SIDNEY, N.Y. - Credit unions are naked on the Net, fully exposed to an international community of tricksters and swindlers.

WASHINGTON - There is virtually no chance for passage of the credit union regulatory relief bill as it is in this Congress, but lawmakers may agree to pass some of the provisions in CURIA separately, a key member of the House said last week.

Birmingham, Ala. - The Alabama Credit Union League hosted its first REAL Solutions Partners Meeting to begin to plan the group's next steps in meeting the financial needs of low-wealth and underserved households and communities in Alabama. "With seven credit unions participating, representing a diverse cross section of economic and geographic lines, we anticipate being able to provide needed financial alternatives for those who need them," said Gary B. Wolter, CEO of the Alabama CUL.

DURHAM, N.C. - No two credit union development strategies are exactly alike, but all successful strategies have well-defined goals and clearly articulated methodologies. Those twin characteristics are critical to success even when they appear to operate in counterpoint to each other.

SCOTTSDALE, Ariz. - Credit unions may talk big about running on "open" core systems, but the fact is that none of the major systems freely exchanges all transactions with third-party applications, according to one analyst here.

ALEXANDRIA, Va. - As credit unions keep watch on how the subprime mortgage meltdown could have an impact on the movement, CU Journal asked NCUA Chair JoAnn Johnson to discuss what this, and the mortgage loan debacle that has put three credit unions into conservatorship, means for the CU community as a whole.

PITTSBURGH - A computer expert who served as a confidential source for an elite FBI computer crime squad was indicted on federal charges of stealing confidential information from Pentagon FCU, Citibank and others to traffic in stolen credit cards.

CALGARY, Alberta - A Credit Union Regulators Network has been formed by a group of 48 regulators representing 15 countries. The group was created during the fifth annual Regulators' Roundtable at the World Council of Credit Unions' (WOCCU) 2007 World Credit Union Conference here.

READER QUESTION

EL PASO, Texas – The FBI will have to return almost $76,000 it confiscated from a local executive as part of a corruption probe if federal prosecutors are unable to convince a federal judge they are entitled to the funds, the judge ruled last week. The ruling gives the U.S. attorney’s office until Sept. 24 to show why it should not be ordered to return the disputed funds to the credit union. The dispute concerns an order freezing the executive’s credit union savings came after the credit union had allowed to executive to withdraw the bulk of his money. The credit union, not realizing the funds had been frozen, gave the FBI a check for the disputed $76,000.

WAUKEGAN, Ill. – A New York woman was arrested and charged with last week’s robbery at Consumers CU after a police officer saw a picture of her and recognized her from a previous contact. Tonya Littleton, 21, of Schenectady, N.Y., allegedly entered the credit union wearing dark sunglasses and a scarf that partially covered her face. She handed the teller a note demanding money then fled.

ELKHART, Ind. – Louis Eby, who had a 60-year affiliation with Farm Bureau CU, died last week at 85 after injuries incurred in a car crash. Eby started with the credit union in 1947 and retired as manager in 1987, but remained on as a volunteer. Eby was the secretary-treasurer of the board and was on his way home from a credit union meeting when he was killed. Eby, hired as the credit union’s first paid employee, joined the credit union when it had $410,000 in assets and there were just 875 members. When he retired, the credit union had $73 million in assets and 11,000 members. Today, Farm Credit CU has more than $420 million in assets and 44,000 members.

WASHINGTON – The merger of two avowed credit union enemies moved forward last week when the board of America's Community Bankers' voted unanimously to approve a combination with the American Bankers Association. The ACB, the trade group for mutual savings banks, has emerged as one of the chief opponents of credit unions, while the ABA has long financed legal challenges against credit union practices. The merger must be approved by the membership of both banking lobbies. The ABA's members will cast their votes on Oct. 9 at the association's convention. The ACB membership vote will occur on Oct. 16. If approved, the merger will become effective Dec. 1.

SAN ANTONIO – Security Service FCU, which acquired the remains of failed New Horizons Community FCU in June, said Friday it has agreed to acquire Horizon CU, a $35 million credit union in Portland, Texas. The deal is expected to be completed by year-end. Security Service is the 11th-largest credit union in the country with $4 billion in assets.

FORT WORTH, Texas – OmniAmerican Bank, a credit union-turned-bank, said last week it has laid off 35 of its 410 employees, or 8% of its workforce, to right itself after incurring losses following its conversion. Along with positions lost through attrition, the former credit union has cut its workforce by 12.5% in recent months after losing about $1 million last year following its controversial charter switch. "The bottom line is, we need to right-size the bank," Tim Carter, who took over as president and CEO in June following the death of long-time CEO Larry Duckworth in February, said in a statement. He attributed last year’s losses to the costs incurred in the charter switch and expansion of services.

WASHINGTON – A bill introduced in the Senate last week would help ease the current mortgage crisis by increasing both the number of mortgages Fannie Mae and Freddie Mac can purchase from credit unions and banks, and the conforming loan limits, allowing the two to buy some jumbo mortgages. The bill would lift the limits on Fannie Mae’s and Freddie Mac's mortgage portfolios by 10% and increase the conforming loan limit, now $417,000, by 50% in high-cost areas. Both changes would expire in one year. The approximately $145 billion in new portfolio authority would be available only for refinanced mortgages with adjustable rate loans that were scheduled for an interest-rate reset between June 2005 and December 2009.

FORT MYERS, Fla. – Huron River Area CU, the Michigan credit union caught in the middle of Florida real estate speculation, had the distinction of being the biggest loser among credit unions in the first half of the year, wracking up almost $59 million in losses, according to data obtained from 5300 Call Reports submitted to NCUA. Three other credit unions caught in the expanding speculative mess also reported significant first half losses, including Norlarco CU ($5.2 million), New Horizons Community CU ($900,000) and Superior Choice CU, a Wisconsin credit union stuck with a participation in one of the Florida loan pools ($1.1 million). Fifteen credit unions lost more than $1 million in the first half, including Cal State 9 CU ($9.1 million), Alco CU ($6 million), Credit Union of Texas ($5.5 million), Obelisk FCU ($5.2 million), Capital Community FCU ($4.8 million), Capital Power FCU ($4.5 million) and Peoples First Choice FCU ($3.1 million). NCUA has taken over and is running three of the biggest losers (Huron River Area, Norlarco and Peoples Choice) under conservatorships, and two more, Obelisk and New Horizons Community, was sold off to other credit unions.

DURHAM, N.C. – The focus for community development credit unions in this year’s round of CDFI funding shifted from Wall Street to Tobacco Road, where three credit unions will share $2.3 million in federal grants. In past years, the focus was on the National Federation of CDCUs, based on Wall Street, which helped create the CDFI program. The three North Carolina credit unions, members of the North Carolina Minority Support Center, all have won CDFI grants in the past, but stand out this year because their share is almost 9% of the total awarded under the Treasury Department program. Among this year’s recipients were: Self-Help CU, which is part of a conglomerate of community development organizations, which won $487,000, Latino Community CU, $860,000, and Generation Community CU, $955,000. The three are headquartered here. The National Federation, which has worked closely with all credit unions, also won another $600,000 in CDFI funding. Both the Federation and Self-Help are among the biggest recipients in CDFI funding, with each winning more than $10 million in grants through the 10-years of the program.

WASHINGTON – Ten community development credit unions and support organizations will share $5.3 million in federal funding from the Community Development Financial Institutions program, helping to rebuild capital and expand services, the CDFI Fund announced Friday. The biggest credit union recipient is ASI FCU, which will use its $960,000 grant to rebuild capital and expand into New Orleans neighborhoods devastated by Hurricane Katrina, as well as hire Vietnamese- and Spanish-speaking branch managers. Generations Community CU, a young CDCU, will use its $955,000 grant to fund a mortgage program. Latino Community CU will use its $860,000 award to leverage new lending. Self-Help CU will use its $487,000 to attract additional deposits to support lending. Hope Community CU will use its $480,000 to expand into the Gulfport/Biloxi and Memphis markets. Other credit union groups receiving CDFI funding are: the National Federation of CDCUs ($600,000), Brooklyn Cooperative FCU ($394,000), Syracuse Cooperative FCU ($358,000), Hawaii First FCU ($99,000) and Independent Employers FCU ($98,000). Credit unions received almost 20% of the $27 million awarded in this year’s CDFI funding round, and have received more than $35 million in CDFI funding during the program’s 10 years.

RICHARDSON, Texas — Frances Bauman of Wylie soon will be on her way to Los Angeles, courtesy of the Texans CU Fan Flyaway Promotion.