Senate version of CURIA introduced
Lieberman introduces S. 2957
WASHINGTON (5/2/08)--Sen. Joseph Lieberman (I-Conn.) introduced a Senate version of the Credit Union Regulatory Improvements Act (CURIA, S. 2957) Thursday, putting the key credit union legislation a giant step forward in the legislative process.
The Credit Union National Association (CUNA) lauded Lieberman’s action saying the senator has “demonstrated determination and conviction in his support for consumer-owned credit unions” by introducing his bill.
CUNA President/CEO Dan Mica said, “Through his action, consumers have the hope of more choices in services, as well as the promise of continued strength, for the credit unions that they own and direct.
“Our sincere thanks and gratitude to Sen. Lieberman. We look forward to working with him, and other senators, as this important legislation gains support and eventual passage in the Senate,” said Mica.
Click to view larger image U.S. Sen. Joe Lieberman (I-Conn.), left, and CUNA President/CEO Dan Mica backstage before Lieberman addressed the March 6 closing closing general session of the 2008 CUNA Governmental Affairs Conference in Washington. (Photo provided by Robert Knudsen)
It was at the CUNA Governmental Affairs Conference in March that Lieberman said he recognized the importance of the Credit Union Regulatory Improvements Act to credit unions and pledged to be an original sponsor of a Senate version of H.R. 1537. The House bill currently sports the names of 149 members of the House as its official sponsors.
Among changes proposed by the bill, which is substantively identical to the House version, CURIA would:
* Clarify the 1998 Credit Union Membership Access Act to allow all credit unions, regardless of charter type, to serve those in underserved areas. The bill would also update the definition of an underserved area, incorporating definitions from the Community Development Financial Institutions Act and the New Markets Tax Credit;
* Increase the current cap on loans to members for business purposes (MBLs) from 12.25% to 20% of assets, allowing credit unions to assist more members start and expand small businesses and to promote economic growth. The bill would also exempt loans under $100,000 and those to nonprofit religious organizations from the MBL calculation;
* Establish additional consumer safeguards in the event of a credit union conversion to another form of financial institution; and
* Reform the National Credit Union Administration’s original prompt corrective action system to a risk-based approach more closely resembling the current Federal Deposit Insurance Corp. capital standard for banks.
Silver Star Gala June 6
6 P.M. - Cocktails/Cash Bar
7 P.M. - Dinner and Entertainment
$75 per person
This year’s Silver Star Gala marks the fourth year that the Credit Unions in New Mexico have continued to raise $1 million over a five year plan for a new 24-hour pediatric emergency unit at UNM Children’s Hospital. So far, credit unions have raised more than $649,000. The state-of-the-art pediatric emergency unit opened in 2007, and provides the highest level of care by some of the top pediatric specialists in the nation. UNM Children’s Hospital treats more than 57,000 children and premature infants a year from every county in New Mexico, including 98 percent of New Mexico’s child cancer patients. Keeping with the credit union philosophy of helping our members and the communities they live in, The Credit Union Association of New Mexico and New Mexico’s credit unions are proud to support this important project. Join us for a fun filled evening as we continue to fully equip the pediatric emergency unit.
For more information, go to the CUANM Web site.
JMFA announces new contract cost reduction service
JMFA’s new service helps financial institutions realize dramatic savings on vendor contracts
Baytown, TX (April 23, 2008) – John M. Floyd & Associates (JMFA) has announced an exclusive partnership with Discovering Money in Networks (DMi Networks). JMFA and DMi Networks are teaming together to offer financial institutions a service designed to optimize contracts and agreements for processing and technology services. DMi
Networks has achieved a 98 percent success rate in reducing processing and technology costs for its clients, saving them in excess of $24 million since its inception in 2003.
As a profitability and performance improvement consultant, JMFA helps financial institutions improve their operations and ultimately their bottom line. “Given the squeeze on margins that all financial institutions are experiencing today, we have been concerned by our clients’ need for help in reducing operational expenses,” said Steve Swanston, Executive Vice-President of Business Development for JMFA. “So we have tapped DMi Networks to help us provide a program that positively addresses those challenges.”
With JMFA’s new Contract Cost Reduction Service – which is offered risk-free – financial institutions get expert advice on such issues as pricing, service, support, and
terms and conditions related to proposals, contracts and agreements on their major processing and technology services. Ultimately, the goal is for the financial institution to lower the cost of its contracts while increasing the level of service it receives.
The contract negotiation services include the following:
• ATM/debit card processing contracts;
• Check vendor contracts;
• Core data processing contracts (service bureaus only);
• Internet banking contracts;
• Telecommunications contracts;
• Image/item processing contracts; and
• Much more.
“Because JMFA has built such an excellent reputation with banks and credit unions over the past 35 years – and they serve clients in all 50 states – we are excited to team up with them to provide our extraordinary savings solutions to financial institutions across the country,” said James R. Cullen, the CEO and founding principal of DMi Networks. “JMFA has the industry star power to allow our service to do the greatest amount of good.”
Cullen has over 30 years experience within the financial industry and as a contract negotiator, first for NCR Corporation and then for AT&T.
About John M. Floyd & Associates (JMFA)
John M. Floyd & Associates is a profitability and performance improvement consulting firm and a leading provider of overdraft privilege programs serving more than 2,000 financial institutions in all 50 states and in Central America. JMFA is also recognized for fraud detection, training, account acquisition, executive placement and earnings enhancement programs, as well as product, service, pricing and technology improvement consulting. As a direct result of its programs, JMFA has helped literally thousands of clients dramatically improve their performance as well as their bottom line. To learn more about JMFA, visit www.JMFA.com
CUANM Network newsletter April 2008
In this month’s CUANM Network newsletter…
• GAC 2008
• Scholarship winners
• CMN pledges
• Harland Clarke
• Biz Kid$
And much more...
cuanm_e-newsletter_april_2008.pdf
Scholarship winners announced
$48,000 in scholarships awarded
The New Mexico Credit Union Education Foundation recently awarded a total of $48,000 in scholarships to 80 students in New Mexico for the 2008-2009 school year. Each scholarship recipient received $600. Applications from more than 400 students were received.
Funds for the scholarship are provided by Credit Union Association of New Mexico member credit unions that turn over funds from dormant accounts to New Mexico CUEF to be used for scholarships, instead of to the state. CUANew Mexico administrates the scholarships.
Applicants must be New Mexico residents and meet a number of requirements, including grade point average and full-time enrollment. Many recipients are reapplicants.
Students may use the scholarship at any accredited vocational or technical school, college or university in New Mexico.
Since it was established in 1992, the New Mexico Credit Union Education Foundation has grown in both credit union membership and funds contributed. The purpose of the Foundation — the only one of its kind in the country — is to allow credit unions to use their abandoned funds for educational or charitable purposes through an established statewide foundation. As a nonprofit corporation, the Foundation is designed to foster educational opportunities in New Mexico.
Recipients of the scholarships and their schools by hometown are:
Alamogordo
John Davisson — New Mexico State University
Kattie Dean — University of New Mexico
Kalie Geary — New Mexico State University
Cheryl A. Slone-Rodgers — New Mexico State University
Albuquerque
Lauren Cala — University of New Mexico
Katrina J. Cuoco (Jorgensen) — Central New Mexico Community College
Lindsay Ann Campbell — University of New Mexico
Victoria Dobbin — The Art Center Design College
Sharla Frazier — Central New Mexico College
Delana M. Gonzales — University of New Mexico
Michael A. Hunter — University of New Mexico
Xiaoshen Jin — University of New Mexico
Dennis M. Magee Jr. — University of New Mexico
Paula M. Mintle — University of New Mexico
Talal Saint-Lot — University of New Mexico
John Sanchez — University of New Mexico
Samantha Jo Soto — University of New Mexico
Matthew Spinks — University of New Mexico
Melissa Tafoya — New Mexico Highlands University-Rio Rancho
Alcalde
Candida L. Martinez — University of New Mexico
Eugenia Trujillo — Northern New Mexico College
Arrey
Monica R Bencomo — University of New Mexico
Artesia
Adriana Gonzales — University of New Mexico
Bayard
Jacqueline Muniz — New Mexico State University
Bosque Farms
Dorian J. McKenzie — University of New Mexico
Carlsbad
Cassandra Marrs — Eastern New Mexico University
Veronica M. Schrock — New Mexico State University
Carrizozo
Nicole A. Nava — New Mexico State University
Casa Blanca
Monika A. Honeyestewa — University of New Mexico
Chacon
Vanessa Valencia — Central New Mexico College
Chama
Matthew Archuleta — University of New Mexico
Cloudcroft
Maggie Carter — St. John’s College
Clovis
Brenton C. Andes — Eastern New Mexico University
Logan Potts — New Mexico State University
Corrales
Steven E. Olona — New Mexico Tech
Dexter
Dustin D. Davenport — New Mexico State University
Vianey Miramontes — University of New Mexico
Edgewood
Amy Nicole Wenker — Central New Mexico Community College
Elephant Butte
Rachel I. Powell — University of New Mexico
Española
Tamara L. Gallegos —Northern New Mexico College
Robin Montoya — New Mexico Institute of Mining and Technology
Estancia
Wendy Stokes — Eastern New Mexico University
Farmington
Clifford Harris Jr. — San Juan College
Flora Vista
Tina Joyner — University of New Mexico
Hernandez
Isaac J. Garcia — Northern New Mexico College
Hurley (North)
Diane Ortega — Western New Mexico University
Las Cruces
Ron A. Garcia — New Mexico State University
Bethany L. Fritz Hufferd — New Mexico State University
Larry Erik Munoz III — New Mexico State University
Nick L. Marcoux — New Mexico State University
Los Alamos
Jessica Huff — Eastern New Mexico University
Los Lunas
Jeremiah McElroy — University of New Mexico-Valencia
Lovington
Bridgette Davis — New Mexico Junior College
Mora
Sonya Martinez — New Mexico State University
Ojo Caliente
Ashley Gallegos — Northern New Mexico College
Organ
Mellissa Lynne Burk — New Mexico State University
Peñasco
Monique F. Visarraga —Northern New Mexico College
Piñon
Sherida Elkins — New Mexico State University
Portales
Tanner E. Nygren — Eastern New Mexico University
Tom Sullivan — University of New Mexico
Ranchos de Taos
Danielle Lee Griego — University of New Mexico
Rio Rancho
Lindsay McGhee — Central New Mexico College
Jennifer Parton — University of Phoenix
Roswell
Elizabeth A. Gilcrease — Eastern New Mexico University
Elizabeth Mysza — University of New Mexico
Santa Fe
Alicia Armijo — University of New Mexico
Ryan D. Baca — Capital High School University of New Mexico Santa Fe
Esperanza Rodriguez — Northern New Mexico College
Joseph N Romero — University of New Mexico
Molly Rose-Cross — New Mexico State University
Moises Solis — Santa Fe Community College
Socorro
Amy R. Smythe — Eastern New Mexico University
Tierra Amarilla
Tessa Polaco — New Mexico State University
Truth or Consequences
Tyler X. Long — Western New Mexico University
F. Mario Trujillo — University of New Mexico
Tucumcari
Danny Gregory Benavidez, Jr. — Mesalands Community College
Clay D. Beevers — New Mexico Tech
Rusty Dwayne Brake — Mesalands Community College
Tularosa
David Walters — New Mexico State University-Alamogordo
Willard
Jerra McMath — New Mexico State University
Southwest Corporate launches Business Capture
Webinars to explain enhanced efficiencies and cost-saving benefits
Dallas—To help credit unions attract and better serve a growing number of business members, Southwest Corporate Federal Credit Union will launch its new Business Capture service beginning March 31.
Business Capture adds to the cutting-edge check collection suite of Remote Deposit Services already offered by Southwest Corporate—all designed to help credit unions reduce costs and operate more efficiently.
To help credit unions become more familiar with the benefits of Business Capture, Southwest Corporate is scheduling an hour-long webinar held three times over the coming two months. Dates for the webinars are:
Monday, April 7 at 2 p.m. Central Time
Friday, April 11 at 11 a.m. Central Time
Wednesday, May 21 at 1 p.m. Central Time
There is no charge to participate in the webinar, which will feature live demos and experts on hand to answer specific questions, however it is necessary to register in advance. Registration will be available beginning Friday, March 28th at www.swcorp.org.
“This is a service that many credit unions will find useful as they try to attract more and more business members,” said Jody Beck, Senior Vice President of Operations for Southwest Corporate.
“Employing Southwest Corporate’s Business Capture service will allow credit unions to help minimize—or even eliminate—trips a member has to make just to deposit checks. It also helps expedite deposit collections and extends deposit deadlines,” Beck said.
Southwest Corporate’s Business Capture product is based on a year of development and testing, and incorporated active involvement by member credit unions to help shape the features and functionalities that are included. “We knew that this is going to be a high demand product, and now we are ready to put it into the market place,” Beck said.
The process for Business Capture is similar to Branch Capture and Teller Capture. However, with Business Capture, the check scanner is installed at a member’s business location, Beck explained. Software is downloaded and installed on the member’s computer that allows checks to be imaged and securely transmitted to Southwest Corporate for processing.
Imaged checks are cleared the most expeditious and least-cost method. Archived images can be accessed online.
“All this allows your members who run a business to spend more time doing what they do best, and less time running to the credit union to make deposits,” Beck said.
Credit unions receive full implementation, training, and ongoing support by a dedicated team of in-house specialists. For more information about Business Capture, contact a Southwest Corporate Account Executive at 1-800-442-5761, or e-mail .
—30—
(Southwest Corporate Federal Credit Union is a $14 billion Plano-based institution that serves the financial needs of nearly 1,500 member credit unions nationwide.)
Harland Clarke receives SAS-70 Type II audit recognition
SAN ANTONIO, TEXAS – March 20, 2008—Harland Clarke, a leading provider of integrated payment solutions, marketing services, technology, and business solutions to the financial services industry, recently received three AICPA SAS-70 Type II audits. The SAS-70 Type II audits verify that adequate controls and safeguards are in place for service organizations that have access to and process shareholder, client and customer data. The audits are widely considered the financial industry’s best practices standard, and are accepted and referenced by bank examiners, financial auditors and Securities and Exchange Commission (SEC) auditors. 
“The AICPA SAS-70 Type II audit is an integral part of Harland Clarke’s Corporate Information Security Program. The security controls are tested by an independent auditor, validating that security controls are in place and are functioning properly,” said John Petrie, chief information security officer at Harland Clarke, speaking on behalf of the security team.
Individual service auditor reports prepared in accordance with AICPA SAS-70 guidelines signifies that a service organization has had its control objectives and activities examined by an independent accounting and auditing firm. Identifying and evaluating relevant controls, the auditor gains an understanding of how a service organization provides transaction processing, data hosting, I/T infrastructure, or other data processing services, to its clients. The Type II report is more intense than a Type I report in that companies are required to provide descriptions of its controls as well as allow detailed testing of its controls during a minimum six-month period.
The Harland Clarke evaluation utilized a unique methodology to define the control activities and objectives, driven by several standards and regulatory requirements for information and physical security including the Gramm-Leach-Bliley Act (GLBA), the Sarbanes-Oxley Act (SOX) and the Federal Financial Institutions Examination Council (FFIEC). This methodology helps ensure that Harland Clarke’s information is secure and that the controls in place are those accepted and highly regarded by the financial services industry and federal regulators.
The benefits of receiving a SAS-70 Type II Audit recognition to a service organization is that the auditor’s report supports the building of trust with clients and their customers, and also helps to avoid the need to entertain multiple audit requests from other sources. This process identifies opportunities for improving operations within the service organization.
“A successful SAS-70, Type II audit, coupled with a successful Cybertrust® Enterprise Certification, provides documented verification that Harland Clarke has a mature Risk Management Program,” said Brad Wheeless, Senior Vice President, Administrative Services for Harland Clarke. “Our entire team works very hard to earn the trust of our clients in protecting the information of their customers.”
About Harland Clarke Corp.
Harland Clarke Corp. is a leading provider of integrated payment solutions, marketing services and technology solutions. It serves approximately 15,000 financial institutions, as well as major investment firms, business-to-business clients, small businesses, and individual consumers. With its corporate headquarters in San Antonio, Texas and a regional headquarters in Decatur, Georgia, Harland Clarke employs approximately 5,800 people and has manufacturing and contact center facilities nationwide. Harland Clarke Corp. is a wholly-owned subsidiary of Harland Clarke Holdings Corp., which is also the parent company of Harland Financial Solutions Inc. and Scantron Corporation. Harland Clarke Holdings Corp. is wholly owned by M&F Worldwide Corp. (NYSE:MFW).
CUANM March newsletter
• CUANM Campaign School in April
• 2007 fund-raising for CMN a success
• National Youth Week in April
• Participate in Project Zip Code
• Vishing new consumer threat
• Harland Clarke endorsement
• News from our credit unions
And more…
cuanm_e-newsletter_march_2008.pdf
CUANM continues Harland Clarke endorsement
The Credit Union Association of New Mexico is pleased to announce that it has renewed the endorsement agreement with Harland Clarke for another five years starting on July 1, 2008. CUANM is proud to continue its endorsement of Harland Clarke (Clarke American) and is confident that our credit unions and their members will continue to receive the excellent products, service and pricing they have come to expect over the past nine years.
CUANM based its decision on a number of factors: the extremely positive survey response from credit unions that use Harland Clarke as their business partner; the willingness of Harland Clarke to be a champion of the credit union movement and mission; the financial strength and forward looking vision of Harland Clarke; and the superb relationship that has developed over the past nine years between Harland Clarke and New Mexico credit unions.
You can expect that Karla Barela will be contracting your credit union shortly to present the program offerings. Please be assured that the agreement your credit union will be presented with is one that was carefully developed and shows the commitment that Harland Clarke has for the New Mexico credit union movement.
If you have any questions about the agreement or anything else please contact CUANM assistant vice president of Association Services Mike Athens at 298-9899 or 800-366-6628, extension 2234, or via e-mail at mike@cuanm.org .
SWCFCU Remote Deposit Program notches 350th CU
Bank’s exit from CU market is catalyst for Odessa ECU’s decision
DALLAS – Sheila Kelly, manager of $8.3 million Odessa Employees Credit Union in Odessa, Texas, had been evaluating the requirements for electronic image capture of deposit items for more than a year. In fact, at a meeting of small credit unions a couple of months prior to receiving “the letter,” she had been urged to give the service serious consideration. Day-to-day demands on a five-person staff, however, kept the issue from becoming a priority. That changed the day Odessa ECU received a letter from the national bank they used for deposits saying it would close all 60+ of the bank’s credit union deposit accounts in 30 days.
Kelly contacted Southwest Corporate Federal Credit Union about moving their deposit account and implementing branch capture at the same time. “I was panicking because of the 30-day notification. The bank eventually granted us an extension, but Southwest Corporate was gracious and pushed through our implementation within the timeframe,” she said. “We knew we needed to put the branch capture system in place. We just hadn’t counted on scrambling to get it done.”
Odessa ECU is the 350th credit union to sign onto Southwest Corporate’s remote deposit services program.
“Lots of credit unions are now saving lots of money by processing checks electronically,” said Jody Beck, senior vice president of Operations for Southwest Corporate. “Remote deposit services is a product that has essentially doubled during the past year. And I think it is important to point out that this is a service that didn’t even exist three-to-four years ago.”
With the program, a small scanner captures check images – either at the credit union, at an ATM or at a credit union member’s business – and transmits those images to a central processing facility. Remote deposit software provides instant verification of image quality, balances the transactions and sends the check images to Southwest Corporate, where they are archived for online member access.
One of the greatest benefits of check imaging is elimination of the time and money spent on encoding checks. Data completion is handled by Southwest Corporate. Check imaging also can improve funds availability for credit unions and their members.
“Capturing deposit transactions at the point of entry has other advantages,” Beck said. Real-time processing facilitates faster identification of fraudulent activity and customer deposit errors. Digital storage of transactions reduces the opportunity for checks to become lost during transport and eliminates the need for microfilming.
“There’s no question that branch capture has saved us time,” Kelly said after 30 days on the program, “and I like the almost immediate credit we receive on everything deposited. I know that will allow us to earn more on our funds.”
Remote deposit efficiencies also reduce expenses related to postage and courier services needed to transport checks from branch locations, and real-time processing facilitates faster identification of fraudulent activity and customer deposit errors. Digital storage of transactions reduces the opportunity for checks to become lost during transport and eliminates the need for microfilming.
As Southwest Corporate has a dedicated Remote Deposit Implementation Team--a feature not available from all remote deposit providers--credit unions can determine their implementation timetable; there is no backlog. Credit unions schedule when it is convenient for them, and Southwest Corporate can meet that timetable.
Following up implementation, Southwest Corporate provided responsive training, according to Kelly. “The training, which was all done over the phone, went very smoothly. Our association may have started with an unfortunate circumstance, but it worked out. It’s a good feeling to know we are with Southwest Corporate. As a one-stop shop, they’ve made our lives easier.”
CUNA Brokerage Services Inc. recognizes 28 women
Woman of Distinction rewards superior performance by financial advisors
ATLANTA, GA – Twenty-eight credit union financial advisors, registered through CUNA Brokerage Services, Inc., received “Woman of Distinction” awards at CUNA Brokerage Services, Inc.’s national sales conference in Atlanta.
The 28 women were recognized by CUNA Brokerage Services, Inc. for there superior performance, value and overall contribution to the financial services industry. Each also demonstrated their commitment to the CUNA Brokerage mission by generating a minimum of $250,000 in revenue in 2007. The Women of Distinction will participate in a mentoring program offered through CUNA Brokerage Services, Inc., designed to foster the growth of women new to the financial services industry.
The CUNA Brokerage Services, Inc. Woman of Distinction Award debuted at FOCUS 2008, a premier national sales conference exclusively for credit union financial advisors. More than 450 members of the financial services industry from across the country gathered in Atlanta to participate in individual workshops designed to deliver knowledge, insight and new best practices.
“It is a privilege to recognize the significant accomplishments these women have made to the financial services industry,” said David Marks, chief investment officer and executive vice president of CUNA Mutual Group. “CUNA Mutual is impressed with this group’s contributions and their willingness to mentor and help grow the ranks of women in the financial services sector.”
Those recognized as Women of Distinction, included: Helen Alexander, CLU, ChFC; Catherine Barnes; Emmor Boslet, CFP; Jane Brockway, CRPC; Monica Chandra; Kathy Chesney, ChFC, CLU; Linda City; Diana Clark; Linda Cohen, CRPC; Wendy Cundari; Theresa D’Amico, CRPC; Carol Diest, CRPC; Marcella Evans; Judy Evers, CFP; Gilda Gilbert; Leigh Glover, CRPC; Kelly Goreham; Breta Grumbois; Lori McNight; Wendy Miletich; Stephanie Morales; Marie Quinlan; Swan Shen, CFP; CRPC; Kathryn Snyder; Sophia Spencer, CRPC; Ernesta Tobin, CFP; Suzanne Williams; Emily Windolph.
CUNA Brokerage Services, Inc. utilizes face-to-face financial advisors to help credit unions meet member retirement, investment and insurance needs. Working onsite at credit unions, financial advisors provide members with comprehensive financial services, from simple transactions to complex financial planning and wealth management services.
CUNA Brokerage Services, Incorporated (CBSI) is a securities Broker/Dealer which offers a full range of investment products, variable insurance products, securities programs and professional services related to securities transactions. As the registered broker/dealer for CUNA Mutual Group, CBSI services more than approximately 400 credit unions nationwide and provides a discount brokerage program to them and their members.
CUNA Mutual Group is a leading provider of financial services to cooperatives, credit unions, their members and valued customers worldwide. With more than 70 years of market commitment, CUNA Mutual’s vision is unwavering: to be a trusted business partner who delivers service excellence and customer-focused, best-in-class products and market-driven innovation. More information on the company is available on the company’s Web site at www.cunamutual.com.
Permaculture CU president issues CEO challenge
Donald Sarich, President/CEO of Permaculture Credit Union, will participate in the Santa Fe Century bike race on Sunday, May 18. He will attempt to complete the 100-mile route down the Turquoise Trail to Golden, then to Cedar Grove, Stanley and back to Santa Fe in eight hours.
“My experience with biking is very simple. I ride my bike to work as often as possible. This is easy because I live only three miles away. Last year our credit union installed a bike rack to make it easier for employees and members to bike to our shared office with the State Employees Credit Union. The biggest reason I am doing this race is because my neighbor across the street said I couldn’t. I guess I don’t like people underestimating my determination and heart.
“I am actually more of a runner and last year I completed the 17.1 mile Imogene Pass run. This race was from Ouray to Telluride. It was an amazing accomplishment in my life and I look forward to improving my time when I run it again this year.”
Sarich invites other credit union CEOs to pledge money to Children’s Miracle Network and UNM Children’s Hospital if he successfully completes the ride. To make a pledge, contact Sarich at (505) 954-3479; toll free at (866) 954-3479 or via e-mail at .
Banks to raise rates, cushion losses
With banks reporting poor performance in the fourth quarter of 2007 and loan delinquencies on the rise, banks are raising rates on consumer loans – from credit cards to auto loans – to cushion their losses. This presents an opportune time for credit unions to promote their services and low rates and fees to attract new members and build member loyalty through account relationships.
In a USA Today article, Synergistics Research notes that banks are going to become more aggressive in order to make up the income.
Even as the Federal Reserve has aggressively slashed short-term interest rates, banks are raising rates on some credit cards. They’re also boosting late fees, lifting caps on balance-transfer fees, and raising ATM fees for other banks’ customers. As loan losses surge, banks have become quicker to raise certain fees and rates.
For example, in mid-January, Bank of America reportedly sent out letters notifying some responsible cardholders that it would more than double their rates to as high as 28%, without giving an explanation for the increase. The so-called “opt-out” letters give borrowers the option of no longer using their card and paying off the balance at the old rate. But they must write Bank of America by later this month if they plan to do so, otherwise their rates on existing and new balances automatically rise.
Congress has held hearings on whether banks need tighter regulations on fees and rate increases to protect consumers. A Federal Reserve survey of senior loan officers last month found that 13 of the 53 banks surveyed have widened the spread — which could boost their profits — between what it costs them to borrow and what they charge on certain consumer loans. Four of 39 banks surveyed widened spreads on credit cards.
Banks are also looking at cutting costs through personnel layoffs, branch consolidations, and limiting branch expansions.
White papers discuss creating teams environments, innovative products
MADISON, Wis. - Learn how credit unions can create and thrive in a team environment and about innovative new products in two new white papers from the CUNA Councils.
In today’s competitive environment, effective teamwork can provide a significant competitive advantage by putting the combined talents of individual credit union employees to work for a common purpose. “Thriving in a Team Environment: Leading the Finance Team to Support Credit Union Strategy” from the CUNA Chief Financial Officers (CFO) Council outlines how a CFO or manager can create and maintain a team environment and lead the finance team to support credit union strategy. The paper also addresses the broader aspects and applications of teamwork in credit unions, and the different skills that managers must foster to thrive in a team environment.
“Innovative Products That Generate Revenue” from the CUNA Operations, Sales, and Service (OpSS) Council discusses a number of product and service offerings that can help credit unions stand out in the financial services industry and attract new members. The paper contains credit union case studies for various products, including: payday lending alternatives, family credit cards, online savings, student loans, and more.
CUNA Council members are entitled to complimentary copies of these white papers; non-members may purchase the white papers for a price of $50 per copy. The papers are available online at http://www.cunacouncils.org; select the “Shared White Papers” link located in the “Shared Council Content” drop-down menu and select the “CFO” tab for the team environment paper, or the “OpSS” tab for the innovative products paper. From there, non-members should follow the non-member link to order.
About the CUNA Councils
The CUNA Councils are a national organization made up of over 4,400 credit union professionals from across the United States. Run by and for credit union executives, the councils target their networking, information, and programs to key areas of credit union management, that make up the six councils: the CUNA Chief Financial Officers (CFO) Council; the CUNA Human Resources, Training and Development (HR/TD) Council; the CUNA Lending Council; the CUNA Marketing and Business Development Council; the CUNA Operations, Sales and Service (OpSS) Council; and the CUNA Technology Council. For more information, go to http://www.cunacouncils.org.
Term certificates reach record levels at SW Corporate
Credit Unions Show Strong Interest In Reverse Inquiries
Dallas—Amid the market volatility of recent months, credit unions placed significant investments with Southwest Corporate Federal Credit Union during 2007. Last year, credit unions invested nearly $1.4 billion in “special certificates” and “reverse inquiries” alone. That figure marked a sharp increase over the $1 billion invested in these particular instruments offered by Southwest Corporate in 2006.
While dollar amounts of investments increased, the actual number of specially-structured term certificates offered to credit unions last year dropped slightly to 53, compared to the 63 offered in 2006. However, the drop in special certificate offerings was more than offset by the growing interest in reverse inquiries—which rose from the 41 provided in 2006 to 62 in 2007, according to Cynthia Shi, CFA and Director of Portfolio Management for Southwest Corporate Federal Credit Union.
Southwest Corporate specializes in creating structured certificates of deposit that allow credit unions to earn between 10 basis points and 15 basis points more than comparable agency instruments. Southwest Corporate routinely creates these structured investments and advertises them on its website (http://www.swcorp.org) or by special e-mail notification to interested credit unions.
However, not all the special structured certificates offered in any given week will fit precisely into a credit union’s asset/liability needs. That is when the customizable, reverse inquiries become an attractive offer. The 62 reverse inquiries in 2007 accounted for more than $603 million in investments, up from reverse inquiry investments of $353 million in 2006.
“Credit unions with as little as $3 million to invest can bring an inquiry to Southwest Corporate, and then we work to meet their structure needs,” Shi said. “We want to be in a position to help credit unions match up their A/LM needs with a structured investment that works on their terms. Southwest Corporate can usually give an answer to a credit union within 30 minutes—an hour or two if the customized instrument is more complex,” she said.
The low dollar threshold is one of the advantages of working with Southwest Corporate, Shi noted. Most agencies require at least a $25 million. Southwest Corporate keeps its threshold low, and even if a credit union does not have $3 million, it may know of other credit unions with investible funds that can help combine resources.
That low threshold underscores the flexibility of investing through Southwest Corporate. “And because we are one of the few corporate’s that have derivative authority from NCUA, we are able to provide the higher yields that credit unions are looking for,” Shi said.
Finding the right investment option was more challenging in 2007—in large part because of the changing conditions that unfurled during the middle of the year. Because of higher yields early in the year, there was a strong flow of term investment dollars coming into Southwest Corporate for placement during the first half of 2007, Shi said. That strong first half contributed significantly toward the higher investment totals for all of 2007. But with the credit markets in flux during the second half of 2007, credit union investment activity generally moved away from long-term investments—many opting for shorter duration instruments, commonly referred to as “bullets.” Those instruments have maturity dates often in the three-month to six-month range.
In early 2008, credit union investments still tend to be focused on the short term. However, Zane Wilson, Director of the Investment Services Division of Southwest Corporate Investment Services, says “credit unions should have been lengthening durations as the economy showed weakness and the FOMC moved to ease monetary policy with lower overnight rates. With expectations of further rates cuts in the coming months, credit unions should not hesitate to invest out one year to one and half year into 2009 where the outlook for the economy and interest rates may be better.”
Both Wilson and Shi agree that there is still a substantial amount of investment funds at credit unions. “A lot of that money is being invested in agencies, and we want to get the point across that Southwest Corporate’s structured certificates usually beat agencies by 10 basis points to 15 basis points. And through the reverse inquiry process, we are often able to provide credit unions with the maturity structure they need,” Shi noted.
Shi noted that the continued rise in reverse inquiries attests to an increased awareness about the customizable option—and its popularity. “Who doesn’t like flexibility,” Shi said.
To find out more about investment options available through Southwest Corporate, visit online at www.swcorp.org or e-mail .
(Southwest Corporate Federal Credit Union is a $14 billion Plano-based institution that serves the financial needs of nearly 1,500 member credit unions nationwide.)
CUNA Mutual announces risk management Webinars
MADISON, WI – CUNA Mutual Group is offering seven risk management Webinars for credit union decision makers and staff on key risk topics. The Webinars are designed exclusively for the company’s Credit Union Bond policyholders, which represent approximately 95 percent of U.S. credit unions, and are provided at no extra charge.
Following is a summary of this year’s sessions:
Lender Liability Lawsuits - An evolving exposure (Jan. 23, 10 a.m. and 2 p.m. CST) Borrowers can and do take lenders to court for failing to act in good faith and deal fairly, even when lenders adhere to the letter of the contract. Learn about these evolving risks and how to guard your credit union against “lender liability” lawsuits.
Disaster Preparedness - Prepare for the unexpected (March 12 and 26, 10 a.m. and 2 p.m. CDT) Failure to properly plan for a disaster can not only negatively affect a credit union’s operations in the short-term, but it could threaten the credit union’s very existence. Disasters of all types can strike at any moment…be prepared for the unexpected.
The New Wave in Payments - Risks on the horizon (May 14 and 28, 10 a.m. and 2 p.m. CDT) Futurists have spun predictions that momentum is building toward a “cashless” society. But, it just may not be that far away. Payments are shifting from cash and traditional card forms to ACH, contactless payment cards/tokens, and even cell phones, but there are potential drawbacks and risks.
Director Responsibilities - What every director should know (July 9 and 23, 1 p.m. and 6 p.m. CDT) The responsibilities of a credit union director are immense and growing more complex every day. Hear perspectives and experiences which may help you better serve your members and help you both perform your board duties and mitigate your personal liabilities. Credit union board members are encouraged to attend.
Fiduciary Risk - A sleeping giant ready to awake? (July 9 and 23, 10 a.m. and 2 p.m. CDT) While fiduciary liability is a concept that encompasses liability under ERISA, it is not limited to claims brought under ERISA. Learn what risks you and your employees assume in their capacity as a fiduciary, and hopefully let a sleeping giant lie.
Plastic Card Fraud Trends (Sept. 10 and 24, 10 a.m. and 2 p.m. CDT) Plastic card fraud is a lot like a rainstorm, an almost inevitable inconvenience with which we have had to cope with and pay for. Learn what’s new in the area of plastic card fraud risks, loss controls, and best practices.
CUSOs - Controlling risk to drive reward (Nov. 12, 10 a.m. and 2 p.m. CST) Some credit union leaders look at CUSOs through “credit union glasses.” CUSOs are entrepreneurial, for-profit companies that have to remain nimble and take more risk. Understand and manage the risk, so you and your CUSO reap the rewards.
“These Webinars are designed to provide decision-makers and staff with key insights and best practices that will help your credit union programs and functions run smoothly and successfully,” said Gary Pate, director of insurance compliance and risk management for CUNA Mutual.
Participants will need a computer, an Internet connection, Web browser and a telephone. Registration opens 45 days prior to each session. To register, go to www.cunamutual.com/2008RiskManagementWebinars. Webinars are only available to current Credit Union Bond policyholders, and access to registration requires a UserID and Password. Policyholders without a UserID and Password should go to www.cunamutual.com, click on “Welcome,” and then select “New User Registration” from the navigation options. In addition, all sessions will be recorded and can be accessed by policyholders at any time using a UserID and Password through the Web-based Credit Union Protection Resource Center.
Credit unions needing additional assistance should contact the Credit Union Protection Response Center at 1-800-637-2676.
CUNA Mutual Group is the leading provider of financial products and services to credit unions and their members worldwide. More information on the company is available on the company’s Web site at www.cunamutual.com.
President announces financial literacy council
THE PRESIDENT: I appreciate members of my Cabinet joining me today with some of our citizens who care about the future of our country and are willing to do something about it. Earlier today I signed an executive order establishing the President’s Advisory Council on Financial Literacy. I have asked people from the business world, the faith world, the non-profit world, to join this council in order to come up with recommendations as to how to better educate people from all walks of life about matters pertaining to their finances and their future.
Chuck Schwab is the chairman of this group, and John Hope Bryant is the vice-chair. These two men have agreed to take time to take the lead, and I appreciate it.
You know, it’s interesting that if we want America to be as hopeful a place as it can be, we want people owning assets. We want people investing. We want people owning homes. But oftentimes, to be able to do so requires literacy when it comes to financial matters. And sometimes people just simply don’t know what they’re looking at and reading. And it can lead to personal financial crisis, and that personal financial crisis, if accumulated to too many folks, hurts our country.
One of the issues that many of our folks are facing now are these sub-prime mortgages. I just wonder how many people, when they bought a sub-prime mortgage, knew what they were getting into: The low interest rates sounded very attractive, and all of a sudden, that contract kicks in and people are paying high interest rates. One of the missions is to make sure that when somebody gets a financial instrument they know what they’re getting into, they know what they’re buying, they understand.
We want people to own assets; we want people to be able to manage their assets. We want people to understand basic financial concepts, and how credit cards work and how credit scores affect you, how you can benefit from a savings account or a bank account. That’s what we want. And this group of citizens has taken the lead, and I really thank them—thank you a lot.
There’s—I understand that there are immediate concerns and that one of them has to do with our economy. This administration is monitoring our economy very carefully. Secretary Paulson is frequently giving me updates about conversations he’s had with people around the world and, obviously, with people inside America about our economy.
We have confidence in the long-term strength of America. And so should the American people. This is a flexible, this is a resilient, this is a dynamic economy, and the entrepreneurial spirit is high. But there is some uncertainty that we’re going to have to deal with. And one good way to deal with that uncertainty is to work with Congress to pass an economic growth package, a package that is big enough to affect a large economy; a package that will stimulate consumer spending; and a package that will stimulate business, including small business, investment.
Hank had good meetings today with the leadership up there on Capitol Hill; very constructive meetings that lead me to say that I’m confident that we can get an agreement passed, and we can get an agreement passed in relatively short order. All of us want to get something done, all of us want to get something done that will be temporary and effective, and all of us want to get something done as fast as possible.
Earlier today I commented that the legislative process takes time, and I just want to make sure that people’s expectations are set right. But I left the meeting that I just had in the Cabinet Room with the leadership in the House and the Senate with a very positive feeling. All of us understand that we need to work together; all of us understand that we need to do something that will be effective; and all of us understand that now is the time to work together to get a package done.
And that’s why Secretary Paulson has taken the lead for our administration. He will be the negotiator for the administration. He, too, is upbeat that we can get something done.
I appreciate very much you all coming. I appreciate what you’re doing. When we look back at this council, and people will say we’re glad that the administration took the action it took because somebody’s life is going to be better as a result of it.
Thanks for serving. God bless. Appreciate you.
Credit Unions Adopt Cost-Cutting Efficiencies Of Remote Deposit
Activities Double In One Year
DALLAS – The rapid-fire embrace of remote deposit services during 2007 has saved credit unions thousands of dollars. And as an increasing number of credit unions contemplate remote deposit services in 2008, millions of dollars hang in the balance.
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Credit unions are being squeezed by increasing expenses related to the inefficiencies of dealing with paper checks and the courier costs for sending those paper checks for processing. At the same time, credit unions are discovering how remote deposit services produce cost-saving efficiencies.
“This past year has seen an explosion of adoption,” said Jody Beck, senior vice president of operations for Southwest Corporate Federal Credit Union. “And the prediction for the new year is that it will be even busier.”
As one of the nation’s largest payment services providers for credit unions, Southwest Corporate’s statistics help illustrate a nation-wide trend. A year ago, in November 2006, 134 credit unions had signed up for Southwest Corporate’s remote deposit service. Those 134 credit unions represented 548 branches, where remote deposit services were deployed. Now, about a year later, the number of credit unions choosing Southwest Corporate’s remote deposit service program has grown to 331, representing 1,177 branches in 27 states.
Transactions jumped as well—going from 2.5 million in November, 2006 to well over 5 million just one year later.
“This product essentially doubled during the past year,” Beck said. “And I think it is important to put these numbers in context--this is a service that didn’t even exist three-to-four years ago.”
With Southwest Corporate’s remote deposit service, check scanners are installed at the branches and tellers scan checks in batches throughout the day. The remote deposit software provides instant verification of image quality, balances the transactions and sends check images to Southwest Corporate, Beck explained. Data completion is handled on Southwest Corporate’s end, and the credit union no longer spends time and money encoding checks.
Beck said imaged checks are then cleared the most expeditious and least-costly method, and finally, images are archived for online member access via Southwest Corporate’s Internet gateway.
“Capturing deposit transactions at the point of entry has other advantages,” Beck said. Real-time processing facilitates faster identification of fraudulent activity and customer deposit errors. Digital storage of transactions reduces the opportunity for checks to become lost during transport and eliminates the need for microfilming.
“We were microfilming and endorsing items, not to mention having to bundle and log the checks to get them ready for the run,” said Terri Mickelsen, vice president of internal operations at First Financial Credit Union in Albuquerque, NM. First Financial Credit Union deployed Southwest Corporate’s remote deposit service just a year ago. “We were still pulling our own checks two years ago, so I feel like we’ve come a long way in a short time, Mickelsen said, “I wish I had pulled the trigger long before I did.”
Although the number of credit unions adopting remote deposit services has been significant since the beginning of the 2007, there is no backlog or needless delays for credit unions wanting to implement the service. In fact, credit unions can determine the implementation timetable. “Credit unions make the decision when it is convenient for them, and Southwest Corporate can meet that timetable,” Beck said. That credit union-oriented scheduling is possible because of Southwest Corporate’s dedicated Remote Deposit Implementation Team—a feature not available from all remote deposit providers.
“Our dedicated implementation team is credit union experienced and after launching the service with well over 250 credit unions, they have tackled and solved every possible problem—including putting several Louisiana credit unions onto the services within days of Hurricane Katrina’s devastation in New Orleans,” Beck said.
Southwest Corporate has its own “testing lab” to check software compatibility and integration as credit unions prepare to bring remote services online.
Remote deposit efficiencies help reduce operational expenses, including expenses related to courier services needed to transport checks from branch locations.
“Aside from increases related to rising gasoline prices, the cost per item of dealing with paper checks is rising as more and more people are writing fewer and fewer checks,” Beck said.
A just-released Federal Reserve study officially proclaimed what many have already witnessed.
The Federal Reserve’s 2007 study of noncash payments revealed that in 2006 more than two-thirds of all U.S noncash payments were made electronically. From 2003 to 2006, the period covered by the study, all types of electronic payments grew while check payments decreased.
About 19 billion more electronic payments were made in 2006 than in 2003. In contrast, the number of checks paid fell by about 7 billion over the same period. Of the more than 90 billion noncash payments in 2006, about 63 billion were electronic and around 33 billion were checks.
The Fed study also noted: “One of the most significant changes of the past three years has been the increasing proportion of checks processed electronically. Such changes have improved the efficiency of the check clearing system.”
“The results of our study underscore the ongoing importance of check electronification and other innovations that improve the efficiency of the U.S. payments system,” said Richard Oliver, executive vice president of the Federal Reserve Bank of Atlanta and the Federal Reserve Banks’ product manager for retail payments.
Still, with some 33 billion checks written in the U.S. during 2006, check processing will remain an important member service for many years. “However, the way those checks will be processed will continue to change,” Beck said.
“In this case, change is good,” Beck said. “Lots of credit unions are going to save lots of money by processing checks electronically.”
Know the Facts about Overdraft Privilege
By John M. Floyd, Chairman and CEO
Overdraft programs have saved a number of members just like yours on countless occasions from the embarrassment and expense due to unintentionally overdrawn items. Institution after institution provides its members the peace of mind these programs offer and a majority of the members realize the value of the service. Members are able to pay one – and only one – overdraft fee and avoid merchant bounced check fees.
Again, unfortunately, overdraft programs are receiving negative attention. This attention is being drawn to the industry because there are programs that do not have the best interest of your member in mind.
H.R. 946
H.R. 946 is the industry’s hot topic concerning overdraft programs. Essentially the bill states institutions cannot impose an overdraft protection fee on an account for paying any check unless the member has requested the service. If H.R. 946 passes, it will affect the way institutions are able to pay checks – every type of overdraft program – the ability to serve members and earn any kind of income in a very competitive marketplace.
What is an institution to do?
If your credit union is looking to implement or already has an overdraft program, be sure it is guaranteed to be non-discriminatory and 100 percent compliant with federal and state regulations, as well as with any recently suggested changes. If you are not compliant and are failing to educate your members about the program, a red flag will be raised.
Overdraft Privilege
The advantage of overdraft privilege is members may overdraw their transaction accounts, subject to a one-time, pre-established limit. The overdrawn account must then return to a positive balance every 30 days. This one-time fee is the same fee the credit union would charge for an NSF check when it is returned. Your members are benefiting by your institution paying the check and not being penalized by a merchant fee in addition to an NSF fee.
Education is imperative to success
Members need to fully understand your overdraft program so they know how to use it and see how you’re providing them with a much-needed service. H.R. 946 mentions members being unaware of overdraft fees until statements are received at the end of the month. To implement properly, members should know about the overdraft privilege program and their dollar limit from the beginning – before they even use it – and every time they use it.
Know your product
Before you ever implement an overdraft program, be certain you are clear on how it works in conjunction with your core processor and that it complies with current rules and regulations. With thorough member education, your institution will be able to implement an overdraft program that will make members happy every time it’s used and, topping it off, you’ll be in compliance too.
To get the facts about overdraft privilege or to answer any questions you still have regarding overdraft privilege, contact James Atwood, JMFA Regional Director, at 877-668-4857 or James.Atwood@JMFA.com .
About JMFA:
John M. Floyd & Associates (JMFA) is a profitability and performance improvement consulting firm—and an endorsed overdraft privilege provider for the Credit Union Association of New Mexico —serving more than 2,000 financial institutions in 49 states and Central America. JMFA is also recognized for training, account acquisition, executive placement, fraud protection solutions and earnings enhancement programs, as well as product, service, pricing and technology improvement consulting. As a direct result of our programs, JMFA has helped thousands of clients dramatically improve their performance and their bottom line. To learn more about JMFA please visit www.JMFA.com or call 800-809-2307.
Winona Nava elected to CUNA board
Guadalupe Credit Union is proud to announce Winona Nava’s election to the Board of Directors of the Credit Union National Association (CUNA) in December. She was one of four candidates seeking to represent credit unions with less than 15,000 members throughout the Rocky Mountains and Plains states. Ninety percent of credit unions in the US are CUNA affiliates.
Winona’s election by her peers marks additional recognition of her dedication and skill at successfully leading smaller credit unions through the changing needs and challenges of delivering financial products and services while retaining the credit union spirit. In May of 2007 she presented a Best Practices session titled “Serving the Hispanic Market” at the CUNA and National Credit Union Foundation conference on serving Low Wealth Households held in New Orleans. She also serves on CUNA’s Membership Growth Task Force and the Hispanic Resource Advisory Group.
Credit unions in the news: Money Magazine likes CUs
The best little deal in banking
Credit unions offer sweet deals on credit cards and auto loans, the best CD rates in the business and heaps of personalized services. And yes, you too can join one.
By Carolyn Bigda, Money Magazine writer-reporter
November 13 2007: 10:09 AM EST
(Money Magazine)—If you belonged to a credit union in the past, it was probably because a volunteer at work or church approached you to let you know about the good deal you could get on a car loan.
Credit unions still offer car loans, they’re still tied to affiliation groups, and they still have friendly members looking to let you know about a good deal. But today these not-for-profits are in a pitched battle with big retail banks for all your banking business.
That’s good news for you. You’ll find credit unions with networks of free ATMs and terrific credit-card deals as well as rates on loans and savings products that the megabanks can’t match. A recent study by Informa Research Services found that a higher percentage of credit union members liked their institutions than did bank customers.
And you don’t need to belong to a church or work for a company that has a credit union to find one you can join. Not convinced? See if these five reasons change your mind:
Savings: How to earn real money
While large national banks were reluctant to pass on Federal Reserve rate hikes of previous years, credit unions tracked the Fed to offer higher-than-average yields, says Kyle Selberg, CEO of BankingMyWay.com, which follows bank and credit yields.
And when rates dropped in September, credit unions gave up little ground. These days you can still find phenomenal deals on CDs. For example, the Space Age Federal Credit Union in Denver offers a 16-month CD that pays 7 percent through the end of the year (on Jan. 1 the rate converts to 5 percent for the remainder of your CD’s term).
And savings-account rates at some credit unions are competitive with those of major online banks. Recently, traditional savings accounts at the American Airlines Federal Credit Union, based in Texas, yielded 4.59 percent, slightly higher than rates at HSBC Direct.
Best deal on a six-month CD: Sabine Federal Credit Union (Orange County, Texas): 5.43 percent
National bank average: 3.45 percent
Credit cards: low rates, low fees, low penalties
Today the average bank credit card charges 13.69 percent, according to Bankrate.com. At credit unions it’s 12.16 percent, reports the National Association of Federal Credit Unions.
A 2005 report from the Woodstock Institute, a nonprofit economic development group, found no credit unions practicing “universal default,” a much criticized policy in which your lender raises your interest rate if you default on another lender’s loan.
Some credit unions won’t penalize you with higher rates even when you’re late on their own card’s bill. If they do, you’ll rarely pay more than 18 percent, compared with upwards of 30 percent at major banks.
One caveat: When it comes to reward cards, credit unions fall short. The rewards tend to be less rich (typically less than 1 percent in points or cash back vs. 1 percent or more from a bank card), and the cards may charge annual fees, so check the fine print.
Best deal on a credit card: Visa classic, Pennsylvania State Employees Credit Union: 9.9 percent
National bank average: 13.69 percent
Auto loans: They’re the best-known credit union deals for a reason
You’re also more likely to qualify for those low rates, even if your credit history isn’t polished or you’re a recent graduate just building a credit profile. “We understand that real life happens, so we’ll take a look at the whole picture,” says Nancy Sieller, loan manager at Torrington Municipal and Teachers Federal Credit Union in Torrington, Conn. “We want to work with you.”
Best deal on a four-year new-auto loan: Palmetto Citizens Federal Credit Union (South Carolina): 3.95 percent
National bank average: 7.64 percent
Home loans: Financing you aren’t likely to get from a bank
Maybe you or your kid wants to buy a home with little or no money down. Well, good luck getting that kind of loan from a bank in the wake of the subprime mortgage collapse.
Some of the largest credit unions, though, now offer what’s called the Home Loan Payment Relief (HLPR) mortgage. It finances 97 percent or more of the cost of a home and is available to home buyers with limited income and, increasingly, to those looking to refinance out of an adjustable-rate mortgage.
If you’re putting the standard 20 percent down, you’ll get an interest rate that’s as good as you’d find at a bank, and borrowers may also save on extraneous fees. The Navy Federal Credit Union, based in Vienna, Va., for example, doesn’t bill document-prep and other charges and estimates it shaves an average of $1,000 off closing costs.
Best deal on a home-equity loan: Weld Schools Credit Union (Colorado): 5.95 percent (10-year, $20,000, 80 percent loan to value)
National bank average: 8.19 percent
Perks: Take a class, get a deal on kids’ savings
Many credit unions extend their services far beyond basic banking. You might find free personal-finance classes for your teen or complimentary retirement and credit counseling programs.
The McGraw-Hill Employees Federal Credit Union in New York City and New Jersey, for example, provides furlough loans to members who lose jobs and lets them defer payments for up to three months.
Some credit unions, including Achieve Financial Credit Union in Connecticut, will comb through a credit report with you and suggest how to improve your score.
And many offer kids’ financial literacy tools and special savings rates: Youth CDs, for instance, often carry the same yields as their adult version but require lower minimum balances and give kids the opportunity to make additional deposits during the CD’s term.
Best perk: Members of Amplify Federal Credit Union in Austin can use the credit union’s online bank to track all their financial accounts (including those outside of Amplify). It’s like Quicken, only free.
Your big questions answered
Question: Can I really join a credit union?
Answer: Thanks to 1998 legislation loosening membership restrictions, chances are better than ever that you can. Now you just have to figure out where you’re eligible.
Step 1 Ask your mom and dad (and your grandparents...). If someone in your family is a member, you often qualify to join as well.
Step 2 Find out if your employer, trade group, alma mater or church is affiliated with a credit union. If you’re a pharmacist in Pennsylvania, for example, you can join the Pennsylvania State Employees Credit Union.
Step 3 Still nothing? Time to check out the online databases: Go to the credit union locators at ncua.gov and creditunion.coop. Based on information such as your location, religion and ethnic background, you’ll get a list of credit unions you might be able to join. Click on each credit union’s Web site to learn the specifics.
Question: Should I ditch my bank?
Answer: It’s worth considering if the credit union is a member of a large, free, nationwide ATM network such as the Co-op Network, which includes 25,000 ATMs (vs. 17,000 for Bank of America), and it has online banking too.
But many credit unions still can’t match the big banks when it comes to the breadth of financial products or their services (like late branch hours). Combining your credit union membership with a checking account at a regular bank will probably offer you the best of both worlds.
CUES selects John M. Floyd & Associates as 2007 Supplier of Year
Leading credit union development organization recognizes value of JMFA service
BAYTOWN, TX (Nov. 8, 2007) – John M. Floyd & Associates (JMFA) was acknowledged by Credit Union Executive Society (CUES) – one of the leading credit union development organizations – as the CUES’ 2007 Supplier of the Year (http://www.CUES.org). The award was presented during the opening session at its annual CEO Network event in Key Biscayne, Fla., with more than 200 credit union CEOs in attendance. This acclaimed award recognizes suppliers that have played a critical role in advancing the credit union movement.
“Knowing that the winner is determined by a number of important factors, we are certainly pleased to know that industry leaders appreciate the benefits JMFA offers to credit unions,” said John M. Floyd, chairman and chief executive officer of JMFA. “While we have seen our products and services make a positive impact on hundreds of credit union clients, to receive the 2007 Supplier of the Year distinction is an extreme honor.”
Nominees were judged by the CUES Board of Directors on their contributions to the credit union industry, the benefits of their product or service to the movement, recommendations from client credit unions, the nominee’s role in the community, and their achievements in the industry. JMFA has served credit unions for many years and has become a well-known name in the industry as a provider of innovative performance improvement solutions.
JMFA continually strives to stay informed about industry issues and adjusts its service offerings to ensure it provides the most valuable products and services. Over the past 30 years JMFA has helped over 2,000 clients improve their organization’s bottom line through revenue growth and expense savings. In addition, JMFA supports the credit union movement by working with various state leagues and associations, writing unbiased articles and white papers on relevant industry topics, leading classes and workshops, and speaking at numerous venues to help educate and inform industry leaders.
“JMFA is a strong supporter of credit unions and is committed to helping them build a lasting value proposition for their members in a rapidly changing financial marketplace,” Floyd concluded. “In partnership with leading change agent organizations like CUES, every member of the JMFA team is focused on helping to improve the operations and profitability of our clients, thus helping them to continue to exceed their members’ needs through a unique service-driven business model.”
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About CUES:
CUES is a Madison, Wisconsin-based independent membership association for credit union executives worldwide. Its mission is to advance the professional development of credit union CEOs, senior management and directors. To learn more about CUES please visit http://www.CUES.org.
About JMFA:
John M. Floyd & Associates (JMFA) is a profitability and performance improvement consulting firm and a leading provider of overdraft privilege programs serving more than 2,000 financial institutions in 49 states and Central America. JMFA is also recognized for training, account acquisition, executive placement, fraud protection solutions and earnings enhancement programs, as well as product, service, pricing and technology improvement consulting. As a direct result of its programs JMFA has helped thousands of clients dramatically improve their performance and their organization’s bottom line. To learn more about JMFA please visit www.JMFA.com or call 800-809-2307.
Marketing decisions should be consumer-driven
CUNA Mutual analyst provides insights to largest direct marketing conference
MADISON, Wis. – Today’s consumer-driven economy demands that marketing strategies reflect consumers’ motivations, needs and what triggers their reason to purchase. Dave Griffith, director of consumer analytics at CUNA Mutual Group, delivered that message to a room of marketing professionals at the Direct Marketing Association’s national conference in New York City.
Along with Mark Graham, chief innovation officer with Yankelovich Research, Griffith discussed the importance of leveraging insights around consumer attitudes as a powerful tool to create relevance when engaging with consumers.
“Consumer values, attitudes and behaviors should be significant elements in developing any marketing plan that hopes to connect with consumers,” said Griffith. “Too often marketers fall short in understanding why consumers are buying and what events are triggering that behavior. The use of traditional demographics is fine, but your strategy won’t fundamentally change until you better understand the motivations.”
Graham said getting to know consumers and how they make purchasing decisions requires an in-depth look at how lifestyles have changed, resulting in what he terms an inside-out world where busy consumers are concerned with taking care of themselves more than previous generations. Additionally, they’re taking risks to exert their own individuality. A few curious statistics he shared bear this out.
· According to the International Spa Association, there were 8,734 day spas in the United States in 2004, up from 4,389 in 2002, which accounted for $5.4 billion in revenue.
· The increasing amount of stress and time constraints is creating a wave of new products and channels that give people relief from their busy lives
· A recent New York Times article said “many young people in the workplace are finding that quitting their jobs is becoming the satisfying new alternative to the standard, entry-level vacation,” as two weeks doesn’t provide adequate down time.
Griffith said that through needs-based segmentation analysis, marketers are able to identify and study specific groups to determine their motivations and create a rich portrait of the customers within each segment. He noted CUNA Mutual is in the development phase of creating its own behavioral and attitudinal driven segmentation. This will be used to fuel product development and create more relevant messaging strategies.
CUNA Mutual Group is the leading provider of financial products and services to credit unions and their members worldwide. More information on the company is available at www.cunamutual.com.
Online disaster relief system activated for those affected by California wildfires
The National Credit Union Foundation and the California Credit Union League have activated the online disaster relief system CUAid.coop to raise money for credit union employees, volunteers and members affected by the wildfires raging in Southern California.
Credit union supporters can now help credit union people in Southern California by making donations through a secured website. Californians can donate via www.cuaid.coop/california. Credit union supporters everywhere else can donate via www.cuaid.coop.
All donations via CUAid.coop will be forwarded to credit union organizations in affected areas through the National Credit Union Foundation, a tax-exempt organization under Section 501(c)(3) of the U.S. Internal Revenue Code.
In Southern California, more than 950,000 residents have been evacuated, and more than 2,400 homes and businesses have been destroyed. The California Credit Union League is working to determine how many of those impacted are affiliated with credit unions. Throughout California, about one of every four residents is a credit union member, with 9 million members counted in the population of 36 million.
Three Ways to Help
Credit unions and other organizations that want to help are encouraged to take three steps:
1) Go to www.cuaid.coop or www.cuaid.coop/california and make a donation via credit card, wire transfer, or check.
2) Download any of the buttons and banners from the CUAid.coop “campaign materials,” then place a button and/or banner with a link to www.cuaid.coop or www.cuaid.coop/california on your internet and intranet home pages.
3) Use the sample letters, statement stuffer and point-of-sale materials to encourage your employees, volunteers, and members to make donations that will help survivors recover from this disaster and future disasters.
“We are calling on credit union leaders and communicators to promote CUAid.coop to help the credit union community help itself,” urges NCUF Executive Director Steve Delfin. “When credit union organizations link to CUAid.coop, we can collect donations more efficiently and distribute funds much faster to credit unions, employees, volunteers and members in affected areas.”
During past disasters, Delfin pointed out, “Millions of dollars left credit unions for Red Cross, Salvation Army and other outside relief groups. Those organizations do great work for the general population – and we would not discourage donations to them – but we believe many credit union employees, volunteers and members will want to donate to help fellow credit union people once they are given the opportunity via CUAid.coop.”
“We have received calls from credit unions throughout the state and other states wishing to help out those affected by this terrible disaster,” said Bill Cheney, California League president and CEO. “CUAid gives those credit unions and others a centralized location for their donations — with the secure knowledge that their contributions will go to help impacted credit unions, their employees, and volunteers.”
Disaster relief funds raised through CUAid.coop may be used for a broad range of disaster-related needs as identified by credit union organizations serving the affected areas. These needs include, but are not limited to:
Critical Needs - Credit union employees and volunteers can receive financial assistance for daily living items such as food, water, ice, batteries, clothing, diapers, temporary shelter, housing, gas and transportation.