District Visits Raise Awareness Of Credit Union Issues
The Association staff and committee members have completed 12 of 21 Congressional District and Senate office meetings, designed to update elected officials on the credit union position of key issues.
On Monday afternoon, Bucks County area credit union leaders met with Congressman Patrick Murphy (D-Bucks) in his Bristol office. The hour-long meeting focused on a variety of credit union issues including overdraft protection; member business lending; bankruptcy “cram downs;” and interchange.
Governmental Affairs Committee member Lee MacMinn; State Credit Union Advisory Committee member John King; and Governmental Affairs Committee and State Credit Union Advisory member Jim McCaw provided the Congressman with a detailed scope of how interchange regulation will hurt the ability of credit unions to house card programs and consumers in the long run. Member business lending also was a priority of discussion due to the Congressman’s past co-sponsorship of the measure.
Yesterday, credit union representatives met with Congressman Tim Holden (D-17) in his Harrisburg district office. Issues of conversation included member business lending, interchange, and overdraft protection.
The Congressman has been a great friend of credit unions in the past on various pieces of legislation, including co-sponsoring past credit union member business lending bills. The Congressman indicated many small businesses in his district are having difficulty accessing credit or other financial services for their business needs from their primary financial institution.
Attendees of the meeting made a great case in point that credit unions are a viable lending resource and continue to lend, but need the regulatory relief to ensure they can still assist small businesses. Credit union leaders in attendance included: Jim McCormack, Association President/CEO; Diana Roberts, Association Director; Ed Williams, CUNA Director; Lonny Mauer and Greg Smith, members of the State Credit Union Advisory Committee; Nate Muniz, Public Relations Manager, PSECU; and Christina Mihalik, Association VP, Governmental Affairs.
The Association asks credit unions who reside in the districts of Congressmen Patrick Murphy and Tim Holden to contact them in support of member business lending. Letters of support may be sent through CapWiz.
A-K Valley FCU To Close Robbery-Plagued Branch
Following a New Year’s Day burglary at the Homewood branch of A-K Valley FCU, the Board of Directors on Wednesday decided to close the branch permanently. The branch had been open for more than five years in this underserved area, so it was with very sad hearts that the Board decided to close it, said Janet Horn, President/CEO. She said the Board and staff put so much effort into the branch and to provide services to members who really need help, but it was concern for the safety of its employees and members that ultimately was the deciding factor to keep the branch closed.
A surveillance camera captured a picture of the burglar, who broke in on January 1, however, police have not made any arrests and are still investigating. Although he went through file cabinets, all member records were safely locked in cabinets. The same branch has been robbed four times by gunmen with assault rifles. The credit union had hired an armed guard to be present in the lobby during branch hours.
Horn said, “Homewood is a dangerous place. We have tried numerous times to work with community leaders and law enforcement to address the situation, but nothing gets done and the crime problem continues to get worse and worse.”
Horn recalls one of the robberies, where a member was actually completing a transaction with a teller when an armed robber entered the credit union. He literally grabbed the cash right out of her hand. “We have been so fortunate that no one was hurt or killed,” she added. The constant uneasiness takes a toll on employees, too, making it difficult to adequately staff the branch. "It's an unfortunate situation, because there are good people in the neighborhood who need financial services. But we can't continue the high cost of security and risk the safety and security of our staff and members," Horn said.
A PNC branch located two blocks from the credit union has also had its share of problems. It only allows one customer inside at a time, and a number of customers have been attacked while using an outside ATM.
The A-K Valley Homewood branch was a shared branching outlet. A sign is posted on the door explaining why the branch is closed and is advising members to use shared branching services at other locations. Credit union staff are also working with members on an individual basis to see how they can continue to meet their financial needs.
WTAE TV Report
Pittsburgh Tribune
Huffington Post: Consumers Are Moving Their Money To Credit Unions
CUNA President/CEO Dan Mica has a blog posting in today’s Huffington Post.
Click here to view text.
Check The Address
Just a reminder … All mail sent to the Association should now use the physical address: 4309 North Front Street, Harrisburg, PA 17110-1618. The Post Office box was closed as of December 31, 2009. Please update your records to begin using the street address for all mail.
CUNA, Coopera Launch Spanish Personal Finance Web Site For CUs
Credit unions looking to attract first and second generation Hispanics have a new tool at their disposal. “El Poder es Tuyo” (the power is yours) is a customizable, personal finance Web site developed by CUNA and Coopera Consulting, a subsidiary of the Iowa Credit Union League.
The new Web site offers credit unions timely, personal finance information that is culturally relevant and promotes the use of credit union services to the emerging Hispanic market. Included in the annual subscription is expert advice on personal finance in the form of articles, videos, interactive coaches, and calculators -- all in Spanish -- with content updated on a weekly basis. And credit unions can customize the site to drive traffic, and business, back to their Web sites.
For a limited time only, an annual subscription to El Poder es Tuyo is available at half price. To learn more, visit www.cuna.org/onlineEDGE and choose El Poder es Tuyo, or call 800-356-9655 and ask for CUNA sales representatives Darlene Brightbill (ext. 4344) or Greg Cry (ext. 4959).
InfoSight Weekly Update
The latest issue of InfoSight eNewsletter, dated 1/8/10, is now available. Log on to www.pcua.coop and click on the “Compliance” section to reach InfoSight and check out the latest compliance news.
As a reminder, with so many pending regulatory changes this year, particularly during the first quarter, credit unions can log on to InfoSight and find a “2010 Compliance Calendar,” which will provide information on the regulatory changes by topic and compliance date.
Here are some highlights for this week’s update:
- Record Retention
The Record Retention channel is an excellent resource for the guidelines you need to remain in compliance. Make sure all staff members are knowledgeable about the guidelines and laws that apply to record retention.
- HUD Issues New Settlement-cost Booklet
Credit unions and other mortgage lenders must comply with the changes to the Real Estate Settlement Procedures Act (RESPA), which require the use of revised Good Faith Estimate (GFE) forms and HUD-1 Settlement Statement forms.
- Restructuring of Check Processing Operations in the Fourth and Sixth Districts, Regulation CC
The Federal Reserve Board has approved amendments to Appendix A of Regulation CC that reflect the restructuring of the Federal Reserve Banks’ check-processing operations. The amendments are effective February 27, 2010. At that time, there will only be a single check-processing region for purposes of Regulation CC and there will no longer be any checks that are nonlocal.
- FOM, Chartering Comments Due March 1
March 1 is the due date for comments on recently proposed changes to the NCUA's chartering and field of membership rules, according to the December 28, 2009, issue of the Federal Register.
- Fed Announces Asset-Size Exemption Threshold for Depository Institutions under Regulation C
The Home Mortgage Disclosure Act (HMDA) asset-size exemption for depository institutions will remain $39 million, based on the annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers for the 12-month period ending in November 2009. As a result, depository institutions with assets of $39 million or less as of December 31, 2009, are exempt from collecting data in 2010. An institution’s exemption from collecting data in 2010 does not affect its responsibility to report the data it was required to collect in 2009. The adjustment was effective January 1, 2010.
Compliance Calendar
January 18
Martin Luther King, Jr. Birthday - Federal Holiday
January 19
Regulation Z: Mortgage Loan Transfers Interim Final Rule Effective Date
February 1
IRA Minimum Distribution Notice
IRS Form 1098-T - Tuition Payments Statement - Due to Recipients
IRS Form 1098-E - Student Loan Interest - Due to Recipients
RS Form 940 - Federal Unemployment Tax - Annual Filing Due to IRS (All Funds Due Not Previously Paid)
IRS Form 941 - Employer’s Quarterly Federal Tax Return Filing Due to IRS
IRS Form 945 - Annual Report of Nonpayroll Withholding Taxes- Due to IRS
IRS Form 1098 - IRS "Mortgage Interest Statement" Due to Recipient
IRS Form 1099-A - Acquisition or Abandonment of Secured Property Due to Recipient
IRS Form 1099-C - Discharge of Indebtedness - Due to Recipients
IRS Form 1099-INT - Interest and Dividend Income - Due to Recipients
IRS Form 1099-MISC - Miscellaneous Income - Due to Recipients
IRS Form 1099-OID - Original Issue Discount - Due to Recipients
IRS Form W-2 - Wage and Tax Statement - Due to Employees
IRS Form 5498 - Fair Market Value - Due to Recipients
IRS Form 1099-R - Distributions from Pensions, Annuities, etc. - Due to Recipients
IRS Form 1099-S - Proceeds from Real Estate Transactions - Due to Recipients
IRS Form 1099-Q - Payments from Qualified Education Programs - Due to Recipients
Education & Training
Education & Training
Originating Or Buying Loans Secured By Commercial Real Estate?
On February 10, the Association’s Business Advisory Services will present a webinar entitled Environmental Phase 1 Audits.
Anytime you take commercial real estate as collateral on a loan, you run the risk of placing a lien against a property that might be at high risk for environmental contamination. Learn from experts about how to minimize your risk with the use of Environmental Phase 1 Audits.
For additional information and registration details, click here.
Chapter News
Chapter News
The Delaware County Chapter of Credit Unions met on Tuesday evening at the Springfield Country Club. Jay Murray, President/CEO of Mid-Atlantic Corporate FCU, was the guest speaker, and explained the issues of the corporate system and plans to move forward. Zack Stecher, Account Executive, represented the Association.
The York Chapter of Credit Unions met Monday night. The speaker for the evening was Jerry Scull, Managing Partner – Performance Processing, Inc. Scull’s presentation focused on understanding the ins and outs of plastic card programs. Bret Davis, AVP, Information Systems & Technology, represented the Association.
National News
National News
Compliance: All CUs must report NSF fees monthly
WASHINGTON (1/7/10)--Credit unions have inquired whether a new Truth in Savings (TIS) disclosure requirement for overdraft services applies to institutions that do not offer overdraft protection services to their members but do charge returned-item (NSF) fees.
"The answer to that question is, yes: credit unions that charge returned item/NSF fees must disclose these fees," according to Valerie Moss, CUNA's director of compliance information. She said they must use the tabular format found in Appendix B-12 of the National Credit Union Administration's (NCUA'S) TIS regulation to do so.
The credit unions' questions revolve around the NCUA's revision last year to its TIS rules. Those changes require all credit unions that provide periodic statements to disclose the periodic and aggregate year-to-date overdraft fees and returned item fees on member statements, regardless of whether they advertise or promote the use of overdraft services. The regulation aligned NCUA's TIS regulation with the Federal Reserve Board's Regulation DD, as required under the Truth in Savings Act. The mandatory compliance date was Jan. 1.
The regulatory revisions expanded the applicability of the aggregate fee disclosure to all financial institutions, except for institutions that don't charge any fees. So, Moss points out, credit unions are not required to disclose that "$0" has been charged for the statement period or year-to-date. However, the credit union may provide the disclosure if it so chooses.
If a fee is waived in a later periodic statement period, the credit union may--but is not required to--show that adjustment in the year-to-date total on that later statement. And, if the fee is assessed and waived during the same statement period, the credit union may, at its option, show the adjustment in both the year-to-date total and the total for that statement period.
NCUA's TIS overdraft final regulation
CUNA Analysis on NCUA-Fed TIS Overdraft Final Rule
CUNA's e-Guide: TIS Latest Developments
Back in the Black: Tools to Keep Your Checkbook on Track statement stuffer
GAC housing sign-up deadline is extended
WASHINGTON (1/7/10)—There has been a deadline extension to Jan. 27 for reserving hotel accommodations to attend the Credit Union National Association's (CUNA's) Governmental Affairs Conference (GAC) Feb. 21-25 in Washington, D.C.
Those attending the GAC can enjoy special conference lodging rates by signing up through CUNA's Housing Bureau through the extended deadline.
Reservations, changes and cancellations can be handled through the CUNA housing bureau, with one exception. The Grand Hyatt Hotel will accept no changes through CUNA housing bureau beyond Jan. 13. After that date changes will have to be executed directly through that hotel.
Credit union representatives still needing to reserve accommodation for the GAC should contact the CUNA Housing Bureau website using the resource link below, or call 1-800-974-3084 Monday-Friday from 9 a.m. to 5 p.m. (ET).
At this year's GAC, credit union attendees will hear from such high-ranked federal lawmakers as House Majority Whip Rep. James Clyburn (D-S.C.), House Financial Institutions Committee Chairman Barney Frank (D-Mass.), that committee's ranking Republican member Rep. Spencer Bachus (R-Ala.), and senior members of the committee, Reps. Paul Kanjorski (D-Pa.) and Ed Royce (R-Calif.).
Also among featured speakers: National Credit Union Administration Chairman Debbie Matz, Financial Accounting Standards Board Chairman Robert Herz, Larry Kudlow, economist and host of CNBC's The Kudlow Report, former Federal Reserve Chairman Alan Greenspan, and Richard Phillips, Captain of the Maersk Alabama, which was hijacked by Somali pirates in 2009.
CUNA Housing Bureau
2010 GAC Lineup
Share Your News
E-mail us at highway@pcua.coop (or)
Call us at 800-932-0661, extensions: 5233 or 5221.