housing Finance Agency.
Neighbors CU Offers Seminar to Help Ease Members' Investment Fears

By Staff Writer

ST. LOUIS -- Armed with many questions, attendees at a Neighbors Credit Union's seminar wondered how the markets' upheavals may impact their investments.
Earlier Is Better to Get Involved With Members on Card Debt, Filene Suggests

By David Morrison

MADISON, Wis. -- The Filene Research Institute has released a research paper on member card behavior that suggests credit unions get involved with members stressed about their debt earlier rather than later.
Economic Toll: Planned Retirements Postponed, 401(k) Contributions Scaled Back

By Michelle A. Samaad

TEWKSBURY, Mass. -- Nearly one in five in a new AARP survey said they have stopped or reduced putting money into their 401(k)s and individual retirement accounts and 20% have postponed a planned retirement as a result of the current economic slowdown.
MCT FCU Rides Through Mansions of Glory to Win Auto Lending Victory

By Myriam DiGiovanni

ROCKVILLE, Md. -- With the wave of a checkered flag, MCT Federal Credit Union kicked off a race that helped the credit union speed past the finish line, adding over $10 million to its loan portfolio.
Sonja McDonald, Randolph-Brooks FCU Vice President, Wins Volunteer Award

By Jim Rubenstein

SAN ANTONIO -- The financial crisis was President Bush's top priority on his visit to San Antonio last week, but in a noteworthy sidelight, he also to extended one of the nation's highest volunteer honors to a CU executive.
International CU Educator Helps Launch Fabric of Life Retail Store in U.S.

By David Morrison

EDMONDS, Wash. -- An international development effort launched by a noted credit union educator is establishing a retail outlet right here in the States.
CUs Must Open Their Eyes and Keep on Their Toes When a Car Dealership Closes

By Lindsey Siegriest

COLUMBUS, Ga. -- The auto industry is continuing to feel the backlash from a sagging economy as Bill Heard Enterprises, Inc., the largest U.S. Chevrolet auto dealership, filed for bankruptcy protection, closed 14 showrooms and fired most of its 3,200 employees.
Many Credit Unions See a Dramatic Increase in Mortgage Lending

By Staff Writer

BALTIMORE -- The collapse of many subprime mortgage lenders and the liquidity crunch have combined to provide many of the nation's credit unions with a surge in mortgage volume.
NCUA, Trades Try Various Ways to Get Word Out on Share Insurance

By Claude R. Marx

WASHINGTON -- Broadcasts, blogs and blast e-mails are among the ways the NCUA and the major trade associations have been getting out the word about the increased levels of share insurance.
CUNA Mutual White Paper Shows Members Want to Hear From Their CU

By Lindsey Siegriest

MADISON, Wis. -- The white paper report, "Developing Members from Indirect Borrowers: Lessons Learned," that was presented at CUNA Mutual's Discovery Conference back in June is more relevant now than ever, according to Heather Thiltgen, CUNA Mutual's vice president of consumer programs.
Callahan Webinar Highlights Successful CU Auto Programs

By Lindsey Siegriest

WASHINGTON -- A recent Callahan and Associates Webinar highlighted several credit unions' ideas for bolstering their auto lending prowess from which others can learn.
Court Bars Class Status in ARM Suit

By Staff Writer

MADISON, Wis. -- A federal appeals court last week reversed a 2007 class certification involving a couple who claimed that the disclosures for their option ARM loan were confusing. A federal trial court agreed with the couple and ruled that the loan could be rescinded and granted class action status...
BofA to Modify Countrywide Loans

By Staff Writer

CHARLOTTE, N.C. -- Bank of America has agreed to settle predatory lending charges against subsidiary Countrywide Financial Corp. at an estimated cost of about $8 billion.
Rescue May Provide CUs With New Sources of Funding, Says Attorney

By Staff Writer

BALTIMORE -- Credit unions taking a wait and see approach to the financial markets bailout signed into law by President Bush on Oct. 3 declined to comment on its effect. But one attorney suggested that CUs look for new sources of liquidity and to Europe for new loan products.
University of Wisconsin Student First Approved for CU Private Student Loan

By Michelle A. Samaad

MADISON, Wis. -- Tamara Sanner is looking forward to studying in Spain soon but the semester trip abroad may not have been possible if a student loan did not come through.
Once Again, California Governor Vetoes Card Data Security Bill

By David Morrison

SACRAMENTO, Calif. -- A California Credit Union League lobbyist said the league will persist in seeking legislation addressing the card data security problem, even if that means pushing past the time California Gov. Arnold Schwarzenegger leaves office.
LITERACY: CUs Build for the Future With Programs for Kids and Teens

By Myriam DiGiovanni

HOBOKEN, N.J. -- Is now the time for credit unions to carve out their niche as the financial literacy resource?
New Service Can Qualify Borrowers by Using Alternative Credit Reporting

By Staff Writer

SALISBURY, Md. -- More than 50 million consumers--an estimated 25% of the mortgage market--do not qualify for mortgages because they do not have traditional lines of credit such as credit cards or student loans. However, many of them pay their rent, gas, electric and phone bills on time--factors that are...
Mississippi Licenses Pa iBelong CU Awareness Campaign

By Myriam DiGiovanni

HARRISBURG, Pa. -- The Mississippi Credit Union Association is hoping that consumers there will soon be stepping up to say "I belong."

Front Page News

CUs May Realize Card Opportunity From Changing Economic Landscape

By David Morrison

ARLINGTON, Va. -- Both credit unions and community banks are poised to see strong credit card marketing opportunities as the country continues to move through its ongoing economic crisis, according to credit union and bank experts.
Fryzel Is Optimistic About CUs, but Voices Concern About the Economy

By Claude R. Marx

ALEXANDRIA, Va. -- Talk about having little time to adjust.
The Big Question After the Election: Whither Financial Services Regulation?

By Claude R. Marx

WASHINGTON -- Whether the change involves "major surgery" as House Financial Services Committee Chairman Barney Frank promises or the political equivalent of a tummy tuck, the way the government regulates financial services probably won't be the same after Congress and the next president are finished.
CUs Gear Up Programs to Own The Financial Literacy Movement

By Myriam DiGiovanni

HOBOKEN, N.J. -- Is now the time for credit unions to carve out their niche as the financial literacy resource?
Examining Corporate Balance Sheets

By Heather Anderson

SAN DIEGO -- Ever since Sept. 30, when Standard & Poor's placed corporate heavyweights Western Corporate FCU and Members United Corporate FCU on CreditWatch with negative implications, rumors have swirled about the stability of several corporates, as well as the entire corporate system.

News Briefs

Direct Connect Reports Highest Monthly Volume

By Staff Writer

CENTENNIAL, Colo. -- Industry figures show that CU indirect auto lending may be making a comeback.
The Golden 1 Mourns Former Senior VP

By Staff Writer

SACRAMENTO, Calif. -- The Golden 1 Credit Union is mourning the loss of longtime marketer and former Senior Vice President Dave Thompson.
Mission FCU Names Debra Schwartz CEO

By Staff Writer

SAN DIEGO -- Mission Federal Credit Union appointed Debra Schwartz as president/CEO.

Marketing

FedChoice FCU Launches a Glossy Quarterly Magazine for Members

By Staff Writer

WASHINGTON -- Forget the typical newsletter, FedChoice Federal Credit Union has taken member communication to the next level with its magazine--FedChoice Financial Concierge Quarterly.

Regulatory/Compliance

NCUA Expands Online Compliance

By Staff Writer

ALEXANDRIA, Va. -- Starting next year, credit unions with access to the Internet will be required to submit their compliance data online.

Special Report

Electronic Bill Pay Seen Taking the Majority Position in 2009

By Staff Writer

BOSTON -- In a kind of online landmark, electronic bill pay will overtake other forms of payments in 2009, according to a new report from the Aite Group. The uptake in that channel coincides with a sharp decline in mailed bill payments, and by 2012, Aite Group predicts, 64% of...
Credit Cards, Brokerage Accounts Lead Online Sales; Research a Major Activity

By Staff Writer

CAMBRIDGE, Mass. -- Credit cards and brokerage accounts continue to dominate the financial products sold online, according to a sweeping Forrester Research of 47,000 U.S. consumers. The think firm said that online sales will continue slow, steady growth but that online-influenced sales need to be considered as much as online...
Navy Federal Uses Software Analytics to Drive Service-Boosting Decisions

By Marc Rapport

MERRIFIELD, Va. -- Navy Federal Credit Union is now using sophisticated tech tools to get detailed feedback regarding individual members--about 150,000 so far this year.
Social Engineer Claims Easy Pickings at Credit Unions and Banks

By Marc Rapport

BATON ROUGE, La. -- More than a thousand bank and credit union branches turned over account records, Social Security numbers and more without a fight, according to a five-year report from a social engineering security firm.
Think Firm Analyst: CRM Is at the Top of Necessary Tech-Spend List

By Marc Rapport

BOSTON -- Financial institutions might best recover from the meltdown on Wall Street by focusing on Main Street, and there are some well-known software tools out there that can help, according to a new report.

Opinions

Answering Red Flag Questions With Technology Solutions

By Staff Writer

Each year credit unions are faced with more challenges to create greater value for members and compete with other financial institutions as the cost of doing business increases overall. These challenges have heightened in the current market where financial giants continue to fail and consumers start to look at community-based...

Editor-in-Chief's Column

Financial Bailout: A CU Boon or Boondoggle?

By Staff Writer

How and why did Congress move so quickly on the bailout bill? Congress was able to pass this very complex, high-dollar legislation in a matter of days--nevermind the fact there had been signs of a subprime crisis that's at the root of all this--for months if not years. Relatively speaking,...

Opinion

To Build Your Business, Use the Power of Lobby Marketing, Show the Product and Ask for the Sale

By Staff Writer

Banks, credit unions and retailers have seen tough times of late. Specifically, bankers--and even some credit unions--are seeing a gloomy period ahead due to credit losses and the liquidity restraints due to the need for more loan-loss reserves. For businesses, much like consumers, liquidity is paramount to survival. Growing the...

Publisher's Notebook

Publisher's Notebook

By Staff Writer

Don't miss out on the Chance to be a part of the 2008 Credit Union Times awards.

People

PEOPLE

By Staff Writer

EAST

Other

Northwest FCU Calls on Clayco

By Staff Writer

ST. LOUIS -- Design and build firm Clayco Inc. has broken ground on a new 5,000 square-foot Manassas branch facility for Northwest Federal Credit Union.
SCHOLARSHIPS

By Staff Writer

Affinity Federal Credit Union, Basking Ridge, N.J., awarded six high school students with scholarship grants. The grants were funded through the Affinity Federal Credit Union Fun, a 501(c) (3) charity corporation. To qualify for the grant students had to be a member of the credit union, excel academically, show commitment...