SILVER SPRING, Md. — Opportunity knocks for credit unions tobetter serve the Latino community.

A National Foundation for Credit Counseling/MSN Money 2008Financial Literacy Survey finds that often the basic buildingblocks to financial security is lacking.

According to the survey some 79% or roughly 18.8 million Latinoadults, report that they have never received professional adviceabout financial issues and that 28% admit to struggling to paytheir bills each month. In addition, for most households, housingcosts comprise the single largest monthly expense with roughly 1.7million Latinos reporting that they either paid their mortgage lateor totally missed a payment in the last 12 months.

The survey also reveals that roughly five million Latinos admitto having no idea what they spend their money on and 37% havenothing saved for retirement.

When it comes to credit cards, the following was observed in theLatino community: 40% state that they have no credit card. In spiteof being able to obtain a credit report free of charge, only 32%have done so and 32% reported a credit score under 700, whichsubjects roughly 7.5 million adults to paying a higher interestrate and potentially restricts their borrowing power.

Member Gets100,000 Penny Windfall to Mark IndianaMembers CU Milestone

INDIANAPOLIS — Indiana Members Credit Union surprised one of itsmembers with 100,000 pennies or the equivalent of $1,000 tocelebrate reaching a membership growth milestone.

Holly Brune, a 20-year-old, working student, was the luckyrecipient. On the advice of her mother, who works for the IndianaUniversity-Purdue University Indianapolis system, Brune joined thecredit union.

“When I joined, Indiana Members' employees were wonderful to me.They really helped me and explained everything I needed to know,”Brune said. “And, wow, to win $1,000, that was really cool. I cancertainly use it for school. I certainly want to thank IndianaMembers Credit Union and my mom for recommending that I join.”

Brune, who was presented with a check for $1,000, said she'salso thankful that the credit union “didn't make me take the moneyin pennies.”

Founded in 1956 on the IUPUI campus, Indiana Members CU hasgrown to become one of the largest credit unions in the state withmore than $1 billion in assets. It just recently opened its 25thbranch.

“With financial institutions besieged by mergers, sky rocketingfees, mortgage issues, and complicated products and services,Indiana Members has experienced consistent growth and stability,”the credit union said. “Fiscal responsibility and overallconservatism have enabled the success.”

Big Illinois Sign-Up Heralded for
REAL Solutions Loan Program

NAPERVILLE, Ill. — Illinois credit unions are getting off to aquick start this month in supporting the REAL Solutions program runby the National Credit Union Foundation designed to aid low-wealthhouseholds and others with payday alternative and financialeducation products.

“Illinois credit unions set a record for having 30 sign up atthe first meeting, which is the most of any so far,” said SteveBosack, deputy director of NCUF in describing an introductorysession conducted by the Illinois Credit Union League.

Both the league and NCUF said the enthusiastic backing for REALSolutions shows continuing support among state leagues for theprogram which commits CUS to offer a wide-ranging menu of productsand services.

League officials, projecting more CUs would signup during 2008,said the newfound partner CUs convened at the session discussedprocedures in offering the products this fall throughout thestate.

Before Illinois and its 30 sign ups, the previous record launchwas Arizona with 19, said Bosack.

At the national level, REAL Solutions, he said, is now beingoffered by nearly 500 CUs in 28 states.

“The original goal was to reach 33 states by the end of 2009,”he said. “Now less than halfway into our three-year signatureprogram commitment, REAL Solutions has already reached criticalmass.”

Dan Plauda, president/CEO of the league, said the trade group isexcited to see the good turnout considering “we believe the partnercredit unions will gain tremendous benefits from their involvement,and we look forward to seeing the program expand in thefuture.”

HR Stepping In to Help at the Pump

ALEXANDRIA, Va. — As gas prices continue to soar, human resourcedepartments have been busy developing creative ways to helpemployees beat the high cost of commuting. According to a recentSociety for Human Resource Management survey entitled “WhatEmployers are Doing to Help Their Employees with High Gas Prices in2008,” most organizations are turning to benefits not increased payto help employees cope.

The most common employer move has been to raise the mileagereimbursement to the IRS maximum. In addition, some 26% areoffering a flexible work schedule, 18% telecommuting, 14% publictransportation discounts and 14% are rewarding employee performancewith a gas card.

Some employers are even helping staffers organize carpools oroffering priority parking to employees who carpool. In additionthey are offering new non-executive hires help in finding housingcloser to the office and offering monetary incentive for employeesto buy hybrid cars.

Financial Service Centers Cooperative
Extends Ties With Digital Dialogue

SAN DIMAS, Calif. — Financial Service Centers Cooperative Inc.has extended by 10 years its call center and software servicesrelationship with Digital Dialogue, the companies said.

FSCC provides 5,000 access points for shared branching and callcenter services to more than 12 million credit union members and1.8 million of its transactions were processed last year by DigitalDialogue, the companies said.

Digital Dialogue, owned by PSCU Financial Services and based insuburban Detroit, has partnered with FSCC since 2003 and servesmore than 200 individual credit unions along with the FSCCnetwork.

“Digital Dialogue offers our various credit union affiliatestotal member service with 24/7/365 call center operations,” saidSarah Canepa Bang, CEO at FSCC (www.fscc.com).

“Because our credit union network is geographically disbursedthroughout the world, the technology that Digital Dialogue offersis invaluable to our credit unions and their members,” shesaid.

The announcement was made at FSCC's annual meeting inChicago.

“Working with FSCC over the past five years, Digital Dialoguehas grown both its market share and products and service offeringwith custom-branded call center services,” said Peter Schmitt,president of Digital Dialogue (www.digital-dialogue.com).

Mortgage Report's Default Risk Index
Continues Its Upward Trend in Quarter

The UFA default risk index stands at 143 in the second quarter,which means the risk of default on newly originated nonprimemortgages is 43% higher than the average of the 1990's.

The index is up from a revised 138 in the first quarter of theyear. The index is continuing the steeply rising trend for expectedloan losses for recently originated mortgages. Expectedlife-of-loan losses on mortgages originated today are now higherthan for mortgages originated at any time since 1992.

The index remains below the previous peak of 160 that registeredin 1990.

This quarter's changes reflect the life-of-loan impact ofmortgage rates as well as the weakening of the collateral markets.The index and analysis was published in UFA Mortgage Report byUniversity Financial Associates of Ann Arbor, Mich.

“The index highlights only the increase in expected defaultsarising from the local economic environment,” said Dennis Capozza,professor of finance with the Ross School of Business at theUniversity of Michigan and a founding principal of UFA.

“Unfortunately, underwriting standards also eroded in recentyears, so the index understates the actual increase in defaultsthat will be realized. The loss performance of loans originatedlast year suggests that underwriting had not yet tightened onnonprime loans. However, many fewer nonprime mortgages are beingoriginated.”

The UFA Mortgage Report is an analysis that has successfullypredicted such developments as the increased defaults in SouthernCalifornia in the mid-90s and the current increases in defaults.Its predictions are based on an extensive analysis of localeconomic conditions in each state and the relationship of thoseconditions to loan profitability. The historical record of millionsof mortgage loans is studied each quarter to assess thevulnerability of each state to loan losses and prepayments.