Southwest Sees Record Investment In Certificates
PLANO, Texas–As an indication of the volatility in the markets, Southwest Corporate reported that it closed 2007 with a record level of term certificate investments from credit unions.
SWCFCU said CUs placed nearly $1.4 billion in “special certificates” and “reverse inquiries,” a sharp increase over the $1 billion invested in similar instruments offered by Southwest Corporate in 2006.
The $14-billion corporate reported that while dollar amounts of investments increased, the actual number of specially-structured term certificates offered to CUs last year dropped slightly to 53 in 2007 from 63 in 2006.
But Southwest’s Director of Portfolio Management Cynthia Shi said the drop in special certificate offerings was more than offset by the growing interest in reverse inquiries-which rose to 62 last year from 41 in 2006.
NCUA Clears Norlarco CU Suits, Paves Way For Sale
FT. MYERS, Fla.–Norlarco CU has been removed from at least half a dozen investor suits, helping clear the way for the sale of the failed credit union by NCUA.
The CU was named as defendant in suits brought by Florida real estate investors who say they were defrauded by promoters of a scheme to sell homes at guaranteed returns of 14%. Norlarco and two other failed credit unions, Huron Rivera Area CU and New Horizons Community CU, were among more than a dozen financial institutions that provided financing for the home purchases.
NCUA has sold off Huron River Area CU and New Horizons Community CU and is negotiating with three Colorado credit unions on the sale of Norlarco. NCUA plans to assume as much as $200 million in Florida loans on Norlarco’s books before selling of the good assets of the CU, member accounts and eight branches.
CU Websites Downed By Snafu
CALABASAS, Calif.–An administrative issue between Digital Insight and its domain provider Network Solutions shut down the Internet domains at hundreds of DI’s credit union and bank customers last week, stopping online banking functions for hours at those institutions.
The snafu was resolved after a few hours and by the end of the day most of the sites were back up, according to Tobin Lee, a spokesman for DI. “Depending on the ISP, it may take a little longer for the servers to recycle,” Lee told Credit Union Journal.
The shutdown affected “a couple of hundred financial institutions,” he said. He attributed the problem to an administrative error that occurred between the two companies. Digital Insight is a wholly owned unit of Intuit Inc. that provides online services to about 1,800 credit unions and banks.
Man Rips Off His Grandmother
NAPLES, Fla.–A member of Suncoast Schools FCU was arrested after he bounced a $50,000 check deputies said he stole from his grandmother.
Authorities said Anthony Cianfero Jr., 41, stole the check from his grandmother’s Philadelphia home, then deposited in his credit union account. He used the check to buy a cashier’s check for $44,371 and withdrew $3,500 in cash, but the check was returned for non-sufficient funds. Cianfero told Philadelphia police that her grandson stole the check from her home.
NH Eyes 36% Cap on Payday Loans
CONCORD, N.H.–The state House approved a 36% ceiling on payday loans, which is expected to force payday loan companies out of the state if it reaches final passage. The bill must still be approved by the state Senate.
The state’s banking commissioner and payday lenders had told lawmakers that the companies would close if interest rates were capped. The plan caps the annual rate at 36% on payday advances and vehicle title loans.
The state is the latest entity to clamp down on payday lenders. Last October, the Department of Defense established rules based on new legislation that caps payday loans to military personnel at the same rate, 36%.
Several other states are also debating payday loan caps.
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