WASHINGTON–There’s no question where the new Congress’ and the Obama administration’s legislative priorities will lie–economic stimulus. The question is how credit unions can demonstrate that some of their pet projects, such as lifting the cap on member business lending and capital reform, fall right in line with those priorities.“The Obama administration’s priorities for 2009 will be economic stimulus right off the bat,” said Ryan Donovan, CUNA’s VP- legislative affairs. “What credit unions need to do to be successful is to make their priorities relevant to Congress. They’re looking at economic stimulus, we’re looking to lift the caps on member business lending, and in this economy there is a need for more business lending. This is something that doesn’t cost the taxpayers a dime and is exactly the type of economic stimulus Congress is looking for to balance the spending initiatives.”Dan Berger, NAFCU’s SVP-governmental affairs, agreed, noting that capital reform for credit unions is another such issue that would allow for additional lending and would stimulate the economy without any cost to taxpayers. “We are starting to get some positive traction on that,” he added.Another big issue expected to be taken on early by the Obama administration and the new Congress is regulatory restructuring and/or consolidation.“In 2009, what doesn’t happen will be just as important as what does happen,” Donovan said, noting that credit unions do not want to see NCUA or the National CU Share Insurance Fund consolidated in any way.“We have seen no indication from anyone about merging NCUA or the insurance fund,” Berger said. “But that is something we are keeping an eye on.”In line with the idea that “what doesn’t happen will be just as important as what does,” some of the pro-consumer reforms being considered could end up hurting credit unions, even though they are largely pro-consumer themselves, Berger noted.“Some of the credit card reforms, overdraft protection reforms, these are aimed at things that credit unions already don’t do,” he explained. “But there are some bad actors out there, and the efforts to rein them in could spill over onto the white hats. New disclosures, for example, could add unnecessary burden for credit unions.”Another top priority for Obama and Congress in 2009: preventing home foreclosures. Though lawmakers enacted a major bill designed to do just that, and federal regulators have talked about doing more, little has stemmed the tide of foreclosures, which could reach 10 million over the next five years.

WASHINGTON–GMAC, the financing arm of General Motors, has become the latest to receive an infusion of cash from the Treasury Department. Treasury said it was funneling $6 billion from its Troubled Asset Relief Program into GMAC.

WEST PALM BEACH, Fla.–CUSoapbox.com, the blog that allows the credit union community to sound off on stories in Credit Union Journal and in the credit union community in general, has added a bit of humor to start off the new year.

DAYTON—A member of Universal One Credit Union here was struck by his fiancé as she drove a large SUV in the credit union’s parking lot here.

PHILADELPHIA– American Heritage FCU has made a $75,000 donation to the Children’s Hospital of Philadelphia. The funds, raised by AHFCU’s Kids-N-Hope Foundation, were raised over a year of fundraising and will go toward the CU’s ongoing support of the Music Therapy Program at the Children’s Seashore House, the long-term care facility at Children’s Hospital.

SPRINGFIELD, Mo.–CU Community is closing out 2008 with a bonus dividend for its members. Each member will receive as much as an additional 50 basis points on their fourth quarter savings account earnings.

NEW YORK–The real estate market continues remains perplexed over where the bottom might lie after home prices posted another record decline in October, dropping 18% over the same period one year earlier, according to the Case-Shiller index. That index, based on home prices in 20 cities, has now posted losses for a 27 months in a row. In October, 14 of those 20 cities set new price decline records.

ST. PAUL, Minn.–Credit unions have been bracing themselves for moratoriums in 2009 on foreclosures, but despite all the rhetoric no state has yet to pass any such legislation. Analysis by American Banker, an affiliate of Credit Union Journal, found that none of the initiatives announced to date, including those in Minnesota, New York, Michigan, and California, have resulted in legislative action. Still, observers expect the foreclosure issue to emerge again in many states next year, when millions more subprime mortgages are poised to reset at higher rates.

WASHINGTON–A federal judge has delayed the trial date of a Colorado credit union's lawsuit against the IRS over the tax agency's application of the Unrelated Business Income Tax (UBIT).

WASHINGTON–Credit unions are eagerly awaiting the new Congress and new Obama Administration for a hint at where legislative priorities will lie. Washington won’t be lacking for issues on which to concentrate, from restructuring the financial regulatory system–which credit unions generally oppose if NCUA is involved– to creating new mortgage underwriting standards, on which credit unions are reserving judgment until any legislation’s language can be reviewed.

TEMPE, Ariz. – Seven-in-ten credit union marketers will see either a flat budget or a budget reduction in 2009, according to a new study.

PLANO, Texas – A new study indicates mortgage activity for December was more than double that of one year earlier.

PHILADELPHIA – Rev. William Ball, a member of $700-million American Heritage FCU here, is driving a brand new Chevy Malibu Hybrid he won as part of the celebration surrounding the credit union’s 60th anniversary.

WEST PALM BEACH, Fla. – Has your credit union found an effective way to tell your credit union's story this year, or the credit union story itself? The 4th Annual Frankie Awards are now calling for entries.

WASHINGTON – When 2008 made its debut some were predicting that as many as several hundred banks would fail and would be taken over by regulators. Yet while the year saw the collapse of Washington Mutual as well as the largest bank failure in history, that of IndyMac Bank, only 25 banks failed – well short of what many had feared.

MADISON, Wis. – CUNA Mutual Group said that effective Jan. 1 it no longer will subsidize medical benefits for retirees.

NEW YORK – 2008 may be remembered as the year consumers – including some credit union members – turned over their keys not just to automobiles but also to houses and condos.

WASHINGTON – In 2009, credit unions once again may find themselves being caught up in a call for an overhaul of federal banking agencies.

WASHINGTON–Credit unions are finding ways to score for both themselves and others during the college football bowl season. During the recent EagleBank Bowl in Washington, NAFCU joined with Wake Forest University, whose Demon Deacons played in the game, to honor “wounded warriors” who had all served in Iraq and/or Afghanistan and currently are part of the outpatient program at Walter Reed Medical Center. The Demon Deacons played Navy in the game, and Navy Federal Credit Union placed a commercial that appeared nationally during the game. Last week, the San Diego County Credit Union Poinsettia Bowl in San Diego earned significant media attention for the credit union. Unlike recent years, the full name of the bowl, including the credit union, appeared in most media reports when the name of the bowl was included.

APPLE VALLEY, Calif.–High Desert FCU may need to change its name to High Delinquency FCU, as the picture continues to get uglier for the credit union seized by NCUA in October. High Desert, which was seized by regulators after problem construction loans ballooned, reported it recently laid off 16 employees—following 15 layoffs earlier in the year--and that its delinquency ratio has soared to 34.4%. Data shw that one-third of the loans in High Desert’s loan portfolio are 60 or more days late, and that it has lost $4.5 million as assets also shrunk to $140 million in November from $144 million in September—and $190 million in September of 2007. Perhaps most startling, the credit union’s capital has declined to 2.3%. Ken Chapman, who was brought in by NCUA as conservatorship CEO, told local media that steps to address problems in the CU’s construction loan portfolio are being addressed, but that housing problems in the overall market are affecting all institutions. That credit union said that former CEO Tom Brown is on administrative leave, but did not provide additional information.