SAN FRANCISCO — The first significant revision to the payment card industry data security standards (PCI DSS) since they're implementation includes a deadline for the largest card processing merchants to certify they are no longer storing consumers' sensitive card data.
"Hackers are looking for this type of data because of its use in counterfeiting payment cards, and that is why Visa prohibits its storage," said Eduardo Perez, Visa's head of global data security.
PCI DSS were developed and promulgated by the Data Security Council, an industry body with representatives from all the major card brands that sets card data security standards for the entire card payments system. The Sept. 30, 2009 deadline affects merchants that process more than one million card transactions per year (so-called level one and two merchants).
Merchants found not in compliance after that date can be fined and face other enforcement measures, the brand said. Previously Visa has suggested the majority of the biggest merchants are already compliant with the data security standards.
Dorsa Sees CU-Realtors
Disconnect on FOM
LAS VEGAS — American Credit Union Mortgage Association President Bob Dorsa had high hopes for last week's National Association of Realtors convention but said he encountered the same frustrating response that most credit union business development representatives do: a gaping disconnect between credit unions and Realtors.
"Probably half the Realtors I spoke to belong to a credit union somewhere, but they just couldn't seem to make the leap to referring credit unions to their clients," Dorsa said. "Like most members, they see the credit union only as a good place to get a cheap car loan, as frustrating as that is."
Dorsa also said most Realtors assumed their clients weren't eligible to join any credit union and had a hard time grasping the concept of a community charter.
"Eligibility is the most fundamental thing I can think of that we have neglected to educate the general public about," he said. "Literally, anyone in country is eligible to join a credit union, somehow, somewhere, and until we get beyond that, I don't think we'll feel like we took full advantage of this opportunity."
Dorsa said credit unions in search of mortgage loans should first data mine within their own shops, identifying and educating existing members who are real estate agents.
The ACUMA leader said he hopes the newly approved REALTORS Federal Credit Union will also help raise credit union awareness among Realtors.
"It's my hope that as they roll out that credit union, maybe the Realtors will gain some new appreciation for the credit union system," he said.
Though he was in the exhibit hall for most of the Orlando event, Dorsa said, "I sure didn't see 25,000 realtors running around the exhibit hall, so my sense is that it was off quite a bit from last year in Vegas."
"Obviously, the impact of Florida's housing
situation probably didn't attract as many people from within the state as usual. I hope California's situation improves so next year's convention in San Diego will
be more exciting."
Los Angeles FCU to Hold Annual Winter Car Sale
LOS ANGELES — Los Angeles Federal Credit Union will be holding its annual Winter Car Sale from Dec. 19 through Jan. 4.
LAFCU will hold sales at almost two-dozen vehicle dealers in Southern California and will offer low-rate loans for new vehicles at 5.75% APR and used vehicles at 6.00% APR.
Members can receive up to 100% financing with up to 84 months to repay.
EasCorp 'Free-for-All'
Saves CUs $500,000
BURLINGTON, Mass. — Eastern Corporate Federal Credit Union is waiving $500,000 in service fees this month.
The 300-credit union cooperative is celebrating is celebrating its 30th anniversary by eliminating nearly all of its service fees for the month of November, including those for product and service users of ACH and check processing, funds transfers, settlement services, security safekeeping and statement mailing.
The "November Free-for-All" program was made possible by particularly strong year in earnings and capital in 2008, the $1.5 billion corporate said, and was approved by its board of directors.
"EasCorp's success in 2008 is all the more striking in the face of an inordinately tough economic year for the nation," said Jane Melchionda, president/CEO. "We're truly delighted to be able to reward credit unions for their support in this way. We're a cooperative. We've had a very good year, and this is what cooperatives do."
EasCorp also said it has added three more credit unions as users of its DeposZip at-home, real-time deposit service. They are the $1.2 billion Truliant FCU of Winston-Salem, N.C., the $250 million GFA FCU in Gardner, Mass., and the $235 million MIT FCU in Cambridge, Mass.
A year after its launch, the DeposZip service is now deployed by 26 credit unions and has processed more than 62,000 checks worth $52 million in deposits from nearly 20,000 registered users, EasCorp said.
Frank Vows to Advance Mortgage Relief Plan
WASHINGTON — In a House hearing, Rep. Barney Frank (D-Mass.) all but promised legislation next year aimed at giving mortgage servicers legal authority to renegotiate troubled loans. Frank said that while the private sector has made encouraging steps to resolve the mortgage crisis, mortgage servicers have been sitting on the sidelines.
Frank, who explained that servicers face a serious obstacle in modifying mortgage loans because they lack the legal authority to do so, said legislation is needed and that Congress has to restructure the servicing mechanism.
Servicers have said that pooling and servicing agreements often place strict limitations on modifying mortgages without investor permission-permission that is rarely granted as few investors want to suffer losses from loan modifications while cash-strapped homeowners stay in their homes.
Some states have already moved forward on the issue. Maryland's Gov. Martin O'Malley announced an agreement earlier this month with two of the state's largest mortgage servicers to pursue and encourage policies that encourage loan modification.
CUTS to Offer
Insurance.com
HOUSTON — CUTS Performance Marketing announced an exclusive agreement with Insurance.com that will allow credit unions to pass on an annual average savings of $595 on auto insurance to members.
"Insurance.com makes it easy for credit union members to get online comparison rates from top car insurance companies," said Jeff Plumer, president of CUTS. "By adding Insurance.com to our product portfolio, CUTS will deliver another opportunity for members to save time and money via their credit union Web sites."
Insurance.com provides a streamlined, online shopping process for members, which is backed up by licensed agents that are available to consult on coverage options and payment plans.
"Insurance.com is committed to helping consumers make the smartest decision for their insurance needs," said Steve Chiles, Insurance.com chief marketing officer. "We share CUTS' commitment to providing best-in-class, value-added services to our partners and we look forward to working with them to offer our service to credit unions nationwide."
For more information on CUTS Performance Marketing and Insurance.com, contact partner@cutspm.com.
Education Dept. Moves to
Ease Student Loan Crunch
WASHINGTON — The credit crunch isn't limited to the mortgage market.
The U.S. Department of Education has announced that it is taking steps to ensure that students will be able to obtain federal student loans because of continuing concerns over the tightening of credit for student loans and stability in the student lending market.
The department said it will duplicate for the 2009-2010 academic year the loan purchase and participation programs that it undertook for the 2008-2009 school year. The department said the Bush administration will provide liquidity support to conforming asset-backed commercial paper conduits to purchase and provide longer term financing for federal family education loan programs. Loans in the conduit will be financed with new issues of asset-backed commercial paper. The Education Department said it will support the effort by committing to purchase eligible student loans from the conduit in the future at a prearranged price.
There will be no net cost to taxpayers, according to the department.
Treasury Secretary Henry M. Paulson approved of the plan. He said in a written statement, "The unprecedented credit market conditions throughout the past several months have clearly impacted the student loan market. These necessary measures will allow for more liquidity in this market and should help to prevent the financial turmoil from hurting opportunities for our students."
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