Credit Union Times Magazine September-30, 2009

Lawsuit Challenges NCUA on Failed Michigan CU's Loans

By David Morrison

Borrowers who claim they were fraudulently lent money by the now failed Huron River Area Credit Union have sued the NCUA in an attempt to stop the agency from collecting on the loans.

NCUA Approves 0.15% Premium

By Claude R. Marx

ALEXANDRIA, Va. -- Federally insured credit unions found out what they had long expected last week, they will have to pay a 0.15% premium to replenish the NCUSIF and help the Corporate Stabilization Fund repay the loan from the Treasury Department.

PSFCU Move Into Chicago Fans the Winds of Discord

By David Morrison

The $1.24 billion Polish and Slavic Federal Credit Union has set in motion its largest expansion ever.

NAFCU Caucus Reveals Optimism And Some Bitterness

As the economy begins to show signs of life, credit unions converged on Washington to urge lawmakers not to add regulations that would make it harder for credit unions to serve their members.

Pennsylvania CU Saves Amusement Center from Chopping Block

By Michelle A. Samaad

A Pennsylvania entertainment megaplex that boasts a bowling alley, arcade games and 10-cent chicken wings recently got a last minute stay of execution thanks to Members 1st Federal Credit Union.

Crear Blasts G-20 on Regs

World Council of Credit Unions President/CEO Pete Crear is taking G-20 regulators to task, accusing them of failing to utilize input from financial cooperatives as they create new financial rules and regulations.

CU FFELP Lenders Look at Referral and Private Options

By Lindsey Siegriest

The Obama administrations plan to replace the Federal Family Education Loan Program with direct student lending got one step closer to becoming a reality with the House voting on and passing the measure.

Reap Steps Down From Town North Bank

Town North Bank has confirmed that long-time CEO John Reap has stepped down as CEO. Town North is the only bank owned by credit unions in the U.S..

Credit Unions Should Rethink Capital for Risk, CUNA Paper Argues

By David Morrison

Credit unions should do more to evaluate their risks and then set capital goals to reflect those risks, argued the author of a CUNA paper meant to guide credit unions through making those evaluations.

For Montana CU Teller, Next in Line Is Jump Into the Political Arena

By Michelle A. Samaad

Now that her children are grown and living their lives, Kathy Keenan-Swanson said she's ready to take on another calling.

Western FCU Sues Chrysler Executive

Western Federal Credit Union has filed a lawsuit against Chrysler Deputy Chief Executive Jim Press for defaulting on a loan.

N.J. League's Main Event: Blaine vs. Dollar on Overdrafts

By Jim Rubenstein

The industry's quandary on overdraft protection policies and the prospect of restrictive legislation in Congress drew lively and intense debate at last week's convention of the New Jersey Credit Union League.

NCUA Says It Will 'Evaluate' Potential to Sue Rating Agencies

By Heather Anderson

If California Attorney General Jerry Brown's investigation into the three major credit rating agencies turns up any violations of California law and sets a legal precedent, will the NCUA file suit to recover losses

NCUF Wegner Awards Recognize Insurance and League Innovators

By David Morrison

The National Credit Union Foundation's 2010 Wegner Awards will recognize credit union leaders known for their pioneering and innovative work in insurance and organization.

Addison Avenue FCU Offers Rehab to Those Jonesing for That Big Bank

Addison Avenue Federal Credit Union is giving consumers a push to help kick their big bank habit.

CUNA Returns to Estes Park to End a Year of Celebration

By Jim Rubenstein

With speech making, picture taking and a cookout, CUNA's leadership all but wrapped up year-long anniversary celebrations last week marking the founding of credit unions with a gathering in Estes Park, Colo., to commemorate CUNA's chartering 75 years ago.

In Recovery Members Still Seek Reassurance

By Michelle A. Samaad

As credit unions continue to weather the economic storm, it may take achieving economies of scale and scope to reassure members that their financial institutions will remain healthy for the long term.

CUs Get Good News on Restructuring

By Claude R. Marx

The Obama administration and House Financial Services Committee Chairman Barney Frank (D-Mass.) reversed course last week on key provisions of a measure creating a new regulatory agency on financial products

Wings Financial Fills Development Position

To help increase its membership base throughout the northeastern region of the country, Wings Financial Credit Union has created a new position: manager of business development.

Nearly 10% of Community Development CUs Vanished Last Year

By David Morrison

The end of 2008 found 18 fewer than community development credit unions than at the start of the year, according to the National Federation of Community Development Credit Unions, the national trade association for CDCUs.

Strategist Predicts D.C. Bickering Will Stop for Problem Solving

By Claude R. Marx

WASHINGTON -- Democratic strategist Donna Brazile told NAFCU members that she is optimistic that some of the political bickering in Washington will give way to a search for solutions.

Matz Pledges Action on Corporates, Chartering and Risk Regulation

By Claude R. Marx

WASHINGTON -- Proposed rules that better regulate risk and limit investment authority for corporate communications and clearer rules about chartering are the top initial priorities during the first months of her tenure

Two CU Officials Walk Into A Congressman's Office...

WASHINGTON -- It was less of a lobbying session and more like old home week when Selfreliance Ukrainian American Federal Credit Union President/CEO Bohdan Watral and Board Chairman Michel R. Kos visited Rep. Danny Davis (D-Ill.) at his office

Fryzel Charges CUs to Reenergize; Hyland Urges Input on Corporates

WASHINGTON -- Credit unions should use the upcoming economic rebound to find ways to better serve their members, NCUA Board Member Michael Fryzel told NAFCU Congressional Caucus attendees last week.

Standing 'O' for Pa. Lawmaker

WASHINGTON -- Paul Kanjorski (D-Pa.) is usually among the most popular figures at credit union gatherings and NAFCU's Congressional Caucus was no exception.

Va. Outreach to Underserved Also Boosts Service to Existing Members

By Eileen Courter

Almost five years ago the Virginia Bureau of Financial Institutions adopted a regulation permitting state-chartered credit unions to expand membership to underserved areas.

Wisdom From Real Solutions: Don't Pull Back-Reach Out

Credit union leaders around the country have been wrestling over how their institutions should react to the overall economic downturn the nation has been struggling through.

National Federation Report Finds Bright Spots in Shadowed Times

These charts from the National Federation of a Community Development Credit Union's report illustrate that while credit unions reaching out to serve the underserved have been struggling in the downturn, there has been some good news.

Remittances Are Proven Approach to Doing Well by Doing Good

Iowa credit unions are finding steady growth in both assets and members as they reach out to underserved Hispanic communities, according to the Iowa Credit Union League and World Council of Credit Unions.

Caucus Casts CU Spotlight, but Is It Bright Enough?

By Sarah Snell Cooke

NAFCU brought in a number of lawmakers to its Congressional Caucus this week, which demonstrated that credit unions do draw some attention from their members of Congress. Attendees also mobilized on Capitol Hill despite a taxi cab strike.

East Coast Leagues Consider Joint Meeting

By Jim Rubenstein

Taking a cue from their members coping with the recession, state credit union leagues are exploring ways to cut costs and enhance revenue.

National Cooperative Business Association Does Embrace Credit Unions

Bill Slach's Sept. 9 letter to Credit Union Times ["Linking Up With Other Co-Ops"] offered the observation that "credit unions may be missing the boat when they do not partner with other cooperative organizations."

From the Editor: Keep Those Letters Coming!

Credit Union Times has a goal for 2009 to include Letters to the Editor in nearly every, if not all, issues. We had letters in nearly every issue of 2008.

CUs Can Help First-Time Homebuyers Choose Between FHA and PMI

While headlines remind us daily of the nation's economic difficulties and the steady rise in mortgage delinquencies and home foreclosures, a more positive message deserves more attention.

Indiana League VP Millie Cox Passes

The Indiana Credit Union League is mourning the loss of former Vice President Governmental Affairs Millie Cox, who died in her sleep on Sept. 11.

Correction

Teresa Halleck, president/CEO of The Golden 1 Credit Union, said she believes that tightened examiner policies on prompt corrective action are needed but does not doubt the viability of small credit unions.

Majority of Voters Don't Offer Payday Loans

Payday lending is a topic that continues to generate heat as those in the industry debate whether the product is helpful or predatory.

Who's Offering Student Loans?

As college tuition costs continued to rise along with the need for resources to pay for college among students, big lenders started to drop out of the market as the economy took a dive and the door of opportunity for credit unions opened.