Stan Hollen Takes The Reigns At CO-OP Network
ONTARIO, Calif.-Long-time credit union executive Stanley Hollen was named as new CEO of the CO-OP Network, the national electronic funds transfer network owned by CUs.
Hollen will succeed Robert Rose, who has headed the CO-OP since 1990 and built it from a regional network to a national switch for more than 1,800 credit unions with access to 20,000 ATMs in all 50 states.
Hollen previously headed up Liberty Enterprises and before that was CEO of The Golden 1 CU, in Sacramento, Calif.
NCUA Urges Controls On 3rd-Party Indirect Loans
ALEXANDRIA, Va.-NCUA has sent a Risk Alert urging credit unions to carefully monitor and establish controls when they engage a third party to offer indirect subprime auto lending.
Citing a "sharp increase" in the number of credit unions involved in such programs, NCUA said that "subprime lending is an activity that, if properly managed and controlled, can be an acceptable segment of your lending portfolio in meeting your members' needs.
Still, if your credit union engages in subprime lending or purchases participation in such loans, adequate due diligence and control measures are required.
Your control measures increase in importance if your credit union allows a third-party vendor to perform activities related to subprime auto loan underwriting, servicing, repossession or insurance processing."
NCUA recommends CUs:
* Regularly analyze the program's impact on net worth;
* Properly evaluate and oversee any third-party vendor's subprikme underwriting criteria;
* Limit any thir-party vendor's authority to alter loan terms;
* Test the accuracy of any third-party vendor's reports; and
* If appropriate, include an exit clause in any third-party vendor's servicing agreement.
Senate Banks On Credit Unions
WASHINGTON-In news that may come in handy next week as the debate on regulatory relief shifts to the Senate, the most popular bank among senators continues to be a credit union.
More than a third of all senators-36 in all-have at least one personal account with U.S. Senate FCU, which offers a convenient branch inside the Senate office buildings on Capitol Hill.
The next most popular financial institution in the Senate is Bank of America, where 19 members have one or more accounts, according to financial disclosure statements reviewed by The Credit Union Journal.
In all, 42 senators are members of at least one credit union, with at least a dozen senators active in more than one credit union.
For example: Daniel Akaka (D-HI) is a member of both Senate FCU and Honolulu FCU; George Allen (R-VA) banks at both Senate FCU and Virginia CU; Jack Reed (D-RI) is a member at Congressional FCU and Coastway CU; Charles Schumer (D-NY) is active at Congressional FCU and Municipal CU; and Richard Durbin (D-IL) has active memberships at Senate FCU, Congressional FCU and Credit Union One, in his home state of Illinois.
Even Richard Shelby (R-AL) the chairman of the Senate Banking Committee, has an active account with Senate FCU.
Some senators have substantial assets in their credit unions accounts: Ted Stevens (R-AK) has between $250,000 and $500,000 in Senate FCU; Joseph Lieberman (D-CT) has more than $300,000 tied up in shares accounts, IRAs, and CDs at Senate FCU.
The Credit Union Journal's On Deadline coverage is sponsored by Liberty. For info: www.libertysite.com.