Delinquencies Up On HELC, Down On Cards
WASHINGTON-Delinquencies on home equity loans rose during the first quarter. According to data released by the American Bankers Association (ABA), delinquencies on home equity loans rose to 2.43% in the first quarter, up from 2.37% in the fourth quarter of 2004. The same statistics show a decline in credit card delinquencies, but analysts note that many people have replaced credit cards with home-equity secured lines of credit as they seek to take advantage of lower rates and rapidly rising home values. Meanwhile, the Mortgage Bankers Association released first quarter data showing seasonally adjusted delinquency rates had dropped 15 basis points from the first quarter of 2004 to 4.31% and a seven basis points drop from 2004's fourth quarter.
Bank of America To Acquire MBNA
NEW YORK-Bank of America is poised to become the number-one issuer of credit cards in the U.S. following its $35-billion bid for MBNA Corp. MBNA also has, over the past two years, also acquired a number of credit union credit card portfolios. In making the acquisition, BofA said the deal will create the "top retailer of financial services with the size and scale to drive distribution and marketing efficiencies." BofA estimated approximately 6,000 people will lose their jobs as part of the deal.
Federation To Back New Latino Group
NEW YORK CITY- The National Federation of Community Development Credit Unions is supporting the development of a new trade association, the National Association of Latino Credit Union Professionals (NALCUP). Support for the new organization grew out of a series of discussions between the federation's executive director, Cliff Rosenthal, and the leaders of two Washington, D.C.-based credit unions, Carlos R. Calder?n, CEO of OAS Staff FCU (and the head of CUNA's task force on Latino outreach); and Carla Decker, CEO of District Government Employees' FCU. NFCDCU will provide NALCUP with an initial infrastructure, a center of operations, and access to community development credit unions (CDCUs) across the country, including many that operate in predominantly Latino communities with predominantly Latino staff. The new trade group, however, will not be a program or subsidiary of the federation.
Editors To Get Educated
HARRISBURG, Penn.-The issue of financial literacy is now spreading to newspaper reporters and editors, at least in Pennsylvania. The Pennsylvania Newspaper Association Foundation has received a grant to educate newspaper reporters and editors on financial literacy. Mike Wishnow, SVP, Communications & Marketing with the Pennsylvania CU Association, has been named to a 12-person advisory panel that has been charged with developing education sessions for journalists on personal finance concepts and explaining how the information can be used in publishing a variety of news stories, not only those specific to business or financial institutions.
Man Robs CU, Grabs Lollipop
ST. JOSEPH, Mo.-Postal & Community Credit Union here was robbed by a man who not only took cash, but paused on his way out for a lollipop. Police are looking for the suspect, who was described as being in his 50s and armed.
Symitar's Cormode On Leave
SAN DIEGO-Long-time Symitar Systems CEO Bruce Cormode has taken a leave of absence for health-related reasons, according to Jack Prim, CEO of Jack Henry, which owns Symitar. "We don't know yet whether he is leaving for good or not," Prim told The Credit Union Journal. "We hope he'll be coming back, but we just don't know He's been dealing with this for a while, and it finally just got to the point where he needed to take a few steps back [from the business] to deal with this." No return date is set.
The Credit Union Journal's On Deadline coverage is sponsored by Liberty. For info: www.libertysite.com.
