SWATARA TOWNSHIP, Pa. – Belco Community CU held a weekend open house to celebrate its new headquarters building here, just outside of Harrisburg. The $275 million credit union will occupy 33,000 square feet on the second floor of the three-story building and lease the other two floors. The project cost about $7.2 million, including $4.2 million to purchase the building from Sovereign Bank and another $3 million for renovations. The credit union has nine branches and is building two more.

MONTGOMERY, Ala. – Members of MAX FCU narrowly approved a conversion to state charter last week in order to serve a broader field of membership. The charter switch, approved by a 52.7% to 47.3% vote, will enable the state’s fourth-largest credit union to expand beyond metropolitan Montgomery. The state charter will, however, require the $700 million credit union to pay about $700,000 a year for the state’s 6.5% excise tax.

TUCSON, Ariz. – Tucson FCU said it has changed its policy on drive-thru ATMs to allow bicyclists after receiving numerous requests from members. As a result, one lane at each of the credit union’s four branches will be designated with paint as bike-friendly, although cars can use the lanes, too. Tucson is one of the most bike-friendly cities in the country, with 500 miles of bike paths and thousands of bikers marking the landscape.

OGDEN, Utah – America First FCU will announce this morning a venture with CheckFree Corp. and Firethorn Holdings LLC to provide mobile banking services to its members. The $4 billion credit union plans to go live with mobile banking and payments during the first quarter of 2008. Members will be able to use their cell phones and other mobile devices to pay bills, check balances, view account history and transfer funds. America First chose Firethorn because of the company’s relationship with the nation’s two largest wireless carriers and the opportunity for the application to be pre-loaded on AT&T mobile headsets. The Firethorn solution is customizable and branded, allowing America First to tailor the application to show specific products and services for members. Because the mobile banking software will be embedded on the mobile device, wireless users will be able to easily locate the application and sign up.

NORWELL, Mass. – A credit union's representative has emerged as a major player in the effort to take advantage of a new state law facilitating the conversion of credit unions to banks. Michael Hanson, who served briefly as state Banking Commissioner and now serves as general counsel for the Massachusetts CU Share Insurance Corp., is representing two of the three state charters currently switching to mutual savings banks. The Massachusetts deposit fund is one of only two surviving private insurers of credit unions and only provides excess coverage, above the amount offered by NCUA, for Massachusetts credit unions. Hanson, who served as Commissioner of Banking in 1991-1992, is representing Haverhill-based Northeast Community CU, which is conducting a backdoor conversion by merging into Haverhill Bank, and Community CU of Lynn, which is planning a straight switch to mutual savings bank. Hanson’s emergence adds a new face to the field, which has been dominated by a handful of players so far. Hanson did not return several phone calls seeking comment last week. Peter Dibenedetto, president of Northeast Community CU, also did not return phone calls.

SACRAMENTO, Calif. – The California State Senate last week overwhelmingly approved a data security bill that will require entities that cause a data breach to report it to their customers and to pay costs, such as replacing credit cards, due to the breach. The bill, which now goes back to the Assembly for a vote, would provide notice to consumers, telling them which retailers lost their credit or debit card information and when the information was lost. The bill, passed with strong backing by the California CU League, is similar to other data security measures moving through state legislatures at the prompting of credit unions.

CALABASAS, Calif. – Financially troubled mortgage lender Countrywide Financial Corp. said Friday it plans to lay off as many as 12,000 employees, about 20% of its workforce, as conditions in the mortgage business are projected to worsen in the coming months. The Countrywide announcement came after IndyMac, another major player in the market, announced 1,000 job cuts. Earlier in the week, Lehman Brothers and National City Corp. said they were trimming some 2,500 jobs in the mortgage area. The job cuts come after one of the worst months in recent memory for mortgage lenders, resulting in announcements of 40,000 jobs cuts in August.

BOSTON – J.C. Flowers & Co., the private equity fund that has agreed to acquire student loan giant Sallie Mae, said Friday it has agreed to take a minority stake in credit card investment bank The Kessler Group. The Kessler Group is one of the pioneers of the affinity credit card concept, which created new profit opportunities for financial institutions. The company also helps credit unions manage and sell their credit card portfolios. In addition, Kessler said it is launching Kessler Capital Corp.

HOUSTON – Cardtronics Inc., which has become the major provider of electronics funds transfer services for credit unions, said Friday it plans to raise as much as $300 million with an initial public offering. As part of the offering, the company’s two major owners, private equity funds CapStreet LP of Houston and TA Associates of Boston, also plan to sell shares. Proceeds from the offering will be used to repay $103.6 million in debt accrued under the company’s revolving credit agreement. Cardtronics, the world’s largest ATM operator with more than 31,000 cash machines, lost $9.1 million in the first six months of the year and $2.5 million for the same period last year. The company recently floated $100 million in junk bonds to help finance its $135 million purchase of 5,500 ATMs in 7-Eleven convenience stores. The filing of the IPO comes as Cardtronics and Financial Services Centers Cooperatives are about to roll out a connection of 1,700 of the cash machines, all Vcom financial service kiosks, to the shared branch network. The 7-Eleven machines also are connected to the credit union-owned CO-OP Financial Services ATM network. Cardtronics is the parent of the surcharge-free Allpoint National ATM network. Cardtronics, which pulled plans for a 2003 IPO, plans to trade the shares on NASDAQ under the symbol ‘CATM’.

WASHINGTON – The unfolding scandal in a southwest Florida land bust that has claimed three credit unions already is raising questions about credit unions' bid to expand their business lending powers under the CU Regulatory Improvements Act. The banking lobby was pointing last week to the growing Florida scandal as evidence that many credit unions are not equipped to conduct commercial lending, even as credit unions around the country are expanding their activity. “The unfolding situation, where tax-exempt credit unions around the nation invested in a Florida real estate scheme called 'Millionaire University' is a wake-up call on an industry lobbying heavily to further expand their commercial lending powers,” said Camden Find, president of the Independent Community Bankers Association of America, which is lobbying against CURIA. “Many credit unions were involved in this out-of- state commercial loan scheme that was far removed from serving their common bond membership and that eventually may cost the National Credit Union Share Insurance Fund millions of dollars in losses.” A spokesman for the American Bankers Association echoed his criticism. “Policymakers should view the developments in Florida like the flashing yellow lights at a railroad crossing. If you proceed, there is danger ahead. If you stay put, you are safe,” said Keith Leggett, senior economist at the ABA and a chief credit union nemesis, referring to a provision in CURIA which would raise the current cap on member business loans for credit unions. Credit union representatives cautioned against judging the entire credit union movement on the activities of the three failed credit unions, Colorado’s Norlarco CU, New Horizons Community FCu, and Michigan Huron River Area FCU. “In his statement, Camden Fine attempts to tar an entire industry for the unfortunate circumstances of just three credit unions,” said Fred Becker, president of NAFCU. “Based on the news accounts we’ve seen, if established in fact, we cannot condone this loan activity, either, and we look forward to a thorough investigation by the state regulators.”

MILWAUKEE – Deluxe Corp. said it Checks Unlimited unit has signed a long-term licensing agreement with Warner Bros. to bring classic cartoon and new characters to its check customers. The deal covers Looney Tunes favorites like Tweety and Bugs Bunny; Speed Racer, DC Comics Super heroes, like Batman and Superman; scenes form classic films, The Wizard of Oz and Gone with the Wind; and Hanna-Barbera classics like Scooby-Doo, The Jetsons and The Flintstones. The expanded roster of characters will being appearing in scheduled advertising in January 2008.

LAS VEGAS – A man who had just robbed Community One FCU was shot dead by a pursuing police officer Wednesday evening after the robber pulled a gun on him. The confrontation occurred about 20 minutes after the 5:40 pm hold-up, when police saw the spotted the suspect’s car and confronted the driver, who leaped from the moving vehicle and fled on foot. A pursuing officer shot the suspect several times, after the man pulled a gun on him. The officer was not hit. A woman in the getaway car was taken into custody, but police do not know here role, yet. The suspect had walked into the credit union and demanded money, then fled with an undetermined amount of cash.

MONETT, Mo. – Jack Henry & Associates said yesterday it has signed with HealthEquity Inc., a leading administrator of health savings accounts, to provide that services to its credit union clients. The HSA solution offered by Jack Henry will provide credit unions and banks with a turnkey, outsourced administration solution that will include deposit and withdrawal alternatives, multiple investment options, 24-hour customer service, and a portal for account holders. HealthEquity is a personal healthcare services company based in American Fork, Utah.

BOSTON – LPL Financial Services, formerly Linsco/Private Ledger, said yesterday it has agreed to acquire Independent Financial Marketing Group, a provider of marketing services for credit unions and banks, from Canada’s Sun Life Financial. LPL, one of the biggest providers of third-party investment services for credit unions, acquired UVEST Financial Services in January, expanding its presence in the market. Independent Financial Marketing is based in the New York suburb of Purchase. Financial terms of the deal were not disclosed.

IRVING, Texas – WALKAWAY USA has introduced a vehicle return program that provides credit union members with protection against negative equity, allowing them to walk away fro their vehicle loan or lease in the event of a life-changing event. The policy, similar to credit life, will protect members against involuntary unemployment, loss of driver’s license, international employment transfer, self-employment bankruptcy, or total loss. WALKAWAY USA, a unit of EFG Companies, holds the exclusive U.S. distribution license on this program.

MADISON, Wis. – The lack of awareness of credit unions by young people is the target of the latest initiative from the Filene Research Institute–known as the “30 Under 30” Group. George Hofheimer, chief research officer for the Institute, told the Credit Union Journal the new venture will be similar in format to Filene’s “i3” Group, except 30 Under 30 will be limited to a one-year term. “The main concern is: how to make credit unions relevant to young adults,” said Hofheimer. “Not so much from the consumer perspective, but for employment. How can we make credit unions an employer of choice? Also, how to get more young people on credit union boards?” Thursday, Filene began collecting applications online from people under 30 years of age who are employed at credit unions. Applications will be taken at 1. www.filene.org through Oct. 15, and Hofheimer said Filene expects to make the selections soon thereafter. The first task for the selected 30 will be a series of virtual meetings, online collaboration and idea sharing. The first in-person meeting will take place next spring at a time and place to be determined. The final meeting is slated for November 2008, when the group’s ideas will be unveiled in a format similar to a venture capital presentation.

WASHINGTON – The number of homeowners receiving foreclosure notices hit a record high in the spring, driven up by problems with subprime mortgages. The Mortgage Bankers Association reported Thursday that mortgage-holders starting the foreclosure process in the April-June quarter reached 0.65%, marking the third consecutive quarter that this figure has set an all-time high. The delinquency rate, which tracks the number of people who are behind in their payments but have not yet entered the foreclosure process, was also up sharply during the spring, rising to 5.12% of all loans, up nearly three-fourths of a percentage point from the same period a year ago. Doug Duncan, the MBA’s chief economist, said the worsening performance was driven by two factors–heavy job losses in the Midwest states of Ohio, Michigan and Indiana and the collapse of previously booming housing markets in Florida, California, Nevada and Arizona. For the second quarter, the delinquency rate for subprime loans increased sharply to 14.82%, from 13.77% in the first quarter. The delinquency rate for prime loans, offered to borrowers with good credit histories, also increased but by a much smaller amount, rising to 2.73%, up from 2.58% in the first quarter.

McLEAN, Va.–Long-term mortgage rates were stable this week, with the average for the benchmark 30-year, fixed-rate loan climbing a single basis point to 6.46% from last week, according to Freddie Mac. The average for the 15-year, fixed-rate mortgage also moved up slightly to 6.15%, from 6.12% last week. ARM rates fell, with the average for the five-year ARM declining to 5.74%, from 5.84% last week; and the average for the one-year ARM slipping to 6.32%, from 6.35%. “Over the past week, long-term mortgage rates were largely unchanged as the most recent economic news showed smaller increases than had been expected,” said Frank Nothaft, Freddie Mac chief economist. “For instance, core personal consumption expenditure price index rose at an annualized rate of only 1.3% in the second quarter and July's consumer spending data showed a 1.9% gain in the core price index for the twelve months ending in July.”

FT. MYERS, Fla. – NCUA asked a federal court yesterday to delay court action in a growing number of suits against three failed credit unions sunk by their involvement in a Florida land speculation. In a motion filed with the U.S. District Court for the Middle District of Florida, NCUA, the conservator for Norlarco CU and Huron River Area FCU, asked for an additional 45-day stay of suits brought against the two credit unions because NCUA only took control of Colorado’s Norlarco on July 26, three months after the state of Colorado had secretly taken over the state’s eighth-largest credit union. Thousands of investors have filed suit in both state and federal court claiming the two credit unions, as well as Denver’s New Horizons Community FCU, engaged in a multi-million-dollar land swindle called Millionaire University. The investors claim they were fraudulently sold homes with a guarantee of a 14% profit after a year and that the three credit unions provided loans for the swindle. The three credit unions are believed to have as much as $500 million in loans out to the speculation, in the Cape Coral and Lehigh Acres developments, just off the Gulf of Mexico.

HAVERHILL, Mass. – NCUA said it will allow next week’s special meeting at Northeast Community CU where members will vote on an unprecedented merger with Haverhill Bank, but an agency official said NCUA will have final say on the deal. “There is no legal requirement in connection with the merger of a federally insured credit union into a bank,” John McKechnie, chief spokesman for NCUA, told The Credit Union Journal yesterday. Consequently, the $110-million credit union will not be required to disclose details of the merger into a mutual savings bank, and fewer than 100 members can approve the deal at next week’s meeting. In every other credit union conversion to savings bank, including a half dozen in which the credit union merged into the bank–NCUA has required member disclosures/ballots at 90-day, 60-day and 30-day increments. But the Federal CU Act will give the NCUA Board final approval of the unprecedented merger, said the NCUA spokesman. NCUA has not received a formal request yet from the credit union, he added. Credit union representatives did not return phone calls seeking comment. The unusual merger will combine two financial institutions based in this old mill town to create a $240-million mutual savings bank. The Northeast Community deal is one of three pending credit union-to-bank conversions being conducted under the Bay State’s year-old law. The others are $115-million First Priority CU and $135-million Community CU of Lynn.