WAUWATOSA, Wis. — Home123 has selected Central States Mortgageto provide its mortgage and financial services.

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In a written statement touting the partnership, Central StatesMortgage said Home123's decision to work with the CUSO rather thana national bank stemmed from two reasons.

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First, the CUSO demonstrated that credit unions offer betteroptions for consumers in service and stability–a major concernduring this period of uncertainty in the financial sector.

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Secondly, Home123's market sampling indicated that consumersidentify credit unions with honesty and integrity–a sentiment thatHome123 expects to help it disassociate from the negativeconnotations associated with the subprime lending practices of itsformer parent company, New Century Financial, one of the firstsubprime mortgage brokers to go out of business.

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The rights to Home123 were purchased in 2008 after New CenturyTRS Holdings filed for bankruptcy in 2007.

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At one time, Home123 was one of the nation's largest providersof home mortgages. The brand reportedly generated over $12 billionin revenues for both 2005 and 2006 and had a national marketingcampaign that included NASCAR sponsorship.

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Central States Mortgage began operations in 1984 and became aCUSO in 1997 with 12 initial credit union shareholders. It hasgrown to 25 shareholder credit unions. Central States Mortgage saysthat it's the nation's third largest CUSO.

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Digital Dialogue Goes Live

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AUBURN HILLS, Mich. — Digital Dialogue is now providing 24/7call center services for the $1.2 billion Chevron Federal CreditUnion of Oakland, Calif.

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The 66,000-member CU (www.chevronfcu.org) said it decided on theDigital Dialogue service after consulting with other credit unionsrunning Symitar core processing systems.

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The service was announced to members in mid-September after asoft launch in June used to validate and create scripts. Businesscontinuity planning joined basic member services as considerations,the company and credit union said.

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Digital Dialogue (www.digital-dialogue.com) serves more than 200credit unions and is based in suburban Detroit. It ?-s owned byPSCU Financial Services, which also recently signed a five-yeardeal to convert 40,000 offline debit and 15,000 PIN debit accountsto PSCU Financial Services.

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PARDA FCU Selects CU National Mortgage

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PINE BROOK, N.J. — PARDA Federal Credit Union has selected CUNational Mortgage to support its retail mortgage lendingbusiness.

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“Obviously the biggest objective is to be partnered with anorganization that will aid our credit union in reaching the goal ofbeing the financial institution of choice for our members,” CliffEsckelson, chief operating officer for PARDA Federal Credit Union,explained in a written statement.

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“One of the other driving forces for our decision to leverage CUNational Mortgage's lending services is the organization's solefocus on serving the credit union industry,” said Esckelson.

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“Having this sole focus on credit unions is a very importantfactor for us–along with the fact that they are also located in NewJersey, where a large percentage of our members reside,” hecontinued.

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CU National Mortgage said its first move has been to guide thecredit union in becoming an FHA-approved lender.

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The CUSO also said it will become, in essence, PARDA's mortgagedepartment. CU National Mortgage will provide PARDA with amultichannel origination platform, loan processing, underwritingand some secondary-market functions. This platform will allow thecredit union to expand its origination channels, making mortgagesmore convenient to its members. In addition, PARDA will use CUNational Mortgage's in-bound call center and fully branded Internetorigination site.

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In addition, PARDA had customized monthly reports from itsprevious origination and servicing partner. The Pine Brook,N.J.-based CUSO's staff successfully duplicated the reports sothere was very little impact on the credit union's staff.

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PARDA has $171 million in assets and 23,000 members. It is basedin Rochester, Mich.

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New Boeing Wichita CEO

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WICHITA, Kan. — There's a new leader headed to Boeing WichitaCredit Union.

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Effective Dec. 3, Robert W. Corwin will step in as the newpresident/CEO.

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Corwin has more than 30 years of financial services experience.Prior to joining BWCU, Corwin was executive vice president/chiefoperating officer of First Tech Credit Union in Beaverton, Ore. AtFirst Tech, Corwin played a key role in the implementation ofinnovative products and services, as well as leading thedevelopment of a 17-branch network spanning two states and servingemployees of industry leading companies such as Microsoft, Nike,and Intel.

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During Corwin's tenure, he also led several successful mergersexpanding First Tech's fields of membership and geographicfootprint.

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“With his vast experience in the financial services industry, weare confident in his ability to continue to lead this credit uniondown the path of continued success and growth,” said BWCU BoardChairman Duane VanCamp. “Given Bob's proven ability to implementpositive change, we are confident in Bob's abilities that willassure BWCU of attaining and surpassing our goals and continuedgrowth and success which is consistent with BWCU's long-termstrategic plan. We feel his expertise will propel us to evengreater heights.”

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CU*Base Adds Clients

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LIBERTY LAKE, Wash. — There now are 14 credit unions running onthe CU*Base core processing platform through CU*Northwest(www.cu-northwest.com).

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Two credit unions recently converted: the $25 million BlueMountain CU of College Place, a former client of CMC Flex, and the$34 million Spokane Law Enforcement CU, which had been running on aUSERS platform from Fiserv.

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CU*Northwest, a Liberty Lake-based CUSO and independent offshootof Michigan-based CU*Answers, said it now has 14 credit unionsrunning the CU*Base system in service bureau and in-houseenvironments.

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Michigan First CU Wins Fraud Case

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LATHRUP VILLAGE, Mich. — Michigan First Credit Union was awarded$360,000 in its case against Al Long Ford for the claim that thedealership falsified documents to secure auto loans for high-riskcustomers who later defaulted.

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“The big issue was that the dealership indicated that membershad put cash down when they had not. Instead they had used arebate. This was important to the credit union because these were Dand E borrowers,” said Patty Corkery, an attorney from HolzmanRitter & Leduc that represented the credit union at thetrial.

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Corkery also said that the dealership inflated members' incomein the loan applications.

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Michigan First had 570 loans with Al Long Ford, and of thoseloans over 200 defaulted, which was a much higher rate thanMichigan First's other loan programs. The credit union discoveredthat the dealership had falsified information on the loanapplications when the loans began to default and the credit unionstarted to contact the members.

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The $360,000 awarded to the credit union will amount to over$400,000 with interest, Corkery said. The credit union was alsoawarded attorney fees that will be determined in a separatetrial.

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