EUGENE, Ore. – Although Monday, Oct. 8 will be an off-day for many people as the country marks Columbus Day, it won’t be for the 250 employees of SELCO Credit Union here, who will be volunteering their time at more than 15 local agencies. In 2005, SELCO tried its first “All-Team Community Service Day,” before reverting to a training day in 2006. Director of Community Involvement Jan Burch said employees made it very clear they wanted to do the Community Service Day again this year. “They wanted their day together to have an impact outside of SELCO,” said Burch. SELCO’s 2007 All-Team Day begins in the morning at a local hotel, where the team will gather together to hear from CEO Bob Newcomb about 2008 corporate objectives and view the presentation of employee service awards. Afterward, teammates will collect box lunches and deploy to a number of local social-service agencies for an afternoon of cleaning, sorting, assembling, digging, and hauling.

HARRISBURG, Penn. – A federal audit report has concluded the Harrisburg Housing Authority improperly used $834,969 from its operating funds to open and support Greater Harrisburg Community Credit Union. The report further recommends the agency repay at least some of the money from non-federal funds. The report states that a conflict of interest was created when the Housing Authority named its own executive director, Carl Payne, as CEO of the credit union when it opened in April of 2001 to serve an underserved community. The credit union was shuttered by regulators in 2006 following losses of $264,000 during the first nine months of 2005. Earlier this year, Payne pleaded not guilty to federal charges of obstructing a grand jury investigation of the diversion of federal housing money to the credit union.

ARLINGTON, Va. – Although a number of different players are calling for a variety of reforms related to the troubled mortgage market, NAFCU is predicting no legislation is likely to move as there remains no clear consensus on what has caused and what to do about the issue. Although credit unions largely avoided making the types of mortgages that have come under fire, NAFCU said it is keeping a close watch on such initiatives as they may have unintended, trickle-down consequences for credit unions. Of particular note: the call for mortgage reform could be used by some groups as a leaping-off point for tearing down some of the bankruptcy reforms credit unions worked hard to push through Congress several years ago.

ARLINGTON, Va. – Although recently released stats for the second quarter revealed some real strength in the economy, NAFCU Economist Tun Wai suggested the troubled housing and financial markets still are taking a toll. “The final second quarter GDP figure indicates a strong pace of economic activity, but problems with housing and financial markets may make third quarter GDP growth much slower,” Wai said. “Consumer spending, which has helped the economy in the past, slowed significantly during the second quarter (1.4% annualized compared to 3.7% in the first quarter), and consumer expectations have been down for most of the third quarter.” That jibes with the 4.3% decline in existing home sales for August–¬the sixth straight month of decline, he noted. With the notable exception of the Midwest, which posted a 3.5% increase, the median home price in August fell everywhere else. “NAFCU expects the median home price to gradually rise by year end,” Wai said, with existing home sales forecast to be six-million units, down from 6.48 million in 2006. The pace of new home sales fell more than expected in August, he reported, noting the 8% drop in median new home prices is the largest decrease in 37 years. “NAFCU projects that new home sales will decline from the 1.06-million-unit pace last year to 880,000 annualized units in 2007,” Wai said. NAFCU is expecting another Fed rate cut before the end of the year.

NEW YORK – Citibank is reporting significantly increased credit costs within its consumer banking business, with some analysts saying the losses are a signal of broader problems among consumers. The bank said it also has boosted reserves to cover some losses “not yet visible” and to address “declining new residential sales.” “This quarter, we continued to see higher delinquencies in our overall consumer mortgage portfolio, and our reserve increase reflects these trends,” said Citibank’s CFO Gary Crittenden. The company had nearly $6 billion of unexpected losses and charges in the third quarter. Approximately 44% of the charges and losses, or $2.6 billion, came in the form of higher credit costs, largely related to its consumer portfolio. The $2.2-trillion bank boosted its loan loss reserve by $245 million.

FARMERS BRANCH, Texas — GENCO FCU President Billy F. Spivey will retire Oct. 12 after 52 years in the credit union movement (LoneStar Leaguer Sept. 28). Spivey has been president of the Waco-based credit union for 16 years.

SAN ANTONIO — The $4-billion Security Service Federal Credit Union is absorbing via merger Harlingen-based Kilowatt Federal Credit Union.

SAN ANTONIO – The $4-billion Security Service Federal Credit Union (SSFCU) is absorbing via merger Harlingen-based Kilowatt Federal Credit Union (KFCU). The $9-million KFCU has 2,100 members and two locations in the Rio Grande Valley area, where SSFCU already has 2,500 members. The move follows mergers by Security Service with Diocese of Corpus Christi FCU in Corpus Christi and New Horizon Community Credit Union in Denver in June 2007, along with a separate but similarly named Horizon Credit Union in Portland, Texas.

DES MOINES, Iowa – On Thursday one employee of The Members Group here will take home a BMW Z4 Roadster to drive for the next year. At an event to be held at a local restaurant, the CUSO that provides credit and debit card processing, check processing, prepaid card products, ACH and asset/liability management services will stage the drawing as a culmination of its “Talent Pool Initiative.” The project was designed to create a pool of talented individuals that the company can select from when hiring. Current employees are encouraged to recommend candidates to HR for screening; when there is not an immediate fit, but there may be an opportunity in the future for employment at TMG, that candidate is placed into the talent pool. Employees who recruit a candidate receive a gift certificate for lunch. If an employee refers three candidates, he or she receives a free dinner and a movie for two. Each time an employee recruits someone that is hired, the employee is placed in a quarterly drawing for prizes and also is entered into a drawing to win a BMW Z4 Roadster for a year. Since TMG’s Talent Pool Initiative was established, 27 employees have referred 35 candidates and 10 positions have been filled. Ten employees have earned the opportunity to receive a key that may start the BMW Z4 Roadster.

FARMERS BRANCH, Texas – GENCO FCU President Billy F. Spivey will retire Oct. 12 after 52 years in the credit union movement (LoneStar Leaguer Sept. 28). Spivey has been president of the Waco-based credit union for 16 years. He previously was president of Texas Share Guaranty CU (1984-1991), Public Employees CU (1972-1984), and Waco VA FCU (1963-1972). He started his credit union career at William Cameron Employees FCU in 1955. Spivey has served on the boards and committees of the Credit Union National Association, National Association of Share Insurance Corporations, Texas Credit Union League Services, CUES Texas Council and the Texas Credit Union Commission. He was named the Texas Credit Union Professional of the Year in 2001.

PEMBROKE PINES, Fla. – Power Financial Credit Union is offering what it is calling a “360-degree transformation, including financial, physical, emotional and lifestyle counseling” to one local woman. It is valuing the services being offered at $4,000. The credit union, in conjunction with the Women’s Business Mastermind Group, which says it is based on the CU-like premise of “women helping women,” said it believes financial fitness is as important as all other aspects of life. The contest is open to any woman 18 or older and living in three South Florida counties. Entrants must state in 100 words or less why they are in need of a financial, emotional, physical and lifestyle transformation. All entries must include a photo, although video entries will not be accepted. The winner will receive a host of items, including a financial makeover with a personalized investment plan and a Cash Back Checking Account with an initial deposit of $50 from Power Financial, a one-year membership in the Women’s Business Mastermind Group, a personalized swimsuit fitting, a day of fashion with a personal shopper, a beauty and skincare makeover, personal training lessons, and more.

ARLINGTON, Va. – NAFCU is concerned about pending legislation that may chase credit unions right out of the overdraft protection business. Under a bill that was submitted and then pulled, fees and charges that now are part of the fees for overdraft protection, or courtesy pay as some call it, would have to be rolled up in the interest calculation. That would put many credit unions over NCUA usury cap of 18% APR. For many credit unions the fee income from such programs has helped offset lower earnings from other investments and operations. NAFCU’s legislative expert, Brad Thaler, added there is concern about the 90-day implementation plan called for in the bill, as well as the opt-in requirement. Thaler said NAFCU has been working with U.S. Rep. Nydia Velazquez (D-NY) to see how the bill can be amended to help resolve the issues the current wording raises for credit unions.

WASHINGTON – Both CUNA and NAFCU are delaying the taking of a stance on a decision by NCUA that would do away with the longtime measure of a credit union’s performance, the CAMEL ratings. Instead, both groups said they are polling their affiliates before they will take a position on whether they believe CAMEL matrix should be dismantled, and whether a replacement system on measuring performance also should be enacted. NCUA Chairman JoAnn Johnson has been talking about taking on the CAMEL Matrix for most of the year.

WASHINGTON – The House and the Senate today will hold the first of several hearings this week of interest to credit unions. First up: The House Financial Services Committee is holding a hearing on “Systemic Risk: Examining Regulators’ Ability To React To Threats In The Financial System.” On the heels of the House approving legislation to reform flood insurance last Friday, the Senate Banking Committee is holding a hearing on the same issue today. Later this week, the Senate Banking Committee will examine the regulation and supervision of industrial loan companies (ILCs), which have been chartered by a number of retailers in order to expand into financial services.

NEW YORK – The talk may be of a “credit crunch,” but U.S. households have access to more credit than ever, according to a new survey. According to Mail Monitor, a credit card direct mail tracking service offered by the research firm Synovate, U.S. households now have access to an average of $26,317 of revolving credit on their cards while average incomes are around $60,000. Andrew Davidson, VP-competitive tracking services for Synovate's US Financial Services Group, said the ratio of available credit to income has been steadily climbing, in line with inflation, over the past four years. “However, in the last 12 months, it jumped from 50% to 56%,” said Davidson. “This 6% increase is more than double the annual rate of inflation and is a direct response to the current economic climate.” The company said its research shows the average U.S. household credit card debt is $6,970 up from $5,084 four years ago.

SAN ANTONIO — In order to boost member debit card usage and separate itself from some heavyweight competition, United SA Federal Credit Union here is increasing dividends for accounts with as little as one penny in an account.

WASHINGTON — A bipartisan group of Texas House members urged the Financial Services Committee to hold a hearing on the credit union regulatory relief bill, known as CURIA.

NORFOLK, Va. – A Chartway FCU members is in a quandary because of a February teller mistake that credit his account for $3,588–when it should have credited him $35.88 for cashing in a $50 U.S. savings bond. The member said he doesn’t have the money and shouldn’t have to pay it back because it was the credit union’s mistake. The credit union wants Vincent Falzone to pay back the erroneous windfall with a signature loan over six years at 11% interest. But Falzone is balking, insisting he thought the money was legitimately his. In one recent case in Florida a credit union member who spent $25,000 mistakenly credited to her account was sent to prison for theft. Chartway is suing Falzone in local court over the mistake. At least three other Chartway members are faced with the same dilemma after similar teller errors on savings bonds.

REDWOOD, Calif. – Yodlee, the provider of online account aggregation software, said last week that CashEdge has agreed to license its software to settle patent infringement claims brought by Yodlee. Under the terms of the settlement, CashEdge will pay Yodlee to license its patents, which cover data aggregation systems. Financial terms of the license were not disclosed.

ATLANTA – NetBank, one of the first Internet-only banks, was taken over by the FDIC Friday in the biggest bank failure in 14 years. The failure of the $2.5 billion bank was related to the institution’s efforts to diversify into subprime mortgage lending, which saddled it with a large portfolio of poor loans. IN recent months NetBank shut down its subprime mortgage unit and sold its mortgage servicing portfolio. A deal to sell the remaining assets to EverBank Financial Corp. fell through two weeks ago. The FDIC said Friday Ever Bank has agreed to buy $700 million of NetBank’s mortgages and ING Group is buying $1.5 billion of NetBank’s deposits.