Volume 28, Number 6                                                                  March 30, 2008

HEADLINE NEWS

FTC Cautions Consumers About Tax and Rebate Scams
     The Federal Trade Commission (FTC) is cautioning consumers looking forward to rebate checks from the government that they may be targets of scammers out to steal their identity. The agency has issued an alert to help consumers avoid this situation.
     The schemes work like this: consumers get a call or an e-mail claiming to be from the Internal Revenue Service (IRS), the Social Security Administration (SSA), or some other government agency. The scammer claims to need some bit of personal information to process the rebate check. 
     Consumers may be asked to provide their social security number, checking account number, or another piece of personal information that a skillful crook can use to commit identity theft. E-mails often include a link for a consumer to click. That link may take the consumer to an official-looking – but phony – website that is simply phishing for the consumer’s information. Or, the link may take the consumer to a legitimate site but install spyware or some other form of malware on the way.
     Neither the IRS nor the SSA collects information about rebate qualifications by telephone or email. The FTC urges consumers who are contacted by phone or e-mail not to provide any personal information and to report the contact to the IRS at phishing@irs.gov or the SSA at (800) 772-1213.

Newest Currency Update: $5 Bill
     The first new five-dollar bill was issued by the Federal Reserve March 13, a greenback that continues to feature a portrait of the 16th President while incorporating enhanced security features to foil counterfeiting operations. The makeover of the $5 bill is similar to the redesigned $10, $20, and $50 banknotes also aimed at foiling counterfeiters. The most notable difference is splashes of light purple at the center of the bill. The next makeover is the $100 bill.

CUNA Hosts Important Webinars
     Credit union professionals can ensure they have taken the proper steps to secure their members’ personal information when outsourcing to third party vendors - and that they are satisfying regulatory requirements - during a CUNA webinar scheduled during the second quarter of 2008.
     “Vendor Due Diligence - Securing Your Members Information” will take place June 17 to help train any credit union staff directly involved in working with outside vendors. Listeners will examine NCUA guidance on vendor due diligence and learn how to perform a vendor risk assessment. Additionally, the class will identify the components of a vendor due diligence program and explore insurance issues, internal controls, and identify the roles of different credit union professionals in a contract review.
     Another webinar highlighted during the second quarter includes the specifics of the ITIN process and how credit unions can develop successful programs during “The ABC's of Individual Taxpayer ID Numbers.” The May 15 offering walks attendees through the ITIN application procedures to follow that ensure submissions are processed in a timely fashion. They will learn the roles of acceptance agents and then discuss the policies, procedures, and potential problems of developing an ITIN program.
     Nearly 20 webinars will take place during the second quarter of 2008 to educate busy credit union personnel about: finance and economics; human resources and training; security; lending; management and leadership; board and volunteer; marketing and business development; operations, sales, and service; and regulatory compliance. Archived versions of many recently-held webinars are also available.
     For a complete list of classes, additional information and registration materials, visit http://training.cuna.org/ and select the "Webinars & eSchools" link, or call (800) 356 9655, ext. 4249.

COMPLIANCE RECAP

NCUA Letters to CUs
•   Letter #08-CU-03: Reporting of currency transactions for sole proprietorships and legal entities operating under a “doing business as” name.
•   Letter #08-CU-04 highlights credit union financial trends for 2007.
•   Letter #08-CU-05 encourages credit unions servicing securitized subprime adjustable rate residential mortgages to utilize the HOPE NOW alliance’s loan modification standards to report foreclosure prevention efforts.
     This recently developed reporting format will assist industry efforts in measuring foreclosure prevention activity by standardizing data fields regarding modifications of subprime adjustable rate residential real estate loans and will help to foster more transparency throughout the securitization market as the financial industry moves forward collectively through this current mortgage crisis.
     To read the full copy of this letter, go to http://www.hopenow.com/. HOPE NOW is an alliance between counselors, servicers, investors, and other mortgage market participants formed under the direction of the Department of the Treasury and the Department of Housing and Urban Affairs in the fall of 2007.

Regulators Update Business Continuity Manual
     The National Credit Union Administration, as part of the Federal Financial Institutions Examination Council (FFIEC), has updated its business continuity planning booklet for financial institutions. The updated information is included in the “Business Continuity Planning Booklet,” which was issued in March 2003. The guidance is intended to help examiners, financial institutions, and technology service providers identify business continuity risks and evaluate controls and risk management practices for effective business continuity planning, according to the agency. You can find electronic versions of the ‘Business Continuity Planning Booklet” and other examination handbooks using this link: http://www.ffiec.gov/ffiecinfobase/index.html. CUNA also has disaster preparedness resources: http://www.cuna.org/initiatives/disaster_prepare/index.html.

CUNA Compliance Resources
     Credit union compliance experts have readers humming “The Alphabet Song” in the March issue of Credit Union Magazine, as they provide a complete A through Z guide of 2008 compliance issues.
     With only one noticeable cheat – “K” is for “Kongress” – the article explores a wide range of regulatory developments, examiner concerns, and potential congressional action that will affect credit union operations this year.
     From “Assessment of Risk” to “Regulation Z,” the article brings credit unions up to date on the most important compliance issues credit unions will face this year – including the Bank Secrecy Act, foreclosure, mortgage reform and unrelated business income tax challenges.
     Use the resource link below to access the article authored by Kathy Thompson, senior vice president, compliance and legislative analysis, and associate general counsel; Mike McLain, assistant general counsel; Valerie Moss, director of compliance information; Nichole Seabron, federal compliance counsel; and Paulette Young, regulatory affairs specialist. http://www.cuna.org/compliance/member/download/comp_mat_2008_03.pdf

New Compliance Topic Added to CUNA’s e-Guide
     In response to NCUA’s emphasis on due diligence for the 2008 examination period, CUNA has added a new section to its Compliance e-Guide on this area of law. The League encourages you to visit CUNA’s website to review the information in this topic area, as it gives a comprehensive, yet simple summary of the issues surrounding due diligence. Go to the following link: http://www.cuna.org/compliance/member/eguide/eguide_duediligence.html.

Free Link to Filene Research
     The Filene Research Institute has generously created an exclusive website for credit unions to access the most recent research and innovation publications at no charge. The reports are available for download 24 hours-a-day, seven days-a-week. The available information will assist credit unions in navigating the uncertainties of the future and will help identify business opportunities. The address to access the complimentary reports is http://filene.org/free/guestpass

CU SYSTEM NEWS

CUNA Mutual 401(k) Plans Rate Well With Research Firms
     Retirement plan sponsor surveys conducted by two independent research and information organizations have again rated CUNA Mutual Group an industry leader in overall client satisfaction in the 401(k) plan marketplace.
     The first survey was conducted by 401k Exchange, a leading source of business development, market intelligence, and due diligence services for the 401(k) and retirement industry serving the small and mid-sized corporate market.
     The second study was completed by the Boston Research Group, a strategic market research and consulting firm that specializes in the financial services industry. Their “2007 Defined Contribution Plan Sponsor Satisfaction and Loyalty Study” is the industry’s most comprehensive, reliable and well-respected survey of plan sponsor customer satisfaction, brand loyalty and key market dynamics.
     The Boston Research Group study measured the ability of twenty-five 401(k) service providers to satisfy the needs of sponsors with plans less than $5 million in assets. Highlights include CUNA Mutual’s top rankings in the following categories: “understands your needs,” “partners effectively,” “easy to do business with,” “minimizes administration burden," and “helps you meet fiduciary responsibilities.”

Bauer Financial Ratings
     Kudos to the following CUs that received 5-star ratings from BauerFinancial, Inc., an independent financial institution rating and research firm: American Spirit, Chestnut Run, Delaware Alliance, Del-One (Delaware), DEXSTA, Dover, DPL, First State Refinery, ICI America, Milford Memorial, New Castle County Delaware Employees, New Castle County School Employees, Provident, Seaford, U-Del, and Wilmington Postal. The ratings are based upon 2007 fourth quarter financial data as reported to financial regulators. Five stars (superior) is the highest rating given by the firm. Four additional CUs received four-star (excellent) ratings: Delaware River and Bay Authority Employees, Delaware State Police, Edge Moor DuPont Employees, Louviers, Preferred Financial, and Sussex County. The three Delaware credit unions with less than $1.5 million in assets were not rated.

IRS Provides Economic Stimulus Payments, Online Calculator
     The Internal Revenue Service announced that it will begin sending more than 130 million economic stimulus payments starting May 2. The initial round of weekly payments will be completed by early July. The IRS also announced the availability of a new online calculator on its website to help people determine the amount of their stimulus payments.
Stimulus payments will be made by direct deposit to people who choose to receive their 2007 income tax refunds through direct deposit. All others will receive their economic stimulus payments in the form of a paper check.
     Stimulus payments will be sent out in the order of the last two digits of the Social Security number used on the tax return. On a jointly filed return, the first Social Security number listed will determine the mail-out time.
     The online calculator, found at http://www.irs.gov/app/espc/, will help taxpayers determine if they are eligible to receive an economic stimulus payment and, if they are, how much they can expect. Anyone who has prepared a 2007 income tax return can use the calculator. It will ask taxpayers a series of questions, so they should have their 2007 tax returns handy. After answering the questions, the calculator will provide the projected dollar value of the payment.

Anti-Inflation Advice: Join a CU
     CNNMoney.com advised those looking to avoid the effects of inflation to join a credit union.“Beat inflation at home,” a recent article, noted how the tough economy has contributed to the rise of banking fees – from overdraft fees to ATM surcharges. The article advised readers to join a credit union because they “generally have lower fees” than traditional financial institutions (CNNMoney.com, March 20).
     The article also advised consumers to link their checking and savings accounts, pay bills online, and contact credit card companies to try and waive late fees.
     Other major media outlets, such as The Washington Post and Dow Jones News Service have also advised consumers to join credit unions. Dow Jones and the Post noted that credit unions tend to offer better loan rates than banks (News Now, December 27.)

DELAWARE NOTES

Our condolences to the AMERICAN SPIRIT FCU staff and volunteers and to the family of Howard Hall, who recently died at the age of 76. Howard was a charter member of the CU and served as its manager for many years.

Paula Campbell representing SUSSEX COUNTY FCU recently presented a check for $500 to Becky Madden of CHEER. The two had met at a recent Economic Development Meeting in Seaford. According to Campbell, “As part of the community, Sussex County FCU feels that it is very important to be involved in and contribute to organizations, such as CHEER, whose vision and mission is to keep the mature population healthy, active and involved in the community from the place they most want to be…in their homes.”

Pictured (left to right): Branch managers Zee Imhof and Kathy Coffin; Sussex County FCU CEO Pam Fleuette; Becky Madden from CHEER; Paula Campbell; and branch managerJoann Kirwan

Office Manager. Delaware V.A. Federal Credit Union is seeking an individual to manage the credit union office. This individual should have strong managerial and full accounting knowledge along with credit union experience. Benefits include generous holidays, sick and vacation paid leave. Equal opportunity employer. Qualified applicants should fax a cover letter and resume to 302-633-5582, Attention: Pat Price. Or email her at patricia.price@med.va.gov. 

Information Technology Manager. DEXSTA Federal Credit Union seeks an IT Manager. Reporting directly to the CEO, this position is responsible for the credit union’s network and its related communications platforms such as PCs, servers, Internet, routers and security related operations. Additionally, this individual will be responsible for developing technology plans, budgeting and project management. Excellent communication and interpersonal skills are a must. Bachelor’s degree and minimum of 5 years experience in a related field required. Send resume with cover letter and salary requirement to: hrmanager@dexsta.com. Equal opportunity employer.

EDUCATIONAL OPPORTUNITIES

April QuickBites Teleconferences
One-hour sessions run from 11 a.m.-noon:
     ►  4/01  Expense Control
     ►  4/29  EEO-1 Reports (Labor Law)
Two-hour session runs from 11 a.m.-1 p.m.
     ►  4/30  Introduction to Credit Unions
The fee for the one-hour sessions is $99; the two-hour session is $169. The deadline to register with Bernadette Hines: one week prior to the session.

League Annual Meeting and Trade Show – Friday, April 4 (vendor reception); Saturday, April 5 (exhibits, education, dinner-dance); and Sunday, April 6 (brunch, keynote speaker, annual meeting, dinner & races)

NCUA Free CU Workshop – Friday, April 11, at the Renaissance Philadelphia Airport Hotel from 8 a.m.-3 p.m. Credit unions can visit NCUA’s website to register, view the agenda and the most current information. You can view the information at www.ncua.gov/CreditUnionDevelopment/Events/Index.htm.

CU Financial Management Council – Tuesday, April 15, from 10 a.m.-noon. Topic: NCUA speaker Jeanette Dakwar-Reynolds will provide allowance for loan loss assistance, including methodologies, documentation, and charge-off guidance. The session is free to council members, and $100 for non-council members. Registration deadline: April 8.

Robbery Training – Two dates and locations:
     ►  Wednesday, April 16, Dover FCU, Dover
     ►  Thursday, April 17, League, New Castle
Presented by CUNA Mutual risk management specialist Chetta Hebron-Byrd, this session is a must for front line staff and management. Board members and volunteers might want to attend to better understand security challenges faced by CU management. Fee: $50. A light meal will be served half-an-hour before the presentation. Registration deadline: April 9.

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).