Volume 28, Number 8                                                                     April 30, 2008

HEADLINE NEWS

H.R. 5519 Vote Delayed
     The Credit Union Regulatory Relief Act (CURRA, H.R. 5519), which was scheduled for a House vote on Tuesday, April 29, has been withdrawn from the suspension calendar in the U.S. House.
     CURRA proposes, among other things, to permit federal credit unions to add service to underserved areas regardless of original field of membership. It would also omit member business loans to underserved areas from counting toward the current cap.
     However, only the Credit Union Regulatory Improvements Act (CURIA, H.R. 1537) would address the overall MBL cap and approve a risk-based capital system for credit unions.
     “We will do our utmost to get CURRA back on the House schedule under regular order, if at all possible,” said Dan Mica, the Credit Union National Association (CUNA) president/CEO.
     The CUNA leader thanked state leagues and credit unions for their tremendous grassroots efforts in recent days. “Our preliminary reports indicated we would have had a solid victory if this had come to a vote,” he added.
     League president Patrick Mahaney echoes Mica’s comments. “Fellow credit union supporters, I wanted to add my sincere thanks to all that took the time to contact Congressman Mike Castle’s offices in Washington, Wilmington, Dover and Georgetown. This was an eleventh hour effort and the response was very gratifying. We appreciate your time and effort! The copies of the notes I read showed thoughtful and considered opinions. Credit union folks are prepared to take up the gauntlet when it comes to fighting for credit unions. Thank you all!"
     Please stay tuned for updated information and any new instructions, and thank you again for responding so effectively to our action request.
     The League would like to recognize the volunteers and staff of the following CUs who let us know of their contacts with Congressman Castle. We are sure that there were other contacts made of which we are not aware.

Latest Version of Project Zip Code Sent to Delaware Credit Unions

COMPLIANCE RECAP

2008 Regulatory Review List for CUs
     CUNA is asking credit unions to review their federal regulator’s recently published 2008 Regulatory Review List to identify particular operational or compliance problems. Each year,
the National Credit Union Administration (NCUA) examines one-third of its regulations as part of this annual review process. Comments on this year’s batch of regulations subject for review are due to the agency by August 1. The rules under scrutiny include:
•    Security Program, Report of Suspected Crimes, Suspicious Transactions, Catastrophic Acts, and Bank Secrecy Act (BSA) Compliance (Part 748);
•    Records Preservation Program and Records Retention Appendix (Part 749);
•    Loans in Areas having Special Flood Hazards (Part 760); and
•    Description of NCUA; Requests for Agency Action (Part 790).
For a complete list and more information, go to http://www.cuna.org/reg_advocacy/reg_call/rcc_031408.html.

NCUA Fraud Alert on Text Message Scam
     NCUA has issued a fraud alert regarding a scam that involves unsolicited text messages sent to cell phones. The message urges the recipient to call a number provided for information about account discrepancies and then solicits individual account information and PIN numbers.
     Cell phone users should be wary of unsolicited text messages. Such messages should be deleted and all deleted text messages should be removed, if possible, as the perpetrators have been known to use spyware in conjunction with their text message solicitation.
     Credit union members and personnel need to be informed of these types of scams. Such a scam could be used to obtain personally identifiable information and credit union account access information, for those who access their accounts using their cell phones. The information can be found by using the following link:
http://www.ncua.gov/news/express/xfiles/08-FRAUD-06.pdf.

NCUA Issues Four Proposals  
     During its April meeting, the NCUA Board issued four new proposals. The proposals include changes to NCUA’s CUSO rule that would add credit card loan originations and payroll processing as new permissible CUSO activities. Other proposals included a new definition of “low income” credit union, recommended by the NCUA Outreach Task Force, and a proposal to provide options for federally insured credit unions in using the NCUA official insurance advertising statement. 
     The Board also reviewed the National Credit Union Share Insurance Fund’s financial highlights; a dividend for 2008 is not anticipated as the Fund is expected to be at 1.29% at the end of this year.

CU SYSTEM NEWS

CUNA Holds Teleconferences on Third-Party Due Diligence and Compliance Issues
     CUNA is offering a May 13 audio conference to help credit unions with issues surrounding one of federal examiners’ key 2008 priorities – due diligence requirements for third-party vendor relationships.
     The National Credit Union Administration (NCUA) has noted it will direct examiners to look at credit union efforts to assess, monitor, and manage risks associated with outsourced services at all stages of the relationship.
     The “Due Diligence With Third-Party Vendors – Getting It Right” audio conference is intended to help credit unions with oversight and the adoption of careful monitoring and reporting practices. It will examine the requirements and offer solutions and approaches from practitioners that are working for credit unions.
     Also upcoming, credit union professionals will be able to get answers to their pressing compliance questions during a May 29 “Pressing CU Compliance Issues” audio conference.
     The second audio session will address some of the most popular hot-topic compliance issues, as determined by comments received from credit unions. Participants may help build the agenda by e-mailing their questions to cucomply@cuna.coop before the conference. Use the resource link below for more information or to register:
http://training.cuna.org/audio/audio_start.html.

A Board’s Role in Vendor Due Diligence: Why Your CU Should Listen in on May 13
     In “The Board’s Role in Vendor Due Diligence,” David A. Reed, a Fairfax, Virginia, private practice attorney who advises credit unions, tells directors their vendor due diligence policies must incorporate the following five areas:
•    Expectations for outsourcing: Outlining how vendor relationships enhance credit union services;
•    Planning: Make it clear before contracting with a vendor that your credit union will plan adequately, including assessing the need for and risks related to third-party support;
•    Due diligence: Conduct a background check of vendors, evaluate the company’s business model, perform cash-flow analyses between the parties involved, review a vendor’s affiliates’ financial conditions, and understand accounting and legal issues involved in the relationship;
•    Performance monitoring: Keep the relationship active by stating that the credit union will set up controls to monitor the vendor’s performance, including compliance with laws and regulations; and
•    Reports to the board: Define the content and frequency of reporting to the board on third-party relationships.
     “NCUA and credit unions share the same goals: having vendors provide good value and faithfully perform according to their contracts,” Reed says. “There’s not a question that properly managed third-party relationships can be invaluable to credit unions and members by providing new services and cost savings.”

Filene i3 Seeking Innovative New Members
     The Filene Research Institute is looking for more members for the i3 group. i3 stands for Ideas, Innovation, Implementation. The group seeks credit union professionals who have not yet reached the CEO level for a term of three years starting in the fall of 2008. Applications are being accepted through May 27. For more information, go to
www.filene.org/home/i3/2008application.
     David Clendaniel, Dover FCU CEO, currently serves as a member of the Filene Research Council, a group of credit union executives who individually and collectively play integral roles in the continued advancement of the credit union movement. Clendaniel conveyed to the League that the Spring Research Council meeting was held in Houston, Texas, April 1-2, where big ideas on the credit union research agenda were discussed. He reported that new research is being done in the following areas:
•    Employee voice and opportunities for learning in credit unions;
•    Employee perceptions of credit unions;
•    Credit union costs/consolidation and an in-depth proposal to study credit union mergers;
•    Financial education pilot program with the University of Wisconsin – Madison; and
•    Large-scale credit union collaboration strategies.

DELAWARE NOTES

Congratulations to the board, staff, and volunteers of ICI AMERICA FCU as they celebrate 35 years of service on May 11.

Delaware CUs are encouraged to support “one of our own” as Joel Romaine, DPL vice president of operations and DCUL board chair, runs for a seat on the board of Mid-Atlantic Corporate FCU. Delaware has never had a representative on that board. CUs should have recently received their ballots, which are due back on June 12.

Jerry King, DEXSTA FCU CEO, was featured in the April issue of Credit Union Magazine, as he commented on the CU’s policies on late payments and collection practices.

Best wishes to Pat Comegys of DELAWARE FIRST FCU, who recently retired after 16 years of service, and Kay Wykpisz, DEXSTA FCU branch manager, with over 15 years of service.

•    Sun East FCU Vice President of Marketing and Technology. Responsible for the effective planning, staffing, direction, leadership, coordination and control of the Market Development and Technology Division. Minimum college degree in business administration; five years experience in marketing and/or technology. Financial institution experience; strong written, verbal, computer and analytical skills; strong interpersonal skills; proven project management skills, presentation skills, and organizational skills; supervisory experience; knowledge of management information systems, practices and principles; knowledgeable of CU philosophy, history, services and practices; knowledge of PC systems as well as system applications. This job may require up to 5% travel. For more information or to fill out an application, please check out our website at www.suneast.org. Qualified candidates should send their resume and salary requirements to: pwallace@suneast.org or fax to (610) 485-7517.
•    Individual with real estate background seeks CU position. Call Susan at the League and ask for resume #04-16-08.

EDUCATIONAL OPPORTUNITIES

May QuickBites Teleconferences
One-hour sessions run from 11 a.m.-noon:
•    5/06  Using the Telephone for Fun and Profit
•    5/15  ACH Fundamentals and More
•    5/29  Membership Retention in a Gen Y World
Two-hour session runs from 11 a.m.-1 p.m.
•    5/21  Asset-Liability Management - ALM
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.

Bank Secrecy Act: Three sessions on Tuesday, May 6, at the League.
•    Front Line Staff Training offered twice: 9-11:30 a.m. and 1-3:30 p.m. Two seats left for p.m. only!
•    Board Training offered from 5:30-6:30 p.m. Light meal served from 5-5:30 p.m. Fee: $65 per person or $60 per person for two or more from one CU. Five seats remain for this volunteer class.

Teller Training: A-Z Workshop – Tuesday, May 20, from 9 a.m.-4 p.m. at the League office. Topics: quality member service, cross-selling, cash handling, negotiable instruments, and security issues. Fee: $195 including reference manual and lunch. Registration deadline:  May 7.

Enhancing Your Member Relations Workshop – Wednesday, May 21, from 9 a.m.-noon at the League office. How to develop more sensitivity, courtesy, and patience with your members. Fee: $95, including lunch. Registration deadline: May 7.

Delaware Credit Unions Celebrate Youth Week

     Credit unions around the nation celebrated National Credit Union Youth Week, April 20-26. Some also supported financial literacy activities to honor April as Financial Literacy Month. America’s credit unions spotlighted how young people earn, spend, save and manage their own money and how America’s credit unions help them do so wisely during National Credit Union Youth Week. This year’s Youth Week theme was “Got Green? Grow It at Your Credit Union.”

     CUNA reports that 523 credit unions registered for the Savings Challenge and expected to see 86,000 youth deposit $7.7 million during that week. If your credit union signed up for the Savings Challenge, please report to CUNA no later than May 1. We hope to be able to report Delaware figures later.

     Here is a sampling of activities that Delaware credit unions reported to the League about how they celebrated Youth Week this year.

•    To promote the benefits of credit union membership and saving, any student between the ages of 6 – 18, opening a new account at Del-One (Delaware FCU) between April 20 – 26, was entered to win one day’s interest on one million dollars, a limousine ride to and from school, and the title, “Millionaire for a Day.” In addition, all students visiting any Del-One branch during Youth Week received complimentary giveaways. 

•    Marketing coordinator Karen Terry of DEXSTA FCU reported that the credit union held a special promotion for Bill & Penny Youth Accounts for ages 6 through 13 in each of their branch locations, along with many Youth Week giveaway items, such as pencils made out of recycled currency and oversized $50 bills with conservation tips listed on the back. The credit union also donated 10% of all DEXSTA Youth Account deposits made during Youth Week to the Delaware Nature Society to celebrate this year’s earth conservation theme.  

DEXSTA FCU Foulk Road Receptionist Ana Maldonado with some Youth Week giveaways

•    Louviers FCU participated in Youth Week by offering the Savings Challenge.

•    New Castle County School Employees FCU reported that $200 was deposited into youth accounts during the week, and the CU opened five new accounts. Stephanie Mitchell reported that children in grades K-7 were given goodie bags including a coloring book, bookmark and crayons. In addition, participants received “Tips to Go Green,” ID fingerprint kits, and a “Guide to Money” for those over the age of 14.

•    Paula Campbell, vice president of business development at Sussex County FCU, told the League that each of the four credit union branches was decorated for the week (see picture below). One table was set up with fruit drinks, animal crackers, and pretzels for the kids (big and small). The credit union also provided pig key chains and pen giveaways and held a coloring contest. Then all the youth art was displayed in the various offices.

Sussex County FCU branch decorated for Youth Week

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).