Volume 27, Number 7                                             April 15, 2007

HEADLINE NEWS

April Is Project Zip Code Month
     April has been designated as “Project Zip Code Month” for credit unions nationwide. Project Zip Code is one of the most effective advocacy tools available to credit unions, explains League communications director Alice Smith.
     “The data collected in Project Zip Code allows elected officials to see how many credit union members reside and vote in their districts. This is powerful information, as lawmakers equate these membership counts to votes,” says Smith.
     This is where Project Zip Code comes in. Project Zip Code is a user friendly, privacy-secure CD-ROM computer program that counts your members and matches them with state legislative districts as well as congressional districts in Delaware and in other states. These counts are then uploaded to CUNA’s Project Zip Code website and combined with data from other credit unions in Delaware and nationwide.
     “Many Delaware credit union members reside in other states, and we know we have members of out-of-state credit unions living in Delaware,” Smith explains. “This is why it’s so important that all credit unions participate. Without full participation we can’t get a clear picture of our grassroots strength.”
     Credit unions may also find that participation will provide operational benefits. You will be able to view the number of credit union members by geographic area, which could be useful in placing ATMs, for shared branching, or for other purposes.
     Even if your credit union has run the program before, it’s important to update your credit union membership data on an annual basis, notes Smith. “Credit unions are always growing, districts are changing, and members are moving across the county – or country, even though they keep their credit union membership.” 
     The Project Zip Code CD-ROM will be handed out at the League annual meeting or sent to all credit unions during the latter half of April. This CD-ROM will contain the user manual and step-by-step instructions. We look forward to your participation in Project Zip Code!

Upcoming League Training
■ Supervisory Committee: Duties and Responsibilities – Wednesday, May 2, from 5:30-8:30 p.m. at the League office. This session is especially designed for new supervisory committee members, or those who would like a review. Idora Russell, CPA, will also cover data processing responsibilities and annual audit work programs. The fee is $90 per person. Register by April 23.
■ Information Technology (IT) Compliance – Tuesday, May 15, from 10 a.m.-noon. Bob Frank of Mid-Atlantic Corporate FCU will discuss the current relevant security mandates from NCUA, including multifactor authentication, business continuity, and data encryption. The fee is $35. Register by May 8.
■ Teller Fundamentals – Tuesday, May 22, from 9 a.m.-3:30 p.m. This full-day session will focus on general teller skills and effective member relations. Participants will be trained on cash handling and maintaining an efficient teller station, as well as compliance issues such as the Bank Secrecy Act and the Expedited Funds Availability Act. The fee is $190. Register by May 8.
     For registration brochures on any of these sessions, contact League education director Bernadette Hines at Bernadette@dcul.org or 302-322-9341.

COMPLIANCE RECAP

Get Ready to Post New NCUA Insurance Signs
     By May 22, 2007, your credit union must be using the National Credit Union Administration’s new share insurance coverage signs. The new signs reflect recent increases in the share insurance coverage on accounts and include a statement that federally insured shares are backed by the full faith and credit of the United States Government.

     There is a $100-a-day penalty for failing to post the necessary signs, which is triggered by the May compliance date. Although the official insurance sign is blue and white, CUNA assures credit unions that NCUA does not dictate the color scheme for the signs posted at teller windows or found on the credit union's website or in its marketing materials.
     Official signs posted at locations where accounts are opened or funds are normally received, including teller stations and Internet sites, must be updated by May 22. All other materials that include the logo, such as account disclosures and marketing materials, must be updated by November 23, 2007. 
     You can download the NCUA logos at: http://www.ncua.gov/data/IndexDownloadData.htm

BSA "Problems" Result in NCUA Cease and Desist
     NCUA recently issued a cease and desist order against Dover N.J. Spanish American Federal Credit Union to correct what the agency called “substantial Bank Secrecy Act compliance problems.” NCUA stipulated a list of 22 terms and conditions to be met by the credit union. The list included a requirement to "back-file" to 2001 all Currency Transaction Reports (CTRs) and Suspicious Activity Reports (SARs) – a task to be completed within 60 days of the order. More here: http://www.cuna.org/newsnow/07/wash040307-1.html

Revised Mortgage Handbook
     The Consumer Handbook on Adjustable-Rate Mortgages (the CHARM booklet), which provides information to consumers about the features and risks of such loans, has been revised. In recognition of the growing use of nontraditional mortgage products that allow borrowers to defer payment of principal and (sometimes) interest, the CHARM booklet has been revised to include discussions about "interest-only" and "payment-option" mortgages.
     Under Regulation Z (which implements the Truth in Lending Act), creditors must provide a copy of the CHARM booklet or a suitable substitute to consumers with every application for an adjustable-rate mortgage loan. Credit unions may begin to use the revised CHARM booklet now or may continue using their existing stock of CHARM booklets until October 1, 2007, the mandatory date for use of the revised CHARM booklet (or suitable substitute).
     The booklet is available on the Internet at http://www.federalreserve.gov/pubs/arms/arms_english.htm. 100 copies of the brochure are available free of charge from: Publications, Mail Stop 127, Federal Reserve Board, 20th and C Streets, N.W., Washington, DC 20551; 202-452-3245.

New Compliance Audio Conference Deals With CU Hot Topics
     Credit union professionals can ask and get answers to their most pressing compliance questions through a new audio conference series from CUNA. The Pressing CU Compliance Issues audio conferences will address three or four of the most popular hot-topic issues – as determined by feedback received from credit unions. Each session will be different, addressing the most recent compliance concerns as they arise.
     A panel of compliance experts from CUNA and various credit union organizations will tackle the chosen topics and clarify the areas of concern. Participants will also have an opportunity to ask questions about additional compliance topics during the conference.
     The following three audio conference dates are currently scheduled, with more to be added in the near future: Thursday, May 17, from 2-3:30 p.m. (EST); Tuesday, Aug. 7, from 2-3:30 p.m. (EST); and Monday, Nov. 12, from 2-3:30 p.m. (EST)
     For more information or to submit compliance-related questions, go to http://training.cuna.org/ and click the "Audio Conferences" link.

CREDIT UNION SYSTEM

Statement Stuffer Revised to Reflect Latest IRA Changes
     Credit union members can learn about the latest changes to individual retirement accounts (IRAs) through one of several updated statement stuffers now available from CUNA.
◘  "IRAs Power Your Savings" (stock #23655) explains the rules, requirements, and differences between the traditional and the Roth IRA. The revamped stuffer guides members through the changes in contribution limits for 2007 and beyond. An updated table on the financial effect of IRA contribution changes provides a side-by-side comparison of what the account would be worth for a 50-year-old worker – with and without taking advantage of catch-up contribution limits.
     Other revised member financial literacy materials include:
◘   New suggestions for how to "Teach Children About Money" (stock #20875) were added to this duly named statement stuffer. Tips are divided into age-appropriate categories, along with a number of do's and don'ts for allowances, smart spending, giving, encouraging saving, and money as reward/punishment.
◘  "Payday Loans: The Hard Truth About Some 'Easy' Money" (stock #22648) warns consumers about this phenomenon. It explains how much this so-called "convenient" service will cost them in the long run and includes a new resource for cost calculations. It also provides better suggestions for acquiring small emergency loans.
     Finally, two statement stuffers were updated with new artwork and logos:
◘  "Higher Deposit Coverage Gives You More Reason to Save"(stock #22959) provides a consumer-friendly explanation of the current limits in NCUSIF insurance coverage for single and joint ownership accounts, revocable trust account, and self-directed retirement accounts. It also includes the new NCUA logo.
◘  The "Credit Union Member Bill of Rights" (stock #21820) details 14 “rights” that come with credit union membership, from the safekeeping of members' money and personal information to the advantages offered over other financial institutions.
     For more information, to view a PDF version of the statement stuffers, or to buy online, go to http://buy.cuna.org/, type "stuffers" in the search box or a specific stock number in the product finder box. To order through CUNA Member Service, call (800) 356-8010, press 3, and use the stock number as a reference.

Mandatory Labor Law Posters   
     Businesses often receive official-looking documents from a company, which advises that the new 2007 Delaware and Federal Labor Law Notices should be posted in the office. The so-called “Final Notice” offers an all-in-one laminated poster for a fee.
     Be advised that the labor law notices can be obtained from the Delaware Department of Labor for free. According to the law, CUs must post summaries of the following laws:
■  Wage Payment and Collection Act
■  Minimum Wage Act
■  Discrimination in Employment Law.
     The Delaware Department of Labor can furnish a comprehensive labor law poster, free of charge, which summarizes these laws and other federal laws enforced by the division. Call the Wilmington office at 302-761-8200 or the Milford office at 302-422-1134 to request a poster.

Literacy Fund-Raiser
     Seasons Pizza of Delaware is supporting the mission of the Delaware Coalition for Literacy, which is to help eliminate illiteracy in Delaware. During the first week in May, Seasons Pizza is proud to announce that they will donate a portion of the dine–in restaurant bill to The Delaware Coalition for Literacy, Inc., a non-profit organization representing over 75 programs throughout the state providing services to adults needing services to improve their literacy. Consult the phonebook “Yellow Pages” for a Seasons Pizza near you.

FREE Daily RateAlert
     Subscribe to CUNA’s FREE CU360 RateAlert daily e-mail and get competitive intelligence on interest rates and special offers in your local financial services market. CU360 RateAlert also includes graphs of national rates, plus links to credit union management articles. As a subscriber, you can tailor your e-mail by choosing a region along with specific interest rates to watch, such as savings, mortgages, auto loans, or credit cards.  Subscribe today to your FREE Daily RateAlert by visiting ratealert.cuna.org.

DELAWARE NOTES

An 18-year old woman has been arrested a week after a DELAWARE STATE POLICE FCU member was robbed at an ATM close to the teen’s home. State police Cpl. Jeff Whitmarsh identified the suspect as Carrie Webb of near New Castle. Whitmarsh said Webb wedged herself between the CU’s branch office at 235 Christiana Road and the member’s car as the victim was making a transaction about 3:30 p.m. on April 4. The robber then reached into the car window and took the woman’s cash. Webb then ran away into a nearby apartment complex. Although dogs tracked the suspect, she was not arrested until a week later.

More than 300 members of DOVER FCU joined together on March 17th to attend the 49th Annual Membership Meeting at Dover’s Modern Maturity Center. Richard (Myles) Standish and James Williams, Jr., along with the incumbent Martin Talmud, were elected as board members. Other highlights of the evening included an awards presentation for employees who best exemplified the credit union spirit throughout the year. Jean Maslauskas, manager at the call center, received the Albert J. Schmidt Leadership Award; the Mary Lovisone Award for Excellence in Member Service was presented to Cathy Marshall, greeter at the Dover Air Force Base office.

Our sympathy goes to Louviers FCU board member Mitchell Duling and his wife Ann and the rest of their family at the passing of Mitch’s mother, Gladys Duling. Gladys managed the Louviers FCU for 25 years before retiring.

EDUCATIONAL OPPORTUNITIES

May QuickBites Teleconferences
One-hour sessions run from 11 a.m.-noon:
◘  5/3    Making the Most of Your Communication Style
◘  5/9    Internet Security: Spoofing, Spamming & Phishing
Two-hour sessions run from 11 a.m.-1 p.m.:
◘  5/31  Asset-Liability Management
The fee for the one-hour session is $99; the two-hour session is $169. Deadline to register: one week prior to the session. Call Bernadette Hines to enroll.

Council Meetings
◘  Cards Council – May 10. The topic for discussion will be “Debit Cards.” Highlights will include reloadable debit cards and card rewards. The session will be held at the League office from 10 a.m.-noon, ending with lunch. There is no charge for council members. Non-council members can attend for a fee of $75. R.S.V.P. to Jane Bailey.

NCUA Small CU (under $10M) Conference – Saturday, April 28, from 8 a.m.-3 p.m. at the Hilton Philadelphia Airport. Topics: succession planning, regulatory hot topics, understanding NCUA risk indicators and key ratios, strategic planning, and marketing. There is no charge for this session. The agenda and registration form can be found at http://www.ncua.gov/CreditUnionDevelopment/Events/Index.htm. Or call Alice at the League.

Mark Your Training Calendars!
May 2        Supervisory Committee Duties
                         5:30-8:30 p.m., League office
May 15       Information Technology (IT) Compliance
                        10 a.m.-noon, League office
May 22       Teller Fundamentals Training
                        Full day, League office
June 5        Everything You Wanted to Know About NCUA, But Were Afraid to Ask
                        9 a.m.-noon, League office
June 14      Bank Secrecy Act (BSA) Training
                        10 a.m.-noon, League office
Contact Bernadette Hines for more information.

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).