Volume 27, Number 23                                 December 15, 2007

HEADLINE NEWS

Congressman Castle Visits League Office
     Delaware’s lone Congressman, Representative Mike Castle, visited with the League’s Governmental Affairs Committee and other credit union CEOs on Monday, November 26. 
     After introductions, Castle listened as participants encouraged him to support the Credit Union Regulatory Improvements Act (CURIA, H.R. 1537). Castle stated that credit unions’ basic problem is “how far you can grow and give loans being untaxed and with fewer regulations than banks.”
     Congressman Castle also commented on other legislation he is supporting: mortgage lending, issues with sub-prime lending and credit cards, education reform including Head Start and higher education, gathering alternative sources of information regarding credit (rent payment, utility bill payment) in order to help raise credit scores, plus his role in the successful state quarter and Presidential dollars program.
     League board chairman Joel Romaine presented the Congressman with a check from CULAC toward his next election campaign. The committee and League both offered our services for further education and materials that the Congressman will need in the future to assist in better understanding credit unions and issues related to our membership. We reminded Representative Castle that 220,000+ people belong to credit unions in Delaware, and we are interested in his views.

 

Congressman Mike Castle and credit union folks: Seated (l. to r.) Jerry King, DEXSTA; Sharon Schaeffer, Delaware First; Marie Davis, DEXSTA; Dawn Sutcliffe, DelawareAlliance. Standing (l. to r.) Charles Gleason, Sussex County; Maurice Dawkins, American Spirit; Allen Riley, Sussex County; Congressman Castle; Phil Lynch, Dover; George Fitzgerald, DPL; Fran Lally, New Castle County Delaware Employees; Joel Romaine, DPL (League board chairman); and Savannah Jarrell, DelawareAlliance. The League staff also attended.

News Journal Features Credit Union Article
     Delaware's credit unions, by offering lower service fees and better interest rates than banks, have carved out a niche for themselves in the financial services industry, according to an article in the November 26th issue of The News Journal.
     While some credit unions may not have as expansive branch networks as banks, credit unions have an advantage in offering smaller, more consumer friendly options, the article said. "It's a different atmosphere," said Patrick Mahaney, president/CEO of the Delaware Credit Union League, referring to the facts that unlike banks, credit unions are non-profits, have no shareholders, and have boards of directors composed of unpaid volunteers from the credit unions' membership.
     The article describes examples of what attracted member Oneil Williams to DEXSTA FCU: personal, friendly service and being recognized by all the credit union employees. Reporter Gary Haber also interviewed CEOs Jerry King of DEXSTA FCU and Maurice Dawkins of American Spirit FCU for the article. The League provided statistics for a chart showing CU membership for the past ten years.
    
COMPLIANCE RECAP

IRS Sets 2008 Mileage Rates
     The Internal Revenue Service (IRS) has issued the 2008 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.
     Beginning January 1, 2008, the standard mileage rates for the use of a car (including vans, pickups, or panel trucks) will be:
•    50.5 cents per mile for business miles driven;
•    19 cents per mile driven for medical or moving purposes; and
•    14 cents per mile driven in service of charitable organizations.

1. Maintain a share account;
2. Maintain credit union membership;
3. Have access to credit union facilities;
4. Participate in the director election process;
5. Attend annual and special meetings; and
6. Petition for removal of directors and committee members.

     Go to http://www.ncua.gov/letters/2007/FCU/07-FCU-02-Encl-1.pdf to read the NCUA letter.

Credit Union Closings During the Holidays
     During the holidays, credit unions generally have a question on how many consecutive days they can close. This year is especially challenging because Christmas Eve/Christmas Day and New Year’s Eve/ New Year’s Day are on Monday and Tuesday backing up to the weekend.
     There is no federal law or regulation that prevents a national bank or a federal credit union from being closed more than three consecutive days. However, from a safety and soundness perspective, regulators would like to see financial institutions open long enough to provide sufficient service to customers/members. Also, the impact of other laws, such as the UCC, labor laws, and access to the Federal Reserve Banks, must be considered, along with clearing checks before the midnight deadline, dealing with wire transfers, releasing funds availability holds on deposits and performing other required financial functions.
     A more detailed explanation to this question is found in CUNA’s November Compliance Challenge, Question #8, which has been mailed to all managers and CEOs.

Fees Change for Processing Paper, Substitute and Imaged Checks
     The Federal Reserve announced a fee schedule for payment services for depository institutions effective January 2, 2008. They are cutting fees for imaged checks delivered to paying institutions electronically, but raising fees for paper checks and substitute checks. 

CUs With Mortgage Programs That Use LOANLINER Forms
     The Federal Emergency Management Agency (FEMA) has published an update to the “Mandatory Purchase of Flood Insurance Guidelines” booklet. The update affects the Flood Insurance Notice document. If your CU uses paper LOANLINER forms for your mortgage program, you should order new documents by calling LOANLINER at 800-356-7012. The new documents will be available in four weeks. CUNA Mutual will send automatic updates to electronic customers.

CU SYSTEM NEWS

Sussex County FCU Celebrates Millsboro Branch Opening
     Delaware’s second largest credit union, Sussex County FCU, opened its newest branch on September 24. The Millsboro office, located at 216 Washington Street, joins the credit union’s branches in Lewes and Milford and its corporate office in Seaford. Originally chartered as the Nylon Capitol Federal Credit Union, which served the employees of the DuPont plant in Seaford, the credit union expanded its charter to serve residents of Sussex County in 1999.
     All three branch buildings have the same exterior design, according to Allen Riley, vice president of operations, who was responsible for overseeing the construction. This design replication helps in reducing construction costs and provides higher visibility to the members.
     However, the new 3,000-square-foot Millsboro branch has been reconfigured for the comfort of the members, according to Riley. The branch has a television in the lobby area for member information, safe deposit boxes, and a drive-up ATM.
     The CU held a grand opening celebration on November 17, which was extremely well attended by members, guests, and residents of the Millsboro community. Featured were door prizes, food, giveaways, special share certificate and loan rates, and an on-site shredding truck to securely shred personal records. The event was broadcast live on radio station 107.1.

Members of the board and staff attending the Millsboro branch open house: (l. to r.) Ken Rogers, John Lewis, Maggie Zott, Charles Gleason, CEO Pam Fleuette, Wayne Obermire, and Teddy Matthews.

President to Nominate Replacement for NCUA’s JoAnn Johnson
     President George W. Bush is expected to nominate Mike Fryzel of Illinois to fill a vacancy that will be created when NCUA Chairman JoAnn Johnson leaves her position. Johnson’s term expired in August of this year.
     Fryzel currently serves on the Illinois Governor’s Board of Credit Union Advisors and has been a member of the Governor’s Cabinet. He is an Illinois real estate lawyer and former director of the state’s Department of Financial Institutions.
     The White House announcement said the President intends to designate Fryzel chairperson of the agency upon confirmation. His term would expire on August 2, 2013.

Treasury Issues Last Batch of State Quarters
     A grizzly bear clutching a salmon, the Grand Canyon at sunrise, and a scissortail flycatcher in flight – those striking images will be on the final batch of state quarters, as the most successful coin program in history draws to a close.
     The U.S. Mint has unveiled the final five designs for the state quarters, with the first one, honoring Oklahoma, to be put into circulation in late January and the other four following at 10-week intervals through 2008.
     Since 1999, the states have been honored in the order they were admitted to the union, starting with Delaware. The effort kicked off a collecting craze unlike anything ever seen before in the coin world. Based on a 2005 survey, Mint officials estimate 147 million people have gotten involved in collecting the quarters with their constantly changing designs.
     Congressman Mike Castle was the person responsible for the idea of producing the new quarters.
     If you would like further information about how your CU can sell quarters or Presidential dollars to your members, contact Ted Pyle of MPI Coin at 800-459-9487. Or go online to www.mpicoin.com.

 
DELAWARE NOTES
Delaware Veterans Post No.1 Toys for Tots’ chairman, Tom Pitts, recently sent ICI AMERICA FCU a thank you letter for donating gifts for the annual 5k run/walk held on November 3. The CU contributed mugs and duffle bags. The event raised over $7500 for the Kirkwood Highway Marine Unit’s annual Toys for Tots drive.

Congratulations to Heather and John Watson on the birth of their son, Davis Colten, on October 3. Heather is a staff member at MILFORD MEMORIAL FCU.

The holidays are a time of giving and, with the help of over 125 business professionals, more than $100 and 100 pounds of non-perishable food items were donated to the Food Bank of Delaware. The Central Delaware Chamber of Commerce (CDCC) and DEL-ONE (Delaware FCU) hosted the November Sunset Business Mixer to benefit the Food Bank’s Holiday Food Drive.

     Dover FCU 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, spread-sheets, and all other communications by utilizing a broad range of computer applications.
     Requirements: High school diploma; 4 years administrative experience at the executive level. Must possess professional, well-developed interpersonal skills; strong organizational ability, versatility, time management, and 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 req. to: Attn: HR, Dover FCU, 1075 Silver Lake Blvd Dover, DE 19904. Email: hshupe@doverfcu.com .

EDUCATIONAL OPPORTUNITIES

January QuickBites Teleconferences
One-hour sessions run from 11 a.m.-noon:
•    1/08  A Look at Thieves From Within
•    1/16  Cross Selling
•    1/29  Bank Secrecy Act
The two hour session runs from 11 a.m.-1 p.m.
•    1/10  Reg CC (check clearing)
The fee for the one-hour sessions is $99; the two-hour session fee is $169. The deadline to register with Bernadette Hines: one week prior to the session.

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 tuition is $650. The deadline for hotel reservations at the Casa Marina Hotel and Beach Club is December 21.

Certified Financial Counseling School. The Maryland/DC Credit Union Association will host CUNA’s Certified Credit Counseling School, January 14 - 17, 2008, at their Columbia Office. The school is Part 2 of the Counseling School hosted in 2007, but all credit union financial professionals will benefit from attending (you do not need to have completed Part 1 to attend). This school is designed for staff members who work in financial counseling, member servicing, collections, or loan departments. Attendees will discover ways to help members prevent and resolve financial problems. Fee: $1395 for the week or $395 per day. For a full brochure, call Alice Smith at the Delaware League.

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).