Volume 28, Number 24                                                        December 30, 2008

Ruth W. Lawley
June 4, 1938 – December 18, 2008

League Loses a Dear Friend and Valued Employee

     Ruth Lawley, executive assistant at the Delaware Credit Union League for 24 years, passed away on December 18, after a nine-year battle with lymphoma. 
     Ruth was the golden voice of the League. According to former board member Dorlene Fox, “Her demeanor always conveyed a sincere patience and interest in my phone call and what she could do to assist me.”
     DPL CEO Anthony Hinds described Ruth as the “face of the League. Even when requests were difficult, unusual, or not necessarily in line with ‘the policy of the moment,’ Ruth found ways to accommodate, carrying out League directives while providing satisfactory solutions. She never dropped the ball. And, while she carried out her responsibilities in flawless, businesslike fashion, Ruth still proved to be generous at heart and warm in spirit.”
     Her bosses also had wonderful things to say about Ruth. Current League president Patrick Mahaney stated, “As the voice of the League, Ruth was the first contact many of us had with the Delaware Credit Union League and, for many, our favorite! She had this uncanny ability to remember when the babies were born, when the siblings were married, and more. Ruth cared about everyone, and it was never more evident then when she was talking to credit union people. There are a few things many of you may not know about Ruth: her unshakable belief in her creator, trust in the innate goodness of people, and her sense of humor. There were times when all of those attributes were sorely tested and yet she continued to be steady and unflappable.”
     Bob Walls also touted Ruth’s merits: “Ruth truly was the face and the voice of the League for over twenty years, and it was my great pleasure to have been able to work with her, learn from her and, yes, consider her my friend. Her work ethic was without peer, and the projects she accomplished were meticulous and well thought-out. At the League, Ruth was our rock, our moral compass and our friend.”
     Bill McKeown, who served as interim League CEO, summed up many people’s feelings about Ruth: “St. Francis wrote that, if you have one friend, you are fortunate; if you have two friends, you are prosperous; if you have more than two, you are blessed. Ruth must have been a saint.”
     Ruth had officially retired in October, and the League presented her with a scrapbook of memories and testimonials from her many friends and colleagues. In addition, the League board will dedicate Ruth’s former office as the “Ruth Lawley Welcome Center” at a special ceremony in January 2009.
     Ruth is survived by her husband Bill, three daughters, six grandchildren, and stepchildren and grandchildren in Alabama. The family asks that memorial contributions be made to the Helen F. Graham Cancer Center, c/o Christiana Care Foundation, P.O. Box 1668, Wilmington, DE 19899. Condolences can be sent to the Lawley family in care of the Delaware Credit Union League, 4 Quigley Boulevard, New Castle, DE 19720.
     Ruth’s dedication to this organization, her endearing nature, and her exuberance for life will be truly missed by those who have worked so closely with her and whose lives she has touched.

COMPLIANCE RECAP

NCUA Advises CUs on Foreclosed Assets
     The current financial market is forcing credit unions to consider the effects of carrying foreclosed and repossessed assets (FRA) on their statements of financial condition, and their federal regulator has issued guidance on the issue.
     The National Credit Union Administration (NCUA) has posted to its website a letter from the chairman (08-CU-25), which instructs credit unions on some of the issues they face when holding FRA. The letter also references another resource titled “Working with Residential Mortgage Borrowers” (07-CU-06).
     First and foremost, the NCUA letter urges credit unions to work with borrowers whenever possible because prudent workout arrangements can be in the long-term best interest of both the credit union and the member.
     “However, when foreclosures are unavoidable, you must consider all risks associated with holding FRA,” writes NCUA Chairman Michael Fryzel.
     The letter states FRA should only be held temporarily and not permanently as an income-producing asset. The assets should be actively marketed for sale “as evidenced by the fact the credit union has committed to a plan of sale, is seeking a buyer, and expects to collect on the sale within 12 months.”
     A footnote in the letter states that the Federal Credit Union Act authorizes a federal credit union to hold and dispose of real property necessary or incidental to its operations and that most state regulators have similar requirements.
     NCUA advises that a credit union managing FRA should establish policies and procedures that establish an acceptable and manageable level of risk to protect the safety and soundness of the CU.
     The guidance states that policies and procedures should consider and address the following applicable risks:

• Liquidity – to determine the level of FRA the credit union can hold and manage before negative implications place undue stress on its liquidity position;
• Transaction – to ensure the FRA is appropriately reported on the statement of financial condition;
• Compliance – considering all applicable consumer regulations and state laws;
• Strategic – understanding implications a chosen strategy places on a credit union's current and future earnings; and
• Reputation – a credit union should determine which properties will be sold immediately and which will be held for a short period of time.

     “Examiners will evaluate these policies and procedures as needed to ensure the credit union can safely manage all implications associated with FRA on the statement of financial condition,” Fryzel writes.
     Use the resource link below to read the complete NCUA guidance letter on FRAs: http://ncua.gov/letters/2008/CU/08-CU-25.pdf.

Changes to Home Ownership and Equity Protection Act
     The Federal Reserve Board revised the minimum threshold for the total amount of points and fees that require lenders to provide borrowers disclosures mandated by HOEPA. Effective January 1, 2009, the minimum threshold for total fees and points will increase from $561 to $583.  

NCUA Bans Five Unfair Card Practices
     NCUA has approved a final rule that would ban some of the worst unfair and deceptive credit card practices and said its rule is substantively identical to that adopted by federal bank and thrift regulators. Effective July 1, 2010, the rule prohibits the following five practices:

• Providing insufficient time for consumers to make payments;
• Failing to provide reasonable allocation of payments among balances with different interest rates;
• Applying increases in annual percentage rates to pre-existing balances;
• Calculating finance charges using double-cycle billing, which computes finance charges using the average daily balance from the last two billing cycles rather than only the most recent billing cycle; and
• Requiring excessive security deposits and account-opening fees for the issuance or availability of credit.

     To access the NCUA unfair practices rule, go to http://www.ncua.gov/NCUABoard/draftboardactions/Dec/Item%202a%20BAM.pdf.  

DELAWARE CU NEWS

Credit Unions Promote Good Will Through Community Service
     The following Delaware credit unions have reported how their members and staff stepped forward to help those in need at the end of 2008. The stories are featured in the order they were received by the League.
     WILMINGTON POSTAL FCU was the first CU to share its good news stories. According to CEO Susan Winward, “Staff members gave one hour for ringing the bell for the Salvation Army Red Kettle Drive. Staff and members also donated playthings for the Toys for Tots campaign, which was a huge success. In fact, our employees bought toys for the program instead of an office gift exchange. In addition, we are promoting financial literacy to a local school in Newport by purchasing 150 workbooks to be used by schoolchildren. Finally, Annette Garafalo has volunteered to help prepare tax returns for the Delaware Earned Income Tax Credit (EITC) campaign.  We are hoping to involve our staff and board in other activities at least quarterly throughout the year.”
     EAGLE ONE FCU’s eagle mascot was a big hit with young and old at the annual Claymont Christmas Parade. The holiday parade down Philadelphia Pike featured community groups, marching bands, and politicians, with local residents lining the streets of town. Eagle One FCU is a proud supporter of the Claymont community, according to CEO John King. “Claymont is a unique place that has a lot to offer families. We are always glad to be a part of this holiday tradition.” This was Eagle One’s fourth parade. Riding in style, the eagle was joined by credit union staff in giving away candy canes and holiday cheer to all that came and enjoyed this festive tradition. At the Eagle One branch, staff distributed coloring books and crayons, holiday pens, and pretzels and hot chocolate to passers by.

Eagle One FCU mascot  waves to parade supporters.

     CEO David Clendaniel of DOVER FCU reported the following charitable activities during the holiday season. Staff members rang bells for the Salvation Army for two days. In addition, they made and delivered 180-dozen cookies to the residents of the Dover Air Force Base dorms. Currently the staff is raising funds to be given to 36 residents of the Murphey School, a residential care facility for dependent and neglected children.
     FIRST STATE FCU CEO Rich Long reported that the CU has participated in two projects this year. “We held a food drive to help the Food Bank of Delaware to aid people in these especially difficult times, and we adopted a family of three, a single mother with two children, through the Caring Hearts Helping Hands organization.”
     This year LOUVIERS FCU sponsored several families through the Human Services Council’s Adopt-a-Family, according to marketing director Faith Simpers. The CU is also participating in the Delaware Food Bank’s food drive by having drop-off barrels in each of its four branches. Finally, the CU is having members in each branch register their children’s names for a drawing for money-counting jars and miniature ATM machines.
     DEXSTA FCU held a clothing drive for the Clothing Bank of Delaware in each of its branch locations during the month of December. A core ministry of Friendship House, the Clothing Bank of Delaware distributes donated clothing to community agencies, provides employment for disadvantaged women in the community, and creates volunteer opportunities for a variety of local business and organizations. This is the second year that DEXSTA has held this clothing drive. Last year DEXSTA donated 2,800 pounds of clothing in excellent condition.

Containers fill up for DEXSTA’s clothing drive
    

The employees of the SUSSEX COUNTY FCU wanted to do something to help those in the local community and decided to do a food drive at each branch. The Seaford branch donated four boxes of food to the Seaford Community Food Closet, which is housed at the St. John’s United Methodist Church. The Lewes branch collected food for the Cape Henlopen Food Basket. The Milford branch also collected food for the Food Bank of Delaware. In addition, the Millsboro branch partnered with the U.S. Marine Corps Reserve to collect toys for Toys for Tots. Donations of unwrapped toys were open to the community, along with the staff members of the credit union.

SussexCounty FCU staff members at the Seaford branch who
supported the holiday food drive. Standing left to right: Ashley Tyre,
Bonnie Farris, Sue Hoefs, Perianne Palmer, Sherry Shockley, Nicki Melvin, Paula Campbell, Mike Drummond, Becky Madden.Seated left to right: Karen Woodland, Ellen Hearn, Del Burks

DELAWARE NOTES

Kent-Sussex Industries, Inc. (KSI) recently recognized Del-One (Delaware FCU) at their 15th Annual Business Appreciation Awards Breakfast. Del-One was one of five local businesses that were presented a Sub-Contracting Appreciation Award by KSI. These businesses were recognized for their dedication to KSI and the employment of individuals with disabilities. KSI employees have completed a variety of sub-contract jobs for Del-One, which include, but are not limited to, assembling, counting, packaging, repackaging, and shrink wrapping. This partnership is a successful venture for both organizations: Del-One saves printing and packaging costs while empowering others through the work opportunities that exist at KSI.

Seated left to right: Tom Spiezio, Energizer Personal Care; Mike Wajda, Dentsply Caulk;
Dr. Harriet Smith-Windsor, Secretary of State; Amy Durham, Del-One; Brian Shanklin, Fastenal
Standing left to right: Jayson Crouch, KSI Vice President; John Garnick, Procter & Gamble; Gary Wolfe, Intervet Schering-Plough Animal Health; Michael Patterson, Perdue Farms; Carsavelt Landham, Wal-Mart; Sue Corradini, Kraft Foods; Loretta Fisher, Laboratory Corporation; Craig Crouch, KSI CEO.

Will Garfinkel, supervisory committee chairman of the DELAWARE ALLIANCE FCU, attended CUNA’s Supervisory Committee and Internal Audit Conference on December 14-17 in Nevada. Will was able to attend on a scholarship provided by the Delaware Credit Union League.

President & CEO. New Jersey credit union ($62 million) seeks a strategic leader to become its President & CEO. The successful candidate will have a collaborative management style that promotes communication among members, employees and the Board. In addition, the successful candidate must possess the ability to develop and execute strategic business plans and budgets to accomplish agreed upon business objectives. Candidates should have well-rounded skills in financial management, IT services, marketing, operational management and human resources. Candidates must have a minimum of ten (10) years experience at a financial institution and a bachelor’s degree; an MBA is preferred. A competitive compensation and benefits package will be offered to the selected candidate. Direct all resumes to: Search Committee, Rutgers FCU, pquigley@rutgersfcu.org.    

Collection Position. CU seeks a collector with a strong work ethic, excellent time management and organization skills, and the ability to work independently. The individual should be a self starter with a positive attitude and must be results oriented. Collection experience, skip tracing and heavy phone work required. Knowledge of bankruptcy and foreclosure laws a plus. This position is for our Seaford Branch. Fax resume to 302-629-0966 or forward resume to pwoodworth@sussexcfcu.com.

IT Position Sought. Applications developer with over 15 years of experience in the financial and insurance industries seeks position. Extensive experience in enhancing and maintaining system applications in a variety of computer languages. Known for creating accurate and automated reporting systems.  Has converted applications from one platform to another. Skilled at designing, and implementing the transfer of information across multiple platforms. Call Susan at the League and ask for resume #12-18-08.

EDUCATIONAL OPPORTUNITIES

January QuickBites Teleconferences
One-hour sessions run from 11 a.m.-noon:
1/06 – Ten Commandments of Career Success
1/21 – Hands-on Business Development
1/29 – Notary Public Training
The two-hour session runs from 11 a.m.-1 p.m.
1/08 – Regulation CC: Check Holds
The fee for the one-hour sessions is $99; the two-hour session is $169. The deadline to register with Bernadette Hines is one week prior to the session.

Five or More Things Supervisory Committees Should Know – Monday, January 26, from 5:30-7:30 p.m. at the League office. Newly appointed members of the supervisory committee are urged to attend. More than just the basics, this session has two topics that many CUs find difficult to deal with: member complaints and elections. Fee: $99 per registrant. Regis. deadline: January 19

Marketing Compliance for CU Professionals –  Tuesday, January 27, from 9 a.m.-4 p.m. Has your CU checked your newsletter, website, and print ads to make sure they are in compliance with rules and regulations? This hands-on session will review various samples of marketing materials to see where a CU can get caught not complying with the law. Fee: $199 for registrants or $179 for 2009 registrants of the League Marketing Council.

PLAN AHEAD IN 2009!

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).