Volume 25, Number 3 

February 15, 2005

HEADLINE NEWS

It’s in the Mail: The 2005 League Annual Meeting Packet
    “Delaware Credit Unions Providing Gold Record Service” is the theme for the Delaware Credit Union League’s 47th Annual Meeting and Trade Show. The convention will be held again this year at Ruddertowne in Dewey Beach on April 21-23. The schedule this year includes:
▪         Thursday golf outing at the Rookery in Milton;
 ▪         Thursday evening CEO/chairman reception;
 ▪         Exhibit hall on Friday;
 ▪         Children’s Miracle Network® silent auction;
▪         Friday morning education session on improving member service;
 ▪         Friday afternoon topic tables;
 ▪         Friday evening dinner-dance with entertainment by Cornell Gunter’s Coasters;
 ▪         Saturday morning breakfast/business meeting;
 ▪         And Saturday afternoon crab feast with music.
     Only registered attendees may enter the exhibit hall, education sessions, and Saturday breakfast. In addition, all meal events require a purchased ticket.
     Each credit union CEO and board chairman should have received a full packet of information in the mail regarding the highlights of this annual event, as well as registration materials. The deadline for registration to all events will be April 1, 2005, with an early bird discount if tickets are reserved by March 15. Additional information can be found on the League’s website at www.dcul.org.

Louviers FCU Is Robbed
      The robbery occurred on Friday, January 28, at approximately 3 p.m. at Louviers FCU’s main office located at the Meadowood II Shopping Center near Newark. One male robber approached the teller with the threat of a handgun (not displayed) and fled the scene with an undisclosed amount of money. The CU staff followed their robbery policy and procedures, and no injuries were reported. Law enforcement personnel are conducting an investigation.

Nominate a Colleague for the 2004 Professional & Volunteer Awards
     The Delaware Credit Union League is now accepting nominations for the 2004 Outstanding Professional and Volunteer Awards. Presented at the League’s Annual Meeting in April, these annual awards recognize dedicated service and professionalism of credit union staff and board members.
     The Outstanding CU Volunteer Award is given to recognize the noble service of one CU volunteer who best exemplifies the credit union spirit through dedication to and belief in the credit union movement. The Outstanding CU Professional Award is given to recognize one CU professional who has selflessly given time, effort, and talent to support and promote the CU ideal and the betterment of CUs in Delaware.
     Information and nomination forms have been mailed to all credit union CEOs and board chairmen and must be returned to the League office no later than Tuesday, March 22. A committee comprised of former award recipients will select the winners. For more information or a nomination form, please contact Alice Smith at the League office.

Delaware Financial Institutions Data Match Program Update
      For four years, Delaware credit unions have been participating in the state’s Financial Institutions Data Match program. The law, which took effect on September 1, 2001, states that credit unions must search their member lists for names and Social Security numbers that match those of people who owe child support. The vendor handling this data information, TransFirst, has changed its name to ACS State and Local Solutions. If you have any questions concerning this mandatory program, contact Joanne E. Berger, Program Manager, Division of Child Support Enforcement; Telephone: (302) 577-4815, ext. 270; E-mail: jberger@state.de.us

NCUA NEWS

Operating Fee Schedule for 2005
      The National Credit Union Administration (NCUA) is reminding federal CUs that in March, they will receive an invoice from the agency for their 2005 operating fees and, if required, for the amount needed to adjust their National Credit Union Share Insurance Fund capitalization deposit to 1% of insured shares. "For natural person federal credit unions, there are changes with the operating fee scale. The 2005 assessment rate has decreased by 1.23% from the 2004 rate. The change is primarily due to a decrease in the agency's operating budget for calendar year 2005," NCUA explained in Letter #05-FCU-01.

Community Development Guidance
      In NCUA Letter #05-CU-01, NCUA Chairman JoAnn Johnson issued the agency’s new examiner guidance white paper entitled “Supervising Community Development Credit Unions – Balancing Their Mission and NCUA’s Regulatory Responsibilities.” The paper details the characteristics of well-managed community development CUs and highlights the value of NCUA’s Community Development Revolving Loan Program.

NCUA Priorities for 2005
     Pursuing risk-based capital for all CUs and enhancing regulatory flexibility are top priorities for the NCUA in 2005, according to Chairman JoAnn Johnson. Other priorities in 2005 will include: (1)  Proposing a rule before the NCUA Board which would allow risk-based capital for the corporate CU system, lower the RegFlex qualifying net worth ratio from 9% to 7% for well-managed, well-capitalized natural person CUs and also for well-managed, highly-rated low-income CUs; (2) Continuing "wise use of agency resources" in the budget and allocation of resources, as well as long-term strategic planning for the agency; (3) Continuing to enhance a safe and sound federal CU charter and share insurance fund; (5) Continuing to support regulatory improvements before Congress and enhance the agency's position on Capitol Hill, as well as with other financial regulatory agencies; and (6) Expanding the agency's Access Across America initiative.

COMPLIANCE RECAP

HMDA Deadline -- March 1
      NCUA has issued Regulatory Alert #05-RA-01 to all CUs advising them, in part, that for 2004 Home Mortgage Disclosure Act (HMDA) data, all updates on the loan application register (LAR) must be submitted and "received" by the Federal Reserve no later than March 1, or CUs could face stiff monetary penalties.
     Data is considered to be successfully received by the Fed once the file has been opened and loaded on the Fed's mainframe. When data is successfully loaded, the Fed will confirm receipt of the file by faxing or e-mailing a list of potential data errors. NCUA said CUs should retain a dated copy of this receipt. LAR data must be submitted via e-mail to mailto:hmdasub@frb.gov. NCUA noted that non-emailed transmissions may be delayed due to the Federal Reserve’s security protocols. According to NCUA, late submission of HMDA data is not acceptable. 
      CUs required to comply with HMDA reporting requirements should review Regulation C and the Guide to HMDA Reporting, Getting It Right (a copy can be found on the FFIEC website at http://www.ffiec.gov/hmda/guide.htm).  Questions concerning submission of HMDA data can be sent to the Fed via email at mailto:hmdahelp@frb.gov

VISA Currency Conversion Requires New Disclosures
     On April 2, 2005, VISA will discontinue the 1% foreign currency conversion fee currently charged directly to CU members. Instead, VISA will charge a new 1% fee called an “International Service Assessment” (ISA) to the card issuer (credit union), and it will be collected through the settlement process. The CU has the option of absorbing this fee or passing it on to the members. VISA is also requiring that all card issuers provide new disclosure of the currency exchange rate calculation to all cardholders by April 2. In addition, certain disclosures will be required under Regulation Z (Truth in Lending) and Regulation E (Electronic Funds Transfer) if the CU passes the fee on to members. CUs with credit card programs will receive more details on this change.

SYSTEM NEWS

New League Retained Counsel
     The Delaware League has made a change in its retained counsel relationship. We are no longer associated with the Harvey Pennington law firm. For business reasons, Harvey Pennington had moved its focus away from the areas important to the League and to CUs – labor and employment law and other CU-related fields. Our new firm, Saul Ewing LLP, has extensive background in a wide variety of legal matters and has a separate CU division specializing in labor law and financial topics.
     We have arranged with Saul Ewing to have two contacts within the firm that will deal with CU issues. Bob Nagle, formerly with Harvey Pennington, will handle labor and employment law-related questions. Christopher Pippett will handle all other areas including, but not limited to, bankruptcy and collections issues. Both will participate in the League Professional Councils where appropriate.
     The League has negotiated with both Chris and Bob similar courtesies that you were accustomed to receiving through Bill Aukamp. Calls to either Chris or Bob that are of the “Quick Question” type where no research is needed may be provided to you as a courtesy because of your League affiliation.
     If further research of your issue is needed, they will tell you that additional research is needed and the approximate time/cost for that information. You will then have the option to contract with them for that advice or to seek the information elsewhere.
     Also, as a benefit of your League affiliation, both Chris and Bob are discounting their normal hourly fees for any work CUs contract with them. As always, it is your responsibility to confirm with either attorney any costs associated with your inquiry.
     Biographies of both attorneys have been mailed to each CU manager/CEO. CUs may reach Chris at his Wayne, PA, office at 610-251-5084 or email cpippett@saul.com. Bob may be reached at his Philadelphia office at 215-972-7760 or email rnagle@saul.com.

Congress Acts on Bankruptcy Reform
     The 109th Congress has introduced bankruptcy reform legislation. The “Bankruptcy Abuse Reform and Consumer Protection Act of 2005” is Bill S.256 in the Senate and Bill H.R. 685 in the House. Senator Tom Carper is a co-sponsor of the Senate bill, and Congressman Castle is a co-sponsor of the House bill.

What Is NCUA Looking for in Bank Secrecy Act Compliance?
     Currently, NCUA is focusing on Bank Secrecy Act compliance, including training and independent testing. What is NCUA looking for in a credit union's training and audit programs?
     NCUA Letter to Credit Unions #03-CU-16 provided CUs with a "Compliance Assessment Guide" to the BSA, including an overview of the Act, review considerations, and examiner checklist. According to this letter, a CU's senior management must ensure that appropriate personnel are trained in all aspects of the regulatory requirements of the BSA and the CU's internal policies and procedures to ensure compliance. [Call Susan Fallon for a copy.]
     An effective training program includes provisions to ensure that all CU personnel who have contact with members (e.g., tellers, member service representatives, lending officers, etc.) receive appropriate training. The guidance states that the training must be ongoing and incorporate current developments, such as new and different money laundering schemes involving CUs. It also can include examples of money laundering cases, tailored to the audience, and the ways in which such activities can be detected or resolved.
     The letter also states that compliance with BSA should also be independently tested at least annually by the internal audit department, outside auditors, or consultants. The audit program should, at a minimum, be able to:
▪         Attest to the effectiveness of internal procedures for monitoring compliance with the BSA by, for example, reviewing a sample of Suspicious Activity Reports filed for completeness and accuracy;
▪         Assess employees' knowledge of regulations and procedures; and
▪         Assess adequacy of training programs.
     The letter goes on to say that audit findings should be incorporated into a report for senior management and board review, and that the credit union should ensure appropriate follow-up.
     This and other challenging questions, including Bank Secrecy Act questions, are available in the February issue of Compliance Challenge, which has been mailed to all CU managers/CEOs. The League is also working to providing BSA training opportunities during the year including a BSA Webinar to be held on March 1 at 10:30 a.m.

DELAWARE NOTES

Our condolence to League vice president Jane Bailey and her family on the recent death of her father, Richard Clauss. Cards can be sent to Jane’s attention at the League office.  

The Business Ledger’s 2005 Book of Lists contains a listing of all 36 Delaware CUs, plus advertisements placed by several of our CUs.

Several Delaware CU friends traveled to Baltimore on February 4 to celebrate the retirement of Cheryl Hawes from Mid-Atlantic Corporate.

Debra A. Jewell has joined DELAWARE FCU’s marketing team as business development manager. She joins Sharee L. Coleman, vice president of marketing, and Amanda S. Lennon, marketing specialist.
 

POSITION POSTINGS

Vice President of Operations – American Spirit FCU. Reporting to the President/CEO, this position is responsible for organizing, planning, managing, and directing the activities of branch and member service center operations. The successful candidate will possess a B.S. or advanced degree in business management or a related field and 5-10 years of progressively more responsible experience in operations management. Previous CU experience is preferred. Proven communication, creativity, leadership, initiative, and planning skills are essential. Candidate should be willing to provide six professional references as part of the interview and candidate selection process. Please contact Maurice Dawkins at mdawkins@americanspirit.org

Teller/Member Service Officer with Lending Experience.  Delaware First FCU seeks a full-time MSO. To qualify, the candidate must have teller, member service, and lending experience. Interested candidates can mail resumes to Delaware First FCU, 1815 Newport Gap Pike, Wilmington, DE 19808; fax to 302-998-1754; or email to jlawson@delawarefirst.com

EDUCATION OPPORTUNITIES

February/March Quick Bites Calls
 2/16      Same Team/Different Game – 11 a.m.- noon, $99
2/24      Fair and Accurate Credit Transactions Act (FACT Act) – 11a.m.-noon, $99
3/3        Making Better Loan Decisions – 11 a.m.- 1 p.m., $169
3/8        Reaching & Serving the Hispanic Market – 11 a.m.-noon, $99
3/16      Reinventing the Consumer Lending Experience – 11 a.m.-noon, $99
3/23      Trust Accounts – 11 a.m.-noon, $99
The fee includes unlimited staff participation at your own site. The deadline for registration is one week prior to the session. To enroll, call or email Bernadette at the League.

One-Hour Compliance Webinars
 ▪        Tuesday, March 1, at 10:30 a.m. – Bank Secrecy Act & Anti-Money Laundering. Fee: $100
▪         Thursday, March 3, at 10:30 a.m. – USA Patriot Act & Office of Foreign Assets Control (OFAC). Fee: $100 Contact Bernadette to enroll.

CU Council Meetings
 ▪         Financial Management Council – Thursday, February 17, at 10 a.m. Topic: changes in CU accounting procedures
▪         Human Resource Council – Tuesday, February 22, at 10 a.m. Topics include employee performance documentation, exit interviews, negative references, and adverse employment action
▪        Mortgage Council – Wednesday, March 16, at 10 a.m. Topic: Reverse mortgages
▪        Cards Council – Wednesday, March 23, at 10 a.m. Topic: Portfolio development
Each session is free to registered 2005 council members; $65 per person for non-council members.

League Education Awards Dinner – Tuesday, March 8, beginning at 6 p.m. at the Holiday Inn, Route 273 near Newark. Tickets are $29 per person and are available by contacting Ruth Lawley at the League by February 17.

TOGETHER is published on the 15th and 30th of each month by the Delaware Credit Union League, 4 Quigley Boulevard, New Castle, DE 19720. Information to be published should be sent or phoned into the League no later than the Monday of the week preceding the publication date. Telephone: (302) 322-9341 or (800) 292-7875. This newsletter can also be found on the League website: www.dcul.org. Hard copies of the newsletter will be mailed to each credit union CEO/manager for distribution to those without computer access. Readers can receive a reminder when the newest edition is posted to the Web by emailing susan@dcul.org. Editor: Alice Smith (alice@dcul.org).

 
Text Box: TOGETHER is published on the 15th and 30th of each month by the Delaware Credit Union League, 4 Quigley Boulevard, New Castle, DE 19720. Information to be published should be sent or phoned into the League no later than the Monday of the week preceding the publication date. Telephone: (302) 322-9341 or (800) 292-7875. This newsletter can also be found on the League website: www.dcul.org. Hard copies of the newsletter will be mailed to each credit union CEO/manager for distribution to those without computer access. Readers can receive a reminder when the newest edition is posted to the Web by emailing susan@dcul.org. Editor: Alice Smith (alice@dcul.org).