Volume 28, Number 22                                                  November 30, 2008

HEADLINE NEWS

CUNA Activates Website for 100-Year Celebration
     The 100th anniversary of the U.S. credit union movement is underway, as the first credit union in the United States opened in November 1908. In 2009, June will mark the 75th anniversary of President Franklin Roosevelt signing the Federal Credit Union Act of 1934. The Credit Union National Association (CUNA) will also celebrate its Diamond Anniversary in 2009 – CUNA was founded in August 1934.
     Historical information and campaign materials for the 100-year anniversary of credit unions are now available on a new website from CUNA for credit unions to use while promoting the celebration. For more information, go to www.cuna.org/100years. There you will find:

• History – Including an interactive timeline and highlights from the past 100 years of credit unions;
• Video clip – CUNA President/CEO Dan Mica talks about credit unions’ 100 years of success;
• Campaign materials – Credit unions can download free public relations and marketing materials, including a model speech, proclamation, celebration ideas, newsletter, press release, letter to the editor, logos, and ads to help promote the anniversary celebration;
• Online store – Various promotional items and print materials for the celebration are available for purchase; and
• Credit union stories and pictures – An area of the website was created for credit unions to share their pictures and stories.

     “We couch the celebration in terms of the 100 years of growth and evolution that credit unions have undergone in order to continually improve service to members and further our tradition of ‘People Helping People,’” Mica said. “The website is just one of a number of activities that CUNA has planned for the celebration.”

Help Your Members Through Tough Economic Times
     The Association of British Credit Unions has compiled its “top ten tips” for how members can get through tough economic times, especially with the holidays on the horizon (easier.com Nov. 13).
Credit unions in the U.S. can adapt these suggestions and promote them to their members:

• Flexible savings products – Credit unions offer a range of flexible and accessible savings accounts. Members can save according to their needs. Tell members that even saving a small amount each week will add significant savings;
• Lower loan costs – If members need to borrow money, credit unions have some of the best deals available. Early repayment of a loan from a credit union results in no penalties. Borrowers pay interest only for the amount of time they are in possession of the loan money;
• Debit cards – Members can use them with merchants and to withdraw cash from ATMs. Users can set up direct debit payments with utility bills, for example, to save money;
• Rewards cards – Many credit unions offer rewards cards that add value each time they are used;
• Christmas/holiday savings clubs – This is a safe way to save for the holiday season;
• Mortgages – With access to mortgages from banks getting harder to obtain, credit unions are in a good position to offer their competitively priced mortgages;
• Life insurance – When members take out a credit union product, this can be built in, meaning loans are written off if there is a member death;
• Money management advice – Members should be made aware that many credit unions offer free advice and useful information on managing finances;
• Deposit guarantee – Member deposits are issued up to $250,000 through the National Credit Union Share Insurance Fund; and
• Local ownership – Credit unions are owned by members, not stockholders.

NCUA NOTES

Recent NCUA Board Meeting
     At its November board meeting, the NCUA Board approved changes that will implement a 12-month examination cycle and acted on several issues related to its budget: the Operating Fee Scale for federal credit unions for 2009; the agency’s Overhead Transfer Rate for 2009; and its final fiscal year 2009 and initial 2010 budgets. The Board also approved a final rule that changes the existing process of approving multiple group credit union service to underserved areas under the Chartering and Field of Membership Manual for FCUs.

• NCUA’s 12-Month Examination Program. The risk-based scheduling policy for CU examinations will now be based on a 12-month cycle, instead of the current 18-month cycle. This change is being made based on NCUA concerns that the current economic conditions warrant more frequent on-site reviews in order to identify and mitigate safety and soundness concerns at an earlier stage.
• Final Rule - Criteria to Approve Service to Underserved Areas. The NCUA Board also issued a final rule that changes the existing process of approving multiple group credit union service to underserved areas under the Chartering and Field of Membership Manual for Federal Credit Unions. Both Vice Chairman Hood and Board Member Hyland emphasized that this rule is not about field of membership, but rather about service to the underserved. Read more at  http://www.cuna.org/newsnow/08/wash112008-6.html.
• Final Rule - Amended Definition of Post-Merger Net Worth. The NCUA Board voted unanimously to change the prompt corrective action (PCA) definition of a natural person credit union's “net worth” to include as capital the retained earnings of a credit union that is merging into it. The rule applies to credit union mergers taking place after December 31, 2008. The change would be consistent for corporate credit unions, as well.
• Operating Fee Scale for 2009. The NCUA Board approved an increased 2009 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 6.77%. The operating fees for federal credit unions, which will be assessed based on assets as of December 31, 2008, will be due to NCUA no later than April 15, 2009.

COMPLIANCE UPDATE

New Mortgage Rules Help Find Lower Cost Home Loans
     For the first time in more than 30 years, the U.S. Department of Housing and Urban Development has issued long-anticipated mortgage reforms that will help consumers to shop for the lowest cost mortgage and avoid costly and potentially harmful loan offers. HUD will require, for the first time ever, that lenders and mortgage brokers provide consumers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. HUD estimates its new regulation will save consumers nearly $700 at the closing table. The new, standardized GFE and revised HUD-1 will not be required until January 1, 2010.

Freezing or Reducing HELOC Plan Limits
     If your credit union is considering freezing or reducing the amounts of existing home equity lines of credit (HELOCs), be advised that you must comply with all applicable laws and regulations protecting consumers. During analysis of reducing or freezing HELOCs, it is important to look at all aspects of the action, including notice to members, as well as notice to the credit bureaus. Financial institutions, including credit unions, must properly report the action taken so it does not reflect negatively on the borrower’s credit report.
     More information about this advisory can be found in the November issue of Compliance Challenge, found in this manager/CEO mailing.

HMDA Revisions
     CUNA has issued a final rule analysis of the Federal Reserve Board’s changes to Regulation C, which implements Home Mortgage Disclosure Act provisions. The Fed’s revisions make the rule’s definition of “higher-priced mortgage loan” identical to Regulation Z. Before the change, Regulation C required lenders to report the spread between the annual percentage rate (APR) on a loan and the yield on comparable Treasury securities if the spread was at least three percentage points for first-lien loans or five percentage points for subordinate-lien loans. Under this final rule, a lender will report the spread if the loan APR exceeds an average of comparable prime mortgage rates by at least 1.5 percentage points for first-lien loans or 3.5 percentage points for subordinate-lien loans.

Join Us at CUNA’s Governmental Affairs Conference     
     The 2009 Governmental Affairs Conference (GAC) is your time to step up and tell our story. Every story counts, as reflected in this year’s GAC theme, “Be Bold. Be Heard. Be There.” The GAC is set to take place February 22-26, 2009, in Washington, D.C.
     Be Bold. The 2009 CUNA GAC is your time to step up, tell your story, and make a difference with Delaware Congressional leaders, especially our new Senator. This event also gives you the opportunity to hear from influential Washington policy makers and network with peers.
     Be Heard. Uncertainty in the financial industry requires you to be vocal about what credit unions offer. In a year that will see a new Congress and Administration, the GAC is your opportunity to visit Capitol Hill and ensure that our Delaware lawmakers understand our tradition of people helping people.
     Be There. The greater the number of attendees, the bigger the impact you can make when we visit our Delaware delegation on the Hill. And this year’s conference promises to be extra special, as we celebrate 100 years of America’s Credit Unions.
     Top 10 reasons to attend this year’s GAC:

• Ensure lawmakers understand the credit union difference to protect our tax exempt status;
• Proactively advance legislation that provides credit unions with flexibility to grow;
• Celebrate the 75th anniversary of CUNA and the Federal Credit Union Act;
• Celebrate the 100th anniversary of credit unions;
• Make an impact on Congress with Capitol Hill visits that show our strength in numbers;
• Hear from Washington’s most influential policy makers;
• Explore the exhibit hall with more than 300 product and service providers;
• Gain insights from the federal regulatory agencies;
• Hone your political advocacy skills; and
• Network with your peers in one of America’s most vibrant cities.

     Registration is $895. A discount rate of $450 is available for CUs with asset sizes of $35 million or less. CUNA is offering scholarships; applications are due by January 5, 2009. The League is also offering a registration scholarship for one person from a CU under $35M in assets to attend (does not include housing, meals or transportation).  
     Further information on the conference can be found on www.cuna.org. Click GAC 2008 on the homepage.

Help in Cutting Holiday Spending
     The Consumer Federation of America and CUNA suggest the following holiday spending tips to help consumers avoid falling into a seasonal debt trap:

• Make a budget and list what you will buy and how much you can afford to spend and then stay within that budget;
• Comparison shop: You can easily save more than 10% on most items by comparing prices at different stores. Often the savings are even greater;
• Pay off your holiday debts quickly and remember you are less likely to overdo if you pay with cash or check than if you use either credit or debit cards;
• Start saving now for 2008 – open a Christmas Club account: While these accounts do not pay much if any interest, they provide a practical way to save small amounts over time;
• Be smart about gift cards: Read the fine print on each card. If you don't use the card quickly, it can lose value. There may be a fee for checking your balance as well as a monthly inactivity, maintenance, administrative, or service fee;
• Pay attention to return policies. Some stores are tightening return policies. Also keep receipts and note time limits, restocking fees, and other factors that may affect your recipient;
• And also, find low- or no-cost ways to enjoy the holiday season. Just a few changes to holiday habits can really ease the strain on a spending budget. Draw names to reduce the number of people for whom you buy gifts; give homemade items; make your own gift wrap; organize a potluck dinner rather than preparing and paying for the entire holiday meal.

Youth Week Theme: The Magic of Saving
     Based on feedback from more than 700 credit union staff and 50 youth, the winning theme for National Credit Union Youth Week 2009 is “The Magic of Saving.” National Credit Union Youth Week will be celebrated April 19-25, 2009.
     Credit unions looking to start or expand a youth program in 2009 might be interested in the just-published “Model Youth Program Guide.” The guide is a toolbox of research, resources, samples and checklists. It includes a sample job description for a student-run branch coordinator. To purchase, go to http://buy.cuna.org/detail.php?sku=28479P.
The League library also has a copy.

DELAWARE NOTES

Congratulations to MILFORD MEMORIAL FCU and DEL-ONE (Delaware FCU) for being the first credit unions to pay their League dues for 2009. The League also appreciates EAGLE ONE FCU and MID-ATLANTIC CORPORATE FCU for renewing their associate memberships.

Savannah Jarrell of DELAWARE ALLIANCE FCU and Peg Conway of DEXSTA FCU attended the Financial Institutions and Law Enforcement SAR seminar, held November 12 in Wilmington. The meeting was run by the United States Attorney’s Office, District of Delaware. The SAR program at the U.S. Attorney’s Office in Delaware is actively engaged in using data received from financial institutions to combat crime. Banking institutions were well represented at the meeting, while there were only two credit unions in attendance.

On November 12, the Seaford High School cheerleaders participated in a commercial produced by SUSSEX COUNTY FCU, which will be aired during upcoming pro football games. The high school cheerleaders and their coach, Susan Cannon, enthusiastically volunteered to play a part in the commercial, and Seaford High principal Clarence Davis kindly permitted the credit union to use the football field for the shoot. Paula Campbell of Sussex County Federal Credit Union stated that “I truly believe that we all felt a great sense of community, working together and having fun together. It was very obvious that the cheerleaders felt a great sense of pride and deservingly so! We’re all anxious to see the commercial.” 

Pictured front, l to r: Susan Cannon, Seaford High School cheerleading coach; Emily Whitaker cheerleading captain; Paula Campbell, Sussex County FCU vice president of business development; Charlie Gleason, CU board vice chairman, and Allen Riley, vice president of operations. Back, SeafordHigh School Cheerleaders

DEXSTA FCU held its ground-breaking ceremony on November 19 for its newest branch location at 110 Sandhill Drive in Middletown. The branch will feature a state-of-the art 4200 square foot building with four drive-thru lanes to include a drive up ATM. The anticipated grand opening will be in either June or July of 2009. “We listen to our members’ needs, and by expanding to Middletown we will be able to offer them the added convenience of a new location. Additionally, we are looking forward to being in the Middletown area, getting to know the community, and offering them the advantages of our many products and services,” says Jerry King, President/CEO.

l to r: John Kuffel, Level 5; Patrick Mahaney, Delaware Credit Union League CEO; Peg Conway, DEXSTA FCU vice president of operations; Mary Brien-Duch, vice president of finance; Jerry King, CEO; Marie Davis, board chair; and Jeff Dayton from Congressman Castle's office

Customer Service Teller Position: Kent County area credit union seeking an individual for part-time teller/customer service representative. Banking and financial industry experience necessary. Should have good skills with the public. Send a resume to: D.J.K., Provident Federal Credit Union, 401 South New Street, Dover, DE 19904.

Position Sought: Individual with experience as a member service representative seeks a credit union position. Speaks some Spanish. Contact Susan Fallon at the League and ask for resume #11-09-08.

EDUCATIONAL OPPORTUNITIES

December QuickBites Teleconferences
One-hour sessions run from 11 a.m.-noon:
          12/02 – Reg B: Discrimination in the Loan Process
          12/08 – Lending to Young Adults/Hispanics
The fee for the one-hour sessions is $99. The deadline to register with Bernadette Hines is one week prior to the session.

PLAN AHEAD IN 2009!

January 18-21   CEO Summit, Key West, Florida
February 13      Third Annual Credit Union Bowl to be held at Bowlerama, New Castle
April 30-May 2   Delaware League Annual Meeting & Trade Show, Clarion Hotel, Ocean                           City, Maryland

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).