Volume 29, Number 5 Combined Issues: March 15 & 30, 2009
Volume 29, Number 5 Combined Issues: March 15 & 30, 2009
HEADLINE NEWS
Not Too Late to Register for the League Annual Meeting
“Delaware Credit Unions: Best in Show” is the theme of the League’s 51st annual meeting and trade show. This year the convention will be held at the Clarion Fontainebleau Hotel in Ocean City, Maryland, on April 30-May 2. The registration deadline is April 15.
League executive vice president and meeting coordinator Jane Bailey explains the change in venue. “Last year we moved the convention to Dover Downs in order to be able to house the entire convention and guests’ rooms in one place. However, people who lived in the Dover area asked that we consider going back to the beach. Unfortunately, Ruddertowne is going through a conversion. So we decided to move the convention to Ocean City where we could find a hotel that would accommodate our attendees for guest rooms, as well as provide flexible meeting space for the trade show and educational sessions.”
Here is a condensed version of the convention schedule:
Thursday, April 30
• Golf Outing – Eagle’s Landing Golf Course 8:30 a.m.
• Exhibitor/Decision-Makers’ Reception – 7-9 p.m. at the Clarion Convention Center
Friday, May 1
• Trade Show – 8:30 a.m.-2:00 p.m. at the Clarion Convention Center
• Education Sessions
10:00 a.m.-Noon Vendor Due Diligence
2:00-4:45 p.m. 1) Catching and Keeping Gen Y: Routes to Young Adult Members;
2) Internal Security; and 3) Planning for an Environmentally Friendly Facility (each session repeated twice)
• Dinner and Entertainment – 7-11:30 p.m. featuring the Dovells (of “Bristol Stomp” fame)
Saturday, May 2
• Annual Meeting and Featured Presentations: NCUA board member Rodney Hood and CUNA’s economic update. Luncheon follows at 1:30 p.m.
NCUA’s Conservatorship of Corporates and Its Impact on CUs
[Since this newsletter’s last issue four weeks ago, there has been a constant flow of information regarding the National Credit Union Administration’s (NCUA) conservatorship of two corporates. The Delaware Credit Union League has sent out daily emails regarding this action and the Credit Union National Association’s (CUNA) response. The League encourages CEOs/managers to share this information with your staff and volunteers. This issue of TOGETHER will feature the most current actions taken by NCUA as of March 20.
Billions of dollars of losses from the March 20 takeover of U.S. Central Federal Credit Union and WesCorp Federal Credit Union will cascade down through the three tiers of the credit union system: from U.S. Central at the top, to its corporate members, and down to the 8,100 natural-person credit unions.
Before last week, the cost of the corporate credit union stabilization plan was estimated at $4.7 billion. But the March 20 takeovers of U.S. Central and WesCorp added another $1.2 billion, making it $5.9 billion. National Credit Union Administration Executive Director David Marquis and other NCUA officials have estimated the cost for the corporate stabilization plan could ultimately rise to as much as $10.8 billion.
Between the write-down of credit unions’ 1% National Credit Union Share Insurance Fund (NCUSIF) deposit and the expected premium charge later this year, every federally insured credit union will have to subtract 100 basis points, or 1%, from their net worth to pay the cost. NCUA officials said credit unions will have to reflect the write-down of their 1% deposit on their 5300 Call Report for the first quarter ending March 31. The eventual premium charge will be assessed in September. (Credit Union Journal, National Credit Union Administration, Credit Union National Association, March 24)
NCUA Approves Plan to Spread Replenishment: Proposal Requires Congressional Action
During a special meeting on March 26, the NCUA Board approved a proposal that would enable credit unions to spread the cost of the National Credit Union Share Insurance Fund (NCUSIF) replenishment over as much as a 7-year period.
The proposed legislation would create a mechanism, the Corporate Credit Union Stabilization Fund, to absorb losses associated with the corporate credit union stabilization actions and assess federally insured credit unions for associated costs over as much as a 7-year period. If enacted into law, the proposal:
• Should allow insured credit unions to expense these assessments over time;
• Is consistent with generally accepted accounting principles (GAAP); and
• Is limited in use to only pay for losses incurred by corporate credit unions.
Recently, the House of Representatives approved legislation, H.R. 1106, that would provide NCUA with the flexibility to return the premium portion of the NCUSIF equity ratio to the statutory minimum of 1.20% over a 5-year period, and increase the authority of NCUSIF to borrow from the U.S. Treasury to $6 billion. While these NCUA-supported provisions are beneficial, GAAP requires credit unions to recognize the impairment of the NCUSIF deposit in the accounting period in which it occurred through the income statement as an expense.
Though the 5-year restoration provision is highly beneficial in that it would allow NCUA to assess premiums to rebuild the fund’s retained earnings over time (and allow credit unions to expense this when billed), it will not enable credit unions to spread out the expense for the deposit impairment. The NCUA proposal on March 26 would allow for spreading the entire replenishment over as much as a 7-year period, as established by the NCUA Board.
Unprecedented liquidity and capital strains on the corporate credit union system have compelled NCUA to take a series of actions in recent months to stabilize the corporate credit union network and shield natural person credit unions from greater losses.
“The credit union system and the share insurance fund remain strong overall in the face of unprecedented economic stress. Nonetheless, while the credit union system on the whole has the net worth to absorb these costs and remain well capitalized, the combination of these expenses taken all at once would undoubtedly result in a contraction of lending and other member services,” commented NCUA Chairman Michael E. Fryzel. “I encourage credit unions to do whatever they can to assist NCUA in securing passage of this plan into law, as soon as possible.”
The proposed Corporate Credit Union Stabilization Fund legislation is available online at: http://www.ncua.gov/CorporateStabilizationProgram.
NCUA Provides Informational Letter for Credit Union Members
NCUA has provided a letter explaining details of recent actions taken to stabilize the corporate credit union system. The communication, intended for use by credit unions with their members, also explains how stabilization efforts may affect federally insured credit unions.
Credit unions are encouraged to post the letter in lobbies, on websites, and regular or electronic mail in order to ensure the broadest and most effective distribution. The letter can be found online at http://www.ncua.gov/CorporateStabilizationProgram.html.
Changes to the March Call Report
NCUA has announced changes to the March 31, 2009, Call Report designed to better enable credit unions to provide a more accurate picture of expenses related to the recent NCUA Corporate Stabilization Program.
The new version of the 5300 Call Report features the separate presentation of the expense resulting from the recent NCUA corporate stabilization actions. The changes will show the expense related to the stabilization action as a separate line item on the Income Statement within the Call Report. It will also show net income before and after the expense item. The two new accounts added are NCUSIF Stabilization Expense, Account 311, and Net Income (Loss) before NCUSIF Stabilization Expense, Account 660A. This will allow Call Report users to quickly ascertain the impact of the stabilization expense on the operating position of each credit union. The Call Report is due by April 20, 2009. The letter can be found at http://www.ncua.gov/letters/2009/CU/09-CU-03.pdf.
Call Report Filing to Go Electronic by October
At its March 26 meeting, the NCUA board proposed a rule that would require federally insured credit unions to submit call reports online. NCUA anticipates sending a letter to credit unions regarding this new system in early September and making the system mandatory for credit unions with Internet access by October 1, 2009. Small credit unions without Internet access will be able to submit paper call reports in lieu of using the online system, but NCUA will be encouraging electronic transmission. NCUA is also anticipating holding a webinar on this new system.
NCUA will no longer issue software to submit the reporting data because of the fact that, going forward, all data will be submitted and viewed through an online “Credit Union Profile and Call Report.”
In other actions, the Board issued a proposed rule that would amend the disclosure requirements of NCUA’s Truth in Savings Act rule to align it with the Federal Reserve Board’s rule. A proposed rule would require credit unions to disclose on periodic statements the dollar amounts charged for overdraft fees and returned items. It also would require credit unions to provide account balance information through an automated system that discloses only the amount of funds available for withdrawal, without including the additional funds that would be available under an overdraft program. The provisions changing disclosure requirements for overdraft fees would not be effective until January 1, 2010, to maintain parity with Regulation DD.
The Board also approved a final rule that will provide additional flexibility to RegFlex-qualifying federal credit unions related to the acquisition of unimproved land. Lastly, the Board reviewed the latest National Credit Union Share Insurance Fund Report, which indicates that the NCUSIF is expected to increase to 1.30% in March and maintain that level for the remainder of the year.
Other NCUA Letters and Alerts
09-CU-04 |
Making Home Affordable: A Program for Mortgage Loan Refinancing and Modifications; PDF or MS Word |
09-CU-05 |
State of the Credit Union Industry as of December 31, 2008; PDF or MS Word |
09-CU-06 |
Corporate Stabilization Program - Conservatorship of U.S. Central FCU and Western Corporate FCU; PDF or MS Word |
Examiner Guidance on CU SIP
NCUA has provided supervisory guidance for its examination staff regarding the impact the agency's corporate stabilization program may have on credit union balance sheets. NCUA said its Supervisory Letter 09-01 instructs examination staff to differentiate between the impact of recent NCUA actions and operational activities by credit union management when evaluating credit union performance and risk profile.
The letter also sets forth guidance allowing for examiner recognition of possible temporary reductions in return on assets (ROA) resulting from credit union participation in the Credit Union System Investment Program (CU SIP).
Revised Flood Hazard Form
The Federal Emergency Management Agency (FEMA) has updated its Standard Flood Hazard Determination Form. The current form expired on October 31, 2008, and has been replaced with an updated form that can be used through December 31, 2011. The effective date for mandatory use of the new form is June 16, 2009. For compliance purposes, all Standard Flood Hazard Determination Forms completed on or after June 16, 2009, must use the new form. A copy of the new form is online:https://www.cunamutual.com/cmg/media/00021801.pdf.
IAT Effective Date Extended to September 18
NACHA has extended the effective date of the International ACH Transaction (IAT) rules and formats to September 18. The original effective date was March 20. NACHA encourages institutions to use the six-month extension for additional process documentation, testing with the ACH operators, and consumer education and training. The ACH rule changes are designed to improve institutions’ ability to identify the parties involved in international payments flowing through the ACH network, said Valerie Moss, director of compliance information at the Credit Union National Association. The rules will facilitate compliance with Office of Foreign Assets Control (OFAC) regulations.
New Credit Card Rule Analysis
An analysis of a final rule governing certain credit card practices is now available on the Credit Union National Association’s (CUNA) website.
The CUNA analysis addresses the rule adopted by NCUA, along with the Federal Reserve Board and the Office of Thrift Supervision (OTS), which is effective July 1, 2010.
Only federal credit unions fall under the provisions of the new requirements. Practices addressed in the NCUA-Fed-OTS rule include:
•
Time periods for making payments;
•
How payments may be allocated to card balances;
•
Allowable interest rate increases on outstanding balances;
•
Acceptable methods for computing balances that are subject to interest charges, and
•
Definition of excessive security deposits and fees that are charged when credit is issued.
The prohibited acts or practices outlined in the final rule will not be deemed unfair or deceptive if they occurred prior to the effective date, unless other specific circumstances suggest otherwise, CUNA notes. For the complete analysis, go to http://cuna.org/reg_advocacy/member/analysis/2009_final_rules.html.
Compliance: When Is e-Statement Consent Needed?
Credit union compliance officers know that a credit union cannot automatically convert members to e-statements without first getting their consent. They know this because the Credit Union National Association (CUNA) Compliance Challenge folks told them in January. Never ones to leave a compliance stone unturned, the CUNA compliance experts follow up this month and ask credit unions: Does this opt-in requirement hold true for members who have already signed up for home banking but still receive paper statements? Hmmm? The answer is that it depends on exactly what the members agreed to when they signed up for home banking. If the members only signed up for online account access, then the credit union would still need to obtain their consent to receive e-statements.
Your Response to CUNA Survey Is Needed
The CUNA Annual Survey plays an integral role in helping CUNA and the Delaware League’s public relations and governmental affairs efforts. It also gives credit unions a chance to provide input on their overall level of satisfaction with CUNA. Credit unions of all sizes are encouraged to respond to the survey. Your credit union may not offer many of the services asked about but that fact is important – we need to know in order to serve you better! CUNA recently sent a mailing to credit unions that have not yet responded to the survey. Please take a few minutes to fill out the survey or complete it online. If you have any questions or need assistance to access the Web form, please call Marc Shafroth at 800-356-9655, ext. 4182, or e-mail him at mshafroth@cuna.coop.
Mid-Atlantic Corporate Participates in National Program
The National Credit Union Administration’s Voluntary Temporary Corporate Credit Union Share Program (TCCUSGP) began March 1, 2009. Mid-Atlantic Corporate is participating in the voluntary guarantee program. The TCCUGSP was approved by the NCUA Board January 28, 2009, and consisted of a temporary guarantee by the National Credit Union Share Insurance Fund (NCUSIF) of all shares (excluding paid-in-capital and membership capital accounts) at all corporate credit unions. The voluntary guarantee is effective March 1, 2009, expires December 31, 2010, and only encompasses participating corporates.
The guarantee provides members who have NCUSIF-insured share accounts at corporates with excess coverage above the NCUSIF insurance limits. The NCUSIF guarantee applies to all share amounts above $250,000, and the NCUSIF insurance coverage applies to all share amounts below $250,000. The net effect is that during the period of the guarantee, the entire share account will be treated by the NCUSIF as if it was insured.
New CUNA Scholarship Program
As the current economy forces many credit unions to trim their training budgets, CUNA announces a new scholarship program to cover tuition for its on-site schools and conferences. To be eligible, applicants must meet the following requirements:
•
Applicant must be a credit union employee or volunteer;
•
Must be from an affiliated credit union;
•
Credit unions must demonstrate a financial need; and
•
The applicant must stay at the designated conference hotel.
The CUNA Scholarship Committee will award scholarships based on financial need and application quality. Scholarship applications and supporting materials for eligible CUNA schools and conferences must be received at least 45 days prior to the start of the program. Additional information and downloadable application forms are available online at http://training.cuna.org.
MILFORD MEMORIAL FCU was the first Delaware credit union to celebrate a milestone anniversary in 2009. January 2 was the 40th anniversary of the credit union.
Kudos to Rich Baccino, NEW CASTLE COUNTY DELAWARE EFCU board member, for having his “letter to the editor” printed by The News Journal on February 21. The article was entitled, “Don’t let government tax credit unions to help banks.”
On March 11, SUSSEX COUNTY FCU presented Zach Hearn with a donation to help him reach his goals for his “Eagle Scout” project. A credit union member, Zach’s service project is to help the residents of the Teen Challenge Program (formerly the Seaford Mission of Hope) by creating “welcome kits.” These kits will include basic toiletries for the young men that are entering the program. The kits have enough daily toiletries for eight weeks and will also include underwear, socks and writing tools – items that most people take for granted.
Presenting Zach with the donation is SussexCounty FCU board member Wayne Obermire and vice president of development Paula Campbell.
DOVER FCU announces that Heather Shupe has accepted the position of Vice President of Human Resources. She began her career in Human Resources with J.R. Gettier, then joined HRN Management Group (previously known as HR Value Group) in 2005 and was immediately assigned to Dover Federal. Recognizing the value of such expertise, Dover Federal made Ms. Shupe a permanent part of the team in January 2009.
It’s official! DELAWARE VA FCU merged with DEXSTA FCU on December 1, 2008. As DEXSTA members, former Delaware V.A. members can now take full advantage of all of DEXSTA’s products and services, as well as all DEXSTA branch locations. DEXSTA’s Delaware VA branch location is at the Veterans Administration Hospital at 1601 Kirkwood Highway in Wilmington on the second floor. Other credit union locations include Foulk Road, Prices Corner, DuPont Experimental Station, North Market Street in Wilmington, and an upcoming branch in Middletown.
At its annual meeting on March 29, EAGLE ONE FCU awarded four $500 educational grants to the winners of the credit union’s essay contest. The students wrote on the topic: “My CU: Where People Are Worth More Than Money” and “My Money: Safer at My Credit Union.”
At the same annual meeting, EAGLE ONE FCU recognized Marion Nuss for her 35 years of service. Nuss, accounting manager at the credit union, was given a bracelet by CEO John F. King to commemorate the anniversary. In his comments, King said, “Eagle One would not be the thriving credit union it is today without the dedication of Marion Nuss. Since the 1970’s, Marion has been one of the backbones of this institution. We are all glad to have the opportunity to work with Marion every day. We appreciate her efforts and admire her commitment.”
Eagle One CEO John King
recognizes
Marion Nuss
and her 35 years of service
DOVER FCU recently announced that management and staff raised $1,670 for the American Cancer Society through participation in Daffodil Days. Daffodils were offered for sale to employees at each of the Dover Federal branches during the month of February. “We want to thank everyone who participated in this event that enabled us to provide financial assistance to an organization that provides help and healing to many people in our community,” said David Clendaniel, President/CEO.
Bauer Financial Ratings
Kudos to the following CUs that received 5-star ratings as of December 31, 2008, from BauerFinancial, Inc., an independent financial institution rating and research firm: American Spirit, Chestnut Run, Delaware Alliance, Delaware River and Bay Authority Employees, Dover, DPL, First State Refinery, New Castle County Delaware Employees, New Castle County School Employees, Provident, and U-Del. The ratings are based upon 2008 fourth quarter financial data as reported to financial regulators. Five stars (superior) is the highest rating given by the firm. Ten additional CUs received four-star (excellent) ratings: Del-One (Delaware), Delaware First, Delaware State Police, DEXSTA, Edge Moor DuPont Employees, ICI America, Louviers, Milford Memorial, Preferred Financial, and Wilmington Postal. The three Delaware CUs with less than $1.5 million in assets are not rated.
EDUCATIONAL OPPORTUNITIES
April QuickBites Teleconferences
One-hour sessions run from 11 a.m.-noon:
4/02 Membership Growth
4/08 Sales and Service Potential
4/30 FACT Act
The two-hour session runs from 11 a.m.-1 p.m.
4/28 Competitive Lending Trends
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.
Lending Workshop – Thursday, April 8, from 9 a.m.-4 p.m. at the League office. Topics: Making better loan decisions, tools to be a more effective lender, and understanding credit scoring. Speaker: Ed Swanson. Fee: $195, includes instruction, handouts, lunch, and breaks. Call Bernadette Hines to see if space is still available.
Mid-Atlantic Corporate Education Sessions:
"Latest Economic Update" Conference Call – Thursday, April 9, from 11 a.m.- noon.
Remote Control Capture Webinar – Wednesday, April 22, from 11 a.m.-noon.
Call to see if space available at 800-622-7494, ext. 3249. No charge for either session.
CUNA Mutual Webinar: "It’s Not a Plan Without Testing" (Disaster Recovery) – Wednesday, April 22 from 11 a.m.-12:15 p.m. at your own CU. No charge. To register, go online to: www.cunamutual.com/CUProtectionWebinars/
Free NCUA Workshop for Small Credit Unions – NCUA has scheduled a free seminar for small credit unions in Philadelphia on April 24 from 8:15 a.m.-3:30 p.m. at the Renaissance Philadelphia Hotel Airport. While all credit unions are welcome to attend, the program is tailored for credit unions with less than $50 million in assets. The agenda includes timely discussions on today’s economic environment, updates on current regulatory topics, and an outreach panel on financial and fraudulent matters facing consumers. There are a limited number of credit union reimbursements available for credit unions under $10 million in assets who register by April 13. To register, go to: http://ncua.gov/CreditUnionDevelopment/Events/Index.htm.
Mortgage Council Meeting – Wednesday, May 13, from 10 a.m.-noon at the League office. Topic: What’s happening in the mortgage market and new programs. No fee for mortgage council members: $100 all others. Registration deadline: May 6.
Supervisory Committee Training: Duties and Responsibilities – Tuesday, May 19, from 5-7:30 p.m. Topics: auditing duties, board monitoring, internal/external controls, and more. Presenter: Kirk Fox. Fee: $65, including handouts and a light meal. Registration deadline: May 6.
Bank Secrecy Act (BSA): Extended Session – Wednesday, May 20, from 9 a.m.-3 p.m. at the League office. This session will cover your credit union’s requirement to hold annual BSA training. The extended session will cover requirements of BSA and the Customer Identification Program, OFAC and the Patriot Act, currency transaction reports and suspicious activity reports, and due diligence. Fee: $90, includes exam, certificate of completion, lunch, and breaks. Registration deadline: May 6.
Bank Secrecy Act (BSA): Basic Overview – Wednesday, May 20, from 5-7:30 p.m. at the League office. Many of the same items offered in the morning session above, but in less detail. Fee: $65, includes exam, certificate of completion, and a light meal. Registration deadline: May 6.
Important Dates to Remember League office closed – Friday, April 10 League Annual Meeting and Trade Show |
Position Sought
Individual with more than 12 years in retail banking seeks CU position. Has experience in customer service, consumer lending, and branch banking operations. Has comprehensive knowledge of teller, deposit, lending, vault, and financial operations, processing procedures, and regulations. For a copy of this resume, contact Susan Fallon at the League and ask for resume #03-02-09.
League Activities in February and March
LEAGUE SERVICES
League Annual Meeting News. The deadline to register for the 2009 Delaware Credit Union League Annual Meeting & Trade Show is April 15. The show will be held April 30-May 2, 2009, at the Clarion Fontainebleau Hotel in Ocean City, Maryland. Contact Jane Bailey at 800-292-7875 or email jane@dcul.org with questions about the program and events.
Invest in America to Expand; Ford to Pilot. The “Invest in America” program continues to grow, with even more discounts as the program progresses. Pleased with the sales results from the Invest in America program, both GM and Chrysler have indicated an intent to extend the program through year-end. In addition, Ford Motor Company has agreed to conduct a pilot in four states (FL, NY, NJ, and MI) beginning July 1. Credit union members residing in the pilot states will be able to purchase a Ford from a participating dealer within the pilot areas at special credit union pricing (specific pricing not yet available) and finance through any credit union. Additional details on this pilot program will be released later. Also, the Chrysler Employee Pricing ends March 31, but the Credit Union Member Cash Discount will run through June 30.
As of mid-March, 12 Delaware credit unions have opted-in to be part of the program. The January figures for Delaware reflected that 102 people registered on the GM site; of the 67 who requested authorizations, 32 were approved. GM closed seven Delaware deals in January. No Chrysler deals were reported for Delaware in January.
To keep your credit union informed on all changes and additions to the Invest in America program, credit unions must register a key contact person to get a log-in for the Invest in America website. In the next few weeks, credit union-specific numbers will be posted in the partner center, which will become password-protected, accessed via the key contact registration. Contact Sign Up Form. Credit unions are encouraged to visit the partner center to access free marketing materials. There are Web banners, ads, statement stuffers, newsletter articles, logos, and more – all free to promote the program. Many of the items posted can be customized by your credit union or CU Growth Solutions can print and deliver them to your credit union for a fee. Details on Partner Center Web Site. For questions on the program, visit http://www.lovemycreditunion.org/ or contact Jane Bailey at the League office.
Enterprise Car Sale. The Delaware League is working with Enterprise to offer a special car sale incentive for the next two months. Enterprise will give an incentive to members who purchase a vehicle through Enterprise and borrow from a Delaware credit union. The League has sent out a flyer that credit unions may use to promote the sale. The sale runs from April 1-May 31, 2009.
Corporate Stabilization Plan: Recent League Actions. The ongoing situation with corporate credit unions has obviously been the focus of the League’s attention over the last few weeks. League staff are constantly monitoring the situation to keep you updated, and we are here to help answer questions from your members or the media. We have various tools to deal with those inquiries.
We now have an item on our homepage (www.dcul.org) reassuring any visiting consumers of credit union safety and soundness. Included is a link to the talking points we forwarded our member credit unions from CUNA, plus links to existing pages we had on safety and soundness (for credit unions and consumers alike) and on the corporate stabilization plan.
League president Pat Mahaney is staying in close touch with CUNA President/CEO Dan Mica and his senior management team regarding NCUA’s actions since this story broke. In addition, we have been in constant communication with Mid-Atlantic Corporate. All system-related entities are working closely together to seek solutions that will mitigate the cost to credit unions. The situation is very fluid as you can imagine, but the League is committed to communicating any developments as they become available.
Year-End 2008 Call Report Analysis Distributed. The League distributed the preliminary analysis of the National Credit Union Administration (NCUA) call report data for year-end 2008 and a state-by-state summary, as compiled by CUNA’s Economics and Statistics Department. The Delaware League forwarded the Delaware financial summary by email to our credit union managers/CEOs at the beginning of March. The information is also available online at http://advice.cuna.org/download/uscu_profile_1q09.pdf.
League Travel. League president Patrick Mahaney attended CUNA Mutual’s CEO Dialogue Session and the American Association of Credit Union Leagues (AACUL) meetings in Arizona the last week in March, where the topic of conversation was the corporate stabilization plan. League staff has also attended the following credit union annual meetings in March: Jane Bailey - Delaware Alliance FCU, March 8; Bernadette Hines - New Castle County School EFCU, March 12; Pat Mahaney – Dover FCU, March 21; and Bernadette Hines and Pat Mahaney - Chestnut Run FCU, March 30. Previously, Pat Mahaney was a guest speaker at DPL FCU’s annual meeting on January 30. Jane Bailey attended Wilmington Postal FCU’s annual meeting on January 21, and Pat visited with the staff of Wilmington Police and Fire FCU.
Delaware League News and Risk Alerts. In February, the League emailed/faxed 18 news updates, many having to do with the corporate rescue plan and legislative action alerts. There were also six risk alerts about credit card security breaches, smishing text messages on cell phones, and fraudulent letters that seem to be issued about the stimulus package or from the Small Business Administration.
GOVERNMENTAL AFFAIRS
NCUA’s Corporate Conservatorship Action Call. Delaware credit unions responded to an “action call” in which CUNA specifically urged credit unions to contact the agency about the need to spread the costs of NCUA's corporate stabilization efforts over a longer period of time and to request enhanced transparency on information underlying the board's corporate stabilization efforts.
As a result of this request, more than 20,000 emails were sent to NCUA in less than 24 hours. Special thanks to Cheryl Chilcutt, League board member; David Clendaniel, Dover FCU CEO; and John Watson, Seaford FCU CEO, for sharing their responses with the League. Since the NCUA board has taken action, the current action call has been pulled.
On March 26, the NCUA Board approved and issued a legislative plan that would include – among other things – stretching out over seven years the payment of any assessment to replenish the insurance. CUNA’s lawyers and technical people are reviewing it now and will recommend some changes. CUNA CEO Dan Mica has talked to Chairman Fryzel and thanked him for the initial effort and restated our continuing need for data, information, and transparency. NCUA’s action would indicate that the agency has clearly heard credit unions’ message.
CUNA’s Governmental Affairs Conference Hike the Hill. Twenty-seven Delawareans participated in this year’s Hike to the Hill on Wednesday, February 25. In addition, at least eight of the Hikers also attended the four-day GAC conference put on by CUNA.
Team 1 met with Senator Ted Kaufman and Jim Greene, his senior policy advisor. The team consisted of David Clendaniel, Team Leader – Dover FCU; Phil Lynch – Dover FCU; Jack Cable – American Spirit FCU (van rider – sponsored by the League’s GAC Fund); Alice Smith – Delaware Credit Union League (van); Savannah Jarrell – Delaware Alliance FCU (van); Sharon Schaeffer – Delaware First FCU (van); Steve Cimo – Delaware State Police FCU; Jeffrey Weaver – Delaware State Police FCU; Antonio Williams - Delaware State Police FCU; Michael Whaley - Delaware State Police FCU; and George Fitzgerald – DPL FCU (van).
Team 2 met with Mike Santora, Senator Carper’s legislative correspondent, and Senator Carper brought the folks over to sessions on the Senate subway. The team consisted of Jerry King, Team Leader – DEXSTA FCU; Maurice Dawkins – American Spirit FCU; Betsy Cole – Delaware Alliance FCU; Dawn Sutcliffe – Delaware Alliance FCU; Dee Chimenti – DEXSTA FCU; Wayne Smiley – DEXSTA FCU; Christine Trincia – DEXSTA FCU; and Darryl McEwen – DEXSTA FCU.
Team 3 met with Congressman Castle’s chief of staff, Michael Quaranta, for almost an hour (the Congressman was involved in hearings). The team included Patrick Mahaney, Team Leader – Delaware Credit Union League; Regina Mahaney – DPL FCU; Allen Riley – Sussex County FCU; Charles Gleason – Sussex County FCU; Marie Davis – DEXSTA FCU; Phyllis Gaiti – DEXSTA FCU; Phyllis Rambo – DEXSTA FCU; and David Marianelli – DEXSTA FCU.
So what was our message on Capitol Hill? The following were our core messages:
• Strong support for making the $250,000 share insurance limit enacted last year permanent.
• Allowing the NCUA to replenish the NCUSIF over a five-year period, which could assist in spreading out the cost of the corporate stabilization program.
• Strong opposition to cramdown legislation that would allow bankruptcy courts to change terms of mortgage loans for all types of mortgages. This is not limited to the predatory loans that in part caused the current housing crisis. Credit unions use strong underwriting standards to make mortgages to their members and should not be swept up with this far-reaching bankruptcy reform proposal.
• Continued opposition to interchange fee legislation that would reduce interchange income to financial institutions.
• Encouragement for Congress to eliminate credit unions’ 12.25% member business lending cap, which could open up $10 billion of credit to small businesses in the first year alone.
Delaware Gets CULAC Fund-Raising Award. Congratulations! Thank you! Delaware recently received the Capitol Circle award for outstanding fund-raising in 2008 from the Credit Union Legislative Action Council. Delaware raised $5800.75 last year for CULAC, which contributes to campaigns of credit union-friendly federal candidates. To participate in CULAC fund-raising in 2009, contact Alice Smith at the League office.
EDUCATION
Date |
Title |
# Individuals |
# CUs |
|
02/10/09 |
Mid-Atlantic Corporate ALM |
Conference Call |
7 |
6 |
02/12/09 |
NCUA Corporate Stabilization Program Session |
Jane Walters |
7 |
5 |
02/18/09 |
Accounting for NCUA's Corporate Stabilization |
Jim Higbee/Mid-Atlantic |
20 |
14 |
02/18/09 |
Accounting for NCUA's Corporate Stabilization |
Jim Higbee/Mid-Atlantic |
7 |
6 |
02/19/09 |
NorthLegal Denial of Services & Expulsion |
Webinar |
4 |
4 |
2/22-2/26 |
CUNA's Governmental Affairs Conf. Hike the Hill |
27 |
8 |
|
02/19/09 |
Mid-Atlantic Remote Branch Capture |
Webinar |
11 |
6 |
02/19/09 |
Mid-Atlantic Corporate Stabilization Update |
Conference Call |
9 |
8 |
02/24/09 |
ACH Workshop/Mid-Atlantic FCU |
Tiffany Markey |
17 |
12 |
Quickbites |
||||
02/03/09 |
Signature Cards |
Teleconference |
1 |
1 |
02/05/09 |
Documentation & Disciplining Employees |
Teleconference |
4 |
1 |
02/12/09 |
Netiquette |
Teleconference |
2 |
1 |
02/18/09 |
Loan Officer Protocol |
Teleconference |
1 |
1 |
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).