Association Files Comments To Fed On CARD Act
The Association last week submitted a comment letter to the Board of Governors of the Federal Reserve (Board) on its third and final set of proposed rules implementing the provisions of the Credit Card Accountability, Responsibility and Disclosure Act of 2009 (CARD Act).
The letter states that, in general, the Association’s Regulatory Review Committee and our member credit unions support the improved consumer protection provisions included in the CARD Act and the related implementing regulations. However, the letter raises some specific operational challenges that are presented in the current proposal.
Read Comment Letter
Convention Registration Due April 23
It’s time to place your bet on Park Place at Boardwalk, site of Bally’s Atlantic City and the Association’s Annual Convention, May 16-18.
A complete experience awaits you on one property, with 15 education sessions, products and services expo, and networking connections. Also enjoy the traditional favorites: the Pennsylvania Credit Union Foundation Art Exhibition & Raffle; Foundation breakfast; Youth Ambassador Contest; Ice Cream Social; and the Gala Banquet with Lifetime Achievement Award presentations.
Don’t delay your registration. All registrations must be submitted by Friday, April 23. Any registrations received after that date will be treated as walk-ins onsite at the Convention.
Saturday is also the last day to get discounted rates for hotel reservations at Bally’s.
This year's Annual Convention offers so many opportunities – It's a Shore Bet that you'll feel like Mr. MONOPOLY, a real winner!
Complete details are available here.
Interest Rate Risk: Topic Of Delaware Valley CUES Meeting
The May 12 Delaware Valley CUES meeting will focus on Interest Rate Risk in Today’s Climate. Bridget Balesky, VP, Brick & Associates, Inc., and Brick Capital Management, Inc., will address the impact on credit unions from NCUA’s recent Interest Rate Risk Advisory and what it means to the credit union management team. The meeting will be held at The Desmond, in Malvern, with lunch starting at 1:00 p.m., followed by the program at 2:00 p.m. Registrations should be made by May 5 at www.dvcues.com.
CO-OP Study Finds Shared Branching Users Among Most Profitable
New research findings reveal that not only are shared branch users some of the credit union movement’s most profitable members, but that the availability of physical branch locations is in surprisingly high demand among younger members.
The highlights of the two-year study, conducted on behalf of CO-OP Shared Branching by Raddon Financial Group, were released Monday at CO-OP Financial Services’ THINK 2010 Conference.
Key findings include:
- A total of 38.6% of the households that use shared branching are profitable, which is 10% more than the 28.8% of households that do not use shared branching and are profitable.
- On average, 6.8% of member households actively use shared branching (defined as completing a transaction in the last 90 days); however, usage variance among members ranged from 1% to 18% by credit union.
- Although the younger member segments do not have as large a base in the organizations analyzed, they are more likely than the older segments to utilize shared branching.
- Deposits are the most common transaction type after member verify, accounting for 26.2% of all transactions with an average amount of $1,226. Withdrawals (15.8%) and balance inquiries (11.3%) were other common transactions.
- The highest level of transaction volume occurs between 10 a.m. and 2 p.m. Friday is the single busiest day of the week, with Monday following closely behind.
For more information on CO-OP Shared Branching, visit www.co-opfs.org.
CO-OP Study Press Release
For information about shared branching for Pennsylvania credit unions, please contact Sandy Shenk, PaCUSC State Coordinator, ext. 5267; sandy.shenk@pcua.coop.
Banking Department Warns Of Misleading Mortgage Marketing Tactics
The Pennsylvania Department of Banking is warning consumers about a new wave of misleading marketing tactics designed to entice homeowners into refinancing their mortgages.
The department’s Office of Consumer Services says some homeowners are receiving letters that appear to be from their own lender or from the federal government and make reference to their home mortgage. In some cases, these letters have been sent from a company whose name is mentioned only in fine print on the letter. The homeowner may call the telephone number on the letter thinking they are contacting their own lender or a federal agency only to learn that they are calling a company competing with their lender for business.
The Department of Banking urges consumers to “do their homework” before entering into business with any financial company, especially companies offering loan modifications or refinancing.
Consumers can ask about financial transactions, as well as learn about companies licensed or chartered by the Department of Banking at www.banking.state.pa.us, or by calling 1-800-PA-BANKS.
Treasury Goes Green, Saves Green
With Americans celebrating the 40th anniversary of Earth Day this week, the U.S. Department of the Treasury announced Monday a broad new initiative to dramatically increase the number of electronic transactions that involve Treasury and millions of citizens and businesses, a move that is expected to save more than $400 million and 12 million pounds of paper in the first five years alone.
Starting immediately, Treasury will begin implementing a three-pronged initiative to dramatically reduce the number of transactions that are conducted on paper by moving them to electronic systems. Aside from the large cost savings, electronic transactions provide safety, convenience, and control for payment recipients, taxpayers, and savings bond holders.
- Individuals receiving Social Security, Supplemental Security Income, Veterans, Railroad Retirement, and Office of Personnel Management benefits will be required to receive payments electronically. Individuals will be able to receive benefits either through direct deposit into a bank account or Treasury's Direct Express debit card. The requirement will apply to new enrollees beginning on March 1, 2011, and to existing check recipients beginning on March 1, 2013.
- Businesses currently permitted to use paper Federal Tax Deposit coupons will have to make those deposits electronically beginning in 2011, with a few exceptions, primarily businesses with $2,500 or less in quarterly tax liabilities that pay when filing their returns.
- The option to purchase paper savings bonds through payroll deductions for federal employees will be eliminated on September 30, 2010, and for the private sector by January 1, 2011. Individuals will still be able to purchase paper savings bonds at financial institutions for themselves and as gifts.
Chapter News
Chapter News
The Harrisburg and York Chapters held a joint Vendor Night on Thursday, April 15, with about 25 vendor booths. The Harrisburg Chapter announced the winner of the scholarship to attend the Penn State Judge/Bradley Credit Union School: Radica Persaud from Hershey FCU.
Newsmakers
Newsmakers
Folks from around the area learned how First Capital is doing its part to help the environment. On Saturday, April 17, First Capital FCU participated in York’s annual Go Green in the City event, to show area residents how the credit union is doing its part to help the environment. At its booth, First Capital staff provided information about their ‘green’ building and newly-instituted Green Tour. Visitors could also spin the prize wheel in hopes of winning a biodegradable water bottle.
For the third year, Pennsylvania State Employees Credit Union has stepped up to the plate with the Harrisburg Senators for the “Foul is Fair” promotion to benefit the Children’s Miracle Network. PSECU donates $5 for every ball hit out of play during regular play at Senators’ home games between April 15 and August 28. Last year, the promotion raised $12,000. Fans can get in on the fun, too, by registering for a monthly drawing of Senators’ merchandise during the promotion period. The grand prize drawing is $500. “PSECU is proud to support Children’s Miracle Network,” noted Barbara Bowker, VP of Marketing. “We are honored to again team up with the Senators to help raise funds so CMN can continue its good work for our children locally and throughout the country.”
Don’t forget to send your Youth Week news/photos to highway@pcua.coop.
National News
National News
CUNA: Barron's story on corporate costs off the mark
WASHINGTON (4/20/10)--Current corporate credit union loss estimates of $9 billion to $11 billion cited in a Barron's column are actually somewhat lower than earlier forecasts, notes Credit Union National Association (CUNA) Chief Economist Bill Hampel following the column's appearance this week.
The Barron's column recounts corporate investments in high-yielding, mortgage-backed securities as part of a strategy to offer lower-cost services and higher yields to member credit unions. "This wasn't greed exactly; credit unions offer no stock options. They needed higher rates to subsidize their services and attract more customers," writes columnist Jim McTague.
The column includes loss estimates from CUNA's Hampel of $9 billion to $11 billion on the portfolios from U.S. Central CU and WesCorp FCU, which were placed into conservatorship last year.
Hampel said credit unions should bear in mind that the $9 billion to $11 billion figure in the Barron's column includes both $5 billion in losses already absorbed by the capital of the corporates, plus current estimates of $4 billion to $6 billion to be covered by the National Credit Union Share Insurance Fund, which credit unions are paying for through premium costs expensed over the next six to seven years.
"The Barron's column should not be read to suggest that the costs to the share insurance fund on the corporate portfolios is rising from an original $6 billion to something between $9 and $11 billion," Hampel explains.
"Rather, the loss estimate to the share insurance fund has actually fallen slightly from $6 billion to something between $4 billion and $6 billion." Hampel adds that these are estimates on a portfolio whose actual losses may not be known for several years or more.
House to back fin lit month, CU Youth Savings Week
WASHINGTON (4/20/10)—The House later today is expected to adopt a resolution supporting the Credit Union National Association's (CUNA) National Credit Union Youth Week and the goals and ideals of Financial Literacy Month.
The theme for this year's Youth Week, which ends on April 25, is "Get in the Savings Game." A total of 395 credit unions have registered for the National Saving Challenge, which takes place throughout April. CUNA also sponsors a National Youth Savings Challenge during the same month. Credit unions are celebrating Youth Week by taking part in community-oriented activities, including donating funds to the Children's Miracle Network and local food pantries.
Financial Literacy Month, which began on April 1, seeks to raise public awareness about financial education.
CUNA President/CEO Dan Mica said that CUNA "is proud to carry on the legacy of its member credit unions through its support of Financial Literacy Month," adding that CUNA is looking forward to helping current and future credit union members "become ever more financially literate."
Share Your News
E-mail us at highway@pcua.coop (or)
Call us at 800-932-0661, extensions: 5233 or 5221.