Comments Run Strongly Against NCUA's CUSO Plan
ALEXANDRIA, Va.-Credit unions and their CUSOs are mounting a broad opposition against NCUA's proposal to require financial reporting from CUSOs, even as evidence emerges of CUSO ties causing big losses at credit unions.
CUNA and the National Association of CUSOs have organized letter-writing campaigns urging withdrawal of the NCUA proposal, with many commenters asserting the regulator's efforts may be illegal. Jack Antonini, president and CEO of NACUSO, noted that NCUA has failed in prior efforts to win congressional authority over CUSOs and other third-party service providers and may be running afoul of Congress in its latest effort.
"While the agency recognizes in its own statements that it does not have statutory authority to regulate CUSOs, NCUA has expanded its existing reach over CUSOs through their credit union owners through this proposal by requiring CUSOs to provide financial information directly to NCUA which NCUA will retain and evaluate," Antonini wrote in a comment letter on the proposal. "This looks and feels like vendor authority and the direct regulation of CUSOs, which has not been authorized by Congress."
The vast majority of the 100 comment letters sent to NCUA have identical wording and are apparent form letters offered them from either NACUSO or CUNA (see related story, page 2).
Emergency Loans For Those Affected By Penn. Floods
MEHOOPANY, Penn.-P&G Mehoopany Employees FCU is offering members a Disaster Relief Loan Sale to members on balances to $5,000 at 7% APR with a three-year term. The loans are to help members who have been hit hard by flooding in central Pennsylvania. One member lost an entire house as it floated down a river. Two CU employees have also experienced substantial losses, according to the Pennsylvania CU Association, which remained without phone service at press time.
Mid American Takes Over ECU
WICHITA, Kan.-The $167-million Mid American Credit Union has taken over the day-to-day operations of Enterprise (Kan.) CU, which was put into conservatorship last month by the Kansas Department of Credit Unions. The $1.8-million Enterprise CU was taken over following a fraud audit. K-State FCU in Manhattan, Kan., agreed in August to temporarily take over Enterprise while the regulator sought a CU running a similar computer system to that of Enterprise.
NASCUS, Council Elect Chairs
CHICAGO-Utah regulator Orla Beth Peck has been elected as new chairman of the National Association of State Credit Union Supervisors (NASCUS), while Catherine Tierney, president of Community First CU in Wisconsin, has been named chairman of the NASCUS Credit Union Advisory Council. Both took office during NASCUS' annual meeting here.
Separately, NASCUS presented its highest honor, the 2011 Pierre Jay Award, to Roger Little, retired credit union regulator from Michigan, past NASCUS chair and long-time NASCUS member.
Lip Dub Records 'I'm A Believer'
FARMERS BRANCH, Texas--The Texas Credit Union League unveiled its "CU Lip Dub" during its joint Marketing and Leadership Conference here. A lip dub is a music video that combines lip synching and audio dubbing. The league said the Lip Dub will be released via YouTube on Oct. 20, International CU Day. The Lip Dub is being done over a Smashmouth cover of the Monkees' hit, "I'm A Believer."
LaChance Named CEO At SESLOC
SAN LUIS OBISPO, Calif.-SESLOC FCU has named Geri LaChance as its new president/CEO, effective in December. LaChance will succeed Bertha Foxford who is retiring after 48 years with SESLOC. LaChance is currently COO at North Island Credit Union in San Diego.
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