Volume 27, Number 2                                       January 30, 2007

HEADLINE NEWS

Data Breach Affects Delaware Credit Union Members
     It is too early to determine the impact on credit unions and their members of the TJX Companies’ data breach which was disclosed two weeks ago. TJX serves discount clothing chains such as T.J. Maxx and Marshalls. The number of exposed cards could exceed the 40 million cards made vulnerable to fraud almost two years ago in a data breach involving CardSystems Solutions, according to The Wall Street Journal (Jan. 18).
     The latest breach, which occurred in December, provides fresh evidence that information technology security remains fragile at some large retailers, despite efforts by the payment card industry to get them to boost their data protection security, said Computerworld (Jan. 19).
     CUNA Mutual's Risk Management Department recently distributed a risk alert, "Update on the Large-Scale Retail Data Compromise," to update credit unions on the compromise and to provide recommended steps for credit unions to follow. It also updated its “Plastic Card Security Best Practices” brochure and made available a new white paper entitled "Special Report: Developments in Plastic Card Fraud in the Credit Union Marketplace." Policy holders can call the Credit Union Protection Response Center at 1-800-637-2676 or visit CUNA Mutual's website (www.cunamutual.com) and access the Loss Prevention Library, located in the Protection Resource Center. User ID and password are required.
     Four Delaware credit unions reported that 2467 of their members’ cards were compromised. Credit unions should urge members who shop at TJ Maxx, Marshalls, and other affiliated stores to monitor their credit card and bank statements for fraudulent activity.

“Get on the Van” for Delaware CUs’ Hike the Hill
     Regardless of the size of your credit union or the number of members your credit union serves, every credit union has a story to tell. It is these unique stories that help to differentiate credit unions from other financial providers and to prove why we deserve to preserve CUs’ tax-exempt status.
     The League’s Governmental Affairs Committee is providing transportation to Washington on Wednesday, February 28, for our annual “Hike the Hill.” Now is the time to relay your stories to Senators Biden and Carper and Congressman Castle and their staffs, so that they will help to pass key legislative issues enabling CUs to continue to grow and serve more of the underserved.
     There will be two pick-up points – at the League office and on Route 299, off the Route 1 exit near Odessa. Pick-up times will be determined later, but we are trying to arrange meetings for Wednesday morning.  If you are interested in going to Washington on February 28, please call or email Alice Smith (alice@dcul.org) by February 15.

Notice of League Director Election
     At this year’s League annual meeting in April, three three-year terms for League director will be filled. The terms of Cheryl Chilcutt, Chestnut Run FCU; Jim Everhart, Louviers FCU; and Joel Romaine, DPL FCU, will expire in 2007. Each CU board may nominate one eligible person as a candidate for the League board of directors. Nominations must be in writing and be accompanied by a brief written biography. Nominations are due at the League office by 4:30 p.m. on Wednesday, February 21, 2007.
     There will be no nominations from the floor during the meeting. No CU may have more than one director serving on the League board. The five other current League directors are Meredith Jeffries, New Castle County DE EFCU; Jerry King, DEXSTA FCU; Sharon Schaeffer, Delaware First FCU; and Kate Toner, Wilmington Postal FCU.

COMPLIANCE RECAP

FCU Operating Fee for 2007
     The National Credit Union Administration reminds federal credit unions in Letter to Federal Credit Unions 07-FCU-01 that they will receive an invoice in March from NCUA for their 2007 operating fee and, if required, the amount needed to adjust the National Credit Union Share Insurance Fund (NCUSIF) capitalization deposit to one percent of insured shares. The combined payment will be due no later than Monday, April 16, 2007.
     There are changes with the operating fee scale. The 2007 assessment rate has decreased by 1.54% from the 2006 rate. The decrease is primarily due to federal credit union asset growth for 2006 and agency operating expenses being less than anticipated. In addition, amounts for total assets within rate bracket categories (asset dividing points) have been increased by 3.25%. Letter 07-FCU-01 can be found on NCUA’s website: http://www.ncua.gov/letters/2007/FCU/07-FCU-01.pdf. An online fee calculator can be found at http://www.ncua.gov/opfee. 

2007 HMDA Reporting Criteria
     NCUA has announced the Home Mortgage Disclosure Act (HMDA) data collection requirements for federal credit unions for 2007. Regulatory Alerts 07-RA-01 and 07-RA-02 disclose three criteria that apply for the year for credit unions to determine if they must meet Regulation C reporting requirements on residential mortgage lending activity.
     A credit union must file 2007 HMDA data if it:
•    Had total assets as of December 31, 2006, that exceeded $36 million, a threshold established by the Federal Reserve Board;
•    Had a home or branch office in a metropolitan statistical area (MSA) on December 31, 2006; and
•    Originated during 2006 at least one home purchase loan or a refinance of a home purchase loan secured by a first lien on a one-to-four-family dwelling.
     Credit unions meeting all criteria must collect HMDA data and submit it to the Federal Reserve Board no later than March 1, 2008. All other credit unions are exempt from filing HMDA data for the year. To access either regulatory alert, go to
http://www.ncua.gov/reg_alerts/reg_alert.html.

First Quarter Compliance “To Do” List
     Is the first quarter a hectic time at your credit union? Don’t make matters worse by pushing compliance duties to the bottom of your “to do” list. Consider these compliance “to do” issues for the first quarter of 2007:

•    The RESPA Mortgage Servicing Disclosure must be updated to include estimates of sales and transfers of mortgages for 2006 no later than the end of first quarter 2007.
•   HMDA LAR must be submitted by March 1, 2007 (see previous article).
•    HOEPA testing procedures need to be updated to include the 2007 annual adjustment amount for the points and fees test. The dollar amount of the fee-based trigger is $547 for 2007.

•    All employees who place Regulation CC holds on checks, as well as those who prepare member hold notices, should be provided training on the credit union’s procedures for Regulation CC compliance.
•    All initial account opening disclosures should be reviewed for ongoing accuracy and up-to-date information relative to the terms and features (i.e. Truth-in-Savings, Funds Availability, and Electronic Funds Transfer disclosures).

CU SYSTEM NEWS

New LOANLINER Forms for Wire Transfers
     To support new CUNA Mutual bond requirements which call for call-back and security procedures for multiple and recurring ACH wire transfers, CUNA Mutual has developed a new LOANLINER® document, the Funds/Wire Transfer Agreement, that credit union operations staff complete with the members. Credit unions offering members multiple or recurring ACH wire transfers will want to use this document to identify appropriate security procedures. If your credit union is interested in ordering the Funds/Wire Transfer Agreement, call LOANLINER Customer Service at 800-356-5012, Option 1.

CUs Set Record for Auto Lending
     The automotive industry press is praising credit unions for achieving a record-setting year in auto lending. A January 8 article in Automotive News quoted a J.D. Power statistic showing that credit unions captured nearly 10% of the new vehicle loan market in 2006, a new record. The article went on to explain that dealers prefer credit unions during higher interest rate periods, because they offer lower rates and longer terms than banks. In 2006, the average new car loan rate for credit unions was 5.7%, compared to 6.8% for banks.

BauerFinancial Issues Ratings
     Kudos to the following CUs who received 5-star ratings from BauerFinancial, Inc., an independent financial institution rating and research firm: American Spirit, Chestnut Run, Delaware Alliance, Del-One (Delaware), Delaware State Police, DEXSTA, Dover, DPL, First State Refinery, ICI America, Milford Memorial, New Castle County Delaware Employees, New Castle County School Employees, Preferred Financial (Pipefitters), Provident, Seaford, U-Del, and Wilmington Postal. The ratings are based upon September 30, 2006, financial data, as reported to financial regulators. Five stars (superior) is the highest rating given by the firm. Three additional CUs received four-star (excellent) ratings: Delaware River & Bay Authority Employees, Louviers, and Sussex County. Credit unions with less than $1.5 million in assets are not rated.

DELAWARE INFORMATION

Spring League Car, Truck, and SUV Sale: April 26-28  
     Information about the spring sale has been sent to credit unions that participated in the October sale. If your CU is interested in participating in the 2007 spring sale, please contact Susan (susan@dcul.org) or Charlie (charlie@dcul.org) at the League office. Since 1992, League sales have generated over $75 million in loans for Delaware credit unions.

DELAWARE NOTES

Congratulations to the members, staff, and volunteers of FIRST STATE FCU, which is celebrating its 35th anniversary on February 8.

Correction from the last issue of Together: The correct address of NEW CASTLE COUNTY SCHOOL EFCU’s new office is 113 West Sixth Street in New Castle.

Dover Air Force Base International Association of Firefighters, Local F135, recently presented DEL-ONE (Delaware FCU) with a certificate of appreciation for being the largest contributor to the annual “Firefighter Frenzy Charity Golf Tournament.” The tournament raises money for the children and families at A.I. DuPont Children’s Hospital.

[Pictured: Richard (Duke) Strosser, President and CEO of Del-One, proudly displays Certificate of Appreciation from DAFB IAFF, Local F135.

Thanks to the staff and officials of MID-ATLANTIC CORPORATE FCU who recently donated $100 to the League scholarship fund in memory of Sam Simpson.

Read TOGETHER online! Tired of making paper copies of TOGETHER for your staff and volunteers? Provide Susan Fallon at the League with your email address, and she will send you a link to the online version biweekly. Thanks to Delaware First CEO Sharon Schaeffer, who was the first to update her CU’s email distribution list. Email Susan at susan@dcul.org. 

Congratulations to Terri Keene, New Castle County School Employees FCU, who was the winner of C.U.DOKU puzzle #9, sponsored by Pat Mahaney, DCUL president.

Comptroller/Finance Manager Position
A progressive credit union located in Newark, Delaware, is seeking an experienced Comptroller/Finance Manager for maintaining the integrity of the credit union’s asset-liability and cost-accounting models, while managing assigned functions of the credit union. The ideal candidate will have exceptional expertise in ALM model management, including monthly maintenance forecasting, what-if analysis, and budgeting. The candidate will possess: 1) a minimum of 5+ years of credit union experience; 2) a working knowledge of personal computer spreadsheet and word-processing software programs, preferably Microsoft Excel and Word; and 3) familiarity with credit union philosophy, work procedures, and financial institution operations gained from work experience.

A Bachelor’s Degree in Accounting or Masters in Business Administration and a financial background in asset-liability management, investments, consumer lending, deposit operations, and budgeting is required. Job-related continuing education may be necessary. Additionally, the candidate should have outstanding verbal/written communication skills, excellent interpersonal/team leadership skills, and effective project management/product development skills. The incumbent will have the ability to thoroughly analyze products, programs, and financial data that will assist the credit union in achieving its strategic objectives.

Compensation is commensurate with experience, educational attainment, and the complexity of the credit union’s financial operations. The benefits include a 401(k) plan, and medical, dental and life insurance.

Please send resume to “Comptroller/Finance Manager Position,” c/o Delaware Credit Union League, 4 Quigley Boulevard, New Castle, DE 19720.  

Vice President of Lending
$200M credit union is seeking a highly qualified individual to develop and manage our centralized lending program. Position requires substantial experience in all aspects of consumer and mortgage lending including underwriting, operations, secondary market, and capital markets. Please send resume to HR Department, PO Box 1800, Seaford DE  19973.

Manager (upcoming vacancy)
The Delaware Department of Labor Credit Union is seeking to fill a PT/FT position as Credit Union Manager. Applicant must have a minimum of 2-3 years experience in bookkeeping, record keeping, accounting (GAAP), computer knowledge and excellent managerial skills.  Salary ranges from $31-35K annually with benefits. Please send resume to: Department of Labor Federal Credit Union, 4425 N. Market Street, Wilmington, DE 19802, or fax to : 302-761-6628, Attn: Joyce Bolling.     

EDUCATIONAL OPPORTUNITIES

February QuickBites Teleconferences
One-hour sessions – 11 a.m.-noon
2/6   Home Equity Lending
2/13  Diversity in the Workplace
2/22  Right to Financial Privacy Act
Two-hour session – 11 a.m.-1 p.m.
2/15  Coaching and Performance Management
The fee for one-hour sessions is $99; the two-hour session is $169. Deadline to register: one week prior to the session. Call Bernadette Hines to enroll.

First Annual Credit Union Bowlathon
The first DCUL Annual CU Bowlathon will be held 7-10 p.m. on Friday, February 16, at Bowlerama in New Castle. Credit unions and league business partners are invited to gather a team (or teams) of four bowlers, pick a team name, and come out for a great time. The cost is $36.95 per person, which includes dinner, shoe rental, bowling ball use, and two hours of bowling. We’ll have door prizes, special awards and lots of fun. For more information, go to the League website at www.dcul.org. The registration deadline was February 1; call Jane Bailey to see if space is available.

Fidelity Credit Card Portfolio Development Workshop
Thursday, February 15, from 9 a.m. to 4:30 p.m. at the League office. This full-day workshop will teach participants how to analyze their Fidelity card programs for the purpose of increasing the profitability of their credit unions’ credit card portfolios. Fee: $135 per person, which includes continental breakfast, lunch, workbook, and CD. Registration deadline: February 9.

Mark Your Training Calendars!
March 27        Advanced Loan Officer Workshop
                       9 a.m.-3 p.m.
                       League Office
March 27        Volunteer training: Board and Management Policies
                       5:30-8:30 p.m.
                       League Office
March 28        Robbery Awareness Training
                       9 a.m.-noon
                       League Office
Informational flyers will be sent out soon.

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).