WASHINGTON - The House has voted overwhelmingly, 386-27, in favor of a providing tax relief to borrowers having trouble paying their mortgage. The bill would free borrowers from income tax on up to $2 million of debt forgiven on a primary mortgage. It also would extend the allowance of mortgage insurance deductions through 2014. President Bush has already indicated he supports similar legislation, but added he wants the change to be temporary. The Mortgage Forgiveness Debt Relief Act passed the House Ways and Means Committee unanimously. (c) 2007 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com

RESTON, Va. - Sallie Mae filed suit last week seeking a $900-million break-up fee from a group of investors that has balked at its $60-a-share, $25 billion takeover of the student loan giant. The suit comes after the group, headed by private equity fund J.C. Flowers & Co. and bank giants JP Morgan Chase and Bank of America, unilaterally terminated its agreement after passage of the student loan reform bill that will cut lender subsidies. The takeover group insists the new law amounts to a "material adverse effect" which will allow it to walk away from the deal.

The Minnesota Credit Union Foundation, St. Paul, elected to its board: Kristi Mukomela, chair; Lynn Kothe, vice chair; Judy Root, secretary/treasurer; Jeff Claussen and Mary Hansen.

In the July 15 issue, CU Journal explored the advantages larger CUs have over their smaller brethren. In this series, the Journal focuses on thriving small CUs.

RANCHO CUCAMONGA, Calif. - CO-OP Financial Services purchased a half-page ad in national editions of USA Today headlined, "Why Pay Banks $3? Get Your Cash For Free" (see ad, left). The $3 reference is to a recent increase by Bank of America in its ATM surcharge for non-customers. A subhead in the ad urges, Join Any of Nearly 2,000 CO-OP Network Member Credit Unions." Text in the ads tells readers that "with 25,000 surcharge-free ATMs found everywhere from coffee shops to airports, CO-OP Network has more ATMs than the two largest banks-combined."

DUBUQUE, Iowa - The $460-million Dupaco Community Credit Union became the first financial institution in the state of Iowa to approve a Patriot Express loan to a member of the military community. "The Patriot Express Loan" was developed to help veterans and members of the military community who want to establish or expand a small business. The Patriot Express is a terrific loan program for our members who are veterans and reservists," said Steve Baumhover, Dupaco's Vice President of Business Services. "The program allows Dupaco to make loans available at reasonable rates with flexible terms. SBA has also streamlined the application process, allowing it to be completed in just a few days." Dupaco's Patriot Express Loan was made to Asbury Family Chiropractic, owned and operated by Dr. Greg Crowley, a veteran of the U.S. Navy. (c) 2007 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com

What are you doing to turn members gained through indirect loans into active, long-lasting members?

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At press time, the number of co-sponsors on the CURIA bill. 217 are needed to have a majority.

EL PASO, Texas - Rufino Cabajal Jr. is mostly modest when discussing the success of West Texas Federal Credit Union. When it comes to citing opportunities for growth, however, his vision becomes very clear.

WASHINGTON - Credit unions will open Spanish-language branches, create Individual Development Accounts for foster children, provide financial education to prison inmates, and more under the new round of Innovation Grants to be announced this week by the National CU Foundation.

Two Credit Union Founders Die

BAINBRIDGE ISLAND, Wash. - In a rustic setting on a wooded island across Puget Sound from Seattle, the first Credit Union Development Education (DE) class ever held outside of Wisconsin graduated 41 credit union leaders from the United States and the United Kingdom. Sponsored by the National Credit Union Foundation, BECU and the Washington Credit Union League, the DE training, held at Island Wood, added the 41 CU execs to the more than 700 others who have now earned the designation of Credit Union Development Educator (CUDE).

CUMBERLAND, Md. - A new ruling by the state treasurer's office will once again allow area credit unions to accept payments for water and sewer bills, as well as tax payments.

RESTON, Va. - Sallie Mae filed suit last week seeking a $900-million break-up fee from a group of investors that has balked at its $60-a-share, $25 billion takeover of the student loan giant. The suit comes after the group, headed by private equity fund J.C. Flowers & Co. and bank giants JP Morgan Chase and Bank of America, unilaterally terminated its agreement after passage of the student loan reform bill that will cut lender subsidies. The takeover group insists the new law amounts to a "material adverse effect" which will allow it to walk away from the deal.

WASHINGTON - CUNA President/CEO Dan Mica Thursday provided the credit union perspective for the average American regarding problems in the subprime mortgage market during a live interview on Bloomberg TV. Mica told the audience that if the entire mortgage market was the length of a 100-yard football field, problem subprime mortgages would equal only about the first yard. He added, however, that the effect on the housing market is significant and could require four to five years to work through.

ALEXANDRIA, Va. - Large, healthy CUs continue to merge, with NCUA announcing it has approved the following mergers: CommunityAmerica CU, Kansas City ($1.5 billion) with Midwest United CU, Blue Springs, Mo. ($170 million); Meriwest CU, San Jose, Calif. ($1.2 billion) with Golden Bay CU, Mountain View, Calif. ($210 million), and Xerox FCU, El Segundo, Calif. ($725 million) with Tiger FCU, Memphis, the credit union for Federal Express workers ($60 million). That follows recent deals to merge Toyota FCU ($275 million) into Western FCU ($1.2 billion), Capital Power CU ($60 million) into SAFE CU ($1.4 billion), Torrco Employees FCU ($30 million) into Founders FCU ($1.2 billion), and the pending merger of Horizons CU ($35 million) into Security Service FCU ($4 billion).

COLUMBUS, Ohio - Rather than waiting for the market to come to it, Corporate One FCU is going to the market. The corporate said it will hold the annual Winter Operations Forum in Queretaro, Mexico, Jan. 26-30, 2008, in collaboration with World Council of Credit Unions (WOCCU).

WASHINGTON - As a kickoff last week to promoting the 2008 "Capitol Hill Competition" of the Credit Union Cherry Blossom 10-Mile Run, representatives of the credit union movement's sponsors of the event presented the Credit Union Cup to the captain of the winning team, "Crapo's Couch Potatoes," made up of runners from the office of U.S. Sen. Mike Crapo (R-ID).

DURHAM, N.C. - Latino Community Credit Union is among the semi-finalists for the Wachovia NEXT Awards for Opportunity Finance. In all, 10 community development financial institutions were named as semi-finalists for $8.25 million in grants and awards. The awards program is sponsored by the Wachovia Foundation and the John D. and Catherine T. MacArthur Foundation.