Bill Would Allow Non-NCUSIF CUs Access To FHLBs
WASHINGTON-A bill was introduced last week that would allow the 120 privately insured CUs to join the Federal Home Loan Banks. Members in the 12 FHLBs is currently restricted to federally insured banks and credit unions, and to insurance companies. The measure, which has been introduced in some form for at least 10 years now, was sponsored by Rep. Steve Stivers (R-OH), home of ASI Inc., the only surviving private deposit insurer for credit unions.
CU Becomes First FI To Open On Sioux Reservation
KYLE, S.D.-Lakota FCU, the first federally insured financial institution on the Pine Ridge Reservation, home to the Sioux Indian tribe, has opened. "It is the first time that we have a financial institution on the Pine Ridge Reservation, and the difference it will make is enormous," said Sen. Tim Johnson (D-SD) and chairman of the Senate Banking Committee, who was at the opening ceremony. Plans for the new credit union have been in the works for the past four years. It will provide basic banking services such as savings accounts, loans, and various convenience services involving currency.
CFPB Agrees To Seek Comment On Delay Request
WASHINGTON-The Consumer Financial Protection Bureau told CUNA last week it will seek comment for 15 days on a request that the agency delay a June 1 effective date relating to the prohibition on financing certain credit insurance charges that are part of the CFPB's mortgage loan originator compensation rule. The trade group had earlier expressed concern that some language in the new legislation needed clarification.
Co-Op Leader Program Launched
NEW YORK-The National Federation of Community Development Credit Unions has launced a "Cooperative Finance Leaders for America" program, a pilot aimed at cultivating future leaders for CUs. The program will seek to recruit, train and support 15 people for leadership positions at CUs that provide credit and services to low- and moderate-income communities. Deadline for apps is May 29. For info: Pamela Owens at 212-809-1850, ext. 215, or powens@cdcu.coop, or Jason Chang at ext. 205 or jchang@cdcu.coop.
CU Board Pay Gets Review
SURREY, British Columbia-Members of Coast Capital CU, Canada's second-largest credit union, last week voted overwhelmingly in favor of reviewing their board members' pay, which is costing them $750,000 a year. More than three-quarters of Coast Capital's 23,000 voting members wanted to review the compensation its 10 directors receive after a grassroots campaign criticized its board for being paid $750,517-more than double what competitor Vancity CU paid its board during the 2011-2012 fiscal year.
While a member panel meets to review director compensation, the board has agreed to cut the chairman's retainer from $76,500 to $65,000, and retainers for all committee chairmen from $10,610 to $5,000. Last year the chairman received $157,000 after $1,000-per-meeting fees were added. As part of the Coast Capital member vote, the $14.6-billion credit union has frozen a recommended increase in the base retainer of directors from $25,500 to $29,500.
Former CUNA Mutual CEO Dies
MADISON, Wis.-Dr. Richard "Doc" Heins, the well-known CEO of CUNA Mutual from 1988 to 1996 and winner of the 2010 Herb Wegner Award in Washington for Lifetime Achievement has died. Mr. Heins was 85. Heins was born and raised in Wisconsin but moved to California in 1952 where he helped charter a credit union, UCLA's University CU. He and his wife later moved back to Wisconsin, where he became professor at the University of Wisconsin-Madison School of Business, teaching risk management and insurance and business law for more than 30 years. Heins joined CUNA Mutual Insurance as a consultant in 1969 before being named president. Among other achievements, Heins brought private mortgage insurance to credit unions through CUNA Mutual, led the development of a brokerage of insurance products, and increased collateral protections for CUs and members.
