Volume 29, Number 1                                                           January 15, 2009

HEADLINE NEWS

“Invest in America” Offers GM and Chrysler Vehicle Discounts to 90 Million CU Members
     America’s credit unions, in partnership with General Motors and Chrysler Corporation LLC, have announced that the "Invest in America" credit union loan partnership has expanded to all 50 states. This provides Delaware’s 215,000 credit union members and more than 90 million members across the country access to GM’s “Credit Union Member Discount Program” and Chrysler’s “Credit Union Member Cash” rebates, as well as access to affordable credit union financing on new vehicle purchases.
     The “Invest in America” program now encompasses members of nearly 8,000 credit unions nationwide and potentially makes available more than $80 billion in credit union low-cost auto loans for new vehicle purchases.
     The Chrysler program, running through June 30, 2009, offers Chrysler rebates of $500 or $1,000 on eligible Chrysler, Jeep® and Dodge vehicles. This discount is in addition to most existing cash incentives that Chrysler offers on its vehicles.
     The national GM pilot program, running through March 31, 2009, offers GM supplier price discounts on new Buick, Cadillac, Hummer, Saab, Chevrolet, GMC, Saturn and Pontiac cars and trucks. 
     “Invest in America” is an example of how the cooperative nature of credit unions benefits local, state and national economies. Historically, credit unions offer lower loan rates than most other financial institutions. According to a Datatrac survey of more than 17,000 financial institutions, the average credit union loan rate is 5.4%, compared to 6.9% at other institutions over the past two months.
     In a press release sent to Delaware media outlets last Thursday, Delaware League executive vice president Jane Bailey said, “Delaware credit unions are very excited about the ‘Invest in America’ program. Members are stopping by their credit unions to see how to get their discounts. Local dealers are anxious to place display vehicles at credit union branch sites to advertise the program. We anticipate a great deal of activity for both the auto dealers and our credit unions from the ‘Invest in America’ program.”
     CUNA’s News Now (1/9/09) reported that “Invest in America” has already received national media coverage from several outlets, including Bloomberg News, the Associated Press, the Detroit Free Press, CNNMoney.com, Crain's Detroit Business, Auto Week and Dow Jones.  
     The details about Chrysler’s “Credit Union Member Cash” program and GM’s “Credit Union Member Discount Program” can be found at www.lovemycreditunion.org. The website has generated over a million hits since the program launched in December.
     The “Invest in America” program was created by CUcorp, a marketing company based in Livonia, Michigan, and a wholly-owned subsidiary of the Michigan Credit Union League.

 Annual Credit Union Bowlathon February 13  
     Back by popular demand, the third DCUL Annual CU Bowlathonwill be held on Friday, February 13, at Bowlerama in New Castle from 7-10 p.m. Credit unions and League business partners are invited to gather a team (or teams) of four bowlers, pick a team name, and come out for a great time. The cost is $42.50, which includes dinner, shoe rental, bowling ball use, and two hours of bowling. We’ll have door prizes, special awards and lots of fun. For more information, contact Jane Bailey. The registration deadline is January 30, 2009.

COMPLIANCE RECAP

FRB Preserves Multi-Featured, Open-End Lending
     The Federal Reserve Board (FRB) has released final changes to Regulation Z, leaving a credit union's ability to offer multi-featured, open-end lending intact. CUNA Mutual Group and the Credit Union National Association (CUNA) had met several times with the FRB to provide their views regarding the effects of the proposed changes on credit unions.
     The new rules preserve multi-featured, open-end lending as a method credit unions use in serving their members. The rules did not change any of the disclosures or timing requirements for making advances under an open-end lending plan. The FRB does not require that each subaccount under a plan have a self-replenishing credit limit. In addition, credit unions are permitted to verify continuing creditworthiness, but may not conduct additional underwriting. CUNA Mutual will be providing guidance on the FRB’s modifications.  
     The decision is the result of a review of Regulation Z focusing on the rules for open-end and revolving credit accounts not secured by real estate. The effect of today's ruling retains multi-featured, open-end lending as a viable method of making loan advances to members.
     Credit unions must comply with the new rules by July 1, 2010. Until then, current lending processes and disclosures may be used.

Flood Hazard Form Changes
     A new Federal Emergency Management Agency (FEMA) flood hazard form has a June 16, 2009, compliance date. FEMA has replaced Form 81-93, the Standard Flood Hazard Determination Form (SFHDF), which expired October 3, with a new Form 81-93 that expires December 31, 2011. SFHDFs completed June 16 or later must use the new form for compliance purposes. Credit unions must perform a flood hazard determination when they make, increase, extend, or renew a loan secured by a “building” – a home on a permanent foundation or a mobile home – in a special flood hazard area. The credit union or its service provider must document the flood determination on the SFHDF. The form must be retained, in hard copy or electronically, while the credit union owns the loan.

NCUA Unveils Loan Participation Guidance
     The National Credit Union Administration (NCUA) has released the guidance and question-naire the agency's field staff uses to assist in evaluation of loan participation programs. The overall theme of the agency's release is that credit unions must apply the same principles to loan participations that they apply to evaluating, selecting and monitoring third-party relationships. The NCUA has previously expressed concern regarding loan participation arrangements, and it has been expected that the federal regulator would issue more direction to help credit unions avoid pitfalls. For a copy of NCUA’s Supervisory Letter, go to http://www.ncua.gov/news/express/xfiles/SupervisoryLetter_Final.pdf.

CUNA Compliance: What Is E-Verify?
     Anyone who frequents the human resource or employment law blogs can tell you that a major topic of discussion these days is the federal government's E-Verify system. So, what exactly is E-Verify? The E-Verify program is operated by the Department of Homeland Security (DHS) in partnership with the Social Security Administration (SSA). It enables employers to verify the employment eligibility of new hires online by comparing information from an employee's I-9 form against SSA and DHS databases. The program is free and, according to DHS, “the best means available for determining employment eligibility of new hires and the validity of their Social Security numbers.” For more information, go to http://www.cuna.org/newsnow/08/wash121908-2.html.

HMDA Reporting Threshold Raised
     The Federal Reserve Board has adjusted its Home Mortgage Disclosure Act (HMDA) asset size data collection requirement threshold for 2009 from $37 million to $39 million. The Fed's annual adjustment of the asset size of financial institutions required to comply with HMDA data collection requirements is based on the annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers. Financial institutions with assets of $39 million or less as of December 31, 2008, will be exempt from the data collection requirements in 2009.

CU SYSTEM NEWS

Notice of DCUL Director Election
     At this year’s League annual meeting in May, two 3-year terms for League director will be filled. The terms of Sharon Schaeffer, Delaware First FCU, and Kate Toner, Wilmington Postal FCU, will expire in 2009. Each CU board may nominate one eligible person as a candidate for the League board of directors. Nominations must be in writing and be accompanied by a brief written biography. Nominations are due at the League office by 4:30 p.m. on Monday, March 2, 2009.
     There will be no nominations from the floor during the meeting. No CU may have more than one director serving on the League board. The five other current League directors are Cheryl Chilcutt, Chestnut Run FCU; Jerry King, DEXSTA FCU;  Joel Romaine, DPL FCU; Meredith Jeffries, New Castle County Delaware EFCU; and Allen Riley, Sussex County FCU.

Small Credit Union Resource
     CUNA's Small Credit Union Committee recently composed a short white paper, “Managing Through Tough Times: Issues and Considerations for Small Credit Unions.” This publication can be found on the CUNA website at
http://www.cuna.org/initiatives/small_cu/index.html. If you are unable to download the document, contact Jane Bailey at the League for a copy.

Send Back CUNA’s Annual Survey
     The CUNA Annual Survey was mailed out to all U.S. credit unions at the start of January. This year CUNA has added a special question on back office services to help credit unions find more sources for these services. This analysis is used to track new trends in credit union service offerings not covered by the NCUA 5300 report. The study’s findings help CUNA to answer questions from the public, government agencies and elected officials. The survey can be completed on the web by using http://resource.cuna.org/econstat/yearbook/qstpre.html. The time required to complete the survey should be under 15 minutes. If you have any questions about the survey, please contact Marc Shafroth at 608-231-4182 or mshafroth@cuna.coop.

DELAWARE NOTES

Contributions to CU House
     Delaware is one of 19 states that achieved 100% of their fundraising goals for Credit Union House in 2008. Thanks to those who contributed:

     If you are not one of the many credit unions or individuals that made Credit Union House part of your 2008 budget, now is a great time to get involved. A contribution to Credit Union House – as low as $25 per year – can help maintain this unique advocacy tool and continue to send a message of the strength and permanence of the credit union system. Contact Alice Smith at the League office on how to contribute.

Other Notes
•     Our condolences to the friends and family of Rose Marie Giansanti, who died on December 27, 2008. Rose was the manager of Delaware VA FCU until her retirement.
•     Eagle One FCU concluded its successful membership drive by awarding two prizes in random drawings. During the membership drive, when a member referred a person who signed up with Eagle One, both individuals were entered into a drawing to win a laptop computer. Members who signed up for any new e-services during the drive were entered into a drawing to win a $100 gas card.  These drawings brought to a close the drive which ran during the fourth quarter of 2008. Winners were drawn on December 31.

Eagle One FCU contest winner Adrienne Reeves receives a $100 Gas Card from CEO John F. King & Marketing Director, Jim Maloney.	Eagle One FCU CEO John F. King presents a new laptop computer to member Charles Ludvig. (Far left: Jim Maloney, Marketing Director)

•     A photo of NEW CASTLE COUNTY SCHOOL EFCU staff members and Jill Biden appears in the January issue of the Delaware Business Ledger.

EDUCATIONAL OPPORTUNITIES

January/February QuickBites Teleconferences
One-hour sessions run from 11 a.m.-noon:
            1/21 – Hands-on Business Development
            1/29 – Notary Public Training
            2/03 – Signature Cards and Account Agreements
            2/12 – Netiquette (writing emails)
            2/18 – Loan Officer Protocol
            2/24 – Disaster Recovery
The two-hour session runs from 11 a.m.-1 p.m.
            2/05 – Documenting and Disciplining Employees
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. Registration 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!

Corporate and Credit Union Experience. Individual with extensive experience in the banking and credit union industry and additional skills in management, as well as product and investment sales, seeks CU position. Resume #01-05-09.

Consumer Finance Experience. Individual with experience in servicing of non-prime automobile finance contracts, title insurance, and mortgage closing services seeks CU position. Resume #01-08-09.

Teller/Head Teller/MSR Experience. Over 10 years credit union employment. Experienced in processing monetary transactions, opening new accounts, evaluating credit bureau reports, approving loan requests, training new employees, and end-of-day closing responsibilities. Strong multi-tasking and interpersonal skills. Resume #01-09-09.
 
Information Technology Experience. Individual with 14 years experience in the IT field, including data administration for a CU with over $1.5 billion in assets, seeks CU position. Particular expertise in Microsoft SQLServer database design.  Hands-on experience with database recovery and ensuring data redundancy.. Applicant is interested in relocating to Southern Delaware and will consider positions from Salisbury to Dover. Resume #01-10-09.

Credit Risk and Operational Risk Management Experience. Individual with management experience in financial institutions and credit and collection skills seeks CU position. Experience with bad debt collection and credit authorization strategies. Resume #01-13-09.

LEAGUE SERVICES

          Dedication of Ruth Lawley Welcome Center.  The League board and staff will be hosting a Welcome Center Dedication Ceremony honoring in memoriam Ruth Lawley on February 10 at 5 p.m. at the League office. Ruth’s family will be in attendance and all are welcomed to attend.

          League Annual Meeting News. Exhibitor registration is now open for the 2009 Delaware Credit Union League Annual Meeting & Trade Show. The show will be held April 30-May 2, 2009, at The Clarion Fontainebleau Hotel in Ocean City, Maryland.  Potential exhibitors may download the registration materials from our website, www.dcul.org. Enter the site from the “Credit Union” side. Contact Jane Bailey at 800-292-7875 or email jane@dcul.org with questions about exhibiting.

          Car Discounts for CU Members. The GM and Chrysler discount programs for credit union members originated by the Michigan League went national on January 7. All that is asked of the credit unions is to promote these discounts to their members. This initiative is named “Invest in America.”  More information on these programs may be found in the first article in this newsletter or online at www.lovemycreditunion.org.

          Vendor Due Diligence Assistance. CUNA Strategic Services is offering a new product, VendorTrack, which will allow credit unions to centralize vendor due diligence information, manage relationships, assess vendor risk, and ensure compliance with policies and controls, all in one system. The basic functionality of VendorTrack is free to credit unions. They will be able to upload their own vendor contracts into VendorTrack, set reminders/alerts for important dates, such as contracts coming due, and easily manage all their contracts in one repository. Credit unions will be able to access vendor due diligence information needed when selecting a vendor; there may be fees associated with this part of the service. CUNA Strategic Services is developing webcasts slated for January 21, February 4 and February 18 to help credit unions understand VendorTrack.  VendorTrack is powered by TraceSecurity. For more information, use this link: CSS/VendorTrack.

COMMUNICATIONS/PUBLIC RELATIONS

          CEO Meeting on iBelong Statewide Marketing Campaign. The League hosted a meeting for credit union CEOs on Tuesday, December 8, where Jay Young from the Pennsylvania Credit Union Association discussed how the iBelong Campaign was developed, research results, and the possibility of Delaware credit unions joining the program in 2009. Currently those credit unions in New Castle County already benefit from the ads being shown in the Philadelphia TV market. Hopefully Delaware credit unions could join together in supporting additional advertising in the Salisbury market, which covers Kent and Sussex Counties. [A copy of the PowerPoint that Jay presented, along with samples of the Pennsylvania TV ads, can be obtained from Pat Mahaney or Alice Smith – or sample ads are available by accessing www.ibelong.org.]
          The following credit unions attended the December 8 meeting: American Spirit, Chestnut Run, Del-One, Delaware Alliance, Delaware First, Delaware State Police, DEXSTA, DPL, First State, Louviers, Sussex County, Wilmington Police and Fire, and Wilmington Postal.
          If Delaware were to participate in this program, two things would need to happen: Delaware would have to purchase a licensing agreement from Pennsylvania for $25,000 a year that would be recouped from our credit unions; and a media buy for Kent and Sussex Counties, plus radio in all three counties, would have to be explored.
          A sub-committee to explore this possibility was formed. Chaired by Sharee Coleman (Del-One), the committee consists of Paula Campbell (Sussex County), Jerry King (DEXSTA), Sharon Schaeffer (Delaware First), Blanche Jackson (Delaware State Police), Susan Winward (Wilmington Postal), and Carole Langiu (Dover FCU). Candace Vogelsong, a marketing contractor representing DPL and American Spirit, asked to participate. Alice Smith acts as the League liaison.
          The sub-committee met on December 16 in Middletown. The main topic of discussion was potential distribution channels. A motion was passed to contact John Bowser of Target Media, the media buyer for the Pennsylvania Credit Union Association, in order to obtain sample expenses and Pennsylvania’s existing media schedule.

          Delaware Credit Union News Clippings. The League recently sent a copy of 2008 news clippings regarding Delaware credit unions and the League to each credit union manager.

          Delaware League News and Risk Alerts. In December, the League emailed/faxed 16 news alerts regarding economic updates and good public relations stories in the media regarding credit unions. There were also five risk alerts concerning phishing scams against local credit unions and the IRS.

GOVERNMENTAL AFFAIRS

          CUNA’s Governmental Affairs Conference. This year’s conference will be held from February 22-26 at the Convention Center in Washington, D.C. Currently, we know of only nine Delaware people that will be attending, including Pat Mahaney; DEXSTA (1); Delaware Alliance (2); Sussex County (2); and Delaware State Police (3). The Hike to the Hill will be held on Wednesday, the 25th. The Governmental Affairs Committee has approved sponsoring a van for the day trip. Alice Smith will be setting up meetings with our members in Congress, including Ted Kaufman, Delaware’s new junior Senator.

          CULAC Report. CUNA has announced that CULAC has once again set annual and election cycle records for receipts, with over $2.29 million raised in 2008, and a combined $4.33 million raised for the 2007-2008 election cycle. Alice Smith reports that Delaware’s CULAC goal for 2008 was $5,346.89, and individuals in Delaware contributed $5,800.75, meaning that we raised 108% of our goal. Thanks to all credit unions who promoted fund-raising programs such as Deduct-a-buck, coin sales, Dress Down Days, and the annual fall candy sale ($2084).

EDUCATION

December Education Sessions

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).