Pennsylvania Credit Union Association
Life Is A Highway...September 9, 2008
Briefs Filed On FOM Federal Case
The NCUA, Justice Department, and three credit unions – AmeriChoice FCU, Members 1st FCU, and New Cumberland FCU – filed briefs on Monday regarding the appropriate remedy in the federal case.
The parties expect the Court to issue an order sending the cases back to NCUA. Under the proposed order, the three credit unions will revert to their existing charters prior to their granted six-county communities. Current members of the credit unions will retain their membership status. All three credit unions can file with the NCUA if they wish to seek a charter change.
See related story below in “National News.”
Pittsburgh Area Steps Up For CUPAC
The Association’s State PAC – CUPAC - received an $8,000 boost during the recent Fall Leadership Conference at Seven Springs.
Pittsburgh Chapter President Mike Pastirik presented a $5,500 check to Association Board Chair Diana Roberts and President/CEO Jim McCormack, representing the proceeds of the chapter’s golf outing.
Association Director Cookie Yoder, Chair of the Governmental Affairs Committee, made a personal contribution to the PAC, and former Association Chairman Ron Lasich presented a check on behalf of Visionary FCU.
The Association highly encourages other chapters and credit unions to get involved with PAC fundraising to support efforts during this crucial election year, which is less than two months from now, not to mention the Gubernatorial election is only two years away.
For information on fundraising opportunities, please contact Christine Seitz, Governmental Affairs Specialist, ext. 5279.
2009 Dues Schedule Posted
The Association has posted the 2009 Membership Fee Schedule on its Web site, to help credit unions who have begun the budget planning and preparation for next year.
As noted in yesterday’s Highway, the Board of Directors voted to amend the dues schedule with a modest increase for credit unions, $100 million in assets and above.
Click here to view the dues schedule.
Return Contact Form By September 19
Each credit union received a contact form in the Association’s September 5 mailing. This form includes current information on file with the Association, which will be used to publish the 2009 Resource Guide.
Please take a moment to review the information on the form, mark any changes, and return the form to the Association as soon as possible. Since the return instructions were inadvertently omitted, the form may be faxed to: 717-234-2695; e-mail information to: SupportServices@pcua.coop; or mail to the Association: P.O. Box 60007, Harrisburg, PA 17106-0007.
Please return the form no later than September 19 to have the information included in the 2009 Resource Guide.
Philly Fed Redesigns Web Site
The Federal Reserve Bank of Philadelphia will launch a redesign of its Web site today (September 9). The changes include a brand new look, enhanced content organization, more efficient navigation, an improved search function, and new content.
Philadelphia Federal Reserve
Pennsylvania Gets Ready To Go Smoke-Free
In two days, the Clean Indoor Air Act, part of Governor Rendell’s Prescription for Pennsylvania health care reform agenda, takes effect. The Department of Health is helping businesses prepare to implement the new law that will ban smoking in most public places. Learn more.
For smokers who are considering kicking the habit, call Pennsylvania’s Quitline at 1-800 QUIT NOW (1-800-784-8669) for advice that can increase your chance of success.
Frauds & Scams
Scams Sent Via Text Message & Cell Phone
Credit unions are reporting that members are receiving text messages and cell phone calls requesting that the “credit union customer” call a number to have access to their “bank account” restored.
American Pride Credit Union, Altoona, reports that their members have been getting text and cell phone messages requesting that the member call a number to reactivate their credit union account. The message does not refer to the credit union by name, just that there is a problem with their account. The credit union reported the incidents to the PA Department of Banking and to the regional director of NCUA. NCUA indicated that the FBI is currently working on this scam.
Pittsburgh Firefighter’s FCU had a member report a text message stating that “we had to lock your bank account access, call 406-630-4023 to restore your bank account.” The name of the credit union was not included in the message.
In previous cases reported across the country, the phone number recipients are directed to call is in Canada. Once the call goes through, the individual is asked to provide personal financial information, PIN numbers, and account numbers.
Credit unions are advised to continue to alert members that they would never contact them by phone, text message, or e-mail for personal account information.
Newsmakers
Newsmakers
Discovery FCU, Wyomissing, was featured Monday night on the Channel 69 News Berks Edition for its student-run branch at Wilson High School, which opened on September 3. The news story featured Tara McQuillen, Director of Marketing; students; and the high school principal. View story and video clip
Employees of Erie General Electric FCU donated $1,107 to the Muscular Dystrophy Association. The check was presented live at the Jerry Lewis MDA Telethon on Labor Day. Employees planned several fundraisers in August including a bake sale, jeans days, basket raffle, and a go-kart race among credit union executives at Family First Sports Park during the summer picnic to benefit MDA. Many employees also volunteered to work at the Jerry Lewis MDA Telethon.
Tri County Area FCU, Pottstown, was named the Number One Credit Union in the Tri County Area, in the Pottstown Mercury’s 2008 Reader’s Choice Award. The award was presented on August 29 by the newspaper, which has more than 24,000 readers.
National News
National News
CU parties' statement on relief in FOM case
WASHINGTON (9/9/08)—A coalition of interested credit union parties filed a statement with a U.S. district court regarding an appropriate relief plan in a case that challenged a National Credit Union Administration's (NCUA) decision to grant a six-county area community credit union expansion in Pennsylvania.
In July, the U.S. District Court for the Middle District of Pennsylvania ruled that the NCUA's record was not sufficient to sustain its decision and ordered the plaintiff American Bankers Association and defendant NCUA to suggest a remedy to the court.
In its lawsuit against the federal regulator, the bankers argued that the NCUA acted in an arbitrary and capricious way in 2003 when it approved Harrisburg, Pa.-based Members 1st FCU's charter request. The agency decision was later used as basis to authorize two other charter requests, one from New Cumberland FCU and the other from AmeriChoice FCU.
In a statement on appropriate resolution to the case, the Credit Union National Association (CUNA), Pennsylvania Credit Union League and other credit union parties made points for the record regarding the remedy negotiated by the NCUA and ABA.
As part of the agreed upon order, the affected credit unions will revert to the select employee group and associational charters that they held prior to the community charter expansions.
Also as part of the agreement, all members who joined the credit unions under the community charters may remain as members.
Although the ABA, in its brief, did not ask that the credit unions involved divest the members who were added under the NCUA decision, the credit union parties noted that the case should not serve as a precedent that the consent of the bankers "or similar plantiffs" is required for that outcome.
Also, the credit union parties said that although the court's final order is silent on the issue, the entire matter should be remanded to the NCUA to take further actions as may be appropriate.
The credit unions named in the lawsuit and the National Association of Federal Credit Unions were also parties to the credit union statement on appropriate relief.
Since most issues have been agreed upon, the judge likely will decide whether to accept the proposed order in a relatively short time—possibly within several weeks.
Bailout may affect CU mortgage demand slightly: CUNA
MADISON, Wis. (9/9/08)--The government's bailout of mortgage giants Fannie Mae and Freddie Mac may impact credit unions' mortgage portfolios with a slight slowdown, according to Bill Hampel, chief economist at the Credit Union National Association (CUNA).
On Sunday, the U.S. Treasury announced it would place Fannie and Freddie into a government conservatorship because failure of either would be chaotic to the market.
"The Treasury's action will restore some normalcy to the conforming segment of the mortgage securities market," Hampel said.
"In particular, conforming mortgages will become more available than they have been in the past several weeks.
"The rates at which credit unions will be able to sell loans to Freddie or Fannie will come down a bit, and other lenders will become more active than they have been recently," Hampel told News Now.
"This might slow the demand for mortgage loans slightly at credit unions," he said.
Fannie and Freddie own or guarantee nearly half of the $12 trillion in U.S. mortgages. (USA Today Sept. 8).
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