Credit Union Times Magazine February-04, 2009

NCUA Initiates Huge Corporates Rescue

By Claude R. Marx

WASHINGTON -- In the wake of an expected $1.1 billion loss by U.S. Central, the NCUA is infusing $1 billion into the troubled credit union and undertaking a series of efforts to shore up the corporate credit union system.

Tough Times: Early GAC Registration Drops as CU Industry Cuts Travel

By Jim Rubenstein

WASHINGTON -- As expected, the 2009 economic shakedown and belt tightening is taking a heavy toll on conference programming and trade operations not to mention travel, salaries, hotel bookings and entertainment.

Michigan First Wins Insurance Suit

By Myriam DiGiovanni

SOUTHFIELD, Mich. -- Michigan First Credit Union has won over $5 million in damages against its former insurer Credit Union Mutual Insurance Society.

Microbusinesses Thrown Lifelines Thanks to Backing by Members 1st FCU

By Michelle A. Samaad

MECHANICSBURG, Pa. -- It made perfect sense for Members 1st Federal Credit Union to build a funding bridge to help microbusinesses in Cumberland County.

Sharp Rise in Loan-Loss Provisions Ravage Credit Unions' Capital Ratios

By Heather Anderson

SAN DIEGO -- Fourth-quarter financial reports reveal that many credit unions increased their loan-loss provisions 100% or more over last year; for many, accounting for impaired loans is wreaking havoc on capital positions.

Heartland Data Breach May Reach Upward of 100 Million Card Accounts

By David Morrison

PRINCETON, N.J. -- The recent data security breach at Heartland Payment Systems may be the largest ever.

Sitting Del Norte CU Board Member Denied Re-Election Bid

By David Morrison

LOS ALAMOS, N.M. -- The nominations and elections committee at the $312 million Del Norte Credit Union declined to nominate a sitting board member and former chairman for re-election to the board along with a former supervisory committee member.

Trades Tout Virtues of CUs Far and Wide

By Claude R. Marx

WASHINGTON -- The leaders of CUNA and NAFCU touted the virtues of credit unions in interviews in a range of print and broadcast venues recently.

Diversity in Ranks Part and Parcel With Membership, Latino Group Encourages

By Michelle A. Samaad

DURHAM, N.C. -- There's been a quiet misconception in the industry that reaching out to serve Latino communities may equate to extending a handout, Carlos Calder?n has noticed.

Seattle CU Gets Down to Basics, Energizes its Marketing With Seven Principles

By Myriam DiGiovanni

SEATTLE -- Seattle Metropolitan Credit Union is getting consumers fired up about credit unions.

After Long Battle, President of Kenya Signs Credit Union Legislation

By Claude R. Marx

WASHINGTON -- After a more than six-year political battle, Kenyan President Mwai Kibaki signed a measure to create a stronger regulatory structure for the country's credit unions, known there as savings and credit cooperatives (SACCOs).

ING Backs ShareBuilder

By Michelle A. Samaad

WILMINGTON, Del. -- Despite grim news from its parent company that 7,000 job cuts are scheduled, ING DIRECT said it is moving forward with its plans to grow ShareBuilder Corp.

Symitar, Wescom Resources Group in Merger-Driven 'Co-Opetition'

By Marc Rapport

PASADENA, Calif. -- Credit union land has been a natural place to find co-opetition-cooperation among competitors-since the term emerged, and it would be hard to find a better example than the relationship between Wescom Resources Group and Symitar.

South Korean CUs Embrace Collaboration, Move to Centralized IT System

By Lindsey Siegriest

SEOUL, South Korea -- South Korea's 994 credit unions continued their collaborative approach to the movement by moving to a single centralized IT system to serve their combined five million members.

CMG Keeps Head Above Water in Sinking Mortgage Insurance Market

By Myriam DiGiovanni

NEW YORK -- According to Fitch Ratings the outlook for private U.S. mortgage insurers looks more than a little bleak.

UC4 Software Is Deployed

By Marc Rapport

BELLEVUE, Wash. -- UC4 Software (www.uc4.com) said three credit unions have recently deployed its workload automation software to enhance their core processes, the company said.

Ohio CU Converting to CU*Answers Platform

By Marc Rapport

SANDUSKY, Ohio -- Vacationland Federal Credit Union said it will convert its core processing operation to the CU*BASE system from CU*Answers this fall.

Cypress Software Systems Hires CU Sales Specialist

By Marc Rapport

NORTH RICHLAND HILLS, Texas -- Cypress Software Systems has hired a veteran of the credit union technology sales space to lead its expansion efforts into that market.

Women Pilots Tap Wings

By Michelle A. Samaad

APPLE VALLEY, Minn. -- Wings Financial Federal Credit Union has become the official financial institution for Women in Aviation International, a 7,000-member group that encourages women to pursue pilot, astronaut and other aviation careers.

Community Lenders Can Aid in Our Revival

Lost in the finger pointing of today's financial calamity is the fact that feeding the beast of consumption is at the foundation of our system's failure.

CMG and FIS Partner to Ease Claim Filing

By David Morrison

JACKSONVILLE, Fla. & MADISON, Wis. -- No credit union likes to have cards compromised in a security breach, but the insurer for the majority of credit unions

Candidates Positioning Themselves In Anticipation of NCUA Opening

By Claude R. Marx

WASHINGTON -- It's a below the radar campaign for a vacancy that won't occur for more than two months.

CUs Could Benefit from Small Business Stimulus Provisions

By Claude R. Marx

WASHINGTON -- Credit unions could make more business loans and not count it against their member business loan cap as a result of a provision in the $825 billion stimulus package passed by the House last week.

House Judiciary Committee Approves Mortgage Cram-Down Measure

By Claude R. Marx

WASHINGTON -- Credit unions and other financial institutions were dealt a setback last week when the House Judiciary Committee last Tuesday approved a bill giving judges the power to reset the terms of mortgages for people in bankruptcy proceedings.

First Tech CU Warned On Microsoft Job Cuts

BEAVERTON, Ore. -- When Microsoft announced that it would have to cut 5,000 jobs, First Tech Credit Union said it knew the layoffs were coming.

NAFCU Political Director Shea Turns to Regulatory Affairs

WASHINGTON -- NAFCU Director of Political Affairs Dillon Shea is changing hats.

Delta Schools FCU Finds Ways to Aid Upside-Down Members

By Heather Anderson

ANTIOCH, Calif. -- Robert Greaff, President/CEO of the $28 million Delta Schools Federal Credit Union, said real estate loan-to-value is so bad in his Bay Area bedroom community half of his home equity portfolio is 100% LTV or greater.

Grant Programs Supplement $80 Million CTCE FCU's Modifications

By Heather Anderson

READING, Pa. -- Even in Pennsylvania and even with only $80 million in assets, CTCE FCU still puts in hours avoiding foreclosures.

State Foreclosure Limits Have Had Limited and Temporary Impact

By Claude R. Marx

WASHINGTON -- Delaying the inevitable is frequently the result in the 10 states that placed limitations on foreclosures.

The Golden 1 Donates Foreclosured Property

By Heather Anderson

SACRAMENTO, Calif. -- The Golden 1 Credit Union donated a foreclosed property to the Sacramento Habitat for Humanity in December, the second property the $7 billion credit union has donated to the charity, according to President/CEO Teresa Halleck.

The Corporate CU Bailout Will Try CUs' Souls

By Sarah Snell Cooke

Natural person credit unions have been called upon to serve their duty as industry patriots as the NCUA last week approved a measure to help stabilize the corporate credit union system as U.S.

With Uncertain Days Ahead, Now Is the Time to Support Trade Groups

I fully respect Kirk Kordeleski's decision to "vote with his dues dollars" as he expressed in his letter of Jan. 21, Trades' Head-Butting Hurts CUs.

CU Loans Outpace Savings

Data from CUNA's Monthly Credit Union Estimates shows that even in the recession credit union loan growth outpaced savings growth.

PEOPLE

Affinity Credit Union, Basking Ridge, N.J., announced the appointment of Kevin McClosky to vice president of lending.

Stop, Collaborate and Listen: Team Up to Get Message Out

By Lindsey Siegriest

Collective, cooperative, community-words commonly preached among credit unions. With all that's occurred over the past year, I've seen a lot on how this is a time of opportunity for credit unions.

BRANCHING OUT

Charter Oak Federal Credit Union, Groton, Conn., had close to 100 member guests attend its grand opening celebration for its newest branch location.

DONATIONS

Unitus Community Credit Union, Portland, Ore., collected 4,000 items to donate to area charities during its annual charitable giving drive.