GLENDALE, Calif. – California CU said yesterday it has contracted with Gila Group, of Austin, Texas, for loan collection services. Gila will handle the collection of all auto loans 10-45 days delinquent as well as Visa and mortgage accounts 15-45 days delinquent for the $1.3 billion credit union.

SHELTON, Wash. – Our Community CU, formerly Simpson Employees FCU, said yesterday it signed with Lending Solutions for the company’s call center, Internet lending and indirect underwriting products. LSI has more than 350 credit union and bank customers. Our Community CU has about $125 million in assets.

ALBANY, N.Y. – Capital Communications FCU announced yesterday members of Excelsior CU approved a merger into the $650 million credit union, the fourth merger for CapCom in the past three years. Since 2004, CapCom has also acquired Yankee Doodle FCU, Silicone Employees FCU and Hudmo Valley FCU. Excelsior, founded in 1915, was one of the first state charters in New York and has about $85 million in assets. The merger with CapCom is expected to become effective Oct. 1.

WASHINGTON – Just a week after the departure of senior lobbyist Dean Sagar, CUNA said yesterday it has hired Ryan Donovan, the congressional lobbyist for the California CU League, to fill Sagar’s place. Donovan, a former chief of staff for staunch credit union supporter Brad Sherman, a California Democrat, has worked out of CUNA’s Washington offices for the past five years while representing the California and Nevada Leagues. Previously, Donovan worked for House Democratic Leader Richard Gephardt. Sagar, who helped draft HR 1151, the 1998 CU Membership Access Act, while working on what was then known as the House Banking Committee, resigned from CUNA after just 16 months last week.

DENVER – First Data Corp. and mobile banking software vendor mFoundry Corp. are partnering to offer mobile banking and payment services such as balance inquiries and access to transaction histories that financial institutions offer to cell-phone subscribers, the two companies said yesterday. First Data plans to offer the services to its STAR Systems EFT network of more than 5,400 credit unions and banks, as well as to other institutions. First Data is in the process of being taken over by private equity giant Kohlberg Kravis Roberts & Co.

GALVESTON, Texas — Two members of the Galveston Bloods street gang were found guilty of the August 2005 armed robbery at University FCU, and the subsequent shooting of a witness to their attempted getaway.

PORTLAND, Ore. – The CU Association of Oregon and the Oregon Financial Institution Security Task Force are offering a reward of $5,000 for information leading to the arrest of a man believed responsible for as many as six robberies at area credit unions–all last month. The suspect has been dubbed ‘CU Tattoo,’ because of the designs he sports on his arms. The CU Tattoo is believed responsible for recent hold-ups at Rivermark CU (twice), Oregonians CU, Oregon Pioneer CU, Unitus CU and Advantis CU. It is unclear why the bandit has targeted credit unions.

DAYTON, Ohio – NCR Corp.’s planned spin-off of its Teradata data warehouse unit has hit a possible roadblock as the company reported yesterday the Justice Department is investigating Teradata business practices involving government contracts. An internal investigation has uncovered evidence of ‘questionable conduct’ that NCR has already shared with U.S. investigators, the company said in a filing yesterday with the Securities and Exchange Commission. NCR said it has recorded a reserve of about $1 million to cover potential liability. NCR is preparing to spin off Teradata into a separate company, with the surviving company being the company’s core ATM and payment terminals business.

MOUNT LAUREL, N.J. – PHH Corp., the parent of the biggest mortgage bank for credit unions, reported a slight loss last night for its second quarter of $1 million, or two cents a share. The loss comes amidst continuing troubles in the mortgage industry and as the company prepares to be taken over. The takeover, in which PHH will be sold to GE Capital for $1.8 billion, then GE Capital will sell the mortgage business to private equity fund The Blackstone Group, is being contested by the company’s largest shareholder, Pennant Capital, which owns a 9% PHH stake. Pennant see greater benefits in spinning off the mortgage business, which includes relationships with more than 2,000 credit unions, most of them acquired with the 2005 acquisition of CUNA Mutual Group’s mortgage business. For the second quarter PHH reported an increase in derivative losses hedging its $165 billion mortgage portfolio to $207 million, and a rise in mortgage delinquencies to 2.66%, from 2.25% for the same period a year ago. Second quarter revenues rose 4% to $610 million. For the first two quarters, PHH reported a 6% rise in revenues, to $1.2 billion, and net income of $1 million, or a penny a share.

FT. LAUDERDALE, Fla. – More than 200 state regulators, state credit union leaders, league executives, federal regulators and dual chartering supporters will gather here for the 2007 NASCUS State System Summit, which begins today. NASCUS said the “only annual gathering of the state credit union system” will focus on mission critical credit union operational and examination issues. Today, the Credit Union Advisory Council will hold its annual meeting and NASCUS will present its Pierre Jay Award. Friday, NASCUS will hold its 2007 Annual Meeting, where incoming Chairman George Reynolds will begin his two-year term.

MADISON, Wis. – A man who robbed Parker Community CU in Janesville in March was sentenced Tuesday to almost nine years in prison. Shawn Clarke, 32, who used a stolen pellet gun in the robbery, was sentenced to eight years and eight months behind bars. Clarke’s accomplice is scheduled for sentencing August 29.

LAS VEGAS – With both lenders and borrowers skittish over adjustable-rate mortgages in the wake of the collapse in the subprime market, State Employees’ Credit Union is reporting it has yet to suffer a loss in its unique and popular ARM product. The Raleigh, N.C.-based SECU has a two-year ARM aimed at first-time homebuyers that cannot readjust up or down more than one percentage point at any time it reprices. Moreover, the country’s second-largest credit union requires no down payment and has begun to offer 110% financing at a time many CUs and lenders would see that as just more risk. But CEO Jim Blaine said that hasn’t been the case. “We have multiple hundreds of millions of dollars in loans out but we have not had a loss on this program,” said Blaine. Instead, he said, SECU came to recognize that many people are paying rent equal to a mortgage payment, and simply cannot come up with a 10% or 20% downpayment. “We underwrite these loans carefully,” he said. “It builds goodwill with your members. It’s a warm and fuzzy. Would you rather make a 6% or 7% mortgage or have it earning 4% in your corporate credit union?” Most recently, with the 110% financing option, SECU has been depositing the extra 10% in a 10-year CD that is pledged against the loan. SECU pays a dividend on the CD equal to the loan rate. “What happens is that 10 or 15 years out, not only do they own their home they have a $10,000 or $15,000 pool of savings,” he said.

GALVESTON, Texas – Two members of the Galveston Bloods street gang were found guilty of the August 2005 armed robbery at University FCU, and the subsequent shooting of a witness to their attempted getaway. The two, Broderick York and Keelon Senegal, both 30, rifled through teller drawers while an accomplice guarded the door and a getaway driver waited outside. The group made off with $10,000. A man who gave the robbers a ride after their getaway car broke down told how they later shot him to prevent him from testifying against them, leaving him critically injured and in a coma for a month. The two accomplices, John Franklin, 35, and Arthur Winn, Jr., 28, were convicted earlier and are awaiting sentencing.

RALEIGH, N.C. – State Employees CU and its affiliate Local Government FCU said yesterday they have struck a deal with the IRS to offer Volunteer Income Tax Assistance to low-income residents at 215 branches across the state. The VITA program offers free tax assistance to people with low and moderate incomes. The two credit unions estimate as many as 400,000 of their members are eligible for the service. The extensive statewide branch network will allow the CUs the ability to reach every corner of the state.

WASHINGTON – The banking lobby is urging NCUA to require all field of membership expansions be opened up to public scrutiny through a comment and review process. America’s Community Bankers, the trade group for S&Ls and a regular critic of NCUA, called on the credit union regulator to issue for public comment not only new and unprecedented community charter requests, but all FOM applications. "Institution of a more transparent procedure would help the NCUA address criticisms that it has acted without proper consideration of applications that have been brought before it," wrote Krista Shonk, regulatory counsel for ACB, in a comment letter on NCUA’s proposed clarification of community chartering rules. She suggested that credit unions seeking FOM expansions publish a public notice, just as banks and S&Ls do when they want to establish a new branch. But credit union executives reject the proposal, saying making the FOM process public would just invite more mischief from the banks. "It would seem that all public comment would come from anti-credit union organizations such as banks and trade associations," said Rick Craig, president of America First FCU. "To expose the strategies, internal operations, business and marketing plans of a credit union to such scrutiny would be counter productive and possible very damaging." As part of its proposal to set new community charter boundaries, NCUA suggested issuing for public comment those community FOMs that are unprecedented.

CHARLOTTE, N.C. – Carolina Postal CU added a new twist to its new green car loan: in addition to a 1% discount on the rate for hybrid car loans, the credit union will plant a tree. For every member approved for such a loan, Carolina Postal will purchase a ‘Gift of Green’ from BeGreenNow of Green Mountain Energy. For each ‘Gift of Green’ a tree is planted in Kootenai National Forest in Montana. In addition, members will receive ‘plant-able’ ornament made of a cilantro seed paper, plus a card telling them about the environmental benefits of their tree.

PITTSBURGH– The Federal Home Loan Bank of Pittsburgh reported yesterday second quarter earnings fell 3% to $52.1 million, mostly due to fluctuations in the market value of its holdings. Still, net income for the first two quarters of the year inched up to $105.9 million, from $103.6 million for the first half last year. The Pittsburgh Bank set a second quarter dividend of 6%, the same as last quarter. The dividend will be paid to the Bank’s 335 members, including two dozen credit unions.

SAN FRANCISCO – The Federal Home Loan Bank of San Francisco announced this week it has awarded $450,000 in AHEAD grants, including $25,000 to Arizona State CU, to help plan and develop projects to benefit low-income residents. With the help of the FHLB grant, Access to Housing and Economic Assistance for Development, the credit union will help the Community Housing Organization employ displaced workers to reclaim electronic materials from landfill for resale to recyclers. The refurbished equipment will be sold to low-income residents and community organizations.

CHICAGO – The Federal Home Loan Bank of Chicago, troubled by its growing secondary market mortgage portfolio, said yesterday it is in discussions to combine with the FHLB of Dallas. The Chicago Bank is the creator of the Mortgage Partnership Finance secondary market program, which buys mortgages from member banks and credit unions as well as other FHLBs, but has been unable to sell or securitize the mortgages to hedge interest rate risk. This has left the Bank holding almost $38 billion of low-rate mortgages at a time of higher payouts to members. The difficulties in the secondary market program have prompted the FHLB regulator, the Federal Housing Finance Board, to put the Chicago Bank under a supervisory agreement and close regulatory scrutiny. The Chicago Bank reported a 63% decline in first quarter earnings and laid off an undisclosed number of workers in the second quarter, but has yet to report its second quarter results. The Chicago Bank has $87 billion in assets and represents 850 banks and credit union in Illinois and Wisconsin, while the Dallas Bank has $53 billion in assets and represents 900 institutions in five Southwest states.

WACO, Texas — Police are searching for a man who stole a security guard's handgun while he was robbing First Central CU Monday morning — the third hold-up at the credit union in five months.