Credit Union Times Magazine September-17, 2008

News

• FIS Picks Up Open Technology Solutions Card Business

  By David Morrison

  JACKSONVILLE, Fla. -- A technology CUSO consisting of four large credit unions has signed a deal with Fidelity National Information Services, the card processor for the majority of credit unions

• Rubber Ducky, You're the One

  By Staff Writer

  OAK RIDGE, Tenn. -- It was ready, set, quack as ORNL Federal Credit Union became the official credit union sponsor of the Great Knoxville Rubber Duck Race.

• NAFCU Sponsors Annual Management Development Institute

  By Staff Writer

  WASHINGTON -- NAFCU is sponsoring its 17th annual Management Development Institute at the Chauncey Conference Center in Princeton, N.J., Nov. 3-7.

• TNB Card Services Picks Up More Debit Accounts

  By David Morrison

  DALLAS -- TNB Card Services, the card processing arm of credit union-owned Town North Bank, has picked up another member credit union's PIN debit business.

• Simmons Is Re-Elected

  By Lindsey Siegriest

  PORTSMOUTH, N.H. -- Service Credit Union President/CEO Gordon A. Simmons was re-elected as chairman of the Defense Credit Union Council for the 2008-2009 term.

• KV FEDERAL: Maine CU May Join With Local Bank to Enhance Local Presence

  By David Morrison

  AUGUSTA, Maine -- The board of directors of the $51 million KV Federal Credit Union will decide whether to put a proposal to merge with a local mutual bank before the credit union's members.

• TARRANT COUNTY: CEO Engineers a Turnaround by Motivating the CU Staff

  By Michelle A. Samaad

  FORT WORTH, Texas -- From her first day on the job as president/CEO, Lily Newfarmer said she knew that aggressive plans were needed to get members to use the array of products and services at Tarrant County Credit Union.

• History Portrays Pros and Cons of CU Model Metamorphosis

  By Michelle A. Samaad

  OVERLAND PARK, Kan. -- As credit unions continue to navigate the murky waters of industry consolidation, an increase in regulatory compliance mandates and an aging membership, some may wonder if the traditional credit union business model is still working.

• CU Boards Need to Plan for Strategic Youth Placement When Looking to Future

  By Lindsey Siegriest

  MADISON, Wis. -- In the Filene Research Institute brief, "A Seat at the Table: Young Adult Directors and Board Advisors," author Ben Rogers dives into the touchy subject of what credit unions can do to add a young voice to their typically aging boards.

• Following Bank Failure, Nevada CUs Prepare for Safety and Soundness Concerns

  By Jim Rubenstein

  LAS VEGAS -- The failure of another Nevada bank, the second in two months, has led credit unions to emphasize their strong safety and soundness positions with their members.

• Directions Credit Union Leads Toledo Family's Extreme Home Makeover

  By Staff Writer

  SYLVANIA, Ohio -- Directions Credit Union is joining forces with the popular ABC television show "Extreme Makeover: Home Edition" to help one deserving family in the Toledo area.

• CU Groups Take Stock in Gustav Aftermath as Ike Barrels In

  By Jim Rubenstein

  BATON ROUGE, La. -- As Ike zigged and zagged through the Gulf of Mexico, CUNA Mutual, regulators and the Louisiana Credit Union League looked back at the Gustav response.

• Pa. CUs May Be Able to Keep New Members

  By Claude R. Marx

  WASHINGTON -- Even though a judge ruled that the NCUA's decision-making process in a key field of membership case was flawed, the three Harrisburg, Pa.-area credit unions could be allowed to keep their new members.

• CUNA Settles Lawsuit With Mike Miller, Fired Former Senior Vice President

  By Claude R. Marx

  MADISON, Wis. -- CUNA and a former senior executive have reached a settlement in the lengthy dispute stemming from allegations by a former executive that he was wrongfully terminated.

• Fannie-Freddie Bailout Could Help Corporates on MBS Values

  By Heather Anderson

  WASHINGTON -- Corporate credit union officials are reporting that the Treasury's bailout of Fannie Mae and Freddie Mac could rebound the value of mortgage-backed securities owned by the corporates.

• NCUA Board Members and Key Lawmakers to Appear at NAFCU Caucus

  By Claude R. Marx

  WASHINGTON -- NAFCU's 2008 Congressional Caucus is slated to be a who's who of lawmakers and regulators affecting credit unions.

• Wolters Kluwer Partners With Safe Banking Systems

  By Lindsey Siegriest

  MINNEAPOLIS -- Wolters Kluwer Financial Services announced that it has integrated Safe Banking Systems' SAFE Advanced Solutions software suite and services in its Wiz Sentri: RiskID solution.

• Chetco FCU Putts For Food Charity

  By Staff Writer

  HARBOR, Ore. -- Chetco Federal Credit Union's Benefit Golf Tournament has helped raise $25,000 for the Brookings-Harbor Community Helpers Food Share.

• CDFI Award Is Helping Staff Small CU

  By David Morrison

  ST. LOUIS -- For the first time ever, Choices Federal Credit Union is looking forward to hiring some staff.

• Michigan First Credit Union Sponsors Secure Your ID Day

  By Lindsey Siegriest

  LATHRUP VILLAGE, Mich. -- On Sept. 20, Michigan First Credit Union is sponsoring the Better Business Bureau's local Secure Your ID Day.

• Illinois CUs Band Together to Offer $100M in Student Loans

  By Michelle A. Samaad

  NAPERVILLE, Ill. -- Eight credit unions have made a financial commitment to bring more than $100 million in student loans to college students for the upcoming school year.

• CDFI Fund Director Gambrell Touts Achievements and Challenges

  By Claude R. Marx

  WASHINGTON -- Credit unions that serve underserved areas have worked closely with the Community Development Financial Institutions Fund to attain money to enhance their efforts to improve the lives of members and communities. Last year, the fund gave 13 awards to credit unions totaling $4.6 million. The fund gave a...

• Coinstar/Kelton Poll Finds That Members Seek New Services

  By Staff Writer

  BELLEVUE, Wash. -- A recent Coinstar/ Kelton Research credit union member experience poll found that when it comes to creating a better branch experience, members are looking for more options.

• Despite Losing Its Grip on Front Page, Card Data Security Still Strong Issue

  By David Morrison

  MADISON, Wis. -- Even though it has not been on the front pages as much this year, executives with CUNA Mutual and several credit union leagues say the card data security issue remained high on at least some state legislative calendars in 2008.

• Housing Bill Requires CU FHA Approval for Third-Party Reverse Mortgages

  By Heather Anderson

  NAALEHU, Hawaii -- Conclusions that the new housing bill won't affect credit union reverse mortgage lending are incorrect, said Bernard Balsis Jr., president/CEO of the $13 million Ka'u Federal Credit Union.

• States Hardest Hit in Mortgage Crunch Post the Worst CU Losses

  By Heather Anderson

  WASHINGTON -- California, Nevada, Arizona and Florida credit unions aren't feeling sorry for themselves when they say they've got it harder than the rest of the country. According to Callahan and Associates' Sept. 3 "Trendwatch" broadcast, the four states are experiencing the worst losses in the industry, driven primarily by...

• Instant Cards Come to Ohio

  By David Morrison

  ENGLEWOOD, Colo. -- A credit union is the first financial institution in Ohio to begin issuing its members credit and debit cards on-site, according to the lending vendor of the instant issuing technology.

Front Page News

• Trades, CUs Hope for Market Recovery

  By Staff Writer

  WASHINGTON -- Credit unions generally applauded the government takeover last week of Fannie Mae and Freddie Mac as a move that could alleviate the credit crunch in the housing market and provide lower interest rates. But one credit union president says the action won't cure the bigger ills facing the...

• Lawmakers Ponder the Prognosis

  By Claude R. Marx

  WASHINGTON -- From the mortgage market to the campaign coffers of lawmakers, the government's decision to place Fannie Mae and Freddie Mac in conservatorship will change what constitutes business as usual.

• A Bad Situation Was Made Worse

  By Staff Writer

  The Fannie-Freddie bailout is a bad idea and won't work. But for some, it's the only answer. Why?

• Maine CU Considers Merger With Bank

  By David Morrison

  AUGUSTA, Maine -- The board of directors of the $51 million KV Federal Credit Union will decide whether to put a proposal to merge with a local mutual bank before the credit union's members.

• $45M CU Offers $500M Asset Service

  By Michelle A. Samaad

  FORT WORTH, Texas -- From her first day on the job as president/CEO, Lily Newfarmer said she knew that aggressive plans were needed to get members to use the array of products and services at Tarrant County Credit Union.

News Briefs

• Texas PAC Chair Takes A Little Off the Top

  By Staff Writer

  ODESSA, Texas -- A now-bald James Minge, chairman of the PAC Committee of the Texas Credit Union League, has sacrificed his full head of hair for a bet.

• Texas Dow Employees CU Submits Large FOM Bid

  By Staff Writer

  LAKE JACKSON, Texas -- In a major field of membership expansion, the $1.3 billion Texas Dow Employees Credit Union has made application to add six counties, including Harris County, which encompasses all of Houston, to its field of membership.

Regulatory/Compliance

• CUs Deploy Vendor Relationship Tools

  By Staff Writer

  ROCKVILLE, Md. -- Innovative Strategic Solutions LLC has just deployed a Web-based risk management solution for managing vendor relationships at a pair of credit unions.

Tech Bytes

• 'American Idol' Performers to Highlight Symitar Confab Party

  By Marc Rapport

  SAN DIEGO -- Not just one, but two colorful "American Idol" rejects will highlighted the party this year at the annual Symitar Educational Conference and Technology Expo.

• CRI Platform Live at HEW FCU

  By Marc Rapport

  ELKRIDGE, Md. -- CRI Systems Inc. said it has installed a new loan origination software platform at HEW Federal Credit Union.

• Passageways Is Now Portal Provider for Iowa Credit Union League

  By Marc Rapport

  WEST LAFAYETTE, Ind. -- The Indiana Credit Union League has become the first league client for Passageways LLC, a provider of portal solutions to financial institutions.

• Shell Federal Credit Union Offers iLife to Attract the Area's Gen Y

  By Marc Rapport

  DEER PARK, Texas -- Shell Federal Credit Union, over the next five years, wants to reduce the average age of its members by one year each year.

• FIS Signs Tower and Dow CUs

  By Marc Rapport

  JACKSONVILLE, Fla. -- Two more credit unions are now processing their credit cards on the Base2000 platform from Fidelity National Information Services Inc., the company said.

• New Fraud Alert Network Collaboration Site Launched by Fair Isaac

  By Marc Rapport

  MINNEAPOLIS -- There's a new online community site for financial institutions and law enforcement to securely discuss fraud problems and collaborate on solutions.

• Online Resources COO Elected Chair of Electronic Funds Transfer Association

  By Marc Rapport

  FAIRFAX, Va. -- Online Resources President/Chief Operating Officer Ray Crosier has been elected to a two-year term as chairman of the board of directors for the Electronic Funds Transfer Association (www.efta.org).

• 13 Clients Added to Akcelerant

  By Marc Rapport

  MALVERN, Pa. -- Akcelerant Software LLC said it added 13 new customers in the second quarter of 2008, including several credit unions who added other services beyond the company's flagship collections software solution.

• Online Bill Pay Continues Adoption Pace, Beating Paper Checks

  By Marc Rapport

  BROOKFIELD, Wis. -- A scant few years ago, online bill pay was being touted as the next killer app by some in the credit union community, dismissed as tech fantasy by others.

Special Report

• MBLs Remain Fastest Growing Category

  By Michelle A. Samaad

  WASHINGTON -- With an annual growth of 18.1% in June for a total outstanding balance of $24.6 billion, member business loans continue to be the fastest growing loan category for credit unions, according to Callahan & Associates.

• Pennsylvania CU League Provides Business Services Training Support

  By Staff Writer

  HARRISBURG, Pa. -- AmeriChoice Federal Credit Union turned to the Pennsylvania Credit Union Association in helping to train its new business loan processor.

• Micro-Loans and Small Business Lending Picked Up in 2007

  By Michelle A. Samaad

  WASHINGTON -- Between June 2006 and 2007, the number of small business loans outstanding under $1 million increased by 15.0% between June 2006 and June 2007, according to a new report from the Office of Advocacy of the Small Business Administration.

• Prospecting for Business Gold Is Key for Ent Following Mergers

  By Michelle A. Samaad

  COLORADO SPRINGS, Colo. -- When the $2.4 billion Ent completed a merger with US Alliance Credit Union in June, the financial institution set out on a mission to spread its business banking presence in the newly acquired areas.

• Successful Small Business Lending in Today's Economy

  By Staff Writer

  Lenders who once aggressively sought out small business owners have undergone a change in their lending culture and now highly scrutinize these loans. As a result, small-business owners find themselves at a disadvantage in today's credit environment

• Teachers CU Sees Education Community, Hospitals as Prime Business Depositors

  By Michelle A. Samaad

  FARMINGVILLE, N.Y. -- Teachers are arguably considered to be some of the most resourceful persons as they traditionally have to do more with less in their classrooms.

• Grant Program Helps Truliant Build Connections With Grassroots Nonprofits

  By Michelle A. Samaad

  WINSTON-SALEM, N.C. -- As a grant writer for more than seven years, Majorie Rorie has a bird's eye view on which applications have a greater chance of being approved.

Opinions

• Mitigating Risk for a Successful Mortgage Lending Operation

  By Staff Writer

  Now, more than ever before, the market opportunities present the right time for credit unions to reaffirm member relationships through proactive mortgage lending initiatives. Members are undeniably searching fora trusted adviser to assist with their home-financing needs. Who better to fill this role than their credit union?

• Carpe Diem Are the Watchwords for CUs in Today's Mortgage Market

  By Staff Writer

  The timing of the annual meeting of the Credit Union Housing Roundtable in 2007 was remarkable in its correlation to the unfolding of the subprime crisis--a crisis that has led to considerable economic turmoil, not only in the United States but throughout the world. Statistics at the time indicated that...

• Congress Must Act to Keep CUs the Beacon of Financial Security

  By Staff Writer

  Since the start of the credit crisis, banks and thrifts have lost billions of dollars because of bad loans and problematic investments. The mortgage market turmoil has also contributed to considerable volatility on Wall Street and filtered into other economic sectors, from student loans to municipal borrowing. Most recently, this...

• Hood Visits Members United

  By Staff Writer

  WARRENVILLE, Ill. -- NCUA Vice Chairman Rodney Hood brought staff members of Members United Corporate Credit Union up to date on the agency's activities during a breakfast meeting on Aug. 6.

Editor-in-Chief's Column

• The View From My High Horse and Soap Box

  By Sarah Snell Cooke

  I'm not going to pretend I know and understand all there is to know about the Fannie Mae-Freddie Mac bailout or make any predictions of how it will shake out. We seemed to get enough opinions on that. However, I do have some observations to make regarding the takeover.

Letters to the editor

• From the Editor: Keep Those Letters Coming!

  By Staff Writer

  Credit Union Times has a goal for 2008 to include Letters to the Editor in every issue. We had letters in nearly every issue of 2007.

• Minnesota CUs Made Big Contribution to Homes for Our Troops

  By Staff Writer

  As a regular reader of Credit Union Times, I always scan the Editor-in-Chief column, usually finding much worth reading. Over the course of the past six months, Credit Union Times has included much coverage of Homes for Our Troops and the involvement of credit unions around the country. Minnesota credit...

Publisher's Notebook

• Enter the 2008 Trailblazer Leadership Awards

  By Staff Writer

  Credit Union Times is gearing up for its 2009 awards.

People

• PEOPLE

  By Staff Writer

  EAST

• PEOPLE

  By Staff Writer

  EAST

Other

• DONATIONS

  By Staff Writer

  MidSouth Federal Credit Union, Macon, Ga., presented a donation check to Newspapers in Education. Branch Manager Robin Neisler presented the donation check to Phil Schorder, circulation sales and marketing manager for The Telegraph. Newspapers In Education is a program that provides copies of The Telegraph to local schools to promote...

• SCHOLARSHIPS

  By Staff Writer

  Electro Savings Credit Union, St. Louis, awarded three members Edward G. Halliburton scholarships. Electro Savings awards three $1,000 scholarships to high school seniors that are members or whose parents or guardians are members of the credit union. The recipients were Sarah Haas, Thomas Rohr and Kayla Portwood. Haas is studying...