Volume 27, Number 22                                 November 30, 2007

HEADLINE NEWS

Notice of League Director Election
     At the next League annual meeting in April, two three-year terms for League director will be filled. The terms of Meredith Jeffries, New Castle County Delaware Employees FCU, and Jerry King, DEXSTA FCU, will expire in 2008. 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 6, 2008.
     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 Cheryl Chilcutt, Chestnut Run FCU; Allen Riley, Sussex County FCU; Joel Romaine, DPL FCU; Sharon Schaeffer, Delaware First FCU; and Kate Toner, Wilmington Postal FCU.

Rooms Available for GAC in March; Scholarship Offered to Small CU
     The League has four rooms available in our block at the Garden Hilton in Washington, D.C., for the 2008 CUNA Governmental Affairs Conference. The rooms must be released by December 9, so please contact Alice Smith immediately if you would like to reserve a room. The conference will be held on March 2-6 at the Washington Convention Center.
     The speakers, entertainment, and this new venue promise to take this year’s conference to a whole new level. Speakers include General Colin Powell, Chris Matthews, and Dave Barry. The band “America” will entertain at the new Sunday kick-off concert.
     The Delaware League is offering a registration scholarship to a CU under $20 million in assets. The CU would be responsible for housing, meals, and transportation. Call Alice Smith for more information.

As the Holidays Approach, Think of Those Without Homes
     There is still a need to donate to those individuals who lost their homes in the recent California wildfires. Donations and pledges have come from 25 states so far to help credit union people who suffered losses. As of the start of the third week in November, the National Credit Union Foundation (NCUF) had collected a total of $116,370 in this disaster relief campaign. Here is the story of one of the recipients of this fund-raising campaign:  
     “She works for the Postal Service and has been a member of her credit union for 21 years. She owned her own home and lived with her two sons. When the wildfires approached, her family had only 20 minutes to evacuate. They were not able to pack any household items. According to her application, her home is now ‘completely destroyed, including the foundation. Nothing is salvageable.’ This family not only lost their home; they lost ‘everything inside it.’ Now they are staying in a long-term hotel.”
     Ultimately it will be up to insurance adjusters and builders to decide when or if families will be able to live in their own homes again. But one thing is for certain. They could use our help to recover from this loss. It’s for credit union members like these that NCUF created CUAid. In their greatest time of need, we can show these members that when they belong to a credit union, they belong to something bigger – a nationwide credit union community – and in the credit union community, we take care of our own.
     To make a contribution, go to the League website (www.dcul.org), and click on the “Donate Now” icon on the CU page. Or go directly to the NCUF website: http://www.cuaid.coop/site/PageServer

COMPLIANCE RECAP

Operating Fee Scale for 2008
     The NCUA Board recently approved an increased 2008 operating fee scale, which the agency uses to determine the operating fee assessed to federal credit unions. The changes increase the operating fee scale by 9.85%. 
     The operating fees for federal credit unions, which will be assessed based on assets as of December 31, 2007, will be due to NCUA no later than April 15, 2008. 
     NCUA staff  has provided some examples of how certain operating fees will be impacted under the new scale:
•    Assets of less than $500,000 – operating fee  will continue to be $0;
•    Assets of $5 million – operating fee will be $1,115, up from  $1,015; and
•    Assets of $100 million – operating fee will be $22,297, up from  $20,298.
     Starting at the end of November, when NCUA plans to have its website updated with the new scale, federal credit unions will be able to calculate their operating fee requirements by accessing www.ncua.gov.

Other NCUA Board Actions
     In other actions, the Board:
•    Lowered the Overhead Transfer Rate (OTR) from the current 53.3% to 52.0% for 2008. Under the Federal Credit Union Act, NCUA may transfer funds from the National Credit Union Share Insurance Fund (NCUSIF) to fund administrative and other expenses related to federal share insurance.
•    The Board approved the final fiscal year 2008 budget and the initial year 2009 budget. The Board set the 2008 budget at $158.63 million, a 4.35% increase from the 2007 budget.
•    The Board unanimously approved a change to the rule governing the purchase, sale, and pledge of eligible obligations (loans or groups of loans) by adding a conflict of interest provision, similar to the one in the general lending rule. NCUA’s rule provides that a federal credit union may purchase its members’ eligible obligations (loans and groups of loans it is authorized to make) from any source, subject to certain limitations.

New I-9 Form Released
     The U.S. Citizenship and Immigration Services (USCIS) has just released a revised Form I-9, Employment Eligibility Verification, for immediate use and a new M-274, Handbook for Employers, Instructions for Completing the Form I-9.
     All employers are required to complete a Form I-9 for each employee hired in the United States. The USCIS has encouraged employers to start using the new form as soon as possible. According to the USCIS, employers that fail to use the new Form I-9 after the effective date (as established by publication in the Federal Register) may incur fines and penalties.
     The basic Form I-9 remains substantially the same as compared to earlier versions, although the form and accompanying instructions appear to be more user-friendly than prior versions. The most significant changes were made to the form instructions, including:
     1. Five documents have been removed from List A of the List of Acceptable Documents:
          - Certificate of U.S. Citizenship (Form N-560 or N-561)
          - Certificate of Naturalization (Form N-550 or N-570)
          - Alien Registration Receipt Card (I-151)
          - Unexpired Reentry Permit (Form I-327)
          - Unexpired Refugee Travel Document (Form I-571)
     2. One document was added to List A of the List of Acceptable Documents:
          - Unexpired Employment Authorization Document (I-766)
     3. All the Employment Authorization Documents with photographs in circulation are now included as one item on List A:
          - I-688, I-688A, I-688B, I-766
     According to the USCIS, the new I-9 Form (dated June 5, 2007) can and should be used immediately. The previously authorized I-9 Form, dated May 31, 2005, is scheduled to be accepted until December 7, 2007.
     A copy of the new Form I-9 can be found at http://www.uscis.gov/files/nativedocuments/m-274.pdf and the new handbook can be found at http://www.uscis.gov/files/nativedocuments/m-274.pdf. The new handbook contains updated examples of completed I-9s and updated, color copies of various acceptable documents.

CUs Good for Members, Good for Economy, Say Media
     National and local media are picking up on the benefits that CUs have to offer their members.
Among the highlights of recent media stories:
•    Money Magazine said CUs provide the best deals in banking, higher returns on share certificates, and lower interest rates on credit cards and auto loans;
•    Consumer Reports conducted a survey of 21 credit card issuers that indicated credit unions' cards ranked higher in customer satisfaction than Bank of America, Citibank, HSBC, Capital One and JP Morgan Chase;
•    Forrester Research, based in Cambridge, Massachusetts, indicated that CUs “beat banks 2-to-1 when consumers were asked what institution does what's best for me, not what's best for the bottom line”;
•    The Competitive Enterprise Institute, a Washington think tank, suggested that CUs should increase business lending to grow the U.S. economy. Because CUs are not-for-profit, they make small loans banks deny as being unprofitable;
•    The Center for American Progress, a nonpartisan policy research and advocacy organization, said broadening access of low-income Americans to CUs could cut the nation's poverty rate in half;
•    USA Today reported that more than 1,000 CUs have alternative products to high-interest payday loans; and
•    National Review Online reported that CUs provide a “vital source of financial liquidity that can soften the blow in the face of a national credit crunch.” The publication noted that if CUs were taxed, they'd have to cut back on loans that break even, drying up credit for some borrowers.
•    CUNA Senior Economist Mike Schenk appeared live on CNBC television in mid-November to discuss the economy and predicted a “decent” holiday season from a consumer and retailer perspective, despite “tremendous headwinds” blowing in housing markets, equity markets, oil and gas prices. Schenk's appearance followed Bill Hampel's live discussion on November 19 with CNBC host Maria Bartiromo. The appearance followed much media interest in CUNA/Consumer Federation of America’s eighth annual holiday spending survey results released on November 19.

Fraud Tools Available From the U.S. Secret Service

Question: We have a bill that we suspect is counterfeit. Is there a website that we can search to compare the serial number?

Answer: Yes. The U.S. Secret Service has a Counterfeit Note Searching Site that allows access to an Internet database which has descriptions of counterfeit notes known to the U.S. Secret Service. Apply for access and submit a registration at https://www2.usdollars.usss.gov/usd/initial.nsf/registrationwarning. You will be notified once your application for access is received and processed.

Question: Does the Secret Service offer any other services that might help us combat fraud?

Answer: Yes. You can also register on the U.S. Secret Service’s e-Information website to gain access to sites for information on counterfeit checks, alerts/discussions, fictitious instruments, and skimming. You can register for the eLibrary at https://www2.einformation.usss.gov/elib/welcome.nsf/Home. The user information that you register will be forwarded to the U.S. Secret Service for review. Upon approval, you will receive an email with further instructions. [South Carolina Noteworthy 11/13/07]

Five Tips for Protecting Your Checking Account
     The Federal Reserve Bank has prepared a new one-page document, entitled Five Tips for Protecting Your Checking Account, that can be used in your financial education program. A PDF version can be downloaded and printed for distribution from the Federal Reserve Bank website, http://www.federalreserve.gov/pubs/checkingaccount/default.htm. Print copies of the publication are available from Publications Services, Mail Stop 127, Board of Governors of the Federal Reserve System, Washington, DC 20551.
     Other financial education resources are listed on the Board’s website, http://federalreserve.gov/. In addition, foreclosure-avoidance resources suitable for your members also have been posted at
http://www.federalreserve.gov/pubs/foreclosure/default.htm.

DELAWARE NOTES

The Delaware League thanks MILFORD MEMORIAL FCU for being the first member to pay 2008 League dues. The 2007 dues invoices for the League and the Credit Union National Association (CUNA) were mailed on November 9. Membership dues should be received by January 31, 2008. The Delaware League’s commitment to its member CUs is strong, and we look forward to providing CUs even more value in 2008.

On November 28, DEL-ONE (Delaware FCU) partnered with the Central Delaware Chamber of Commerce to host the November Sunset Business Mixer, benefiting the Food Bank of Delaware’s Holiday Food Drive. This networking event was held at Del-One’s Corporate Center in Dover. Del-One also co-sponsored a holiday auction and Taste of Milford with the Greater Milford Chamber of Commerce on November 29. A portion of the ticket sales was donated to the Delaware Veterans’ Home.

DOVER FCU is currently serving as a Business Ambassador of The Challenge Program, Inc., a program created to motivate students by providing financial incentives for successes they achieve in school, as well as build a bridge between high school students and the business community. As a Business Ambassador, the CU has donated $5,000 to the Smyrna and Caesar Rodney school districts.

Business Development Representative Position. Del-One is seeking a Business Development Representative (BDR) to join its growing marketing team. This is a full-time position that reports directly to the Business Development Manager and will reside at Del-One’s corporate center in Dover. The Business Development Representative’s role is to research, develop, execute, and manage new business development initiatives; build CU awareness within the community; increase penetration of existing Select Employee Groups; optimize the MCIF system to enhance member relationships; gather competitive intelligence; and assist the marketing staff as needed. Bilingual skills in English and Spanish preferred. Del-One recently ranked 9th in the top 15 small businesses to work for in Delaware; so if you’re ready to join a progressive credit union and build a solid career in an environment where creativity and ambition are rewarded, then please email a cover letter and resume to sharee.coleman@del-one.org no later than November 30, 2007.  

Executive Administrative Assistant. Dover Federal Credit Union is seeking an executive administrative assistant to provide confidential, professional, comprehensive, secretarial and administrative support to the President/CEO and entire executive staff. This person will interface with executives, board members, members, visitors, and vendors. This individual must be able to prepare reports, correspondence, manuals, spreadsheets, and all other communications utilizing a broad range of computer applications. The preferred individual will be able to perform dictation or short-hand, analyze complicated factual situations, apply functional principles and develop solutions.
Requirements: HS diploma;  4 years administrative experience at the executive level; professional, well-developed interpersonal skills; strong organizational ability, versatility, time management, ability to multi-task, and make decisions independently; strong verbal and written communications skills; ability to have considerable discretion and judgment when working with confidential and sensitive information; preferably dictation or short-hand skills; and proficient PC skills. Send cover letter, resume, and salary requirements to: Attn: HR,  DFCU, 1075 Silver Lake Blvd, Dover, DE 19904. Email: hshupe@doverfcu.com .

CU Position Sought. Individual with over 35 years of managerial experience and a background in the financial services industry seeks full-time employment. Much of this experience and knowledge focuses on customer service and call center management, training and development, and lending and collections. For a copy of this resume, contact Susan Fallon at the League and ask for resume #11-20-07.

EDUCATIONAL OPPORTUNITIES

December QuickBites Teleconferences
One-hour sessions run from 11 a.m.-noon:
     •    12/04  Irate Member Complaints
     •    12/18  Collection Policies & Tips
The fee for the one-hour session is $99. The deadline to register with Bernadette Hines: one week prior to the session.

Professional Councils
•    Financial Management Council: “Economic Overview for 2007 and Beyond.” Wednesday, December 5. Register with Charlie Jenkins.
•    Cards Council: “Consumer Regulations and Your Plastic Cards.” Thursday, December 6.
•    Mortgage Council: “The Perfect Storm – Why Did the Mortgage Market Go So Wrong So Fast?” and a review of the State of Delaware bond issues. Tuesday, December 11. Register with Jane Bailey for both the Cards and Mortgage Councils.
•    Marketing Council: Review of the Pennsylvania CU Association’s “iBelong” cooperative advertising campaign and a possible cooperative marketing project with Cabot Creamery. Wednesday, December 12. Register with Alice Smith.
     All four sessions will be held at the League office from 10 a.m.-noon. There is no fee for council members. There is a $75 participation fee for non-council members.

RESERVE THE DATE!
     2008 CEO Summit. January 21-24, 2008. Key West, Florida. For more information, go to: http://training.pcua.coop/on_site/PAA1218_fct.html. The early bird tuition is $575 until December 7. The deadline for hotel reservations at the Casa Marina Hotel and Beach Club is December 21.

League Activities in October/November

LEAGUE SERVICES

          2008 Annual Meeting & Trade Show. The League will be celebrating our 50th anniversary at the 2008 annual meeting to be held on April 4-6 at Dover Downs (a change in dates and place). We have booked The Fabulous Hubcaps for our dinner-dance event and Mark Lynch as our keynoter. From Australia, Lynch experienced first hand the effects of taxation on Australian credit unions, which he will discuss in his presentation. He will also present a breakout session on board governance. Other speakers include Frank Diekmann, publisher of CU Journal, who will present CU issues in the headlines, and Dean Gray, CUNA Mutual Group, whose topic will be fraud.

COMMUNICATIONS/PUBLIC RELATIONS

          Credit Union Day Supplement. This year’s Credit Union Day Supplement was very well received. We got over 20 calls regarding the articles published in the paper: the peach blossom print, teacher materials from NEFE, and license plates. The League would like to thank the 12 CUs that supported the publication with advertisements: American Spirit, Chestnut Run, Del-One (Delaware), Delaware Alliance, Delaware First, Delaware State Police, DEXSTA, Dover, DPL, Eagle One, Louviers, and New Castle County School Employees.

          League Coordinates Media Exposure. Communications director Alice Smith recently worked with several reporters in preparing articles about CUs. In this role, she identified various CU spokespersons and provided background information about the CU movement in general and in Delaware specifically. As a result of this collaboration, an excellent article entitled “Credit Unions Offer Members a Variety of Services” appeared in the August Morning Star Business Report, which is published in Sussex County. Those CUs interviewed for the piece were Del-One, Dover, Seaford, Southern Delaware Postal Employees, and Sussex County.
          Leslie Pappas, financial institutions reporter for The News Journal, came to the League for contacts and information on the National Credit Union Share Insurance Fund (NCUSIF). She was preparing an article about the bank insurance fund, especially the insuring of excess funds. Although credit unions did not appear in the story that was published on October 28 (the emphasis was on ING Bank), the side bar on “Protecting Deposits” did mention the credit union insurance fund. In addition, News Journal business reporter Gary Haber contacted the League for an article for “Business Monday.”
           Finally, the League continues to work with the Delaware Business Ledger in preparing its annual “Book of Lists.” The Business Ledger also highlighted credit unions in its October issue (in recognition of Credit Union Week) and featured mini-articles on the free patriotism CD sponsored by Delaware CUs and donated to schools and libraries, the Del-One corporate center opening and back-to-school donations, the League’s publication award, Louviers FCU’s scholarship program, and the definition of a credit union. Many of these items were garnered from our League publication, TOGETHER.

          Staff Travel. League president Pat Mahaney and EVP Jane Bailey attended a meeting of credit union leaders from NCUA Region II in early November. Attendees included Region II Director Jane Walters and leadership from the New Jersey, Delaware, Maryland/DC, Virginia, West Virginia, and Pennsylvania state leagues/associations. Among items discussed were NCUA priorities for 2008 including credit union strategic planning and technology and security issues. Delaware will be hosting the next Region II meeting in Rehoboth in May.
          Five members of the League staff attended the ribbon cutting of Dover FCU’s corporate headquarters in Dover on November 15. In addition, Alice Smith joined members, staff, and volunteers at the grand opening of Sussex County FCU’s branch in Millsboro on November 17.

GOVERNMENTAL AFFAIRS

          CURIA Now Has 137 Official Backers. Credit unions continue to push for CURIA co-sponsorships, which now stand at 137. The bill was introduced March 15 by its co-authors, Reps. Paul Kanjorski (D-Pa.) and Ed Royce (R-Calif.). Credit unions are still encouraged to send letters to Congressman Castle by going to the following website, which is especially designed for this purpose:  http://capwiz.com/cuna/issues/alert/?alertid=9521681&PROCESS=Take+Action.
           
          Credit Union House Contributors. Fifteen Delaware credit unions have contributed $5,280 in support of Credit Union House in Washington, D.C. This is almost triple the goal set for our state by Credit Union House! Jill Jarman, the manager of Credit Union House, made the following comment, “Delaware credit unions have done a fantastic job this year and are well above 100% of goal.” The League is hoping to organize a trip to Credit Union House in 2008 and invite those credit unions who contributed in 2007. Here is a list of contributors:

EDUCATION

          Volunteer Leadership Conference. Over 280 credit union volunteers and guests attended the 11th annual Volunteer Leadership Conference in Ocean City, Maryland, the last weekend in October. Seventeen Delaware credit unions enrolled 95 people for the conference. This compares with 81 registrants from Maryland and 15 attendees from D.C. It is very gratifying that Delaware had the largest number of attendees. Here is a list of participating credit unions:

October Education Sessions

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).