NCUA Gives CUs Time To Expense NCUSIF Premium
ALEXANDRIA, Va.-NCUA directed credit unions to expense the premium it assesses to recapitalize the National CU Share Insurance Fund when the premium is assessed, probably in the fourth quarter of this year.
The guidance, to be explained in a new Accounting Bulletin 09-2, is based on the American Institute of Certified Public Accountants' Statement of Position 01-6, which states, "to the extent that the NCUA Board assesses premiums to cover prior operating losses of the insurance fund or to increase the fund balance to 'normal operating levels,' credit unions should expense those premiums when assessed," NCUA said.
If a credit union chooses to use any other treatment for the premium they should be prepared to provide written guidance from their auditors to support that treatment, NCUA said.
NCUA is expected to assess a premium of $5.9 billion to pay for the corporate credit union bailout. But Congress is considering several measures that would allow credit unions to stretch out the costs of the premium over several years.
SECU Keeps At-Risk Members In Their Homes
RALEIGH, N.C.-State Employees CU said it has helped more than 1,400 at-risk members keep their homes through its newly launched Mortgage Assistance Program.
To help provide additional lending alternatives within the Mortgage Assistance Program, the credit union recently developed a new product, the SECURE Mortgage. This product provides members an opportunity to consolidate their SECU mortgage balances and any other loans owed to SECU under the security of a low interest first mortgage loan. Financing may be up to 100% of the value of the member's primary residence. With a SECURE Mortgage, funds of up to $5,000 may also be advanced to set up an emergency savings account to add peace of mind and re-spark a culture of saving among the membership.
The Mortgage Assistance Program offers members an opportunity to meet in person with a senior officer of SECU and develop an individualized financial plan. Options within the program are for members who may be in a delinquency or possible foreclosure situation, as well as for those who anticipate a loss of income in the near future. These options include mortgage loan extensions, mortgage loan modifications or refinances, and partial payment alternatives. Budgeting, financial counseling and overall debt restructuring are also part of the MAP initiative.
Bomb Threat Used In CU Heist
BOSTON-Two men walked into the Tremont CU branch inside the Boston Teacher's Union building last week and left a bag they said had a bomb on top of the counter, and used the threat to make off with more than $200,000.
The robbers entered the branch in the Dorchester neighborhood in the morning with two back packs and said that one of the packs had a bomb inside, said Officer Joe Zazoli, a spokesman for the Boston Police. Police and the bomb squad responded to the scene, he said.
Shortly afterward, another robbery occurred at a nearby Bank of America branch. Police are investigating a possible connection between the two hold-ups, Zazoli told CU Journal.
Ex-Loan Director, 72, Gets 6 Years
FLORENCE, S.C.-A 72-year-old former loan director at Health Facilities FCU was sentenced to more than six years in prison for embezzling $1 million from the CU.
Christine McLamb also must pay more than $1 million in restitution. McLamb pleaded guilty to embezzlement and aggravated identity theft charges in September. McLamb stole more than $1 million from the credit union between 1998 and 2006 while working as its lending director. Prosecutors say she created about 90 loans in customers' names then kept the money for herself.
$15K Goes To Reading Program
RALEIGH, N.C.-The Carolinas CU Foundation is awarding a $15,000 Micro Community Grant to the Lucy Daniels Center for Early Childhood to fund the Lucy's Book Club Program.
The Lucy Daniels Center for Early Childhood Development is the largest nonprofit providing mental health services exclusively to children in the Triangle, serving between 500 and 600 children and families annually. The Lucy's Book Club is a mental health program for children ages birth to six and their parents.
The Lucy's Book Club grant proposal was put together with the help and cooperation of the Tarheel Chapter of CUs and Local Government FCU.
