No Insurance Recoveries From Failed Corporate CUs
ALEXANDRIA, Va.-NCUA said it has failed to recover any payments on insurance held by WesCorp FCU, U.S. Central FCU or any of the other three corporate credit union failures, despite millions of dollars in directors' and officers' premiums paid by the failed corporates. NCUA said it failed to obtain recoveries on any claims on the U.S. Central D&O bond on 18 executives and directors of the one-time $52-billion corporate with Travelers Casualty & Surety Co., Similarly, a WesCorp D&O policy with CUNA Mutual Group also came to naught, because of an exclusion for investment losses.
Idaho Central Ranked #1 In List Of Top Performers
CHARLOTTESVILLE, Va.-Analysis firm SNL Financial last week released a list of its Top 50 Performing Credit Unions with assets of more than $500 million during 2012. Ranked first was Idaho Central Credit Union, Pocatello, followed by Navy Army Community CU and General Electric CU in Cincinnati. CUs were ranked according to five core financial performance metrics: member growth; net charge-offs as a percentage of average loans; operating expenses as a percentage of operating revenue; delinquent loans as a percentage of total loans; and market growth. SNL said it measured each CU's standard deviation from the mean for each metric and weighted the deviations to calculate a performance score for each CU. SNL said Idaho Central ranked in the top 15 in every financial metric measured.
Members Seek Class-Action Status
PIERRE, S.D.-Members of Black Hills FCU have petitioned the South Dakota Supreme Court to declare a lawsuit against the credit union and CUNA Mutual Group's CUMIS Insurance Society unit over credit life disability terms a class action.The lawsuit alleges that CUMIS improperly changed the terms and rates of credit life and disability policies that make loan payments if borrowers become disabled. A lawyer for the borrowers says the lawsuit must be handled as a class action because it would be impossible for 4,461 borrowers to file their own lawsuits.
Legislation Would Affect CUs
WASHINGTON--Legislation introduced last week in Congress, the Terminating Bailouts for Taxpayer Fairness Act and aimed at imposing stronger capital rquirements on banks, includes some provisions that would also apply to CUs. The bill would eliminate a requirement that the notices be sent annually, would also create an examination ombudsman for all the federal FI regulators, would also provide some relief with respect to the definition of a qualified mortgage, and exempt financial institutions under $10 billion in assets from small business data collection requirements under the Equal Credit Opportunity Act.
CO-OP: 'EMV A Success'
RANCHO CUCAMONGA, Calif.-CO-OP Financial Services reported that EMV-enabled Visa debit cards functioned successfully in at least six countries for members and staff of Bank-Fund Staff FCU, with online transaction processing performed by CO-OP. CO-OP has passed EMV certification with Visa, based on its work with Bank-Fund Staff FCU as the test credit union.
Hagen Named NCUA's New IG
ALEXANDRIA, Va.-James Hagen has been named as NCUA's new Inspector General, succeeding William DeSarno, who is retiring June 1.
Emerson Named CEO At IC FCU
FITCHBURG, Mass.--Tony Emerson is leaving as president of the Credit Union League of Connecticut to take over as CEO of IC FCU here.
Emerson has previously held posiions as VP with Maine Savings FCU and with Penobscot County CU, also in Maine.
CO-OPs For Change Expands Site
WASHINGTON-Co-Ops for Change said last week it has now expanded its Coops4Change.org website to include a survey inviting CU executives to share their perspectives on NCUA examinations and regulatory priorities.
