HEADLINE NEWS

2006 CUNA Governmental Affairs Conference:
February 26-March 1
     “Deliver Our Message” is the theme of the CUNA 2006 Governmental Affairs Conference, February 26 – March 1, at the Hilton Washington in our nation’s capital.
     The GAC is the credit union movement’s premier national political conference. Coming amid an unprecedented level of bankers’ attacks, the GAC presents a not-to-be-missed opportunity to ensure legislators understand credit union unique-ness and the important services credit unions provide their members and communities.
     “Credit unions every day seek to provide their members with the best service and value available in the financial services marketplace. Yet we must also fight off the attacks of those competitors that look to use legislative and regulatory influence to blunt our positive impact on the lives of millions of hard-working Americans,” says CUNA President and CEO Dan Mica. “The GAC is a tremendous opportunity to respond to these attacks and produce our own positive results by delivering our message to lawmakers that credit unions are committed not only to our members, but to our nation’s financial and economic well-being.”
     Early bird registration is $729 - postmarked by January 20, and $779 after that date. For more information about registration and hotel arrangements, call CUNA Meetings and Special Events at 1-800-356-9655, extension 5700; email gacinfo@cuna.com; or visit www.cuna.org. Either click on the “GAC 2006” logo on the homepage or enter “GAC 2006” in the search box.

Senator Carper Sends His Regards
    

     Senator Tom Carper sent the following hand-written note to Alice Smith at the League following the October 19 luncheon held at Credit Union House. “We really enjoyed our time with you and your credit union colleagues from Delaware. We shared a healthy lunch, had a great conversation on a wide range of issues, and you presented me with a campaign donation also. It just doesn’t get any better than that, at least not in my business! Keep up the good work.” 
     Senator Carper was joined by Hilary Jochmans, his banking committee staffer, and Jennifer Hanson-Mueller, finance director, at the luncheon hosted by Delaware CUs.

Impact of Ways and Means Committee Hearing
     CUNA President/CEO Daniel Mica said the ball is in credit unions' court now that House Ways and Means Committee Chairman Bill Thomas (R-Calif.) has put the congressional spotlight on credit union accountability.
     In an email to members directly after the November 3rd hearing on credit union tax status, Mica described the major theme of the hearing as being "transparency, accountability, and verifiability."
     Mica noted that while Thomas spoke plainly about having no plan to add a tax to credit unions, the Chairman was critical of the National Credit Union Administration for not having a more precise definition of modest means. “He is very much in favor of a data collection and reporting mechanism, whether CRA (Community Reinvestment Act) or otherwise, to measure credit union service to these groups,” Mica advised.

NCUA NEWS

Senate Confirms NCUA Board Nominees
     The Senate has voted overwhelmingly to confirm Rodney Hood and Gigi Hyland to the NCUA Board, filling out the three-member panel. The Senate action means the NCUA Board will have a full complement of members for the first time in more than a year when the Board meets in two weeks. For the past two months, NCUA Chairman JoAnn Johnson has been the only sitting member of the Board. Hood, a Republican from North Carolina, is a senior executive in the U.S. Department of Agriculture, and Hyland, a Democrat from Virginia, is a long-time credit union attorney and currently general counsel at Empire Corporate FCU in Albany, N.Y. The terms that Hood and Hyland are set to fill would expire in 2009 and 2011 respectively.

NCUA Letters to Credit Unions
[Complete copies of all these letters may be found at http://www.ncua.gov/letters/letters.html.]

§      Letter 05-CU-14 – This letter contains Federal Reserve procedures for the handling of contaminated currency and checks as a result of the extensive flooding by Hurricanes Katrina and Rita.

§      Letter 05-CU-15 –This letter cautions about the increasing risks in mortgage lending. NCUA field staff will be monitoring these trends and will evaluate not only interest rate risk related to mortgage lending but the increased credit risk associated with newer mortgage products and more liberal underwriting standards. Credit unions hold $204 billion in real estate loans. Fixed-rate first mortgage loans still account for two-thirds of all credit union first mortgages, with the remaining one third being adjustable rate. “A recent Wall Street Journal article highlighted the fact  that in the second quarter of 2004, adjustable-rate and interest-only loans accounted for 63% of mortgage originations, and in recent months option adjustable-rate mortgages and interest-only loans accounted for 65%-75% of all jumbo-mortgage originations,” quoted Chairman Johnson. 

§      Letter 05-CU-16 – This letter provides an updated version of the AIRES Bank Secrecy Act questionnaire, to be completed during all NCUA examinations started after September 30, 2005. Updates reflect procedures jointly used by all financial institution regulatory agencies, which are contained in the Federal Financial Institutions Examination Council Bank Secrecy Act/Anti-Money Laundering Examination Manual (FFIEC BSA/AML Manual). Updates include questions regarding:
           ◘ Credit union risk assessment;
           ◘ Independent testing of internal controls over BSA processes; and
           ◘ Monitoring for suspicious activities.
The NCUA has advised that these will be areas of focus by examiners during BSA reviews. The AIRES Bank Secrecy Act questionnaire is an excellent source by which credit unions can review their BSA programs.
     In addition, training remains an important topic on the AIRES BSA questionnaire. NCUA Letter No. 05-CU-16 reminds credit unions that, under “Anti-Money Laundering Compliance Frequently Asked Questions (FAQ’s),” training should be performed “at least” on an annual basis. 

NCUA Regulatory Alert Gives CUs Updates on HOEPA Triggers
     NCUA has issued Regulatory Alert No. 05-RA-08 to provide credit unions the latest information on updates by the Board of Governors of the Federal Reserve System on the maximum amount of points and fees that may be charged to a borrower without triggering Home Ownership and Equity Protection Act (HOEPA) requirements. Effective January 1, 2006, the trigger amount will increase to $528. In addition, if total points and fees equal the greater of $528 or 8 percent of the loan, HOEPA requires additional disclosures be provided to the borrower. You can find the alert at the following address: http://www.ncua.gov/reg_alerts/reg_alert.html

CREDIT UNION SYSTEM

Members Receive Fraudulent NCUA/CUNA Emails
     Delaware credit unions are reporting that their members are receiving fraudulent phishing emails, supposedly from NCUA and CUNA. The message indicates that “your credit union is working to verify account information and if you don’t respond, access to accounts may be limited.”
     If a member has received a fraudulent phishing email purportedly from NCUA, please forward the entire email message to Phishing@ncua.gov.
     Additionally, individuals can file complaints concerning any suspected fraudulent emails with the Internet Fraud Complaint Center (IFCC) at http://www.IC3.gov. The IFCC is a partnership between the Federal Bureau of Investigation and the National White Collar Crime Center.
     In addition, CUNA has the following alert posted on the opening page of its website: “CUNA is aware of a new phishing scam generating multiple copies of a message asking to update your personal account. THIS IS A PHISHING SCAM – DELETE THE MESSAGES. CUNA will never solicit emails requesting your credit union username, password, pin number, or other personal identity information.”
     Another similar scam has been reported by Delaware V.A. FCU, whose member received an email with the same type of request from the First Credit Union Bank Credit Union.

CUs Nationwide Commit Almost $1 Billion for Homebuyers
     With the goal of helping lower-income homebuyers afford their first home, CUNA has unveiled a billion-dollar mortgage lending initiative for the nation's credit unions. The initiative – called the Home Loan Payment Relief (HLPR, pronounced "helper") program – makes below-market-rate mortgage loans available to borrowers with household incomes at or below the median in their markets. Participating credit unions are voluntarily bearing the cost so that the loans can be offered at a more affordable rate. It will benefit qualifying borrowers in several ways: (1) Through lower monthly payments; (2) By qualifying for a larger mortgage; or (3) By lowering the income level needed for a given mortgage. To date, 61 credit unions that together serve more than 10 million members have committed nearly $1 billion in mortgages to the HLPR program. More here: http://www.cuna.org/initiatives/hlpr/index.html

Another Source of Staff Training: CU Advance
     CU Advance is a new competency-based learning program available from the Credit Union National Association. eLearning allows staff to quickly acquire knowledge, improve productivity, and develop new business and technical skills at their own pace and convenience. Learners take a pre-assessment for each module and then, based on the results, they can take the recommended courses or skip to the final exam.
     CUs are encouraged to take advantage of two upcoming opportunities to participate in free online demonstrations of CU Advance: 
                 ▪  Blended Learning/Experiential Learning
                 November 15, 2005 - 2:00-3:00 p.m. ET
                            ▪  Career Pathing
                 December 13, 2005 - 2:00-3:00 p.m. ET  
There are many benefits to online learning, including standardized quality of training, increased retention, cost effectiveness, and real-time access to training. For more information about these free demonstrations, go to:
http://training.cuna.org/email/101005_cuadvance.htm

CUNA Programs Receive College Credit Recommendation
     Three of CUNA’s educational programs for CU professionals were recently reviewed and recommended for college credit by the American Council on Education’s (ACE) College Recommendation Service. Coursework from the following programs was deemed comparable to college level courses and may be used to transfer credit at many colleges and universities.
§       CUNA's Certified Executive Program includes the Certified CU Executive (CCUE) designation, the new         Certified Financial Services Professional (CFSP) designation, and five new Specialty Certifications in Lending, Marketing, Financial Management, Human Resources, and Compliance. The curriculum of CEP provides a convenient, comprehensive, and challenging educational experience relevant to credit union professionals.
§      Regulatory Training and Certification (RegTraC) Level 2 Program. RegTraC provides training for all levels of credit union staff. Students who successfully complete the proctored exams for modules #1-5 in level two of the RegTraC program will receive the Compliance Expert Certificate and earn the designation of CU Compliance Expert (CUCE).
§      Business Lending Institutes: Fundamentals and Credit Analysis. These CUNA schools explore the many           complexities of business lending and operating a commercial product line to help credit union lending managers and staff to serve the financial needs of their members’ small businesses.
     Through the ACE College Credit Recommendation Service, college and university faculty evaluate courses offered by business and industry, labor unions, associations, and government agencies and recommend college credit as appropriate. The results of its evaluations are published in the National Guide to Educational Credit for Training Programs, which is distributed annually to college registrars and admissions officers throughout the United States. For more information on these and other learning programs offered by CUNA’s Center for Professional Development, visit training.cuna.org, or call (800) 356-9655, ext. 4249.

DELAWARE NOTES

FIRST STATE REFINERY FCU has the distinction of being the first credit union to pay 2006 DCUL and CUNA annual dues. Dues invoices were mailed to all Delaware CU CEOs about two weeks ago. The League dues deadline is January 31, 2006; however some CUs have decided to mail their payment early. If your CU did not receive its dues invoice or if you have any questions regarding your 2006 dues, call Charlie Jenkins at the League office.

Office Space Sought. First State Refinery is looking for new office space, preferably in the Delaware City or Bear area. If anyone knows of at least two rooms of space, please contact Dora or Kelly at 302-834-6425.

IT Manager Position Available. $130+ million Delaware community federal credit union is seeking an IT Manager. Working experience with AFTECH System as well as experience in Windows 2000-2003 server environment and active directory desired.  Responsibilities include daily operations, staff development, and system assessment.  Ability to manage multiple projects, evaluate and recommend new technical solutions. Knowledge of voice-over IP telephone systems. Excellent communication and interpersonal skills are a must.  Bachelor’s and/or technical degree and minimum of 5-7 years of experience in a related field required. Send resume, cover letter and salary requirement to: HR Manager, DEXSTA Federal Credit Union, 300 Foulk Road, Suite 100 Wilm., DE 19803 or email to: Hrmanager@dexsta.com

EDUCATION OPPORTUNITIES

IRA Training. This year’s annual IRA training will be held on two days.
     1)      IRA Essentials Training. Tuesday, November 29, from 8:45 a.m.-4 p.m. at the League office. Topics for new IRA representations will include IRA fundamentals, contributions, and withdrawals.
     2)      IRA Advanced Training. Wednesday, November 30, from 8:45 a.m.-4 p.m. at the League office. This session builds on learners’ basic IRA knowledge to help them address more complex IRA issues: period payments, excess and recharacterizations, death benefits, and income attributable. Learners will participate in real-world CU activities which will allow them to apply their learning immediately back on the job.
     Participants from both sessions will need to bring a handheld calculator. Fee: $235 per person per session, which includes lunch, refreshments, instruction, and materials. Space is still available.

CEO Summit – Cosponsored with our neighboring leagues. January 14-17 in Naples, Florida. Early bird registration fee is $495 if sent by December 2. Call Alice Smith for a brochure.

League Council Meetings
12/7      Mortgage/Home Equity Council: Credit Reports & the FACT Act. Registration deadline: 12/1. No fee for council members; $65 for non-council members. The session, held at the League office, starts at 10 a.m.

November/December QuickBites Teleconferences
11/29    Creating a Sales Culture in Lending, 11 a.m.-noon
12/13    Building Member Loyalty in Low-Asset Households, 11 a.m.-noon
12/20    Practical Approaches to Overcoming Negativity, 11 a.m.-noon.
     The fee for these one-hour sessions is $99. The deadline to register: one week prior to the session. Call Bernadette to enroll.

One-Hour BSA Compliance Webinars
These courses are now being offered in an “on demand” format. That is, your CU can hook into them on the Internet at the time and place you choose. In addition, the next set of live sessions include:

     Fraud Prevention Series
     11/1    ID Card Verification/Loss Prevention, 2 p.m. 
     11/3    Identity Theft Detection/Prevention, 2 p.m.
     11/9    Front-Line Fraud, 9 a.m.
      11/10   Back-Office Fraud, 2 p.m.
      11/22   Data Breach Management, 2 p.m.

     Federal Regulation Compliance Series
      12/6    Bank Secrecy Act, 2 p.m.
     12/8    USA Patriot Act, 2 p.m.
     12/13   Form Completion CTR & SAR, 2 p.m.
     12/15   Form Completion OFAC & FinCEN, 2 p.m. 

     ACH Management Series
     12/20    Annual ACH Audit, 2 p.m.
     12/21    ACH Risk Management, 2 p.m.
     12/22    ACH Payments/Verification, 9 a.m.

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 October/November

COMPLIANCE/COMMUNICATIONS

            Credit Union Week Supplement in The News Journal. The League worked with Delaware credit unions in publishing this annual supplement on Tuesday, October 18, which focused on the difference between banks and credit unions. The League received almost a dozen calls following the supplement’s publication from teachers wanting a copy of the free literary teaching materials, individuals wanting information on credit union license plates, and even some leagues and credit unions wanting copies of the supplement.

            Compliance Issues and Risk Alerts. The League recently distributed copies of CUNA’s monthly Compliance Challenge and the new bankruptcy reaffirmation agreement 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. League compliance director Susan Fallon is widening her knowledge by participating in CUNA’s Regulatory Compliance e-School.

GOVERNMENTAL AFFAIRS

            Luncheon with Senator Carper. The League worked directly with CUNA’s governmental affairs staff to organize the luncheon held for Senator Tom Carper on October 19 at Credit Union House in Washington. Nineteen participants from nine credit unions, Mid-Atlantic Corporate, and the League traveled to the event in a bus provided by the League governmental affairs committee. The Senator spent over an hour with the group, and, at the end of the event, we presented Senator Carper with a CULAC check in the amount of $10,000 for his upcoming re-election campaign.

            Discussion with Mike Castle’s Chief of Staff. The League contacted Mike Quaranta, the chief of staff for Congressman Mike Castle, regarding the regulatory relief bill hearing that was to come before the banking and financial services committee (the hearing has been rescheduled for November 16). We also discussed CURIA (see below) and Congressman Castle’s proposed identity theft legislation.

            Taxation Threat. The League closely monitored the recent ways and means committee hearing on the credit union tax status. Over the next few days/weeks, CUNA will be pulling together talking points and information that will be helpful in answering questions and concerns that were raised during the hearing.

            CURIA Update. H.R. 2317 proposes to modernize credit union net worth standards, advance credit union efforts to promote economic growth, and modify and ease credit union regulatory standards and burdens. There are now 103 co-sponsors for the bill. We will continue to work with Congressman Mike Castle to encourage him to sign on as a co-sponsor. At this time, he would prefer to support the regulatory relief bill which is also in the Congress.

LEAGUE SERVICES

            Mystery Shopping Program. The League is working on enhancing the mystery shopping program by offering an undercover security assessment. With some help from CUNA Mutual, the program will be designed to train shoppers to look for security leaks in an effort to deter robberies.

            Allpoint ATM Network. Twelve Delaware credit unions have signed up for the Allpoint ATM network. The second sale offering is effective from November 15-February 15, which will give Delaware credit unions one last chance to take advantage of this significant discount pricing deal. 

EDUCATION AND TRAINING

            Volunteer Leadership Conference. This annual conference, held on October 15-16 in Ocean City, had the largest attendance in its nine year history. There were 143 registrants, with over 60 guests, representing 19 Delaware credit unions, 16 Maryland credit unions, and 5 from D.C. The League’s scholarship fund provided tuition assistance to Delpart FCU, Pipefitters FCU, U-Del FCU, and Wilmington Postal FCU.

            Educational Partnerships. 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 joined with the North Law Firm in California to provide a series of webinars on the new bankruptcy act, which became effective on October 17, 2005.
            In addition, on November 10^th the Maryland & District of Columbia Credit Union Association, in cooperation with the Delaware and Virginia Credit Union Leagues and the Pennsylvania Credit Union Association, offered the Filene Research Institute’s COOL Solutions program. The session, presented by the Filene Research Institute (FRI), is based on a FRI 2005 special report that indicates credit unions are struggling with recruiting and retaining members within the 18-28 years-old market. 

            October Education Sessions. Here is a listing of the sessions offered by the League during October.
Attendance information for sessions which are offered through our education partnerships is still pending.