Credit Union Times Magazine October-13, 2010

Card Probe Ends With a Whimper for MasterCard, Visa; Amex Vows a Fight

By David Morrison

The U.S. Justice Department announced last week that a long-running antitrust investigation against the three largest card brands has ended in a settlement with two of the three and litigation against the third.

CUs on a Quest for New Revenues

By Heather Anderson

As credit unions budget for 2011, many financial managers are searching for revenue sources, as traditional money makers like consumer loans and investments still aren't performing to historical norms. Business services and innovation may be the answer.

Zeus Malware Bust Seen as One Victory Against a Persistent Plague

By Marc Rapport

The arrests of dozens of suspects in New York last week for the theft of at least $3 million from banking accounts across America was both good news and a wakeup call for the credit union industry.

CU Trades Seek to Reshape Financial Overhaul

By Claude R. Marx

The ink has just dried on the Dodd-Frank financial overhaul law, but there is already talk among some about changing the legislation.

ALM First Buys Back WesCorp Shares

By Michelle A. Samaad

Nearly four years after the initial stock purchase, ALM First Financial Advisors LLC, a credit union financial advisory firm, said it has returned to a privately held, wholly owned status.

New SBA 504 First-Mortgage Pools Can Aid CUs and Member Businesses

By Michelle A. Samaad

While banks are the first approved lenders for a new SBA secondary market loan pool, credit unions are eligible to participate in the program that provides another liquidity source.

Credit Cards Issued by Credit Unions Are Performing Well

Credit union loan growth may be stagnating, but CU credit card portfolios continued to grow in second-quarter 2010, according to a card analytical firm.

Sperry Associates Makes More Moves

By Michelle A. Samaad

One of the ways Sperry Associates Federal Credit Union is planning to get back on track is by beefing up its electronic marketing efforts.

Lack of Witnesses in Probe of Shooting Death of Atlanta CEO

No witnesses have come forward in the case of the July 16 fatal shooting of Dean Gaymon, who was president/CEO of the Credit Union of Atlanta, according to the Essex County Prosecutor's Office in New Jersey.

NCUA: Risky Investments, Poor Oversight Caused Two Nevada Failures

By Claude R. Marx

Poor decisions by management, including risky investments and inadequate oversight by examiners, caused the failure of Ensign FCU and Clearstar Financial CU, which cost the NCUSIF $42 million, according to reports.

Corporate Task Force

The Western states' corporate realignment task force, lead by the California and Nevada Credit Union Leagues, has agreed upon three needs: a credit union system solution, aggregation and a universal solution for credit unions of all sizes.

Corporate Actions Called a 'PR Debacle' as Bailout Charges Go Viral

By Jim Rubenstein

The online fallout from the "Credit Union Bailout" headlines continued last week.

Loan Participations Still Seen as Risk Buffers and Revenue Builders

By Michelle A. Samaad

Low yields, a "back to the drawing board" rethinking of how income statements are managed and new challenges to the credit union business model have left some wondering how to navigate through it all.

Wings Financial Credit Union Eyes Washington State Expansion

With two Minnesota mergers still underway, Wings Financial Credit Union has its radar set on expanding its field of membership to the Puget Sound area in Washington.

Mich. Name Dispute Ends

A trademark infringement dispute has been settled between Michigan First Credit Union and First Michigan Bank.

Shapiro Partners Expands Its Credit Union Consulting Team

Shapiro Partners is doing its part to help credit unions get the support they need, from compliance to keynote speakers.

Pennsylvania League Renews iBelong Campaign and Cuts CU Assessments

By Jim Rubenstein

After the NCUA remade the corporate system, the Pennsylvania Credit Union Association wasted no time in renewing its financial commitment to iBelong, its three-year-old awareness campaign aimed at growing CU membership.

WOCCU Will Develop Another Rural Credit Union Toolbox

The World Council of Credit Unions will develop a five-year cooperative development program to meet the financial service needs of small farmers in Guatemala, Mexico and Kenya.

Two Healthy Oregon Credit Unions to Explore a Merger

Oregon has another credit union merger in the works, which if approved would create the state's fifth largest credit union.

California, Michigan Mergers Completed on Same Day

In separate deals, California and Michigan credit unions completed mergers on the same day- Oct. 4.

Navy, Crane to Open New Military Branches

Navy Federal Credit Union and Crane FCU of Indiana are moving next month to add new branches at military bases.

Hawaiian CU Offers Convenience

Ka'u Federal Credit Union has put a new twist on branching convenience by providing a walk up window in the town of Pahala.

48 Credit Unions Get $70 Million From Community Development Initiative

By David Morrison

Forty-eight community development credit unions that applied for funds from the U.S. Treasury Department's Community Development Capital Initiative received them by the time the program distribution closed last week.

CUC Adds Five Cus

CUC Mortgage Corp., the mortgage group affiliated with the Credit Union Association of New York, announced that five more CUs signed up in the third quarter.

NAFCU Seeks to Relax Mortgage Rules

NAFCU has written a letter to the NCUA asking the agency to ease some of its regulations surrounding the registration of mortgage originators.

Georgia Central to Host November ALM Conference

Investment and asset-liability management experts will provide participants with a comprehensive educational ALM experience at Georgia Central CU's fourth annual ALM conference Nov. 2, at the Holiday Inn Gwinnett Center in Duluth, Ga.

Advantis CU Sets 'Troops' Timetable

Oregon's Advantis Credit Union, leading the drive in that state to build two homes for severely injured soldiers from the Iraq and Afghanistan Wars, said it is now ready to break ground for its second home and have it ready for occupancy by year-end.

Pennsylvania CU Group Heads to Haiti

Industry efforts to help restore Haiti's financial structure following last January's devastating earthquake have drawn in the Pennsylvania Credit Union Association and Mid-Atlantic Corporate FCU, who are making a special trip to the country.

uMonitor Added P2P to Transfer Solution

Credit unions and banks using uMonitor's transfer solution can now offer their members and customers both P2P money transfer functionality and account-to-account (A2A) options, the company said.

Fiserv Wins Patelco

A longtime Fiserv Inc. client has become the third, and by far the largest, credit union to commit to the company's newest core processing platform.

CashEdge Launches Small Business Person-to-Person Channel

Payments specialist CashEdge Inc. said it has launched a small business version of its Popmoney person-to-person payment service.

Symitar Lands 32 New Users

Thirty-two credit unions committed to becoming new users of Symitar core processing platforms in fiscal 2010, according to Jack Henry & Associates of Monett, Mo.

Jack Henry Offers RDC

Jack Henry & Associates is now offering remote-deposit capture through the fast-growing mobile channel with the launch of a solution from its ProfitStars division.

Hoping for the Best Is a Lot of Work These Days

By Sarah Snell Cooke

The Chairman's Group met recently in Baltimore. The organization comprises mostly credit union chairmen but also other volunteers, and I was fortunate enough to receive an invite.

We Need to Fix the Broken CU Model

If it ain't broke, don't fix it!" This celebrated chestnut causes more damage than good and delays calls for correction. It supports defective conclusions about the true effectiveness of what is seemingly unbroken.

CU on the Scene

The $1.2 billion United Federal Credit Union, St. Joseph, Mich, celebrated a milestone by gaining its 100,000th member.

Branching

Ka'u Federal Credit Union has put a new twist on branching convenience by providing a walk up window in the town of Pahala.

For Filene Ideafest Group, Small Business Is the Take-Away From Finovate

By Marygrace Murphy

NEW YORK -- A group of 11 credit union and CUSO executives went to the Finovate Fall 2010 conference with a mission: to witness the latest innovations in financial technology and envision their applications for credit unions.

Industry Executives Pick Prime Products

From the list of 56 products, a group of credit union and CUSO executives identified seven that relate to small business owners and the financial institutions that serve them.

Recapitalization Accounts Expected to Carry a Fail-Safe for Wary CUs

ATLANTIC CITY, N.J. -- While it's still in the works, the plan for potentially recapitalizing corporate credit unions will likely have a built-in fail-safe for credit unions wary of recapitalization.

Congress, NCUA Have Capital on Their Minds

ATLANTIC CITY, N.J. -- Key lawmakers are interested in injecting credit union capital issues into the general capital discussions in Congress, according to CUNA President/CEO Bill Cheney.

Matz Extols Virtues of Corporate Plans to State Regulators

By Claude R. Marx

SAN ANTONIO -- NCUA Chairman Debbie Matz told state regulators that the corporate credit union reforms do more than just repair existing damage.

Cheney Says MBLs and Capital Are Top Priorities

By Claude R. Marx

SAN ANTONIO -- Despite setbacks in the quest to get an increase in the cap on member business loans, CUNA President/CEO Bill Cheney said prospects are "not dead yet."

NASCUS Leaders Are Optimistic

SAN ANTONIO -- State credit union regulators feel they have dodged a big bullet but face challenges ahead. Yet they are more optimistic than not.

CUNA Mutual's Post Brings Bad Tidings

By Claude R. Marx

SAN ANTONIO -- CUNA Mutual Group President/CEO Jeff Post didn't wear a hooded black robe during his speech on the economy at the NASCUS State System Summit.

Cooperation and Attention to Members Will Help CUs Thrive

By Claude R. Marx

SAN ANTONIO -- Credit unions that combine more back-office operations and are hyperfocused on member needs will be most likely to do well in hard times.

Reynolds Gets Key Award

SAN ANTONIO -- Former NASCUS chairman George Reynolds received the organization's Pierre Jay Award, which honors contributions to state-chartered credit unions.

Compliance Expert: Document More

SAN ANTONIO -- Disclose more to your members and make a concerted effort to comply with all the new government regulations. That's the advice compliance expert Steve Gibbs gave attendees at the NASCUS State System Summit.

Foreclosures Bring Their Own Problems

It's axiomatic that credit unions and other mortgage lenders don't want to foreclose on houses. They are not in the real estate business.

Automating Documentation Can Mean Automating Compliance, Firm Says

Automating mortgage document production can mean more than making it more efficient and cost effective to bring that pile of papers to the closing table. It can also mean automating mortgage compliance.

How to Use the Best Predictive Tools to Revive Mortgage Lending

The economic recession and corresponding real estate market crisis have caused credit unions and other lenders to dramatically tighten their mortgage underwriting standards in order to protect their business and stay afloat in these tough times.

To Sell or Not to Sell. The Ups and Downs of Servicing Rights

By David Morrison

As interest rates have dipped and more CUs have opted to sell their mortgages onto the secondary market, they have faced a dilemma: will they or won't they sell the servicing rights?

City County CU CEO Passes

City County Credit Union staff and members are mourning the death of longtime President/CEO William Marquardt, who recently lost his battle with cancer.

Community Events

Addison Avenue Federal Credit Union, Sacramento, Calif., helped raise more than $14,000 for the Muscular Dystrophy Association at the annual Jerry Lewis MDA Telethon.

Donations

Carter Federal Credit Union, Springhill, La., held its third annual St. Jude hamburger fundraiser at the Springhill Wal-Mart in August.