NCUA Says Rules Are Coming On Derivatives
ALEXANDRIA, Va.-NCUA said last week it is continuing to examine CU derivatives issues, and a proposed rule on derivatives could be released in the first half of 2013. Chairman Debbie Matz said the agency is considering allowing well-run credit unions with the necessary expertise to use simple derivatives as a hedge against interest rate risk. Matz added that it will also clarify rules related to MBL waivers.
Committee Chair Pressing For Reform In Housing
WASHINGTON-House Financial Services Committee Chairman Jeb Hensarling (R-TX) said last week that creation of a sustainable housing finance system will be a priority for his committee. The remarks came as the FHA's single-family insurance fund is projected to come up some $16.3 billion short as the result of borrowers' mortgage loan defaults. Hensarling wants to see reforms at the FHA, which controls 56% of the total mortgage insurance market. In addition to last week's hearing on the issue, Hensarling said other hearings will be held throughout the year.
Bills On MBLs, Capital Returning To Congress
WASHINGTON-The long-sought bills to lift the limit on member business loans and to allow credit unions to raise supplementary capital were expected to be introduced again in the House as soon as this week. Both bills have been introduced in Congress in one form or another for over a decade but have been defeated, mostly because of opposition from the banking lobby.
CUNA lobbyists said they have begun discussions in the Senate, where the MBL bill stalled again last Congress, and hope to be able to break the logjam this time. The bill would lift the current limit of 12.25% of assets for MBLs to 27.5%. Credit unions have been lobbying to increase the limit since it was created at the behest of the bankers as part of HR 1151, the 1998 CU Membership Access Act.
Fynanz Changes Name To Lendkey
NEW YORK-Fynanz, a provider of private student lending solutions to more than 230 credit unions to LendKey. The company said the move will allow it to transition from a student loan technology provider to a provider of cloud-based lending technology. For info: www.lendkey.com.
Registration For DE Program Opens
MADISON, Wis.-Registration is now open for the Fall 2013 Credit Union Development Education (DE) training class taking place September 4-11 in Madison, Wis. Attendees of the NCUF's six-day total immersion experience will learn about credit unions' social responsibility and domestic and international development through interactive education and professional networking. For info: www.ncuf.coop/home/programs/developmenteducation/Registration/Registration.aspx
Gwinnett FCU Now Peach State
LAWRENCEVILLE, Ga.-The $231-million Gwinnett FCU has changed its name to Peach State Federal Credit Union. It said it made the move to better reflect the growth of its FOM beyond Gwinnett County into six other counties, including Barrow, Clarke, DeKalb, Gwinnett, Jackson, Oconee and Walton. Peachtree FCU has 41,000 members, 26,000 of whom live outside Gwinnett County.
Logix FCU Pays $5M Dividend
BURBANK, Calif.-Logix FCU, formerly Lockheed Employees FCU, said it is paying its members a $5.5-million loyalty dividend. Depending on their balances with the credit union, members are eligible for a dividend payment up to $200. This is the latest of several extraordinary dividends the $3 billion credit union has paid to its members. Logix said it has reported positive income in every one of its 76 years of existence.
In Other News
NEFCU: $50M In Sandy Help
WESTBURY, N.Y.-NEFCU here said that in response to Hurricane Sandy it has made a record $50 million in special low-cost loans to the Long Island community. Long Islanders impacted by Sandy have been offered personal loans with a 1% APR for the first year to assist with repairs, or auto loans with rates as low as .74% APR to replace vehicles lost in the storm. NEFCU said the loan programs have boosted its personal loan volume by 250% and its auto lending by 50%. NEFCU also offered a special 0% interest rate on its VISA Credit Card for purchases made at major home improvement retailers, as well as a 90-day payment deferral option on its loans.
Man Uses Taxi In Getaway
FAIRBANKS, Alaska-Police say a man who robbed MAC FCU here last week used a taxi as a getaway car after making off with about $500. Police followed the robber's tracks from the credit union in the snow to the Westmark Hotel, where they say a cab driver told them he gave a man matching the suspect's description a ride to the Roundup Steak House. Police searched the area and found the suspect, identified as Zach Rose, who had all the money from the credit union robbery on him.
Bragging Leads To Suspect's Arrest
LONGVIEW, Wash.-A man who managed to evade police twice after robbing the same Red Canoe CU branch in December and January proved his own worst enemy when his bragging led police to him. Several people called police last month saying Harley Clappe, who was described as an unemployed, homeless drug user, was waving around "large amounts of cash" and boasting that he robbed a credit union, according to police. Police tracked Clappe, 28, to a home where he had been staying and, using a loudspeaker, ordered everyone out of the house. Clappe was arrested as he tried to scramble out a back bedroom window. Clappe allegedly robbed the Red Canoe CU branch on Dec. 28. Witnesses said a man with scabs on his face handed over a note demanding cash, then escaped on foot with $1,500. On Jan. 17, a man, also with scabs on his face, robbed the same branch.
Sometime in the last two weeks, detectives listened in on a phone conversation during which a police informant discussed the robberies with Clappe, investigators said.
Pollution Removed, CU To Build
TRAVERSE CITY, Mich.-Redevelopment funded in part by tax dollars will clean a significant chunk of pollution at an old gas station site where Traverse Bay Area CU is building a new headquarters. The project will remove soil contaminated by leaking underground gas and waste oil tanks, pollution discovered in 2001. The Grand Traverse County Brownfield Redevelopment Authority approved the CU's application for a $1-million loan from the Michigan Department of Environmental Quality. The authority also agreed to reimburse about $1.2 million TBACU will spend on demolition and other measures.
