Volume 27, Number 16                                       August 30, 2007

HEADLINE NEWS

First Delaware Credit Union Goes Live on Shared Network
     American Spirit FCU, located in Newark, is the first Delaware credit union to join the shared branching network. This represents the first credit union outside of Pennsylvania to go through PaCUSC (Pennsylvania Credit Union Service Centers, Inc.) to participate in shared branching. The Delaware Credit Union League has an agreement with PaCUSC to offer shared branching to Delaware credit unions.
     American Spirit officially joined the network as an issuer on August 13, 2007. American Spirit FCU has over $38 million in assets with 8,205 members. President/CEO Maurice Dawkins tells the league he wanted to get involved with shared branching to continue to provide CU services to his members who have moved out of state. Currently, PaCUSC has 31 participating CUs with 47 outlet locations.
     For more information about shared branching, please contact Jane Bailey, 302-322-9341 or 800-292-7875.

Update Your CU Information
     If your credit union has changed its address, phone/fax numbers, e-mail and/or website address, please be sure to update your information with the League. We are updating our records in preparation for the publication of the Credit Union Week Supplement in The News Journal, which will include a credit union directory.
     Refer to the Credit Union Directory that was published in the League Annual Report for the League’s most current listing. We will also fax each CU a preview copy of the list. Please send your changes to the League no later than September 10, so that information can be updated for the Supplement.
     The League also would like to have a copy of your 2007 “List of Officials,” as provided to NCUA. Those CUs that have annual meetings in the fall should forward their reports immediately after their organizational meetings.

Delaware Has CUNA Management School Graduate
     Congratulations to Melba Saxton, vice president of operations for Chestnut Run FCU, who was one of 60 graduates from this year’s CUNA Management School in Madison, Wisconsin.
     CUNA Management School is a three-year professional development program held for two weeks every July, in cooperation with the University of Wisconsin Graduate School of Business. 
     According to Saxton, the curriculum included advanced academic training with practical, real-world applications. “In between the first and second year, you do a project based on the history of your credit union. There is also a project to do between the second and third year that is more of a strategic plan/projection. During the third year, there is also an oral presentation that is based on your third year project. Something new to this school is testing, so that the school can become accredited and attendees can earn college credits for the class. My class was the first to be tested all three years. Each of the preceding objectives is graded and has to be passed in order to graduate.
     “I really enjoyed going to CMS. The classes cover all areas of credit union operations, and each year there is a team building activity that is done away from the school. Most of all you get to meet and network with people who work at credit unions of all sizes.” Congratulations to Melba for graduating with honors!
     Delaware has not had a Management School graduate since 1996. Current Delaware CU staff members who have graduated from Management School include: Allen Riley, Gail Shinn, Anthony Hines, Cheryl Chilcutt, Jerry King, Barbara Arrowsmith, and Sharon Caulk.   
     If you would like more information on CUNA Management School, contact Alice Smith at the League office or go online to CUNA’s website: http://training.cuna.org/on_site/CMS107_fct.html. 

COMPLIANCE UPDATE

Revised CHARM Booklet Mandatory in One Month
     Credit unions and other creditors have just over one month to begin supplying borrowers with the Federal Reserve Board's revised Consumer Handbook on Adjustable-Rate Mortgages. The consumer handbook, also known by its acronym as the CHARM booklet, was updated by the Fed in December 2006. However, lenders were given until October 1, 2007, to use their existing stock of materials.
     Beginning with that date, lenders must supply the updated booklet—or its equivalent—in order to be in compliance with the Fed's Regulation Z, which implements the Truth-in-Lending Act. The CHARM booklet must be provided to consumers with every application for an adjustable rate mortgage loan.
     The booklet, originally published in 1987, was revised last year in recognition of the growing use of nontraditional mortgage products that allow borrowers to defer payment of principal and sometimes interest. It now includes discussions about "interest-only" and "payment option" mortgages.
     The revised booklet describes how these loans typically work, showing how much and how often monthly payments could increase, and how the loan balance could increase if minimum monthly payments are made, according to a Fed release.
     The booklet includes a mortgage shopping worksheet to help consumers compare the features of different products and a glossary to help them understand some of the terminology.
     Up to 100 copies of the brochure are available free of charge from the Fed by contacting Publications, Mail Stop 127, Federal Reserve Board, 20th and C Streets, N.W., Washington, DC 20551, or calling 202-452-3245. It is also available in both English and Spanish through the Fed website, http://www.federalreserve.gov/pubs/arms/arms_english.htm.

Revised BSA/AML Manual
     The Federal Financial Institutions Examination Council (FFIEC) released the revised Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Examination Manual. The manual is located at: http://www.ffiec.gov/bsa_aml_infobase/default.htm

Regulation E Change Goes Into Effect
     Regulation E rules implementing the Electronic Funds Transfer Act have changed recently. Electronic fund transfers (EFTs) of $15 or less are exempt from Regulation E’s receipt requirements. Effective August 6, the amended Federal Reserve Board rule no longer requires credit unions and other financial service providers to provide receipts for EFTs of $15 or less. According to the Fed, the exception will allow financial services providers to offer more cashless payment options.
     In transfers of more than $15, financial institutions must provide receipts that include:

• The amount of the EFT;
• The date the consumer initiated the transfer;
• The type of transfer and type of account to or from which funds were transferred (unless only one type of account may be accessed);
• A number or code identifying the consumer's account or the access device (e.g., ATM card) used to initiate the transfer;
• The location of the terminal; and
• Any third party to or from whom the funds were transferred.

     CUNA’s Valerie Moss advises CUs to check initial disclosures to see if the CU has promised a receipt for every transaction. The model language in Appendix A to Regulation E regarding providing receipts at ATM and POS terminals says: "You can get a receipt at the time you make any transfer to or from your account using one of our ATMs or POS terminals."
     "Credit unions that use this model language will only need to advise members of the change if they plan to implement the new exception at the credit union's ATM/POS terminals," Moss notes. Affected credit unions need to let their existing account holders know that there has been a change to the original EFT agreement in the form of revised disclosure highlighting changed term, account disclosure insert or statement stuffer, or highlighted note on a periodic statement. Also, Moss advises, credit unions should update their initial disclosures at the next scheduled printing.
     For more Regulation E information, go to CUNA’s Regulation eGuide found at http://www.cuna.org/compliance/member/eguide/eguide_eft.html

CU SYSTEM NEWS

Register Now for Two Events
•  Sign up today for the Delaware Credit Union League’s Fall Business Mixer Golf Outing. This popular annual event mixes CU executives with league business partners and associates. Come out and join the fun on Tuesday, October 9, at the Deerfield Golf & Tennis Club in Newark, Delaware. For more information or to get a registration form, call Pat Mahaney at the League office or email pat@dcul.org. You can check out the course on www.deerfieldgolfclub.com.

Proposed Regulation Z Changes Discussed in Teleconference
     Credit unions can find out the specifics of what would be the most significant changes in more than 25 years to loan disclosures in proposed changes to Regulation Z, Truth-in-Lending, during an upcoming audio conference from CUNA.
      The September 26 "Proposed Changes to Regulation Z" audio conference will analyze the details of the proposed changes in the Federal Reserve Board's Regulation Z that credit unions must provide under the Truth in Lending Act and how these possible changes would affect them, from experts with the Fed, CUNA, and CUNA Mutual.
     For more information about this conference, visit training.cuna.org , and select the "Audio Conference" link, or call (800) 356-9655, ext. 4249.

Credit Unions Get Good Media Exposure
     Credit unions have had some solid press hits lately in national media. MSN.com columnist Liz Pulliam Weston wrote “Ditch Your Bank for a Credit Union” (July 16), noting credit unions provide welcome relief to the high fees and rates of local banks. CUNA provided the data Weston quoted about credit unions.
     In another item, the August issue of Parents magazine published CUNA CEO Dan Mica’s comments about the importance of teaching children about money. Headlined “Smart Ways to Teach Your Kids About Money,” Mica drew his comments from financial literacy resources available through CUNA, including its “Thrive by Five: Teaching Your Preschooler About Spending and Saving” learning tools, which can be found at: http://www.creditunion.coop/pre_k/index.html .

New Presidential Dollar Available
     The United States Mint unveiled the Jefferson Coin this month, the third in the Presidential Series. The coins went into general circulation nationwide on August 16. Credit unions can place orders for exclusive collections to offer to members. The sets feature uncirculated $1 coins from the Philadelphia Mint and the Denver Mint. Coin sales support the League’s federal PAC (CULAC) efforts. American Spirit FCU just signed up for the program. For more information, please contact Alice Smith at the League office.

Help Peru Earthquake Victims
     To aid the recovery effort from devastating earthquakes that damaged several CUs and impacted countless CU members in Peru, U.S. credit unions, employees, members and volunteers can now make donations to the Peru disaster relief effort through www.cuaid.coop. The CU Aid donation form allows each donor to contribute via credit card, mail, or wire transfer. One hundred percent of all Peru relief donations via CU Aid will be forwarded to the World Council of Credit Unions (WOCCU) through the National Credit Union Foundation, a tax-exempt organization under Section 501(c)(3) of the U.S. Internal Revenue Code.

DELAWARE NOTES

The Delaware Credit Union League is proud to announce that the 2006 League Annual Report has won an honorable mention award in CUNA’s PRO and Blockbuster Contest. The competition was open to state credit union leagues/associations throughout the country. Alice Smith, communications director, accepted the award during the AACUL (American Association of Credit Union Leagues) Communications Conference in Rhode Island.

Delaware State Police FCU, a credit union with branches in New Castle, Cheswold and Georgetown, is a new client with Passageways, the provider of Portal Solutions for financial institutions.

Delaware Alliance FCU used its Member Appreciation Day celebration to raise money for CULAC through a member raffle. In addition, the staff contributed $80 through Dress Down Days.

DCUL and League president Pat Mahaney recently made a contribution to the USO in support of America’s service men and women.

President/CEO. Mid-sized credit union, located in New Castle County, is seeking qualified candidates for President/CEO. This position requires extensive credit union management experience. We offer an excellent benefits and salary package. Please send your resume to: Credit Union, P.O. Box 156, Middletown, DE 19709.

Full-time Collector. Resumes should be faxed to ATTN: Joel Romaine, 302-369-7489, or emailed to jromaine@dplfcu.org .

•  Individual with mortgage lending and insurance experience seeks CU position. Resume #08-30-07.

•  Individual with accounting and information science degrees seeks CU position. Resume #08-31-07. Both resumes available by calling Susan or Ruth at the League office.

EDUCATIONAL OPPORTUNITIES

September QuickBites Teleconferences
One-hour sessions run from 11 a.m.-noon:
■   9/17  Internet Banking
■   9/27  Robbery Procedure Checklist
One and a half hour session runs from 11 a.m.- 12:30 p.m.:
■   9/6  Plastic Card Fraud
Two-hour session runs from 11 a.m.-1 p.m.:
■   9/13  Share Account Administration
     The fee for the one-hour session is $99; the 1½ -hour session: $119; and the two-hour session: $169. Deadline to register: one week prior to the session. Call Bernadette Hines to enroll.

Upcoming Council Meetings
■   Collection Council: Wednesday, September 12.
Topics: Bankruptcy and selling non-performing assets. Enroll with Bernadette Hines by 9/5.
■   Mortgage Council: Wednesday, September 26.
Topic: Reverse mortgages. Enroll with Jane Bailey by 9/19.
     Both sessions will run from 10 a.m.-noon at the League office. There is no fee for council members. Fee for non-council members: $75.

SAVE THESE DATES!
■  October 3          Managing Your CU in Difficult Times: Total Balance Sheet                               Management Session
                              Day and evening sessions
■  October 15-17   Mid-Atlantic Corporate’s Financial Management Conference                               Nemacolin Woodlands Resort, Farmington, PA
■  October 26-28   DE/MD/DC Annual Volunteer Leadership Conference (VLC)
                              Clarion Fountainbleau Hotel, Ocean City, Maryland
Information about any of these conferences can be obtained by contacting Alice Smith at alice@dcul.org .

TOGETHER is published on the 15th and 30th of each month by the Delaware Credit Union League, 4 Quigley Boulevard, New Castle, DE19720. 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).