WASHINGTON–The Federal Reserve has indicated it is cracking down on financial service providers regarding certain lending practices in response to Congressional focus on this issue, but there is some question about whether the Fed has gone to far–or not far enough. “Credit unions have a special interest in serving their members and making provident credit,” said Carrie Hunt, NAFCU’s senior counsel/director of public affairs. “Dubious predatory practices do not serve this interest. NAFCU believes that the Fed does have a role in protecting consumers, but believes that this role can be fulfilled without increasing regulatory burden to credit unions.” Jeffrey Bloch, CUNA senior assistant general counsel, noted the Fed action was spurred by several congressional hearing on this topic. “Those hearings are focusing on possibly banning certain practices, such as universal default and certain methods for calculating interest rates on credit cards. By the way, we have taken a position in previous comment letters that would support banning of universal default,” Bloch said. “The Fed is taking another approach by proposing massive changes to the Reg Z/Truth in Lending Act with the goal of addressing loan disclosures, as opposed to banning certain practices.” But Bloch said this may not be enough for some in Congress who want to ban these practices. “We are actively involved in this rulemaking process, which bean in late ’04, to ensure credit union concerns are fully considered,” Bloch said. “We have written two comment letters so far in response to prior requests for comments on these issues. “After ‘open-end,’ the Fed will turn to ‘closed-end,’” Bloch continued,” which primarily includes mortgage loans, car loans and other loans that have fixed payment and payment periods.”

PLANO, Texas — Credit unions are investing their burgeoning deposits for longer terms and in more special certificates, according to analysis by Southwest Corporate FCU.

FERNDALE, Mich.–The $780-million Credit Union ONE will move its data processing in-house after signing a seven-year contract with UltraData for its Enterprise client. Also moving its core processing to UltraData, a unit of Harland Financial Solutions, is ONE's Technologies, a CUSO owned by 18 credit unions, including Credit Union ONE. The 17 other clients of ONE's Technologies will operate the UltraData solutioin in a service bureau environment. Credit Union ONE has 117,000 members and 21 offices in Michigan.

DUBUQUE, Iowa–The Small Business Administration has approved DuTrac Community Credit Union as a preferred lender. To receive this status, a preferred lender is chosen from among the SBA’s best lenders and have full delegation of lending authority to approve loans, which results in faster service. One of the loan programs DuTrac Community Credit Union offers is the New Patriot Express Loan Initiative, which focuses on the military community, including veterans, service-disabled, active-duty in transition, Reserve and Guard, spouses and related groups.

Subprime Lending Task Force Hears Emotional TestimonyWALLINGFORD, Conn.– Gov. M. Jodi Rell’s Task Force on Subprime Lending heard testimony during its first hearing from a consumer who tearfully described how she had been allegedly victimized by predatory lending tactics. “Like many borrowers, I was steered into this adjustable rate without being given a choice and was lied to by my broker about how it worked and what I could do,” Donna Pearce said. “Even though I had good credit, I was given two separate loans–one with an 8.6% interest rate, and another with a 13% interest rate. When I asked my broker about it, she told me not to worry because I could just refinance in six months.” Pearce, with help from her family, made her mortgage payments until this spring when she learned she would not be able to refinance. She then began receiving notices of foreclosure. Kevin Chandler, CEO of the Credit Union League of Connecticut and a member of the task force, said that this is just the sort of practice the task force is aiming to eliminate.

ALBANY, N.Y.–The New York Credit Union Foundation has awarded $35,000 in Financial Fitness grants to 27 credit unions across the state for behind-the-scenes operating infrastructure needs to help improve member services. The grants, ranging from $500 to $2,500 will provide necessary funding for a variety of projects, including: website design, maintenance or enhancements; facility security; computer/copier purchases; online banking services; data processing upgrades; and computer firewall systems. Credit unions that received the grants include: Alternatives FCU, Bethex FCU, Buffalo Service CU, Cataract City FCU, Cheektowaga Central FCU, Eastern New York FCU, Gates Chili FCU, Greece Community FCU, GRS ECU, Kenton FCU, Lockport Schools FCU, Lower East Side People’s FCU, Maryvale Schools FCU, NFTA EFFCU, New York University, North Tonawanda Community FCU, P&C Employees FCU, Paul Quinn FCU, Sisters Hospital EFCU, South Towns Community FCU, Southern Chautauqua FCU, St. John’s Buffalo FCU, Sweet Home FCU, Town of Cheektowaga FCU, Tri County FCU, Upstate Telco FCU and Westchester FCU.

CHARLOTTE, N.C.–Carolinas Telco Federal Credit Union recently expanded its membership charter to include all employees and retirees in the telecommunications industry in North and South Carolina, the $304-million CU said. Carolinas Telco FCU originally opened in 1934, offering membership to employees of the local telephone companies, which at the time only included Southern Bell, AT&T, and Western Electric. Until 2006, the credit union continued to serve these companies, through their various name changes and reincarnations. With the approval of NCUA, Carolinas Telco has converted to a Trade, Industry, and Profession charter, allowing Carolinas Telco to again serve the entire telecommunications industry in North Carolina and South Carolina.

BOULDER, Colo.–The $736-million Elevations Credit Union has gotten the OK from state regulators to open its FOM to anyone who lives or works in Boulder and Broomfield Counties Such an expanded FOM was one reason Elevations moved to a state charter within the past year. “This improved access enhances our ability to deliver on our long range plans for controlled growth, expansion of our product and service offerings, adding new branches and enhancing our ATM network,” said CEO Bill Sterner.

VANCOUVER, B.C.–Canada's highest-profile credit union has tapped a career bureaucrat as its new CEO. Tamara Vrooma, deputy finance minister for British Columbia, will take over as chief executive of the (C) $12.-billion Vancouver City Savings Credit Union (VanCity) in September. The position will mark the first time that Vrooman, 39, works in the private sector. Vrooman succeeds Dave Mowatt, who recently took over as CEO of ATB Financial in Alberta.

SANTA ROSA, Calif.–It turns out that everything is cool with Joe Cool after all. After security guards reported that a statue of the “Joe Cool Snoopy” that was outside Redwood Credit Union here had been stolen, it was learned the statue is safe and sound at the local county fair. The statue had been loaned to the county fair, where it will be part of a display for the next two weeks. The police report was picked up several local newspapers, as well as Credit Union Journal, before the credit union was able to clear up the matter. The “Joe Cool Snoopy” will be returned to the credit union on July 30 at the close of the fair.

PLANO, Texas–Credit unions are investing their burgeoning deposits for longer terms and in more special certificates, according to analysis by Southwest Corporate FCU. The corporate reported credit union CFOs and treasurers much more willing this year to place funds in special investment vehicles that they have been at any time over the past two years, when rates slowly but steadily rose. During the first six months of 2007, credit unions have invested more than $600-million in specially-structured share certificates at Southwest Corporate, nearly double the $321-million invested by credit unions during the same time period in 2006. The figure for the first half of 2005 was $228 million. “Credit unions watching the Fed believe it is going to hold overnight rates right where they are for a while,” Southwest’s Director of Investment Services, Zane Wilson, said. “This has spurred credit unions to invest additional funds for longer terms.”

WASHINGTON, D.C.–Ever wonder who pays for all the credit card junk mail in mailboxes? According to new advertisements appearing this week, all Americans do, through credit card fees. The ads, placed by the Merchants Payments Coalition, a group of merchant trade associations seeking a more competitive and transparent credit card fee system, show how the big credit card companies use some of the billions they collect from the credit card interchange fee to pay for marketing campaigns–more than nine billion unsolicited credit card offers every year. The ads depict a consumer buried in envelopes, and carry the text: “Ever wonder who pays for all that credit card junk mail? You do. It comes from your credit card interchange fees. Interchange is the biggest credit card fee you’ve never heard of–and it’s dangerous.” The ads began running in Washington newspapers Monday in anticipation of a hearing on interchange fees scheduled to be held Thursday by the House Judiciary Committee’s Antitrust Task Force.

ALEXANDRIA, Va.–As NAFCU prepares to host its annual conference later this week in Honolulu, the trade group is taking the American Bankers Association to task for allegedly barring credit union officials from attending any ABA events. “This policy, we believe, undermines the best interests of the consumer and the financial services industry,” said NAFCU. “Moreover, we believe this exclusionary policy runs counter to the current legislative and regulatory climate, which is striving to promote a more open and proactive exchange of information to benefit consumers of any and all types of financial institution. Tactics like this fuel divisiveness and create an unnecessary veil of secrecy.” NAFCU did note that at least some credit union officials are welcome to attend ABA events: those who are former bankers and hold the ICB designation.

The deadline is fast upon CUs for entry into the Credit Union Journal's Best Practices awards. The good news is that it's easy to enter!

VANCOUVER, Wash. - The Washington State School for the Blind (WSSB) and iQ Credit Union have joined forces to install an accessible ATM with voice guidance features on the school's campus, the first such ATM to be placed in a school district in Clark County, they said.

Salaries Rise Faster Than Predicted

ST. PETERSBURG, Fla. - PSCU Financial Services is celebrating its 30th anniversary with tribute to its member credit unions and how they, in turn, serve their members. As part of that tribute, PSCU-FS has put together a book titled "We The People," which features a number of profiles on credit unions that are part of this CUSO. In a nod to the Declaration of Independence, PSCU-FS kicks the book off with the following: "We the People of PSCU Financial Services, in order to form a more perfect union, establish loyalty, ensure tranquility, provide for the common defense against fraud, promote the general welfare of our member-owners, and secure liberty and prosperity, do ordain and establish the finest possible service for our credit unions and their members."

BATON ROUGE, La. - Federal Credit Union of the Year, assets less than $150 million

TopLine Federal Credit Union, Maple Grove, Minn., promoted Sharon Pollock to e-market manager and named Kathryn Biddle training manager.

ELGIN, Ill. - Corporate America Family Credit Union efforts to gather supplies for local school children for next year received coverage in the Courier-News. The credit union's "Project Back Pack" collects learning or arts and crafts materials that can be used at Channing School in Elgin. The newspaper noted that a school supply list is available in the credit unions branch.