CUs Invest $10.2M In NCUF's Insured CDs

ALEXANDRIA, Va.-By autumn NCUA will issue a proposal related to changes to the corporate CU system, according to Chairman Michael Fryzel. The proposal will take into account the 450 comment letters the agency received as part of its advance notice of proposed rulemaking (ANPR) regarding the regulation of corporates and the corporates themselves, including potential changes to Part 704 that would clarify or revise provisions that include capital, management of credit risk and liquidity, permissible investments, and corporate governance. The goal, according to Fryzel, is to have a final rule in place by Spring of 2010, but that could be affected by the nominaton of Debbie Matz to become the agency's new chairman. No hearing date for Matz has been set by Congress.

WOODBRIDGE, Va. — One of the folks on the front line, Kelli Jo Anthon, financial counselor for Belvoir FCU, isn't so sure the economic downturn will teach people the errors of their non-saving ways.

"I think this country is finally going to have a positive savings rate. I don't see consumers going back to their old ways for at least five to ten years. But the further you get out on the timeline people will tend to forget about this recession."

LAS VEGAS — The tumbling economy smacked Glitter Gulch with a multi-pronged assault, but $162-million Community One FCU continues to serve its 21,500 members as best it can despite slipping into undercapitalized status.

WASHINGTON — Credit union leaders agreed there should be a consolidation of corporate credit unions but consensus was elusive on most other aspects of a reform of the corporate system during a symposium held last week by NCUA celebrating the 75th anniversary of the Federal CU Act.

VICTORVILLE, Calif. — As The Members' Own FCU continues to make itself available on the credit union singles (merger) market, management is fighting to get out from under the weight of bad mortgage loans.

Firm, CU In Campus Card Deal

WATERTOWN, Mass. — Consumers are angry at everybody, and while a particular credit union may not have played a role in the current conditions, one company warns that does not necessarily remove the CU from the public perception of blame.

NEWARK, N.J. — Michael McGrath, the founder and owner of U.S. Mortgage and its CU National Corp., was expected to plead guilty in federal court here late last week to bank fraud and conspiracy charges in what is growing into one of the biggest financial scandals ever to hit credit unions.

FORT LAUDERDALE, Fla. — Offering credit cards to small businesses could afford credit unions some real revenue opportunities, but they will have to make some changes to their card policies to take advantage.

ORLANDO, Dave Serlo, president of PSCU, also announced:

FORT LAUDERDALE, Fla. — As the economy continues to impact credit card products, credit unions will have to fine tune their collections processes.

ORLANDO, Fla. — A simple review can save many credit unions at least $20,000 annually.

ANN ARBOR, Mich. — As bank customers are displaced because of financial sector turmoil, credit unions are being urged to keep a tight control on member satisfaction and manage their external images.

'Above The Crowd' Is Launched

PORTSMOUTH, N.H.-Service CU gave $75,000 to Homes for Our Troops, a non-profit that helps wounded soldiers returning from battle. The groups assists severely injured servicemen and women and their immediate families by raising donations, building materials and professional labor and then coordinating the process of building a new home or adapting an existing home for handicapped accessibility. The finished home is given free to veterans.

WASHINGTON-The National Federation of CDCUs, BECU and the credit union-sponsored Center for Responsible Lending joined the Ford Foundation to launch a nationwide effort to promote fair and safe mortgage lending practices, including a certification program.

LANSING, Mich.-The Financial Industry Regulatory Authority has awarded CASE CU more than $1 million in an arbitration ruling alleging misrepresentation and omission of investments in collateralized mortgage obligations and CMO Interest Only strips it had acquired from Prudential Equity Group.

SUNNYVALE, Calif.-Star One CU announced a deal to provide private loans to students at the nearby Stanford University Graduate School of Business.