NCUA OK's Interest-Only Home Equity Lines
ALEXANDRIA, Va.-NCUA approved a proposal last week for a federal credit union to offer its members an interest-only home equity line of credit. In a new legal opinion letter, the federal regulator said it is permissible for an FCU to make a home equity line of credit with a 10-year draw period, and only require interest payments. At the end of the 10-year period, the line of credit will close and the member will be required to pay the outstanding principal and interest over a five-year period. The product will allow the member to pay down the principal on the line of credit during the 10-year draw.
Wright-Patt CU Cuts Fees On 10 Activities
FAIRBORN, Ohio-Wright-Patt CU said it eliminated all member fees in 10 different categories starting this week. Among the fees being scrapped are those for traveler's checks, for writing too many checks, annual credit card charges and starter checks. The $1.1-billion credit union said it made the move following its annual review of member patronage. "We think the elimination of these fees is in contrast to the growing trend of fee increases many consumers are seeing in the for-profit financial institution marketplace," said Wright-Patt President Doug Fecher.
CU Dept. OKs New Rules
AUSTIN, Texas-The Texas CU Department said last week it has approved new rules requiring written disclosures on debt cancellation products. The new rules will require a disclosure: that debt cancellation is optional; explaining the conditions and method of calculating any refund of the debt cancellation fee; and a statement requiring that a member should carefully read all terms and conditions of the debt cancellation agreement. The new rules state that GAP waiver agreements will be considered debt cancellation products.
Call And Find Closest ATM
ONTARIO, Calif.-The CO-OP Network said it has implemented an ATM locator system from Aptera that will help ATM users find the nearest location for the system's 20,000 ATMs and service centers.
The system allows callers to search by street address or cross-street for the nearest or most convenient location. San Bruno, Calif.-based Aptera introduced its locator system for Bank of America, operator of the nation's largest ATM fleet, last year.
CU Offers Service To Dealers
SAN ANTONIO, Texas-Security Service FCU, the largest indirect lending credit union, said it signed with Auto Financial Group to offer the company's Driving Sense online loan insurance service to auto dealers. Under the deal, Security Service will offer AFG's Driving Sense program to its dealers in Texas and Colorado. Driving Sense guarantees the predetermined residual value of the vehicle through third-party insurance, eliminating the financial risk of an auto loan.
The insurance allows credit unions to capture loans that dealers previously sent to auto manufacturers or bank-supported lease/balloon financing. Security Service makes an average of $100 million a month in indirect auto loans in the states.
Homeless Man Is Charged
SAGINAW, Mich.-A Lexington, Ky., man who claims he is homeless, was charged with robbing Town & Country CU last week with a toy gun. Bruce Rutherford, 43, was charged with one count of bank robbery and three counts of armed robbery after he was arrested walking near the credit union after the robbery with stolen cash in his coat.
The toy gun was found in his clothing but was not displayed during the hold-up, police said.