HEADLINE NEWS

Donations Pour in to NCUF Relief Effort
     The National Credit Union Foundation (NCUF) has identified more than $1.5 million in pledges so far that are moving through the Credit Union System to assist the Louisiana, Mississippi and Alabama leagues with rebuilding after Hurricane Katrina.
     On September 13, NCUF disbursed $550,000 to the affected leagues. Louisiana received $250,000; Alabama, $150,000; and Mississippi, $150,000. But that isn't the final word on fundraising. “The needs in the affected area continue to emerge and are immense,” said Steve Delfin, NCUF executive director. “Any new funds that credit unions and others can direct through NCUF will go directly to the leagues in the affected area.”
     NCUF is encouraging all credit unions, leagues and others in the Credit Union System to send their dollars raised to NCUF as quickly as possible. As funds become available, NCUF will distribute them quickly.
     Contributors can donate online or via mail or make wire transfers. Information about those methods of giving can be found on the foundation's website and can be linked via the Credit Union National Association's R.E.S.C.U. (Relief Effort and Support for Credit Unions) website, which is compiling a database to match other needs with donors of physical equipment, staff and more. To access R.E.S.C.U., go to www.cuna.org.
     If your CU would like to donate by check, mail it to the National Credit Union Foundation, P.O. Box 78880, Milwaukee, WI 53728-0880.

Delaware CU Manager Volunteers
     While many credit unions and organizations throughout the United States are collecting funds to benefit those affected by Hurricane Katrina, one Delaware CU manager is putting CUs’ volunteer philosophy to work.
     Kathy Greenwood, operations manager for Seaford FCU, will be volunteering with the Salisbury chapter of the American Red Cross in one of the flood-stricken areas. Kathy comments on her reasons for volunteering: “Other times when there's been a disaster, I've wished I could be there to help. This is the first time I heard the call for untrained volunteers; it might be the first time they've done it. I have family in Louisiana – Lafayette and New Orleans, so it has personal meaning to me.”
     Kathy will leave on September 18 for at least three weeks. She will fly from Salisbury to Montgomery, Alabama, from where the volunteers will be dispatched. Kathy had to go through concentrated training in preparation for her trip. In her own words, “Training was intense. Although they won't intentionally send us in harm's way, we could see dead bodies and body parts, snakes, fire ants, alligators, etc., and need to be prepared for that. Will work 14-18 hr. days, with one day off out of seven. When we have downtime, we are to take it. Have a lot of stuff to gather and pack by then – hiking boots, first aid kit, sleeping bag or mat, etc. Many things I'd never have thought of – Vick's VapoRub to put under my nostrils to kill the smell. Have to be able to carry my own stuff, possibly up five flights of stairs, if I'm lucky enough to stay in a hotel – with no electricity. As someone pointed out, however, the rooms and linens won't have been cleaned. They said to expect much worse than we've seen on TV. Expect to be going to the wilderness. We had to pass a carrying test and carry a 45 lb. container of water across the room. This will be quite an experience!”
     Kathy will provide us with an update upon her return.

MORE HURRICANE RELIEF INFORMATION

Dover FCU Reports Initiatives
     President/CEO David Clendaniel of Dover FCU has reported to the League regarding his CU’s efforts to help provide disaster relief. The CU is donating money previously earned through selling NAFCU bears and quarters and in the staff sunshine fund. In addition, the CU will match all employee contributions up to $4,000. Also $1.00 from every Visa gift card or money order sold during September will be put toward the fund drive. Dover FCU’s goal is to raise over $10,000, which will be split between the National CU Foundation fund and the Air Force Aid Society.

BSA Compliance Advice for CUs After Katrina
     The National Credit Union Administration (NCUA) issued a regulatory alert for CUs (#05-RA-06) regarding how to deal with certain identification issues for members and nonmembers under the Bank Secrecy Act (BSA) in the aftermath of Hurricane Katrina.
     The alert notifies CUs that under an interagency Customer Identification Program, a financial services provider must obtain a person's name, address, date of birth, and taxpayer identification number to open an account. However, for those with no permanent address, the NCUA advisory says a CU should get the person's last permanent address and the address, or a physical description, of where that person is currently staying.
     The agency alert informs CUs that they have “a reasonable time” to verify identities after opening an account, and that the CUs may determine “what period of time is reasonable” for verifying information.
     When receiving wire transfers from nonmembers for amounts under $3,000, a CU does not have to obtain information from the beneficiary or verify his/her identity, the agency notice said. To accept transfers of $3,000 or more, the CU should get the name and address of the beneficiary, make a note of the type of identifying document used and its number, and a taxpayer identification number or the fact that one was not available.
     Earlier this month, the NCUA also noted that CUs may provide emergency financial services for nonmembers, including check cashing, access to ATM networks, or other services under the authority to engage in charitable activities. Federal credit unions providing services on a charitable basis may not impose charges for services that exceed their direct cost. Credit unions may also provide services to members of another CU under correspondent services authority.

FinCEN Also Addresses BSA
     The Financial Crimes Enforcement Network (FinCEN) has developed responses to questions frequently asked by financial institutions regarding the applicability of certain provisions of the Bank Secrecy Act in providing services to victims of Hurricane Katrina. The list of questions and answers, available on the Financial Enforcement Network’s website www.fincen.gov/faqkatrina.pdf, may be expanded as new questions arise.

Beware of Hurricane Relief Scams
     It’s hard to believe, but there are crooks out there who will take advantage of your generosity. The primary rule: be sure you know to whom you are giving. The best way to help immediately is to donate money directly to established national relief organizations. Other words of caution:

• Do not respond to any unsolicited SPAM/incoming e-mails about the hurricane.
• Be skeptical of individuals claiming to be surviving victims asking for money to be placed in a bank account.
• To ensure that contributions to U.S.-based non-profit organizations are used for intended purposes, go directly to the websites of recognized charities and aid organizations, as opposed to following a link to another site.
• Verify the legitimacy of non-profit organizations by consulting trusted Internet-based resources (such as the Network for Good or the Better Business Bureau’s Wise Giving Alliance), which may assist in confirming the existence of the organization and its non-profit status.
• Don't open e-mail attachments that claim to contain pictures of disaster areas, as the files may contain viruses. Only open attachments from known senders.

COMPLIANCE RECAP

IRS Raises Standard Mileage Rate
     The Internal Revenue Service has increased by eight cents its mileage rate allowance used for calculating deductions. The hike to 48 ½ cents per mile from 40 ½ cents per mile reflects the soaring gasoline prices. The increase is retroactive to September 1 and lasts until December 31. The rate for deducting medical or moving expenses also increased to 22 cents per mile from 15 cents.

NCUA Letters to Credit Unions
§      Letter 05-CU-10: 5300 Call Report Process Improvements. NCUA has implemented various changes to the 5300 Call Report process, beginning with the September 30, 2005, reporting cycle. The changes include: (1) the addition of comment boxes and controls in the 5300 Call Report software to allow CUs to provide an explanation for data that triggers warnings programmed into the software; (2) the implementation of an electronic validation process that compares data reported in the current cycle to historically reported data, identifies unusual or unlikely conditions, or generates a Historical Warnings Report (HWR); (3) the modification of the 5300 Call Report submission process to allow CUs to upload their transmission file for initial processing directly to an NCUA server and receive the HWR and Financial Performance Report (FPR) via email within 24 hours; and (4) a major revision to FPR to make it a more comprehensive and flexible tool for CUs and examiners to check data integrity and analyze risk.
§      Letter 05-CU-11: CU Financial Trends for First Half of 2005. This information is based on June 30^th Call Reports.

Federal Adjusts HOEPA Triggers
     The Federal Reserve Board published its annual adjustment to the dollar amount that triggers certain requirements of Regulation Z for home-secured loans bearing fees above a certain amount. The Fed is required to annually adjust the fees that trigger the additional Home Ownership Equity Protection Act (HOEPA) disclosures based upon the Consumer Price Index reported for the preceding June 1. The new trigger amount, which will become effective January 1, 2006, will increase from $510 for 2005 to $528 for 2006.

CU SYSTEM NEWS

Matz Resigns from NCUA Board
     Citing the need to move on with her career now that her term on the NCUA Board has ended, Board member Debbie Matz submitted her resignation, effective September 30. Matz’s term ended on August 2, 2005. Matz wrote in her resignation letter that she “views credit unions as a vital component of the financial services sector and she remains optimistic that CUs will thrive well into the future.”
     This leaves NCUA board chairman JoAnn Johnson as the remaining member of the three-member board.

Phish Scam Poses as “America’s Credit Union”
     A member of DEXSTA FCU reports having received a phishing scam for personal information from “Credit Union.” The scam used the Credit Union System’s “America’s Credit Unions” logo. The email scam purports to be from security@creditunion.coop and posed as a security alert from the CU. The member realized that the email was a scam when it referred to his credit card account, which does not exist. CUs are urged to remind their members that their CU, CUNA, and NCUA would never send an email soliciting personal confidential information. Phishing recipients should not open the link in the message. Instead, they should delete the message.

Free Conference for Small CUs
     The Credit Union Development Conference 2005 is being held on Saturday, October 15, at the  Hilton Philadelphia Airport, Philadelphia. (This is the same weekend as the League’s Volunteer Leadership Conference.) This one-day event is geared toward CUs with assets of $10 million or less and is free of charge. Session topics include delinquency reduction techniques, regulatory updates (BSA, OFAC, CIP), 5300 Call Report modifications, and a panel discussion covering financial statements and succession planning. This event is hosted by CUNA Mutual Group, Mid-Atlantic Corporate, NCUA, and the leagues. For more information, call 800-622-7294, ext. 3106. The registration deadline is September 23.

DELAWARE NOTES

Congratulations to financial administrator Charlie Jenkins who celebrated 10 years of service to the League on September 1. 

Our condolences to family and friends on the recent death of Elmer Lewis, a former CUNA Mutual Insurance Group sales representative.

DOVER FCU is featured in the latest Clifton Gunderson newsletter. Clifton Gunderson serves as the credit union’s auditing firm.

Mid-Atlantic Corporate FCU is now partnering with CU Collections, LLC, to provide collection outsourcing to Mid-Atlantic Corporate member CUs, who often find that collections are time consuming, costly, and not effective. The new partnership offers member CUs an attractive alternative that can help reduce the costs of loan collection and create a more consistent and efficient collection process. For more information, contact Matt Patrick at 800-470-2317.

WILMINGTON POLICE AND FIRE FCU is now using Mid-Atlantic Corporate’s Western Union services.

Full-Time Teller Position. Chestnut Run FCU is seeking a full-time teller. Experience is a plus. Applicant needs good member service skills and should desire to learn other tasks associated with a credit union. Salary range $9.50-$13 per hour. Benefits include health care, 401k plan, vacation, life insurance, and Blood Bank. Fax resume to 302-999-4889.

EDUCATION OPPORTUNITIES

Advanced Teller Training – Wednesday, September 21, from 9 a.m.-4 p.m. at the League office. This program, led by Mary Moulds, will cover cross-selling, updates on compliance, robbery and security issues, advanced cash-handling techniques, and team-building skills. Cost: $150; half price for fourth and succeeding registrants from one CU. Call to see if space is still available.

League Council Meetings in September
9/27      Collection Council: New Bankruptcy Law – 10 a.m.-noon. No fee for council members; $65 for non-council members. Regis. deadline: September 20.

September/October QuickBites Teleconferences
9/20      Robbery/Security Awareness, 11 a.m.-noon
9/29      Marketing: Creating a New Buzz, 11 a.m.-noon
10/05    Home Equity Lending, 11 a.m.-noon
10/13    Member Loyalty, 11 a.m.-noon
10/18    CUs 101: Introduction to CUs, 11 a.m.-1 p.m.
10/20    ALM Seminar, 11 a.m.-1 p.m.
10/26    Identity Theft, 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
§         Tuesday, September 20, at 10 a.m. – CTR and SAR Form Filing Details
§         Tuesday, September 20, 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.

Annual Business Mixer Golf Outing -- Tuesday, October 4, 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. Registration deadline: September 30.

CU Investment Seminar – Wednesday, October 12, from 9:45 a.m.-noon at the League office. The presenter is Brad Stewart, VP and chief investment officer of Mid-Atlantic Corporate. Discussion on current economic conditions and what to expect in 2006. Fee: $25. Regis. deadline: October 5.  

Mid-Atlantic Corporate Conference Calls – Call  800-622-7494, ext. 3106, to enroll. There is no fee.
9/28      ACH
10/6      Debit Pass Card
10/18    Yield Opportunities

 

 

League Activities in August/September

COMPLIANCE/COMMUNICATIONS

     Credit Union Week Supplement in The News Journal. The News Journal company marketing staff have been contacting Delaware credit unions regarding placing ads in this year’s supplement, which will be published on Tuesday, October 18. This year’s supplement will focus on the difference between banks and credit unions.

      Compliance Issues and Risk Alerts. The League recently distributed copies of CUNA’s monthly Compliance Challenge 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.

GOVERNMENTAL AFFAIRS

     CURIA, H.R. 2317, the Credit Union Regulatory Improvements Act of 2005. Congress has returned from their summer break so CUNA hopes to get more CURIA co-sponsors on board – currently there are 87 co-sponsors for CURIA. Duke Strosser, Delaware’s representative to the Credit Union Coalition for CURIA, sent out a letter to each credit union manager/CEO in August asking for support in writing letters to Congressman Castle to support this bill. The most recent report indicates that CUNA is aware of only three such letters having been written to the Congressman.

     CULAC Fundraising Efforts. Seventeen credit unions have signed up to sell candy this fall to benefit CULAC. The candy should be available about September 15. In addition, three Delaware credit unions, staff members of Rowles and Company, and League staff participated in this summer’s dress down days, which generated $691 for CULAC. Participating credit unions were American Spirit, Delaware Alliance, and New Castle County Delaware Employees. Special recognition goes to four staff members at New Castle County Delaware EFCU who donated $360 to dress down for the entire summer.
     In another area, the Federal Election Commission approved payroll deduction by credit unions as a permissible fundraising method for CULAC. The rule became effective on August 22. Credit unions’ first step is to pass a formal resolution to participate in the program. The League is able to provide information about setting up the program and required recordkeeping.

     Legislative Update Regarding Credit Report Freeze. GAC committee member George Fitzgerald continues to lobby members of the state legislature in support of Delaware Senate Bill 109, Consumer Credit and Identity Theft Protection Act. He and Alice Smith, along with representatives from CUNA Mutual Group, AARP, and ING Bank, met with Chief Deputy Attorney General Carl Danberg on September 12 to discuss the proposed Delaware Security Freeze law and any proposed changes we’d like to see made in preparation for the January session.

LEAGUE SERVICES

     Gift Card Program. Four Delaware credit unions have signed up for the League’s Visa gift card program and several other credit unions have shown interest.

     Fall Car Sale. There are eight Delaware credit unions and eight car dealers participating in the League-organized Fall Car Sale, slated for October 27-29.

EDUCATION AND TRAINING 

     Volunteer Leadership Conference. This conference, to be held on October 15-16 in Ocean City, has sold out its block of rooms at the Clarion Fountainbleau Hotel, but we are still accepting conference registrations. There are many other venues nearby in Ocean City where registrants can stay.

     Bank Secrecy Act Training. The recent League training sessions held in August on the Bank Secrecy Act gathered high marks from participants. The League has developed a bibliography of BSA resources and further training opportunities, which credit unions can use to fulfill the training requirement of the Bank Secrecy Act.

     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.

     August Education Sessions. A listing of the sessions offered by the League during August follows. Attendance information for sessions which are offered through our education partnerships is still pending.

Date Session Speaker # Individuals # CUs 08/07-8/11/05 Penn State Judge Bradley CU School   unavailable unavailable 08/09/05 Identity Theft Webinar/Verisure unavailable unavailable 08/09/05 Frontline Frauds Webinar/Verisure unavailable unavailable 08/10/05 Back-office frauds Webinar/Verisure unavailable unavailable 08/10/05 Bank Secrecy Act Webinar/Verisure unavailable unavailable 08/12-13/05 2005 CU Directors' Institute in PA   unavailable unavailable 08/17/05 Mortgage Council: "Interest Only Loans" GMAC Mortgage 11 9 08/18/05 USA Patriot Act & Office of Foreign Asset Control Webinar/Verisure unavailable unavailable 08/18/05 Limiting Cramdowns in Chpt 7 & 13 Bankruptcy Webinar/North Law 2 2 08/18/05 Plastic Card Risk Management Webinar/CUNA Mutual unavailable unavailable 08/18-19/05 Mid-Atlantic Corporate Total CU Symposium   1 1 08/22/05 Bank Secrecy Act: Staff Training Kristen Tatlock 15 6 08/22/05 Bank Secrecy Act: Staff Training Kristen Tatlock 40 21 08/23/05 Bank Secrecy Act: Staff Training Kristen Tatlock 23 8 08/23/05 CTR & SAR Form Filing Details Webinar/Verisure unavailable unavailable 08/23/05 OFAC, FinCEN & CTR Exemption Form Filing Details Webinar/Verisure unavailable unavailable 08/30/05 Performing the Annual ACH Audit Webinar/Verisure unavailable unavailable 08/31/05 Unauthorized Penetration of Data Files Webinar/Verisure unavailable unavailable 08/31/05 ACH Risk Management Webinar/Verisure unavailable unavailable