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Results Of Nominations For District Elections
Convention Brochure Mailed
Solving The Regulatory Puzzle Surrounding Overdraft Programs
CUNA Mutual Offers Free Discovery Webinar on February 16
Newsmakers
Condolences
Phil Predicts Six More Weeks Of Winter
National News:
CDFI, CU program funding could increase in fiscal 2011
CUNA analyzes CARD Act rule for CUs
Student loan bill support slipping in Senate
Results Of Nominations For District Elections
Association Chairman Ray Brunner has declared Cookie Yoder, Bill Lavage, and Diana Roberts re-elected to their respective Board seats for Districts 3, 7, and 8, since the nominees had no opposition.
Yoder is President/CEO of Pittsburgh FCU; Lavage is President/CEO of Service 1st FCU, Danville; and Roberts is President/CEO of Hershey FCU.
Their three-year terms will begin at the conclusion of the Annual Convention in May in Atlantic City.
Convention Brochure Mailed
The 2010 Annual Convention brochure was recently sent to all credit unions. The brochure includes a schedule of events, speakers, educational breakouts, and special activities for the Association’s 76th Annual Convention & Expo, May 16-18, at Bally’s Atlantic City, New Jersey.
To register for the Convention, credit unions must have submitted their 2010 membership fee. (Invoices were sent to credit unions in December. If you have questions regarding your invoice, please contact Renee Carpenter, ext. 5242; e-mail renee.carpenter@pcua.coop.)
Solving The Regulatory Puzzle Surrounding Overdraft Programs
On January 28, the Association along with its business partner, John M. Floyd & Associates, offered a free partner showcase webinar. The webinar reviewed the latest regulatory update, how a credit union’s overdraft services could change in light of the new regulatory environment, and what a credit union needs to plan for to ensure your credit union is in compliance. If a credit union charges any kind of fee when honoring member transactions in an insufficient funds situation, it’s affected by the new Fed regulation and threatened by legislation on the verge of being voted on in Congress.
As the compliance puzzle comes together, does your credit union have all the information necessary to ensure that your program is compliant? Do you have concerns about implementing a compliant overdraft privilege program in this changing environment? John M. Floyd & Associates can take this burden off your hands by reviewing your existing program to ensure its compliance. To receive an Overdraft program compliance check up from John M. Floyd & Associates, please contact your PCUA Account Executive or visit http://www.jmfa.com/opa.aspx.
For additional resources and information on the latest regulatory updates affecting overdraft services, credit unions can refer to the following:
CUNA Mutual Offers Free Discovery Webinar on February 16
Registration is now open for CUNA Mutual’s free Discovery Webinar aimed at delivering timely and relevant information to credit unions. On Tuesday, February 16, at noon Central Time (1:00 p.m. ET), CUNA Mutual Chief Economist Dave Colby will present Navigating the Uncertain Path to Economic Recovery. There is no cost to attend.
At this session, Dave will share his consumer-oriented economic forecasts and key risks which could derail our fragile recovery. He’ll link his outlook for the economic environment to the impact on credit union results and share industry best-practice strategies to grow member relationships and improve the long-term financial viability of credit unions. The session will arm participants with tools they can use to successfully compete in an uncertain environment.
To register, go to www.cunamutual.com and click on the Discovery Webinar ad.
Condolences
Anna Waleski, retired office manager of Braun Baking FCU, founder of U.C.B. FCU, and former secretary of the Board for Pittsburgh Central FCU, died on January 22 at age 89. Services will be held Wednesday in the Carnegie United Methodist Church. Sincere sympathy is extended to her family and friends. Obituary
Phil Predicts Six More Weeks Of Winter
On Gobbler’s Knob early this morning, Pennsylvania’s famous groundhog, Punxsutawney Phil, saw his shadow and declared six more weeks of winter, sending boos and groans from the large crowd gathered for this longtime annual tradition. The good news is that spring begins in about six weeks.
Newsmakers
Cross Valley FCU, Wilkes-Barre, recently presented the Wyoming Valley Chapter of the American Red Cross with a check for $1,000 to support the international relief efforts in Haiti after the recent devastating earthquake. “Our credit union is honored to be able to support such a wonderful organization and such a noteworthy cause,” said Len Shimko, President/CEO. Donation canisters are also placed in all branch locations to help fund this relief effort.
Eagle One FCU capped another successful Membership Drive by awarding two prizes in random drawings. The credit union gained 186 new members during the drive. When a member referred a person who signed up with Eagle One, both individuals received a $10 reward and were entered into a drawing to win a flat screen TV. Members who signed up for any new e-services during the drive were entered into a drawing to win a $100 Gas Card. CEO John King said, “I am pleased with the results of our membership drive. Our staff continues to place their emphasis on high-quality member service. When members refer friends and family to us, it means that they trust Eagle One and are happy with the services we provide. That is the best compliment that we can receive.”
Erie FCU is featured in the February 2010 issue of Credit Union Magazine, for its full range of business services. Erie FCU stepped up its member business program when two area banks stopped serving local businesses in 2008. Read more
P & G Mehoopany Employees FCU celebrated the second birthday of its student-run branch at Tunkhannock Area High School on January 29. On hand for the birthday party were TAHS Principal Greg Ellsworth; several members from the credit union, including Justin Davis, EVP; Linda Wintermute, VP of Operations; LuAnn Greenley, VP of Marketing & Business Development; Rory Greenley, Marketing Specialist; and the two student member service representatives, Nathan Franko and Alex Kline, along with hundreds of Tunkhannock High School students and teachers. A birthday cake was made by the Tiger House students, and student members had a chance to step into the money machine to grab some cash.
TruMark Financial Credit Union allowed employees to wear jeans on two Fridays in January in support of the American Diabetes Association, raising $550.
National News
CDFI, CU program funding could increase in fiscal 2011
WASHINGTON — The Obama Administration's fiscal 2011 budget, which was released on Monday, contains modest budgetary increases for both the U.S. Treasury's Community Development Financial Institutions (CDFI) Fund and the National Credit Union Administration's (NCUA) Community Development Revolving Loan Fund (CDRLF) program.
Under the proposed budget, the amount of funds made available to the CDFI during fiscal 2011 would increase to $250 million, up from the $246.75 million that was made available for fiscal 2010.
The CDFI fund, which provides grants to support the work of community development financial institutions, has set high goals for 2010, with CDFI Fund Director Donna Gambrell saying that the CDFI Fund is "aiming to meet and exceed the accomplishments of last year with greater internal operating efficiencies and by expanding our assistance to underserved communities with new initiatives," including the first round of the Capital Magnet Fund and awards under a new Financial Education and Counseling (FEC) Pilot Program.
NCUA programs would also benefit, with the amount granted to the CDRLF for 2011 increasing to $2 million and the NCUA's Central Liquidity Facility also slated for an increase in funding.
The Senate late last year removed the borrowing cap on the CLF and gave the CLF $43.8 billion in contingent liquidity to lend to eligible credit unions as part of an appropriations bill.
The CDRLF, which was established by Congress in 1979, makes non member deposits and loans at a rate of 1% for five-year terms, and the NCUA employs the CLF, as needed, to inject capital into the credit union system.
While the Senate has not yet acted on tax extenders, President Obama has requested a two year extension of the New Markets Tax Credit, which expired on December 31, 2009, and Congress is expected to complete an extenders package, which will be retroactive to Jan. 1, 2010, later this year.
CUNA analyzes CARD Act rule for CUs
WASHINGTON — A comprehensive breakdown of the Federal Reserve Board's recently published final rules that restrict a number of credit card practices has been posted to the Credit Union National Association's (CUNA's) website.
The CUNA analysis involves the second set of Fed rules to implement the Credit Card Accountability, Responsibility and Disclosure Act of 2009 (CARD Act). They become effective Feb. 22.
CUNA is offering an audio conference call today on the provisions covered in the Fed's new rule. The conference call, scheduled for 1-2:30 p.m. (CT), will feature Benjamin Olson and Amy Henderson, senior attorneys in the Fed's division of consumer and community affairs, Mary-Lou Heighes, a Credit Union Compliance Expert (CUCE) and president of Compliance Plus, Inc., Jeff Bloch. senior assistant general counsel for CUNA, and Mike McLain, assistant general counsel and senior compliance counsel for CUNA.
The rules include:
- Restrictions on some changes in interest rates;
- A requirement for minimum payment warnings on credit card statements;
- A requirement for a co-signers for consumers under the age of 21 opening a card account; and
- A requirement that payments above the minimum amount be applied to balances with the highest interest rate, in addition to a number of other requirements.
The CUNA analysis points out that the Fed made a significant change to its proposed rule before making them final. In the official staff commentary there is a new restriction for credit unions that use variable rates with a fixed minimum rate, or "floor." Attached to the end of the CUNA Final Rule Analysis is a separate memorandum that outlines guidance from the Fed on this issue.
The rule also finalizes the earlier interim final rule that implements the CARD Act provisions that were effective as of Aug. 20, 2009. This includes the requirement to send periodic statements at least 21 days before the payment is due and the requirement to provide a 45-day notice when the rate and certain terms of a credit card account are changed.
Most of the CARD Act provisions apply only to credit cards. However, it notes, early last year the Fed issued comprehensive rules to amend the Regulation Z open-end credit rules, which encompass credit card, as well as other open-end plans, and a number of those are also addressed in the CARD Act.
Provisions of earlier Regulation Z rules that are not addressed in the CARD Act will remain in effect. The provisions of these rules that are inconsistent with the CARD Act provisions have been amended or withdrawn to ensure consistency.
The applicable provisions of the unfair and deceptive acts and practices (UDAP) rules that were issued by the National Credit Union Administration (NCUA) early last year have been withdrawn, since they address similar issues.
Final Rule Analysis
CUNA CARD Act Conference Call
Student loan bill support slipping in Senate
WASHINGTON — Legislation that would effectively end government-subsidized support of student lending by credit unions and other financial institutions passed the House with ease last September, but has seemingly stalled in the Senate.
The House version of the bill, H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009, which would terminate the Federal Family Education Loan Program (FFELP) in favor of increased funding for government-run Pell Grant programs, passed the House by a 253-171 vote late last year.
While a similar bill has not yet been introduced in the Senate, Sen. Tom Harkin (D-Iowa) is known to support the goals of the bill.
The Credit Union National Association last year warned against the consequences of eliminating FFELP, saying that doing so would limit the choices presented to prospective college students. Specifically, the over 1,000 credit unions that provide, service, and support student loans, would likely be forced out of the student loan business.
The Obama administration also supports eliminating FFELP, and various estimates indicate that doing so could save the federal government as little as $47 billion or as much as $81 billion over a ten-year period.
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