HarborOne Says Its Is
Considering Bank Charter
BROCKTON, Mass. - The $1.9-billion HarborOne CU last week said it is considering a conversion to a state-chartered mutual cooperative bank charter. In a notice to members, the board said the move would broaden the CU's consumer base and give it more flexibility in lending authority and raising capital, while maintaining the mutual ownership of a credit union.
The notice to membership comes as California's $1.5 billion Technology CU is planning to convert to a mutual savings bank and at least one other large credit union, Miami's Power Financial CU, is also exploring the charter change.
In its preliminary notice to members, required under NCUA's rules over conversions to bank, HarborOne explains the ramifications of the charter conversion, including the elimination of its federal tax exemption and the change of federal regulator to FDIC from NCUA. It says it has no plans to pay the directors.
Birthday, Valentines Special
Bonuses Paid To Members
YORKTOWN, Va. - To mark its 60th birthday, 1st Advantage FCU paid members a $500,000 Anniversary Bonus. Meanwhile, in Lenexa, Kan., CommunityAmerica CU celebrated Valentine's Day with a $1 million Special Dividend paid based on members' use of its products and services.
You Can't Put Lipstick On
A Bank, Says New Campaign
LEXINGTON, Ky. - University of Kentucky FCU has been dressing up city billboards, in-branch signs, postcards and buttons with a big kiss - and the tagline "lipstick on a bank." The new campaign, which features a big red lipstick mark and lip balm giveaways, was designed to promote how the local credit union is a "better value" than a bank. The microsite promoting the campaign, at www.lipstickonabank.com is designed to be simple and promote membership, checking and loans.
NCUA Works To Save Lawsuits
LOS ANGELES - With its lawsuits hanging by a thread, NCUA urged separate federal courts here and in Kansas to allow it to advance its claims and make its case against Wall Street banks who sold faulty mortgage-backed securities that caused the failure of five corporate credit unions. "Virtually every court addressing claims concerning similar [residential mortgage backed securities] offerings has denied motions to dismiss - 16 in all," said NCUA in separate filings arguing against dismissal of suits the regulator has filed against Goldman Sachs & Co. and RBS Securities.
End To Duplicative Exams, If...
ALEXANDRIA, Va. - State-chartered credit unions across North Carolina have been told NCUA has finished its separate share insurance examinations of those CUs and will resume conducting joint exams with the North Carolina Credit Union Division as soon as it meets two conditions: it withdraws authorization for any federally insured CU to publish its CAMEL rating, and the NCCUD withdraws its approval for the pilot program being run by State Employees CU in which it is making its CAMEL rating public. The NCCUD had not responded at press time.
Coastal's Larry Wilson To Retire
RALEIGH, N.C. - Larry Wilson, president of Coastal FCU, the one-time IBM employees credit union, said he will end his 38-year tenure and retire from the $2 billion credit union July 1. Wilson will be succeeded by Chuck Purvis, the credit union's chief operating officer and a former executive with U.S. Central FCU and Carolina Corporate CU.
Clarity Being Sought On MFOELs
WASHINGTON-CUNA and CUNA Mutual Group last week called on NCUA and the Consumer Financial Protection Bureau (CFPB) to tackle regulation of multi-featured open-end lending (MFOEL) plans, saying current guidance is confusing. Current MFOEL plan rules were changed in 2010 by the Fed, which said occasional or routine verification of certain credit information is permissible, but that the verification cannot be a condition of granting a particular advance. NCUA also issued guidance in 2010, but both CUNA and CUNA Mutual said significant confusion remains.
Ex-CEO Charged With Embezzlement
SHEBOYGAN, Wis. - The former president of Midwest CU on Friday was charged with embezzling more than $100,000, falsifying loan documents and using a company credit card to buy personal items for herself such as furniture and lingerie. Sarah Gora, 33, was the only full-time employee at the $3-million credit union from June 2006 until she was fired in March 2011. An internal audit was launched in December 2010 after a part-time credit union employee began to notice discrepancies in credit union accounts.
CU Among Defendants Named
MARSHALL, Texas - TQP Development Co. has filed suit against Pentagon FCU and a dozen other entities claiming they are infringing on its patented technology on various websites and internal systems that transmit data comprising a sequence of blocks in encrypted form. Other parties sued by the Marshall, Texas, company include Wells Fargo, KeyCorp, Bank of New York Mellon, Barclay's, Flowers.com, Dell Inc., Alliance Life, Caterpillar, Alaska Air, DirectTV and Merrill Lynch.
PORTLAND, Ore. - The Oregon Bankers Association has registered its opposition to Portland Mayor Sam Adams' proposal to move more of the city's funds to small banks and credit unions, telling the mayor credit unions were designed by Congress to serve consumers with "modest means," not local governments or small businesses. "Credit unions," said the Oregon Bankers Association in its letter to the mayor, "were never meant to serve as public depositories. Rather, their primary mission and the reason for their tax exemption is to serve consumers, and especially those of modest means." Mayor Adams, motivated by the Occupy Portland campaign, is proposing to take some of the $7 million it has deposited in Wells Fargo and $30 million in Portland-based Umpqua Bank and distribute some of the money to local institutions.
PLANO, Texas--Catalyst Corporate FCU said last week it is taking steps to offer credit unions a secure and affordable alternative for processing lockbox payments. It said its solution will provide CUs with the ability to view all of its lockbox activity, images and reports through Catalyst's online account management system (TranZact), while also lowering costs.
IOWA CITY, Iowa - A local bank opened its first on-campus branch here last week after the University of Iowa and UI Community CU ended a five-year partnership. Under the new contract, Hills Bank will pay more than $613,000 for branch rental space at the IMU and UI Hospitals and Clinics over the next five years. In all, the contract will cost Hills Bank more than $1 million in exchange for special perks such as marketing to students at orientation.Credit union officials decided not to participate in the bidding for the new contract after learning of the University's new contractual guidelines and conditions.
CHELSEA, Mass. - Metro CU has joined five other Chelsea-based organizations to launch CONNECT, a new initiative to bring bundled financial stability services to the city's low-income residents from a central location. Other parties involved with the effort to improve residents' finances are CareerSource, Centro Latino, and Bunker Hill Community College, in coordination with asset development and housing services from Chelsea Neighborhood Developers, Metropolitan Boston Housing Partnership, and Metro CU.
PHOENIX - A federal judge has denied prosecutors' request to jail William Liddle while he awaits sentencing, after Liddle, the former head of member business loans at AEA FCU, was convicted of 54 counts in an MBL fraud that sunk the one-time $410-million Yuma credit union. U.S. District Court Judge Susan Bolton denied a prosecution request that Liddle be taken into custody until sentencing, noting his wife of 25 years is in Phoenix, as are the couple's two daughters and his wife's extended family. Liddle's wife, Rhonda Liddle, also was convicted of 36 counts of conspiracy and money laundering in the case, in which prosecutors said the former MBLs chief approved tens of millions of dollars in loans that eventually went sour in exchange for more than $1 million in bribes. The MBLs cost the credit union an estimated $58 million in losses and forced NCUA to take it under conservatorship in November 2010.
