LUA Issued To Tenn.'sVeritas Federal Credit Union
FRANKLIN, Tenn.-NCUA has announced a rare supervisory agreement with Veritas FCU, a one-time $50-million CU that has been losing money and "may be in serious jeopardy." The Letter of Understanding and Agreement will require VFCU, which has seen its assets fall to just $33.7 million, to start repossession or foreclosure proceedings on members within 90 days after a loan has become delinquent; hold monthly meetings of its ALM committee; delineate mortgages that exceed 100% LTV, and increase funding for ALL, among other things. Veritas reported a $337,000 loss for 2008, a $1.2 million loss for 2009 and a $28,814 loss for the first half of 2010.
CUs Invited To ParticipateIn Study Of Social Media
MADISON, Wis.-The Filene Research Institute is looking for CUs to participate in a detailed study quantifying the business impact of credit unions' social media marketing strategies.
The study is a part of a project that will work to develop the first predictive model in which CUs can estimate the impact of their social media marketing strategies. Participation requires only about two hours total over the course of the next year.
Deadline is August 20. For info: unions are invited to join by registering by Friday, August 20th. www.surveymonkey.com/s/FRI_Social_Media
Economic Issues Lead ToChanges At CU Foundation
WASHINGTON-A reduction in donations and other revenues has led to several organizational changes at the National Credit Union Foundation. New Executive Director Bucky Sebastian released a statement saying the changes "will enable the foundation to operate more efficiently and cost effectively, which is in line with the expectations of our donor community." Among the changes made:
Tom Candell has been promoted to deputy executive director, COO and CFO, with responsibility for day-to-day operations. Sebastian said the move will "allow me to place more of my emphasis on outreach to the foundation's donor base, which is my No. 1 priority."
* The positions of communication and marketing coordinator and the National REAL Solutions Program manager will be relocated to Madison, Wis. from Washington. Both positions report directly to Candell.
* Tom Decker, who has headed up the Credit Union Development Education (DE) program, among other responsibilities, has been let go. Responsibility for the DE will be transferred to the DE program's volunteer leadership.
CUNA Presses NCUA On Mergers
WASHINGTON-CUNA urged NCUA last week to move toward establishing a national registry of potential CU merger partners, adding the agency should also work to address due diligence and loss-sharing incentives as it further refines its approach to the merger process. CUNA requested NCUA provide greater information on how it works with assorted state regulators in the event a dual-chartered CU is involved in a merger, and called for greater detail on its criteria for selecting which credit unions on the merger partner registry should serve as acquirers.
Rebranding Ads On Cowboys' Games
PLANO, Texas-InTouch CU, formerly EDS CU, is launching four new branding 30-second TV spots featuring member testimonials that will debut during preseason games of the Dallas Cowboys. The CU underwent a makeover last year, first with the acquisition of its main corporate sponsor by Hewlett-Packard, then with its entrance into Nevada with its purchase of Ensign FCU, a failed Las Vegas credit union, prompting the change to a new name in February. The Cowboys TV spots, which use a storytelling approach to build the new brand, were produced by Dallas ad firm CultureLab, which has been working with the $870 million credit union for two years on its outreach to young members.
CUNA Urges Durbin To Review Facts
WASHINGTON-CUNA President/CEO Bill Cheney last week urged Sen. Richard Durbin (D-IL) to "take a more complete look at the facts regarding how credit unions and banks offer credit cards differently," following Durbin's recent criticism of CUs for increasing annual fees on credit card accounts. Durbin cited a Wall Street Journal report that CU annual fees on credit cards "soared" 67% and the median cash-advance and balance-transfer fees assessed by credit unions "jumped by 33%" between July 2009 and March. But Cheney pointed to a report by the Pew Charitable Trust that found annual fees on CU cards remain "significantly lower than the average annual fee on a bank-issued credit card."