HEADLINE NEWS

Search for League President Begins
     The League board of directors has appointed a search committee who will be responsible for collecting the applications received for the position of Delaware League president. The position became available when Bob Walls resigned to become the president/CEO of the New Jersey League.
     The committee consists of Jerry King, DEXSTA FCU, chairman; Cheryl Chilcutt, Chestnut Run FCU; Meredith Jeffries, New Castle County Delaware EFCU; and Joel Romaine, DPL FCU. Advertisements for the position will appear in The News Journal, CU Times, and CU Journal. Although the committee has not set deadlines for the search process, advertising will run through the first week in September. Here is the position posting: 

Ninth Annual Volunteer Leadership Conference – October 14-16
     The Delaware and Maryland Leagues are again co-hosting the Volunteer Leadership Conference on October 14-16 at the Clarion Resort Fountainebleau Hotel, 101st Street/Oceanside, in Ocean City, Maryland. To reserve your room, call the hotel at 1-800-638-2100 no later than September 14. To receive the group rate of $114 per room/per night, you must identify yourself as part of the Delaware/Maryland CU League Volunteer Conference.
     The conference fee is $250 per person, which will include two full breakfasts, lunch, and Saturday night reception. Spouses/guests can participate in all meals for a $60 fee. Scholarships are available for CUs under $20 million in assets by contacting Alice Smith, before the conference deadline of Wednesday, September 14.
     This year’s topics include ways to revitalize your credit union, the Bank Secrecy Act, insurance needs, supervisory committee training, staff coaching, and how to get new CU volunteers. Each CU manager/CEO and board and supervisory committee chairs have received a full eight-page brochure. For more information, contact Alice Smith at the League office.

Annual Business Mixer Golf Outing
     Golfers…are you ready to tee up? The Delaware CU League is hosting its annual business mixer golf outing on Tuesday, October 4. The outing will take place at the Wild Quail Golf Club in Wyoming, DE.
     The cost to participate in a four-person scramble is $85 per golfer, which includes greens and cart fees and lunch. Registration is limited to the first 100 players, so you’ll want to secure your spot early. The registration deadline is September 30.
     This is an excellent opportunity to thank your credit union’s corporate sponsor or to host your select employee group representatives. For more information about the golf outing, contact Jane Bailey at the League office.

COMPLIANCE RECAP

Dormant Account Law Changes in Maryland
     Effective July 1, 2005, Commercial Law Article §17-308.2 has changed regarding dormant accounts for CU members who reside in Maryland. The text of this bill:
     “Not more than 120 days or less than 30 days before the filing of the Maryland report required under §17-310 of this subtitle, the holder in possession of presumed abandoned property shall send a written notice by first-class mail to the apparent owner of the presumed abandoned property to the owner’s last known address informing the owner that:
    (1)    The holder is in possession of property subject to the provisions of this title; and
    (2)    The property will be considered abandoned unless the owner responds within 30 days of the notification of the holder.”
Prior to this change, notices of this type were required to be sent to any affected member regardless of the amount held by the CU. Under this amendment, notices are only required for account balances exceeding $100.
     Reminder: Credit unions must file abandoned property reports in the state where the member with the dormant account resides. In Maryland, the report, based on June 30^th information, must be filed by October 31. For info, call Susan Fallon.

Bank Secrecy Act InfoBase
     The Federal Financial Institutions Examination Council (FFIEC) has created a website with a huge amount of information on the Bank Secrecy Act – http://www.ffiec.gov/bsa_aml_infobase/.
     The site contains BSA and anti-money laundering definitions, BSA forms, red flags, and FAQs. The site provides links to the financial institution regulatory agencies, including NCUA, FinCEN, OFAC, the Federal Reserve, FDIC, OCC, and OTS. The site has a link to BSA regulations and different PowerPoint presentations that CU trainers can use as a resource in designing internal training. This is a valuable resource for examiners, compliance personnel, BSA officers, and trainers. 

Opt-Out Notice Rule Effective 8/1
     Beginning August 1, 2005, financial institutions and other companies that send “prescreened” solicitations of credit or insurance to consumers are required to provide simple and easy-to-understand notices that explain consumers’ right to opt-out of receiving future offers. The FTC, as required by FACTA, issued a final rule on January 31, 2005, which specified the format, type size, and manner for these opt-out notices.
     If consumers decide that they don’t want to receive prescreened offers of credit and insurance, there are two choices: (1) opt-out of receiving them for five years; or (2) opt-out of receiving them permanently. Consumers can call toll-free 1-888-5-OPTOUT (1-888-567-8688) or visit www.optoutprescreen.com for details. The telephone number and website are operated by the major consumer reporting companies. When calling or visiting the website, consumers will be asked to provide certain personal information, including home telephone number, name, Social Security number, and date of birth. The information provided is confidential and will be used only to process the request to opt-out.
     Remember that if your member has joint credit relationships, like a mortgage or a car loan with a spouse, partner, or other adult, they may continue to receive some prescreened solicitations until both exercise their opt-out right. Another note: If a member has a fraud or active military alert on his/her credit report or has already opted out of pre-screened solicitations, the CU can’t mail prescreened solicitations either. The rule is found online at FTC Final Rule and the FTC’s consumer notification at FTC Consumer Brochure .

Fed Adjusts Mortgage Fees That Trigger Disclosures
     The Federal Reserve Board has announced the annual adjustment of the dollar amount of points and fees that trigger additional disclosures and prohibitions under the Truth in Lending Act (TILA) for certain mortgage loans. The dollar amount will be adjusted from $510 to $528 for 2006, which is based on the Consumer Price Index. This adjustment will be effective as of Jan. 1, 2006. These adjustments are required under the Home Ownership and Equity Protection Act of 1994, and the disclosures and prohibitions will now apply when total points and fees on a loan exceed $528.

CU SYSTEM NEWS

CUNA Mutual Introduces New Executive Benefits Specialist
     Michael Downey, CLU, has joined CUNA Mutual Group’s Northeast Marketing Division as Executive Benefits Specialist for Pennsylvania, Delaware, Maryland, New Jersey, Western New York, and West Virginia.
     Downey specializes in the implementation of non-qualified deferred compensation benefits and wealth management planning for executives of credit unions. He has more than 15 years experience in helping high net worth individuals and business owners in estate planning, business succession planning, and executive benefit planning. He assisted firms such as Smith Barney, UBS, and Morgan Stanley with their clients’ insurance and planning needs.
     To contact Downey, call 800-333-2644, ext. 7690, or e-mail at Mike.Downey@cunamutual.com.

CUs Featured in Rotary Magazine
     Credit unions’ high customer satisfaction and good rates are the reasons they’re growing, according to the August issue of The Rotarian. The article explains the difference between CUs and for-profit banks owned by stockholders. Several Rotarians who are CU members are interviewed. 

Nominee Represented CUNA in Supreme Court Case
     John Roberts, nominated to the Supreme Court by President Bush, has a place in credit union history. As an attorney with the Washington-based law firm of Hogan & Hartson, Roberts argued the AT&T Family FCU membership case on behalf of CUNA before the U.S. Supreme Court in October 1997. The Supreme Court eventually ruled against credit unions in the case, resulting in the Credit Union Membership Access Act, H.R. 1151, which was signed into law by President Clinton in August 1998. Roberts clerked for then associate Justice William Rehnquist and was hired by CUNA for his knowledge of the different justices.

Congratulations to the members, volunteers, and staff of DELAWARE STATE POLICE FCU as the CU celebrates its 45^th anniversary on August 30.

Kudos to CHESTNUT RUN FCU, DELAWARE ALLIANCE FCU, DEXSTA FCU, and DPL FCU for making an annual contribution to CU House in Washington, D.C.

PENINSULA METHODIST FCU has a new address: P.O. Box 278, Vienna, MD 21869. The phone number is (410) 376-0450.

Our condolences to League education director Bernadette Hines and her family on the recent death of her father.

Congratulations to League communications director Alice Smith as she begins her 20^th year of service at the League.

Delaware CU duffers Allen Riley, Charles Riley, John Lingo, and Dick Stoops won Mid-Atlantic Corporate’s charity golf tournament on June 9.

Marketing Coordinator Position. Delaware FCU is seeking a full-time marketing coordinator. This is a salaried position (firm low 20’s) reporting to the vice president of marketing and assisting all marketing staff in an administrative capacity, while gaining exposure to various marketing channels such as direct mail, radio and print advertising, public relations, event marketing, inventory control, and e-commerce. Must work well under pressure, possess the ability to multi-task, and have a passion for marketing. Associate’s degree and at least one year’s experience in a related field preferred. Delaware FCU offers a competitive salary with immediate benefits and incentive bonuses. Send your resume with cover letter to the attention of the Vice President of Marketing, 655 S. Bay Road, Suite 5A, Dover, DE 1990l or email scoleman@delawarefcu.org. EOE/D/V.

EDUCATION OPPORTUNITIES

Bank Secrecy Act Classroom Training. This three-hour session is suited for all CU staff and will be offered at three different times and locations:
            1. Monday, August 22 – 4-7 p.m., Rm. 407A, Del Tech Conference Center, Dover
            2. Tuesday, August 23 – 9 a.m.-noon, Holiday Inn, Route 273, Newark Change!
            3. Tuesday, August 23 – 5:30-8:30 p.m., League office, New Castle
Room is still available; register today! 

League Council Meetings in August/September
8/17      Mortgage Council: Compliance and Interest-Only Loans – 10 a.m.-1 p.m.
9/27      Collection Council: New Bankruptcy Law – 10 a.m.-noon. Both sessions will be held at the League.
No fee for council members; $65 for non-council members. Regis. deadline: August 10.

August/September QuickBites Teleconferences
8/18      Website Compliance, 11 a.m.-noon
8/23      Teambuilding, 11 a.m.-noon
8/31      Best Lending Practices, 11 a.m.-noon
9/8        Management Issues, 11 a.m.-noon
9/15      Share Account Administration, 11 a.m-1 p.m.
9/20      Robbery & Security Awareness, 11 a.m.-noon
9/29      Marketing: Creating a New Buzz, 11 a.m.- noon
The fee for each one-hour session is $99; the two-hour session is $169. Deadline to register: one week prior to the session. Call Bernadette to enroll.

One-Hour BSA Compliance Webinars
§         Thurs., Aug. 18, at 10 a.m. – USA Patriot Act and OFAC
§         Tues., Aug. 23, at 10 a.m. – CTR and SAR Form Filing Details
§         Tues., Aug. 23, at 2 p.m. – OFAC, CTR, and FinCEN Exemption Form Filing Details
The fee for each session is $100. For more information or to enroll, phone Don Baumann of the co-sponsor Verisure at 315-638-4334.

League Activities in July

COMPLIANCE/COMMUNICATIONS

     Compliance Issues and Risk Alerts. The League recently distributed compliance information regarding escheat reporting and HMDA reporting. In addition, copies of CUNA’s monthly Compliance Challenge were sent to CEOs and compliance personnel. The League continues to keep credit unions abreast of issues involving “phishing scams,” counterfeit cashier’s checks, and suspicious membership inquiries.  

     CULAC Fundraising Efforts. As of June 30, 2005, Delaware credit union members have donated $2331.65 to CULAC, which is 55% of Delaware’s goal for 2005. With the fall candy sale, we should easily meet our goal again this year.
     In another area, the Federal Election Commission recently approved payroll deduction by credit unions as a permissible fundraising method for CULAC. The rule will have an effective date of August 22nd. As of that day, it is permissible under federal law to launch a CULAC payroll deduction program for credit union employees. The League will help implement this program for interested credit unions.

LEAGUE SERVICES

     New Card Program. Through an agreement with the Illinois CU League, the Delaware League is able to offer instant-issue, non-reloadable, non-branded, stored-value Visa cards to our credit unions. These cards are purchased in bulk by the credit unions. As the cards are sold to members, the credit union enters a secure website and loads the value on the cards. The credit union earns income by charging a fee for the cards (usually $3-$5). The cards may be used every way Visa is accepted (with a few exceptions).

EDUCATION AND TRAINING

     NCUA PALS Conference.  Eleven Delaware credit union representatives, including two League staff members, attended NCUA’s workshop on CU efforts to knock out predatory lending on July 7. The summer Partnership and Leadership Success (PALS) meeting in Baltimore featured nine speakers with advice to CUs on how to improve bottom lines, as well as get rid of predatory lending. The Delaware League was one of the co-sponsors of the event that drew more than 225 attendees from 25 states.

     Quickbites and Webinars. The League continues to partner with the Illinois League to offer the Quickbites teleconferences. The League has also partnered with the Verisure Company to present monthly webinars on the Bank Secrecy Act, USA Patriot Act and OFAC, risk management issues and ACH. Most recently we have partnered with the North Law Firm in California to provide a series of webinars on the new bankruptcy act, which for the most part will become effective on October 17, 2005. The sessions will explain changes in the law and will focus on ways to protect credit union interests as they pertain to the new rules, reaffirmation agreements, automatic stays, etc.