Life Is A Highway...July 26, 2010

Compliance Town Meetings Set For Fall 2010

To help your credit union stay in compliance with all the new regulations, plan to attend one of the Association’s Compliance Town Meetings this fall. Spend an afternoon learning about new regulatory issues, as well as how to utilize compliance resources such as InfoSight and CU PolicyPro.

Mark your calendar now to attend a meeting in your area. Registration for each meeting will begin at 12:30 p.m., with the presentation scheduled for 1:00 p.m. to 4:00 p.m. Light refreshments will be served.

There is no fee for the first person from a member credit union to attend; each additional person may attend for just $50. Prior registration is required. To register, click on the link for the date and location of the meeting you wish to attend.

Philadelphia, September 28
UFCW 1776 FCU, Plymouth Meeting

Wilkes-Barre, September 29
Cross Valley FCU, Wilkes-Barre

Pittsburgh, October 4
United Methodist Conference Center, Cranberry Township

Meadville, October 5
Meadville Days Inn & Conference Center, Meadville

Johnstown, October 6
Mt Calvary Lutheran Church, Johnstown

Harrisburg, October 20
Pennsylvania Credit Union Association headquarters, Harrisburg

Should you have questions or require assistance, please contact Compliance & Operations Officer Elaine Royer at 717-234-3156, ext 5341.

A Key Notes Preview

Where was our nation’s first official capital? Where did the Conway Cabal — an attempt to replace Gen. George Washington as Commander in Chief — originate? Before O.J. Simpson, where was the biggest murder trial that caught the attention of the country? Where can you purchase a banana split in a giant shoe? Where was the Pullman Motor Car made and how many wheels did it have? If your answers are York; York; York; York; York and six, you are correct. Discover the history of York County, as well as our nation’s history, in the latest issue of Key Notes magazine.

What was your first job? Some of your credit union colleagues answer this question in the Coffee Break column of Key Notes. They talk about how they learned responsibility, discipline, the value of money, how to have a little on-the-job fun, and one even found true love.

The Coffee Break question for the September/October issue of Key Notes is, what was the best advice you’ve ever received? What made this advice invaluable to you? Do you pass this advice to others? Please e-mail your answer to M.E. Siegfried, Communications Specialist at me.siegfried@pcua.coop.

Look for the July/August issue in your mailbox or click here to get a sneak peek.

Kaczmarek Honored On Retirement

Norb Kaczmarek, retiring CEO of Erie FCU, was honored Saturday at a retirement dinner. Nearly 200 people attended the event. Remarks were made by incoming CEO Mary Beth Wilcher; Association Board Chairman Ray Brunner and President/CEO Jim McCormack, as well as Dave Killa and John Kebles, among others.

Kaczmarek thanked the group and stated that his role as credit union CEO was much the same as his previous job as a teacher, and "that's how I'd like to be remembered."

Kaczmarek's career with Erie FCU started in 1969. He has served on the Association's Board of Directors since 1997, and was Chairman from 2005-2007. He continues to serve as an Association Board member; is an ex-officio to the Pennsylvania Credit Union Foundation Board; and serves as Treasurer of the Board of PaCUSC.

Harrisburg Happenings

You can find this week’s edition of Harrisburg Happenings at http://www.pcua.coop/Affairs/Legislative-Publications.aspx. This publication highlights the latest happenings from the state capitol.

20th Anniversary Of Americans With Disabilities Act: July 26

This day marks the 20th anniversary of the signing of the Americans with Disabilities Act, which guarantees equal opportunity for people with disabilities in public accommodations, commercial facilities, employment, transportation, state and local government services, and telecommunications. The 2008 American Community Survey reported 54 million people have a disability, representing 19% of the civilian noninstitutionalized population.

Frauds & Scams

Fraudulent Checks

LANCO FCU of Lancaster is reporting that fraudulent checks using their router number are appearing in the Cincinnati, Ohio area. Fraudsters are using fake information to purchase goods at department and grocery stores.

Newsmakers

Over the last week, HealthCare First Credit Union, Johnstown, held its “Dog Days of  Summer” event at three locations. Members and families were invited to come in and enjoy the activities and to bring along their dogs, too. All were treated to grilled hot dogs, snacks, beverages, and give-away prizes (and of course, treats for the pups too). Attending members had an opportunity to sign up for a grand prize drawing and could also sign up all their dogs to win a big basket of treats and toys. Kids were treated to special balloon dogs. 

Patriot FCU, Chambersburg, held its 45th annual meeting on Saturday, July 24. More than 250 people attended the breakfast meeting held at Green Grove Gardens in Greencastle. In attendance were Rep. Rob Kauffman (R-89) and Corinne Sherman, Association VP, Fee Services.

National News

$30B small biz fund added to jobs bill

WASHINGTON (7/26/10)--The Senate by a 60 to 37 vote count late last week agreed to add back into a small business jobs bill a provision that would create a $30 billion fund to help small banks lend funds to small businesses.

Similar legislation was dropped by Senate Democrats earlier in the week, but Sens. George LeMieux (R-Fla.) and Mary Landrieu (D-La.) presented the small business lending fund as an amendment on Thursday. That amendment, which passed with a mere two Republican votes from Sens. George Voinovich (R-Ohio) and LeMieux, also faced substantial procedural hurdles and was hampered by extensive political maneuvering prior to its passage.

The Credit Union National Association (CUNA) and Sen. Mark Udall (D-Colo.) continue to work to add an amendment that would lift the member business lending (MBL) capacity of credit unions to 27.5% of total assets to the small business jobs bill.

Udall discussed his amendment before the Senate earlier this month, saying that the legislation would "safely and soundly increase small business lending by credit unions without costing Americans a dime" and "could lead to large-scale job creation" in both his home district and nationwide.

CUNA Senior Vice President of Legislative Affairs John Magill said that the prolonged debate over the small business legislation has allowed CUNA and credit unions to further solidify their argument for lifting the MBL cap.

While it is not known if the MBL amendment will be added to the final Senate version of the small business legislation, CUNA President/CEO Bill Cheney continues to urge credit unions and credit union backers to encourage their legislators to support the legislation. Cheney last week also met with several legislators to discuss MBLs and other pressing credit union issues.

CUNA has estimated that lifting the MBL cap to beyond 25% of total assets could create over 108,000 new jobs and inject $10 billion in new funds into the economy, providing needed relief to small businesses without costing taxpayers a dime.

Online gambling regs up for markup this week

WASHINGTON (7/26/10)--Rep. Barney Frank (D-Mass.) on Friday announced that his House Financial Services Committee will begin the process of marking up H.R. 2267, Internet Gambling Regulation, Consumer Protection, and Enforcement Act, on Tuesday.

Discovery FCU President/CEO Ed Williams testified on behalf of the Credit Union National Association during a recent House committee hearing on H.R. 2267. During the hearing, which took place last Wednesday, Williams said that fully licensing and regulating online gambling portals used by U.S. citizens would eliminate some of the uncertainty that credit unions face regarding compliance with the Unlawful Internet Gambling Enforcement Act (UIGEA).

UIGEA regulations currently require credit unions and other financial institutions to establish and implement policies and procedures to identify and block restricted internet gambling transactions, or rely on those procedures established by the payments system. H.R. 2267, which was introduced last year by Frank, would give the U.S. Treasury the authority to license internet gambling operators to accept bets and wagers from U.S. citizens and to create regulations for those gambling operators. Frank's legislation currently has 69 co-sponsors.
Williams said that while he supports H.R. 2267, regulators and legislators should strengthen the safe harbor rules contained in the current UIGEA rules.

Legislation related to housing, medical debt relief, shareholder protection, and bonds will also be discussed by the committee.

CUNA seeks comment on FHA loan insurance changes

WASHINGTON (7/26/10)--The Credit Union National Association (CUNA) has asked credit unions to comment on new credit score requirements imposed by the Department of Housing and Urban Development's (HUD) proposed changes to Federal Housing Administration (FHA) loan insurance standards.

The HUD proposal would alter the FHA's credit score requirements, the level of seller concessions; and the standards for loans that are underwritten manually.
HUD in a release said that these changes are aimed at preserving "both the historical role of the FHA in providing a home financing vehicle during periods of economic volatility and HUD's social mission of helping underserved borrowers."

The proposal is also meant to strengthen the reserves of the fund that covers FHA losses, CUNA added.

CUNA has specifically asked for credit unions for their comments on the proposed decrease in the maximum permitted seller concessions or the underwriting standards for manually underwritten loans.

Comments are due to CUNA by Aug. 9. Comments to HUD should be submitted by Aug. 16.

For the comment call, use the resource link.
CUNA comment call

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