Trades Urge Withdrawal Of New IRS Reportig Rules
WASHINGTON-In a setback for credit unions and banks, the IRS last week approved new rules requiring depositories to report interest payments to nonresident aliens, starting in 2013.The IRS forms 1042-S must be submitted for depositors/members without a Social Security number or Individual Taxpayer Identification Number who must file a W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding with the credit union or bank.
The Treasury Department and the IRS say the U.S. should ask its banks and credit unions to report information just as it is requiring overseas institutions to provide information on U.S. account holders. Both CUNA and NAFCU were critical of the plan and called for its withdrawal.
NCUA: New Diversity Rules
May Be Limited To Large CUs
ALEXANDRIA, Va.-A report to Congress last week from NCUA said the agency will take into account the administrative burden on CUs as new diversity standards are developed. The comments were made in the annual report issued by NCUA's Office of Minority and Women Inclusion and are in response to a provision within Dodd-Frank that requires federal regulators to create standards to assess work force diversity policies and practices of their regulated institutions. OMWI is developing the NCUA's diversity policy, and indicated in the report it may recommend that only larger CUs be required to comply with its future rules.
Loan Officer, Wife Killed
In Fire At Wash. Marina
BELLINGHAM, Wash.-Jim Langei, 43, business loan officer with Whatcom Ecucational CU, along with his wife, Sterling Taylor, 33, were killed during a fire at the Bellinham marina. The couple lived aboard their 42-foot boat and were trapped during the fire that also destroyed 10 other boats and a boat house at Squalicum Harbor. Langei had been with the CU since 2003; hiw eife was a former WECU employee.
Mile High Competition In Colo.
DENVER-State regulators have approved applications from $2-billion Bellco CU and $225-million Denver Community CU to serve almost 450,000 residents in Adams County, making at least five of the state's biggest credit unions authorized to serve the fast-growing county, which includes the Denver bedroom communities of Arvada and Aurora and part of the city of Denver.
Among the other credit unions already competing in those Denver suburbs are $1.2-billion Westera CU, $1.1-billion Public Service Employees CU, $3.4-billion Ent FCU, based in Colorado Springs, and $7-billion Texas giant Security Service FCU.
Jenkins Lifetime Achievement Winner
WASHINGTON--Shirley Jenkins has been named as the 2012 Pete Crear Lifetime Achievement Award recipient by the African-American Credit Union Coalition. First elected to the board of Municipal Credit Union in New York in 1983, Jenkins was later named its first female president. Today, Jenkins is board secretary/legislative chair at the credit union. Jenkins was a founding member and vice chair of the AACUC, and has served on CUES' Directors Advisory Panel, among other posts during her career.
NCUA Reschdules Orlando Event
ALEXANDRIA, Va.-NCUA has moved the Listening Session set for Orlando on June 12 back one day to June 13. The event will take place from 1-4 p.m. at the Rosen Centre Hotel. NCUA has other Listening Sessions with Chairman Debbie Matz scheduled for May 2 in Boston, May 9 in Alexandria, Va., June 5 in St. Louis, July 10 in San Diego, and July 31 in Denver.
For info: www.ncua.gov.
Car Sale Gets Strong Results
LAKE MARY, Fla.-CFE FCU said its recent car sale at the Central Florida Fairgrounds in Orlando produced more than $2.7 million in new loans, about three times as much as previous tent sales. The credit union made 160 loans for 160 new and used cars sold during the sale. CFE, the one-time Central Florida Educators credit union, teamed with Auto Wholesale Direct for the two-day event, where special loan deals were offered.
To draw buyers, the $1.4-billion CU offered attendees a chance to select six numbers that could unlock a vault to win a new Jaguar or $75,000 cash, but none of the 530 attendees selected the correct numbers.
NEWARK, Del. - Student loan giant Sallie Mae reported a 36% decline in Q1 earnings to $112 million, even as it's growing private loan business rose by 23%, to $1.2 billion.
The student loan giant, which is changing its focus to the private loan market, said both delinquencies and charge-offs declined for its private loans during the first quarter and it held $37 billion of private loans at March 31.
