Banking Wire articles from November 2005

Banking Wire archives from November 2005

i Hear. i Learn. i-Pod.: FCCU Using Podcasts To Reach Younger Members.
November 1, 2005... STOCKTON, Calif. -- Michael Duffy acknowledges he is not the "hippest" or "coolest" guy any more, but he does have a lot to say to young adults about their finances. And he does know how to reach those members. Duffy, the president...

Rebuilding. Reopening. Realizing.: New Orleans CUs Ponder Members Return.
November 1, 2005... NEW ORLEANS -- If you rebuild it, will they come? That is the big question this city's credit unions are asking about members as they struggle to come back from the decimation of Hurricane Katrina. "At this point, it is still too...

Planned CU-Owned Credit Card Bank's Opening Is Delayed.
November 1, 2005... WASHINGTON -- A new credit union-owned credit card bank for credit unions has been put on hold until at least the beginning of next year while organizers try to resolve regulatory questions over ownership of the new venture. An...

Congress Mulls Big Bailout For Lenders In Gulf Coast States.
November 1, 2005... WASHINGTON -- Gulf State lawmakers called on Congress last week for a massive bailout of lenders and property owners now recovering from the unprecedented flooding following Hurricane Katrina. Mississippi Congressman Gene Taylor urged...

On Dealine.
November 1, 2005... CU Tax-Exemption Could Be Debated This Week WASHINGTON-In what credit union lobbyists see as an ominous sign, the tax-writing House Ways and Means Committee is expected to hold hearings as early as this week focusing on the credit...

NCUA Proposes 1.9% Budget Hike For 2006.
November 1, 2005... ALEXANDRIA, Va. -- NCUA last week proposed a budget hike of just 1.9% for next year, to a total of $151 million, which would help hold the lid on operating fees for federal credit unions. The proposed spending plan would include 3.1% average...

Paradise FCU Hit With $19K Penalty On HMDA.
November 1, 2005... NATIONAL CITY, Calif. -- NCUA has assessed a civil money penalty of $19,000 against Paradise FCU here for for late submissions of data required by the Home Mortgage Disclosure Act (HMDA). The fine against the National City, Calif., credit...

Free Remittance Offer By BofA Downplayed.
November 1, 2005... MADISON, Wis. -- The recent move by Bank of America to make its remittance service to Mexico free to anyone with a BofA checking account has been met with a yawn by the World Council of Credit Unions, whose IRnet remittance service seemingly...

Donations In Wake Of Storm Set A Record.
November 1, 2005... WASHINGTON -- The National Credit Union Foundation said it set a fundraising record in the wake of Hurricane Katrina, having raised $2,102,448.07. "The generosity of donors to the NCUF Disaster Relief Fund has enabled hundreds of credit...

Poll Ranks CUs Above Banks In Satisfaction (Again).
November 1, 2005... NEW YORK -- For the twenty-first consecutive year, members rated their satisfaction with their credit unions higher than customers rated their satisfaction with their bank in the annual American Banker/Gallup Consumer Survey. Seventy-one...

Worth Noting.
November 2, 2005... FFIEC Releases New Guidance WASHINGTON-The Federal Financial Institutions Examination Council (FFIEC) has released updated guidance on the risks and risk management controls necessary to authenticate the identity of customers accessing...

More Scrutiny For 'Most Highly Scrutinized' Program Most.
November 2, 2005... When California and Nevada's credit unions meet this week for the leagues' annual meeting at Disneyland they'll be doing more than just debating whether to tap their personal home equity lines to visit the Magic Kingdom or California...

Committee Sifting Through 300 Resumes As It Looks To Replace Chatfield.
November 2, 2005... RANCHO CUCAMONGA, Calif. -- The search continues for a successor to David Chatfield, the president of the California and Nevada Credit Union Leagues, who will be retiring April 1, 2006. Diana Dykstra, who is leading the Chatfield search...

CUJ Q&A: Travis Credit Union Has Created A New Position-Community Outreach Officer-And Tapped Someone From Outside Credit Unions To Fill It.
November 2, 2005... VACAVILLE, Calif. -- Travis Credit Union has created a new position-Community Outreach Officer-and hired a new person, Noreen Diaz, to fill it. The $1.4-billion, 130,000-member CU describes a community outreach officer as someone who...

Summit Seeks Ways To Reduce Plastic Card Fraud.
November 2, 2005... MADISON, Wis. -- A summit on fighting plastic card fraud organized by CUNA Mutual Group here attracted more than 40 people from the nation's plastic card processors. The meeting, held at CUNA Mutual's headquarters, discussed the...

East Idaho CU Credits Indirect Lending For Volume Surge.
November 2, 2005... IDAHO FALLS, Idaho -- The $149-million East Idaho Credit Union is reporting a substantial growth in its loan portfolio after joining an indirect lending program offered through Indirect Lending Technologies, Salt Lake City, and endorsed by...

BECU Activates Income Interruption Program.
November 2, 2005... TUKWILA, Wash. -- The combination of a deadly hurricane and a work stoppage triggered a rare double activation of BECU's Income Interruption Program. The program is designed to provide temporary assistance to members who need money for...

SECU Expands Annual Meeting Puts Focus On 300 Volunteer Members.
November 2, 2005... RALEIGH, N.C. -- State Employees' Credit Union expanded its annual meeting this year to include a luncheon and educational session for SECU Advisory Board and Loan Review Committee members. The event was attended by approximately 300 SECU...

'Your Mission, Our Mission' Is Mission FCU's New Promo.
November 2, 2005... SAN DIEGO -- Mission FCU has launched a multimedia brand awareness campaign that eventually will include television commercials, billboards, mall posters, radio spots and a new website. In addition to three new TV spots, a new website is...

Product & Service.
November 2, 2005... Treasure State To Host Symposium HELENA, Mont.-Treasure State Corporate CU, Helena, Mont., will host its first member conference and financial symposium Nov. 8. The corporate said the meeting will help credit unions deal with the...

Technology Slashes Time Needed To Sign Up Students As Members.
November 3, 2005... SOUTH BEND, Ind. -- Faced with literally thousands of new student members each Fall, Notre Dame FCU officials needed to speed up applications and reduce paperwork. Not surprisingly, Notre Dame FCU has turned to technology to speed the...

'Disturbing Conclusions': Study Finds Cronyism Alive On CU Boards.
November 3, 2005... MADISON, Wis. -- A new study says it has uncovered some "disturbing conclusions" in how credit unions recruit and select members of the board of directors. While volunteer directors are often cited as a distinguishing characteristic of...

Reassuring Conclusions: Study Examines CU Failures & The NCUSIF.
November 3, 2005... MADISON, Wis. -- A new study seeks to examine how credit unions have performed in terms of failures and insurance losses since the 1971 inception of the National Credit Union Share Insurance Fund (NCUSIF). The study, from the Filene...

Corporates Urged To Become 'More Creative'.
November 3, 2005... BOSTON, Mass. -- Corporate credit unions were told they need to become "more creative" if they intend to make an impression. During the Corporate Network's annual Marketing Forum here, speaker Andy Dinkin told corporate marketers and...

Fiserv, CUNA Mutual Join Forces To Deliver Solutions.
November 3, 2005... BROOKFIELD, Wis. -- Fiserv, Inc. and CUNA Mutual Group are joining to deliver and present CUNA Mutual's payment protection products during the loan origination process through integration with the technology solutions offered by Fiserv...

Ohio League Latest To Adopt Conversion Stance.
November 3, 2005... DUBLIN, Ohio -- The Ohio Credit Union League has become the latest to adopt what it calls a "pro-member" stance on credit union-to-bank conversions. "The policy reflects the league's belief that the credit union charter is the charter of...

Hearing Likely This Week For Two Nominees.
November 3, 2005... WASHINGTON -- The Senate Banking Committee plans to hold a hearing on the two nominations for the NCUA Board this week, in an effort to fill out the three-member panel as soon as possible. The two candidates, Republican Rodney Hood and...

Congress Likely To Bail Out Flood Program.
November 3, 2005... WASHINGTON -- Claims against the National Flood Insurance Program for hurricanes Katrina and Rita will far exceed existing funding and will require an emergency appropriation from Congress of as much as $5 billion, an official for the...

Banks Support Relief For Selves, Not For CUs.
November 3, 2005... WASHINGTON -- The banking lobbyists called on Congress last week to expand its proposals for regulatory relief for banks and thrifts, but asked lawmakers at the same time to reject a broader relief initiative proposal for credit unions, known...

Tax Reform Plan Eyes Deductions For HELCs.
November 4, 2005... WASHINGTON -- The president's tax reform panel is recommending that income tax deductibility for home equity loans and second homes be eliminated from tax reform proposals. At a public hearing last week discussing major changes to the...

The CUJ Daily Journal.
November 4, 2005... EFCU Pilots New Teller Concept SYRACUSE, N.Y.-Credit union members are standing side-by-side with tellers, instead of on opposite sides of a counter, in a new teller concept being tested by Empire FCU. The so-called dialogue tower is...

Hurricane Update.
November 4, 2005... Editor's Note: Associate Editor Lisa Freeman recently participated in a press tour of Louisiana's credit unions as they seek to recover from Hurricane Katrina, including tagging along with some New Orleans CU officials as they worked to...

GTE FCU Opens Some Branches In Market.
November 4, 2005... TAMPA, Fla. -- GTE FCU this week reopened its St. Charles Parish branch in Boutte, La., just southwest of New Orleans. It is in the process of opening its branch inside City Hall, but is unsure when it will open two other branches in New...

Earl Hired To Coordinate Huricane Relief.
November 4, 2005... WASHINGTON -- CUNA has hired Scott Earl, former president of the Utah League of CUs, to coordinate hurricane relief efforts in the Gulf States on behalf of the credit union movement. Earl will travel to Louisiana Monday with CUNA President...

WOCCU Activates Two Disaster Relief Funds.
November 4, 2005... MADISON, Wis. -- The World Council of Credit Unions, Inc. has activated its international disaster relief fund for benefit of two international disasters: the Guatemalan landslide and the Pakistani earthquake. WOCCU said it has received...

CEO Testifies On Behalf of CURIA.
November 4, 2005... WASHINGTON -- Testifying on behalf of CUNA last week, a credit union CEO urged Congress to add more provisions from the Credit Union Regulatory Improvements Act (CURIA) to a broader-based relief bill it is currently considering. Phil...

Product & Service.
November 4, 2005... Subprime Mortgage Is Offered DES MOINES, Iowa-The Members Group and Central States Mortgage have entered into a partnership that will provide TMG clients with access to a sub-prime mortgage product. "It is has been increasingly important...

Study Examines Key Measures Of Branch Productivity, Offers Strategies.
November 4, 2005... WASHINGTON -- There are lots of different branch strategies out there, but it's safe to say most agree-profitability is key. In Callahan & Associates' branch strategies report "A Brave New Brick & Mortar World," Heritage CU CEO Bob...

Oklahoma's CUs Roll Out Campaign Around 'Financial Firsts' Theme.
November 4, 2005... OKLAHOMA CITY, Okla. -- The Oklahoma Credit Union League is making an investment in a new advertising campaign that seeks, in part, to attract younger members. The league hadn't spent much money on advertising in 2004, relying on CUNA's...

Congress Plans Hearing On Credit Union Tax Exemption.
November 7, 2005... WASHINGTON -- The credit union lobby is on full alert this week as congressional tax-writers take their first serious look in decades at the credit union tax exemption during hearings on Capitol Hill. Although the hearing before the House...

Two New NCUA Board Nominees Get Hearing.
November 7, 2005... WASHINGTON -- Senate leaders indicated last week their intent to confirm the two nominees for the NCUA Board and replenish the three-member panel, currently consisting of just NCUA Chairman JoAnn Johnson. Senate Banking Committee...

Horse Sense: Serving Amish In New Regulatory Environment Requires Compromise.
November 7, 2005... BURTON, Ohio -- For most credit unions, this would have been considered an odd request. But here in Geauga County, where automobiles share the roadways with wagons pulled by four-legged creatures, it made perfect horse sense. "We got a...

$1B, Low-Cost Mortgage Plan Unveiled.
November 7, 2005... WASHINGTON -- CUNA and several credit union leaders will introduce a plan this week that will call for providing as much as $1 billion in low-cost mortgages for low- and moderate-income homebuyers. Under the Home Loan Payment Relief (HLPR...

On Deadline: 'Significant' Spike In Bankruptcy Filings.
November 7, 2005... WASHINGTON -- Credit unions can expect major increases in bankruptcy related losses for the third and fourth quarters due to the deluge of consumers who filed for bankruptcy in the weeks leading up to the Oct. 17 effective date of the new...

Chatfield Is Honored, But Offers Warning.
November 7, 2005... ANAHEIM, Calif. -- Under any other circumstances, when the California and Nevada leagues held their annual meetings here last week the big news would have been results from the first year of a $6-million public advocacy media campaign, along...

WesCorp To Move In To Tenn. With Merger.
November 7, 2005... SAN DIMAS, Calif. -- In the latest of the trend to consolidate the corporate network, WesCorp FCU announced it has agreed to merge with Volunteer Corporate FCU, the Nashville, Tenn., corporate known as VolCorp. Under the deal, Volcorp, which...

CEOs Invited To Summit (& Lunch) At BAI's RDS.
November 7, 2005... ORLANDO, Fla. -- The Credit Union Journal has rescheduled our 2005 CEO Summit to coincide with BAI's Retail Delivery Show in November in Orlando. Originally scheduled for Dallas in October, the CEO Summit filled up almost immediately...

CUs Hit $100M Mark In SBA Loans.
November 7, 2005... ALEXANDRIA, Va. -- Credit unions have not produced more than $100 million in Small Business Administration (SBA) loans since expanding the program to credit unions in February of 2003. NCUA reported that through Sept. 30, loan production...

NCUF Wins $700K Grant From HUD.
November 7, 2005... WASHINGTON -- The National Credit Union Foundation (NCUF) has won a $701,383 grant from HUD that will be used to support homeownership counseling for first-time homebuyers with low and moderate incomes. "This grant reinforces credit...

Worth Noting.
November 8, 2005... NSECU CEO John Jones Dies ST. LOUIS-John Jones, 55, president of Neosho School Employees CU in Missouri died after being struck by a large wave while vacationing in Hawaii. Jones was with his wife, Lynn, when both were struck by the wave...

Important Traveling Tips, All Learned The Hard Way.
November 8, 2005... In conjunction with the 2006 Meetings & Events calendar that appears in this issue beginning on page 12, I share the following Lessons From (Too Many Years On) The Road, sponsored by Pepto Bismal... I have learned... ... That if your...

Good Selling Vs. Selling Goods-The CU Challenge In Financial Planning.
November 8, 2005... Is your financial planning program consistent with "The Cause?" In recent years, many credit unions have adopted financial planning programs. The usual agenda has one or more licensed securities representatives (brokers) meeting with...

Disaster Plan Lessons From A CU That's Been There.
November 8, 2005... PENSACOLA, Fla. -- Pen Air FCU doesn't play around when it comes to disaster planning. John A. Davis, Jr., Pen Air president, said his members and employees have learned the lessons of the past after Hurricanes Ivan and Dennis crashed...

Ad Campaigns Debut In New York, Denver.
November 8, 2005... LATHAM, N.Y. -- New York's credit unions have rolled out the second phase of an awareness campaign, with new billboards going up in Binghamton, Buffalo, Catskill, Glens Falls, Long Island, Olean, Rochester, Syracuse, Utica and Westchester....

Product & Service.
November 8, 2005... New Suite Of Retirement Tools MADISON, Wis.-CUNA Mutual Group's IRA Services has introduced a new suite of retirement tools to help credit unions offer members online access to IRA planning and management. The company said its "IRA Center"...

NCUA Appealing To Conversion Advocates.
November 8, 2005... ALEXANDRIA, Va. -- NCUA said last week it has called on a group lobbying Congress to ease the conversion of credit unions to banks to join the regulator in its efforts to protect credit union members throughout the controversial process. ...

People.
November 8, 2005... Carolina Trust Federal Credit Union, Myrtle Beach, N.C., named Jerry M. Miller CEO. Langley Federal Credit Union, Newport News, Va., promoted Brett Noll to senior vice president, chief marketing officer. Meriwest Credit Union, San...

The CU Journal Daily.
November 8, 2005... Giant Ponzi Scheme Earns Jail Term PHILADELPHIA-A former investment advisor who sold phony CDs to hundreds of financial institutions was sentenced to 55 months in jail and ordered to pay $24 million in restitution in one of the biggest...

Analyst Has Tips For Increasing Firsts, Home Equities.
November 8, 2005... LAS VEGAS -- Credit unions seeking more income need to look to mortgage and home equity loans, according to one analyst. Bob Lawhead, president and CEO of Oakbrook Terrace, Ill.-based consultancy Raddon Financial Group, told attendees of...

Simple Mortgage Equation? The Math. The Challenge? Capturing Numbers.
November 9, 2005... LAS VEGAS -- To Bob Dorsa, the math is easy. The home ownership rate in the United States is 72.2%, the highest on record. With 80-million members, about 25% of the U.S. population, credit unions have just a sliver of the mortgage market,...

Analyst Describes How Banks Are Using Mortgages To Grab Other Biz.
November 9, 2005... LAS VEGAS -- For those CUs that have been hesitant to invest money into mortgage technology, one expert has a simple warning: banks and other competitors not only are spending to keep mortgage loans from credit unions, they are using the...

The Advice For CU Mortgage Lenders? "Nichify Yourself!'.
November 9, 2005... LAS VEGAS -- According to one mortgage lender, the secret to success can be as simple as being different from the competition. "Any specific segment of the market can be successful," Brian Farley told attendees of the recent American...

Mortgage Briefs: Ellie Mae, Stewart Mort. Partner.
November 9, 2005... HOUSTON -- Ellie Mae Inc., a provider of software and services for the mortgage industry, has partnered with Stewart Mortgage Information (SMI) as a provider for flood determinations within its ePASS Network online transaction platform....

Mortgage Briefs: Rutgers FCU Selects CU National.
November 9, 2005... PINE BROOK, N.J. -- CU National Mortgage said that Rutgers FCU of New Brunswick, NJ has signed a full-service mortgage services agreement. Through the agreement the 11, 250 members of the credit union will have the ability to obtain...

Mortgage Briefs: Innergy Lending Licenses Solution.
November 9, 2005... WAYNE, Pa. -- Innergy Lending recently licensed GHR's Loan Origination Studio to automate mortgage sales process from contact to pre-qualification, which the company said should speed the lending process. For info: www.metavante.com ...

House Approves New Oversight For Fannie, Freddie.
November 9, 2005... WASHINGTON -- The House overwhelmingly passed a bill last week to increase oversight of Fannie Mae and Freddie Mac, but the measure would also expand the reach of the two mortgage giants in the secondary market by allowing them to purchase...

On Deadline.
November 9, 2005... Vote On CU Relief Bill Delayed WASHINGTON-The House Financial Services Committee agreed last week to delay a vote on the credit union-backed regulatory relief bill, as skirmishing between the credit unions and banks heated up. Capitol Hill...

i Hear. i Learn. i-Pod.: FCCU Using Podcasts To Reach Younger Members.
November 9, 2005... STOCKTON, Calif. -- Michael Duffy acknowledges he is not the "hippest" or "coolest" guy any more, but he does have a lot to say to young adults about their finances. And he does know how to reach those members. Duffy, the president of...

Rebuilding. Reopening. Realizing.: New Orleans CUs Ponder Members Return.
November 9, 2005... NEW ORLEANS -- If you rebuild it, will they come? That is the big question this city's credit unions are asking about members as they struggle to come back from the decimation of Hurricane Katrina. "At this point, it is still too soon...

Planned CU-Owned Credit Card Bank's Opening Is Delayed.
November 10, 2005... WASHINGTON -- A new credit union-owned credit card bank for credit unions has been put on hold until at least the beginning of next year while organizers try to resolve regulatory questions over ownership of the new venture. An application...

Congress Mulls Big Bailout For Lenders In Gulf Coast States.
November 10, 2005... WASHINGTON -- Gulf State lawmakers called on Congress last week for a massive bailout of lenders and property owners now recovering from the unprecedented flooding following Hurricane Katrina. Mississippi Congressman Gene Taylor urged...

On Dealine.
November 10, 2005... CU Tax-Exemption Could Be Debated This Week WASHINGTON-In what credit union lobbyists see as an ominous sign, the tax-writing House Ways and Means Committee is expected to hold hearings as early as this week focusing on the credit...

NCUA Proposes 1.9% Budget Hike For 2006.
November 10, 2005... ALEXANDRIA, Va. -- NCUA last week proposed a budget hike of just 1.9% for next year, to a total of $151 million, which would help hold the lid on operating fees for federal credit unions. The proposed spending plan would include 3.1% average...

Paradise FCU Hit With $19K Penalty On HMDA.
November 10, 2005... NATIONAL CITY, Calif. -- NCUA has assessed a civil money penalty of $19,000 against Paradise FCU here for for late submissions of data required by the Home Mortgage Disclosure Act (HMDA). The fine against the National City, Calif., credit union...

Free Remittance Offer By BofA Downplayed.
November 10, 2005... MADISON, Wis. -- The recent move by Bank of America to make its remittance service to Mexico free to anyone with a BofA checking account has been met with a yawn by the World Council of Credit Unions, whose IRnet remittance service seemingly...

Donations In Wake Of Storm Set A Record.
November 10, 2005... WASHINGTON -- The National Credit Union Foundation said it set a fundraising record in the wake of Hurricane Katrina, having raised $2,102,448.07. "The generosity of donors to the NCUF Disaster Relief Fund has enabled hundreds of credit union...

Poll Ranks CUs Above Banks In Satisfaction (Again).
November 10, 2005... NEW YORK -- For the twenty-first consecutive year, members rated their satisfaction with their credit unions higher than customers rated their satisfaction with their bank in the annual American Banker/Gallup Consumer Survey. Seventy-one...

Worth Noting.
November 10, 2005... FFIEC Releases New Guidance WASHINGTON-The Federal Financial Institutions Examination Council (FFIEC) has released updated guidance on the risks and risk management controls necessary to authenticate the identity of customers accessing...

More Scrutiny For 'Most Highly Scrutinized' Program Most.
November 10, 2005... When California and Nevada's credit unions meet this week for the leagues' annual meeting at Disneyland they'll be doing more than just debating whether to tap their personal home equity lines to visit the Magic Kingdom or California Adventure:...

Committee Sifting Through 300 Resumes As It Looks To Replace Chatfield.
November 14, 2005... RANCHO CUCAMONGA, Calif. -- The search continues for a successor to David Chatfield, the president of the California and Nevada Credit Union Leagues, who will be retiring April 1, 2006. Diana Dykstra, who is leading the Chatfield search...

CUJ Q&A: Travis Credit Union Has Created A New Position-Community Outreach Officer-And Tapped Someone From Outside Credit Unions To Fill It.(Interview)
November 14, 2005... VACAVILLE, Calif. -- Travis Credit Union has created a new position-Community Outreach Officer-and hired a new person, Noreen Diaz, to fill it. The $1.4-billion, 130,000-member CU describes a community outreach officer as someone who...

Summit Seeks Ways To Reduce Plastic Card Fraud.
November 14, 2005... MADISON, Wis. -- A summit on fighting plastic card fraud organized by CUNA Mutual Group here attracted more than 40 people from the nation's plastic card processors. The meeting, held at CUNA Mutual's headquarters, discussed the challenges...

East Idaho CU Credits Indirect Lending For Volume Surge.
November 14, 2005... IDAHO FALLS, Idaho -- The $149-million East Idaho Credit Union is reporting a substantial growth in its loan portfolio after joining an indirect lending program offered through Indirect Lending Technologies, Salt Lake City, and endorsed by...

BECU Activates Income Interruption Program.
November 14, 2005... TUKWILA, Wash. -- The combination of a deadly hurricane and a work stoppage triggered a rare double activation of BECU's Income Interruption Program. The program is designed to provide temporary assistance to members who need money for...