Yes! Your money is safe at your credit union
CU funds federally insured
Albuquerque NM – New Mexico credit unions, which count over 615,000 members and hold nearly 17 percent of our state’s financial market share, are going largely unmentioned in the adverse financial headlines for a reason.
Historically, credit unions operate more conservatively and tend to hold more of their mortgage loans (about 70 percent nationally) in portfolio rather than sell them to Fannie Mae and Freddie Mac on the secondary market. And credit unions, as member-owned, not-for-profit cooperatives, are not out seeking ways to shore up lost profits by adding fees or pushing products that aren’t in the best interests of members.
“We want consumers to know that credit union accounts are federally insured through the National Credit Union Share Insurance Fund (the credit union equivalent to FDIC, administered through the National Credit Union Administration) to at least $100,000. In New Mexico, 100 percent of credit unions are insured under this program,” said Sylvia Lyon, president and CEO of the Credit Union Association of New Mexico.
The very existence of the credit union movement can be directly tied to another definitive economic situation – the Great Depression. People wanted to have a stake in their financial institution and the cooperative structure of credit unions (where every member has ownership and a vote) was born. Today we are seeing many people coming to credit unions to find a way to refinance non-traditional mortgages and put their money in a stable source offering good rates. Savings at credit unions have actually grown nearly 7 percent this year.
For information on NCUA Share Insurance, visit: the NCUA Web site.
Facts about credit union deposits
AmericasCUssecurestrongfed.pdf
NCUA's Johnson: NCUSIF strong at mid-year
NCUA Chairman JoAnn Johnson yesterday issued a statement on the mid-year assessment of the National Credit Union Share Insurance Fund (NCUSIF) and said the fund stands strong with an equity ratio estimated at 1.24% for June 30.
Johnson reminded that member deposits in federal and almost all state-chartered credit unions are federally insured by the NCUSIF, which in turn is backed by the full faith and credit of the United States government.
“Consumers who have federally-insured funds in credit unions should rest assured that their deposits are safe up to at least $100,000 per account, with additional coverage of up to $250,000 for certain retirement accounts,” Johnson said.
She added that the fund’s equity ratio is expected to increase to 1.285 by yearend.
With reports of customers lining up at California’s IndyMac bank to withdraw their funds after the FDIC took control of the bank this weekend and consumer confidence in the banking industry sliding downward, credit unions should continue to remind members that their deposit accounts our safe. NCUA’s brochure, How Your Accounts are Insured, explains the NCUSIF coverage for members. The brochure is available at www.ncua.gov.
Fryzel Confirmed as NCUA Board Chairman
On June 30, the U.S. Senate confirmed Michael Fryzel to replace JoAnn Johnson as chairman of the three-member NCUA board.
In a statement, Fryzel said, “As with the President’s decision to nominate me to the board of the National Credit Union Administration and confer the high honor of Chairman, I am deeply honored by my U.S. Senate’s confirmation. In preparing to assume office, I want to reiterate the priorities stated during my recent Senate Banking hearing: vigilant and thorough supervision, emphasis on safety and soundness, and dedication to protecting the consumer. The credit union industry, now entering its second century, has proven itself valuable to America’s consumers and as such has a right to expect fair, consistent, common-sense regulation. It is my commitment to conduct my chairmanship in that manner.”
Fryzel served at the Illinois Department of Financial Institutions from 1977-1989, heading the agency from 1982-1989. After leaving, Fryzel founded the Law Offices of Michael Fryzel, which specializes in financial regulatory and real estate law. Photograph provided by CUNA.
CUANM June 2008 newsletter
cuanm_e-newsletter_june_2008.pdf
CUBTRRA passes House
WASHINGTON (6/25/08)--The full House of Representatives last night passed a comprehensive financial regulatory relief bill which eases field of membership and member business lending (MBL) restrictions in underserved areas for credit unions.
The bill, known as the Credit Union, Bank and Thrift Regulatory Relief Act (CUBTRRA, H.R. 6312), passed by a voice vote after it was placed on the House Suspension Calendar. Such action is reserved only for non-controversial legislation.
CUNA President/CEO Dan Mica thanked U.S. Reps. Paul Kanjorski (D-Pa.), Ed Royce (R-Calif.), Financial Services Committee Chairman Barney Frank (D-Mass.) and Ranking Member Spencer Bachus (R-Ala.) for “working with us to attain regulatory relief for the nation’s credit unions.”
“This measure holds a number of substantive elements that will serve our members well,” said Mica this evening. “Now it is on to the Senate to ask for its consideration of the package.”
As its name suggests, the bill contains measures that would benefit credit unions, as well as banks and thrifts. Among provisions for credit unions, the bill proposes to:
• Allow all federal credit unions to apply to serve underserved areas, reversing the effect of a banker lawsuit that has prevented community and single-sponsor credit unions from reaching out to underserved areas;
• Provide increased MBL ability by exempting MBLs made in underserved areas from a statutory 12.25%-of-assets cap; CUNA estimates more than 40% of the nation’s census tracts are located in underserved areas;
• Grandfather previously approved underserved fields of membership for credit unions;
• Allow short-term payday loan alternatives within a credit union’s field of membership;
• Raise the current investment limit in credit union service organizations (CUSOs) and to 3% of unimpaired capital and surplus, up from 1%;
• Enhance the 2006 regulatory relief provisions that allowed the National Credit Union Administration (NCUA) to increase the 12-year maturity limit on non-real estate secured loans to 15 years, Section 104 would further permit the agency to issue regulations providing for loan terms exceeding 15 years for specific types of loans;
• Give the NCUA greater flexibility to respond to market conditions; and
• Clarify existing law that permits credit unions to participate in loan programs secured by the insurance, guarantees, or commitments of State or Federal governments, such as the Small Business Administration’s 504 program.
H.R. 6312 was introduced just last week by Reps. Kanjorski, Royce, and Dennis Moore (D-Kan.) and was backed by Chairman Frank.
Just as the credit union provision of the newly introduced legislation were based on the Credit Union Regulatory Relief Act (CURRA), the bank and thrift provisions also were based on a currently pending bill, the Bank and Thrift Regulatory Relief Act of 2008 (H.R. 5841), introduced in April.
Bank and Thrift Provisions
For commercial banks, the House bill proposes to allow the payment of interest on business checking accounts. For thrifts, CUBTRRA would remove the current caps on auto and business lending.
Left behind from that bill, however, were sections that would have allowed banks and thrifts to reorganize more easily as LLC or Subchapter S entities.
Some provisions benefit credit unions, as well as banks and thrifts. One example is the proposed change in Gramm-Leach-Bliley privacy notification requirements, according to CUNA Legislative Affairs Vice President Ryan Donovan.
Under this bill, financial institutions would not be required to send annual privacy notifications under certain circumstances if it has not changed its policies and practices with respect to disclosing nonpublic personal information since its last disclosure.
Next Steps
The bill faces a tougher road in the Senate, according to Donovan.
“The Senate just is not as far along in the process as was the House, but we will continue to make our case there,” the CUNA lobbyist said.
Both the House and Senate adjourn at the end of this week for a July 4 District Work Period and will return to session the week of July 7.
Despite the positive development, Mica emphasized CUNA was not finished in seeking more flexibility for credit unions in serving their members.
“We will continue to push for risk-based capital through reform of prompt corrective action (PCA) requirements,” he said. “And we strongly believe credit unions should have the power to offer more business loans to their members.”
The CUNA leader said the association would pursue----both in this Congress and the next--provisions contained in the Credit Union Regulatory Improvements Act (CURIA, H.R. 1537), which propose a higher cap on member business lending, as well as prompt corrective action reform.
NCUA Reaction
After the vote, NCUA Chairman JoAnn Johnson encouraged the Senate to build upon the solid start made by the House and consider “reasonable and important enhancements such as reform of the system of Prompt Corrective Action coupled with the institution of a Risk-Based Capital regime.”
She also urged the Senate to “increase consumer protections for credit union members during their consideration of a proposal to convert to another type of financial institution, and the modernization of credit union merger procedures covered by the Clayton Act.”
CO-OP Financial Services to match CMN funds
CO-OP Financial Services Creates $1 Million Matching Funds Program For Children’s Miracle Network
New Community-Focused Program Expands CO-OP’s Annual Contributions to Nearly $2 Million for the Charity
On behalf of Children’s Miracle Network, CO-OP Financial Services has created a $1 million matching funds program to encourage credit unions to participate in local fundraisers, according to CO-OP President/CEO Stan Hollen.
“CO-OP is always looking for innovative ways to assist Children’s Miracle Network and Credit Unions for Kids,” says Hollen. “By matching credit union contributions at the local level, we hope to create new fundraising opportunities for CMN children’s hospitals and see our annual $1 million donation multiply.”
Children’s Miracle Network is a non-profit organization dedicated to saving and improving the lives of children by raising funds for children’s hospitals. Each year the 170 Children’s Miracle Network hospitals provide medical care, life-saving research and preventative education to help millions of kids overcome diseases and injuries of every kind.
The Miracle Match Program has two distinct goals:
* Encourage credit unions to expand or develop a partnership with their local Children’s Miracle Network hospitals in an effort to raise new, incremental dollars.
* Substantially grow CO-OP’s $1 million dollar investment to help children’s hospitals serve an even greater number of sick and injured children.
Miracle Match Parameters
New events/activities or current events/activities that aren’t presently supported by CO-OP are open for the Miracle Match Program. The Miracle Match Program excludes existing events already receiving CO-OP support. Credit unions are eligible to receive one match per calendar year. (Credit unions with branches in multiple markets are eligible for one match per market.) Funds raised for Children’s Miracle Network will initially be matched dollar for dollar up to $10,000. Any fundraising effort exceeding $10,000 will be matched as follows:
* CO-OP will match $10,000 for funds raised between $10,000 - $49,999.
* CO-OP will match 20% of the total funds raised for amounts of $25,000+ (up to $25,000 matched).
Match will be determined based on the net proceeds to the hospital from the event/activity.
Entering its third year as the national corporate sponsor for the Children’s Miracle Network “Champions Across America” program, CO-OP sought to expand the dollars they already donate to stimulate new credit union giving for the organization. In addition to “Champions,” CO-OP runs two annual golf tournament fundraisers, sponsors dozens of additional credit union events around the country, participates in an employee giving program and a percentage of each CO-OP Network ATM transaction is donated to Children’s Miracle Network hospitals every year.
“The credit union movement and Children’s Miracle Network are guided by the same cooperative spirit and tradition of ‘people helping people,’ and CO-OP is proud to annually contribute nearly $2 million to such a worthy cause,” says Hollen. “The 17 million kids being treated at the hospitals have been confronted by more adversity in their short lives than most people will ever encounter. It’s an honor to be the largest credit union system contributor within a movement that has contributed more than $50 million to CMN through the years.”
Go to the CO-OP Miracle Match page for details and downloads.
Southwest Corporate surpasses 1,500 branches
Dedicated implementation team helps keep service ahead of goal
Plano, Texas - Processing paper checks offers a number of challenges for multi-branch credit unions; challenges that Southwest Corporate is helping them to overcome—quickly. Although it introduced remote deposit services a scant three years ago, Southwest Corporate Federal Credit Union has just surpassed a significant milestone: 1,500 credit union branches and 400 credit unions now have made the corporate their remote deposit service provider.
Brad Ganey, Southwest Corporate’s Vice President of Item Processing, noted that the corporate achieved its goal of 1,500 credit union branches months ahead of schedule. “Credit unions have embraced this technology wholeheartedly. Another reason for the accelerated achievement of this goal is our dedicated implementation team,” said Ganey.
Southwest Corporate provides electronic image capture and real-time transmission of deposits to its item processing center for credit unions from Hawaii to Puerto Rico.
But it was a credit union with seven branches in and around Houston that help Southwest Corporate pass this most recent milestone. Primeway Federal Credit Union’s main office is located in downtown Houston. The distance to each of its branch offices ranges from just a few miles to 75 miles away in Brenham, Texas. Remote deposit, the electronic imaging and processing of checks, has enabled the credit union to shorten timeframes and eliminate costs imposed by these logistics, according to Vicki Squires, Primeway Vice President of Office Operations.
“Operations are definitely more efficient, especially with our outlying branches. Items are moving into the processing stream faster. Before, our Brenham branch would send checks to Houston for encoding one day and the following day the checks would be sent to the Fed. That’s too long. Now when we have an item with a two-day hold, it actually enters the system for processing before the hold expires,” said Squires.
Primeway opted to implement Southwest Corporate’s “Teller Capture” solution, which incorporates a check scanner at each of the credit union’s approximately 30 teller workstations. Tellers can process checks as they are accepted instead of at day’s end.
The decision has considerably improved employee quality of life, according to Squires. “Tellers close much faster, because they don’t handle encoding anymore and most of the processing is done before the end of the day. Plus, they don’t have to wait on the courier to arrive. We’ve saved money on courier charges, too,” added Squires. “One branch closes at 7 p.m. That gets expensive.”
Remote deposit technology has given Primeway tellers the ability to resolve problems faster. Instead of waiting for research to return from the main branch, tellers now can look up items on their own computers.
“Just having the history of items at every workstation has been a big benefit, said Squires. It improves tellers’ ability to make hold decisions. Research is no longer exclusively management’s responsibility. Operations losses have been significantly reduced.”
In addition to Teller Capture, Southwest Corporate’s suite of remote deposit services also includes Branch Capture and Business Capture. For more information, visit www.swcorp.org or contact a representative at 800-442-5763.
About Southwest Corporate
Southwest Corporate Federal Credit Union is a $14 billion Plano, Texas-based institution that serves nearly 1,500 member credit unions nationwide. Southwest Corporate’s broad financial service portfolio includes item processing and remote deposit services, investment services, ACH origination and electronic bill payment, ATM/debit card services, and correspondent services.
CUNA Mutual expands European operations
New European Headquarters opened May 1 in Dublin, Ireland
DUBLIN, IRELAND – CUNA Mutual Group’s International Division announced an expansion of its European operations, as it opened new European headquarters in Dublin, Ireland May 1.
Ireland’s Minister for Innovation Policy Michael Ahern officially opened CUNA Mutual’s new office. “We are delighted that CUNA Mutual chose Ireland to be the hub of its European operations,” Ahern said.
The expansion of CUNA Mutual’s International Division comes near the end of a three-year transformation effort at CUNA Mutual. The company is pursuing growth opportunities within its traditional credit union market and new ventures outside the credit union space.
“With the opening of this office, we’re positioning for the future,” said Sue Albrecht, senior vice president of international business at CUNA Mutual. “We’re energized to grow and make a difference around the world by providing people with access to financial well-being.”
CUNA Mutual has been pivotal in the establishment of the credit union movement throughout Europe. CUNA Mutual, headquartered in Madison, Wis., also has international operations in Canada, Australia, Korea and Latin America.
“We see great opportunities for growth for CUNA Mutual in the European market,” said CUNA Mutual President & CEO Jeff Post during the grand opening ceremonies. “We believe the values and characteristics that contributed to our growth in the U.S. and other countries will serve us well in this part of the world.”
CUNA Mutual Group is a leading provider of financial services to credit unions and their members. 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 http://www.cunamutual.com.
JMFA offers free trial of FraudMANAGER
John M. Floyd & Associates (JMFA) has announced that it will offer a free 90-day trial of its innovative, browser-based fraud protection program JMFA FraudMANAGER, to Credit Union Association of New Mexico members.
“With every new payment mechanism introduced to the financial services industry, the potential risk of transaction fraud and loss increases for credit unions,” said Steve Swanston, JMFA Executive Vice President. “JMFA FraudMANAGER combines intelligent evaluation and authentication capabilities to protect credit unions from not only traditional check fraud, but also from new forms of fraud that are emerging with the arrival of electronic transactions, including ACH and remote deposit transaction fraud.”
JMFA FraudMANAGER is a proactive solution that evaluates every incoming check and ACH transaction flagging potential counterfeit checks, forgeries, unauthorized drafts, and unusual payment activity – all on the same day the transaction is received, enabling users to return most fraudulent items within the 24-hour returns window.
The JMFA FraudMANAGER program fills a crucial need within the industry – detecting potentially fraudulent transactions on the day they are presented from external sources. This gives credit unions the opportunity to find the items before they have entered the system and resulted in potential losses for both the institution and its members.”
CUANM members who are interested in learning more about the free 90-day trial of the JMFA FraudMANAGER program should contact Kelly Flynn, JMFA Sales Director of Fraud Solutions at 877-648-2552 or by email at Kelly.Flynn@JMFA.com
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About JMFA:
John M. Floyd & Associates (JMFA) is a profitability and performance improvement consulting firm, serving more than 2,000 financial institutions in all 50 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.
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 .
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(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