ANN ARBOR, Mich. – PARDA FCU, the credit union for Pfizer pharmaceuticals, is moving its headquarters from the Pfizer campus to new offices in November. Pfizer is relocating from the old offices, where the credit union has been located for almost 40 years. After the move, the credit union plans to introduce a full suite of business lending services. PARDA FCU has $190 million in assets and operates 12 branches in six states, six of them in Michigan.

HONOLULU – Dollar Associates, the consulting firm started by former NCUA Chairman Dennis Dollar, will launch a new subsidiary at the annual NAFCU Convention this week, a Who’s Who in America’s Credit Unions. The program will serve as an annual recognition for the credit union movement’s volunteers and professionals to honor leadership, accomplishments and service in the movement. The program will be headed by Kirk Cuevas, partner in Dollar’s credit union consulting firm. “One of the missing recognition programs in credit unions today is a nationwide award that covers those who, both on a volunteer and professional level, have helped built this movement into what it is today,” said Dollar in unveiling the program. Who’s Who in America’s Credit Unions will accept nominees for annual induction of any leader in the credit union movement with at least five years of contribution to credit unions in some capacity, either professionally or as a volunteer. The selection will be validated by an editorial advisory board. Among those named to the advisory board are former NCUA Board members Deborah Matz and Shirlee Bowne, former Virginia CU League President Eugene Farley, NAFCU Director David Gilbert, for NAFCU President Ken Robinson, Alabama CU League President Gary Wolter, and Truliant FCU President Marcus Schaefer.

BOSTON – Massachusetts will become the first state to create a fund to help troubled subprime and other borrowers to refinance their mortgages and stay in their homes. The $250 million fund is one of several being contemplated around the country to help troubled homeowners. Fannie Mae has agreed to put up most of the money $190 million, with the state’s housing agency, MassHousing, providing $60 million. The money will be used to finance foreclosure prevention counseling and to refinance high-risk subprime mortgages into conventional fixed-rate loans.

ANNAPOLIS, Md. – More than 170 volunteers from Navy FCU will help paint and renovate the Naval Academy Primary School, which educates children for Navy personnel, as part of a nationally broadcast television program called Build Upon A Dream. Supporters of the Naval Academy and local non-profits have pledged $150,000 in goods, services and donations as part of the effort, based on the ABC network’s ‘Extreme Makeover: Home Edition’ television show, which will be broadcast nationally on ABC TV. The credit union volunteers plan to paint the interior of the school. Beside the task force of volunteers, the $29 billion credit union has pledged paint and supplies and $10,000 to support the makeover. Contributors plan to renovate everything from the plumbing, flooring, bathrooms, lighting and the landscaping at the 57-year-old building.

CUMBERLAND, Md. – In a ruling that could have statewide impact, residents in area towns are being notified by local officials that credit unions can no longer accept their property tax payments. That’s after they discovered there was no provision for credit unions in the state statute allowing banks and S&Ls to collect tax payments. The Allegany County Finance Director asked for and received a legal opinion from the state treasurer on whether using credit unions is permissible and was told they are not. At least two credit union serve this rural area in far western Maryland, but bank branches are sparsely located. County officials said it will take an act by the Maryland legislature to change the law.

WASHINGTON – The House voted overwhelmingly last week to cut $19 billion in federal subsidies form the guaranteed student loan program and to cut interest rates on Stafford and other federally subsidized loans in half, from 6.8% to 3.4%, over the next five years. The House bill would use the funds to boost college aid by $18 billion over the next five years. Under the bill, student borrowers would never have to pay more than 15% of their discretionary income on loan repayments, and borrowers with economic hardship could have their loans forgiven after 20 years. The bill would provide tuition assistance for graduates who go into public service and undergraduates who agree to teach in public schools. A similar bill is making its way through the Senate.

LOS ANGELES – With massive cuts to the federally guaranteed student loan program moving rapidly through Congress, one large credit union student lender is touting big advantages to private loans. USC FCU is about to launch its own pilot program to make private loans and they hope to market it to other credit unions, according to Gary Perez, president of the $330 million credit union. Launch of the pilot comes as the House last week approved $19 billion in cuts from the federal student loan program, with the Senate expected to follow soon with its own cuts; cuts that will come out of the pockets of lenders. The USC FCU program will have the credit unions originating the loans, servicing them, then marketing them on the secondary market. The loans would have stop-loss insurance while the students are in school. Perez believes they can deliver private loans as inexpensively as federally guaranteed loans, with comparable–if not a little higher–rates. USC FCU will launch the six-month pilot as soon as the end of this month for fall semester students. The pilot will be limited to students at the University of Southern California. The market for private student loans is exploding, according to Perez. From just $1 billion 10 years ago, to $15 billion this year, to an estimated $40--to--$50 billion in 10 years. The main reason, he believes, is the limits on the amounts of guaranteed loans to a fraction of the growing costs of college. “This represents an opportunity for credit unions to make a difference in the future of their members and their families,” Perez told The Credit Union Journal.

SANTA ROSA, Calif. – A life-sized statue of ‘Stay Cool Snoopy,’ one of 92 ‘Joe Cool’ Snoopy statues displayed around Sonoma County, was lifted off its base in front of Redwood CU’s new corporate headquarters and stolen sometime Thursday night. An overnight security guard noticed the missing statue around 2:20 am but didn’t see anyone. This Snoopy was outfitted by credit union employees with a Hawaiian shirt, flip-flops and sunglasses, and was last seen holding an icy, yellow-colored drink with an umbrella and straw sunk in it. The statues are part of the Peanuts on Parade event sponsored by local businesses the last three years to pay tribute to former resident and Peanuts creator Charles Schulz. Joe Cool is the third character, following in the footsteps of Charlie Brown and Woodstock.

AUGUSTA, Me. – The Maine CU League’s statewide marketing campaign is scheduled to hit the radio airwaves this morning with its ‘I Save’ message. The three week radio ads will compliment an ongoing TV campaign by using the same audio, and will be broadcast on every station in the state. The aim is to maintain a consistency with the message and complement the league’s television commercials while they are not running this summer, according to John Murphy, president of the league. The campaign will feature almost 700 radio commercials. The radio ads and the season-long sponsorship of the Seventh Inning Stretch at all Portland Sea Dogs miner league baseball games; sponsorship of The Potato Blossom Festival in Aroostook County and the American Folk Festival in Bangor, are part of a strategy designed to increase visibility and awareness for Maine credit unions. The Maine league has budgeted $400,000 for this year’s media campaign.

BILOXI, Miss. – Three men were arrested and charged with last week’s theft of a Keesler FCU ATM from a local mall. The three, two of whom were wanted for a series of local burglaries, are believed to be the ones who tore the cash machine out of the wall then made off with it either late July 2, or early the following morning. The men are believed to have rolled the machine out of the mall on a dolly, possibly with the help of the mall’s cleaning crew. The suspects were identified as: Tyson Gaines, 26, of Gulfport, Clifford White, 27, and Robert Morgan, 27, both of Biloxi.

The Credit Union Journal is announcing its Call for Entries for its Best Practices awards. It's easy to enter! Nominations may be submitted by credit unions themselves, a CUSO, or even another CU. Nominations can also be submitted by suppliers to the credit union community that have clients they believe exemplify the best practice in implementing a particular product or service. Nominations are due July 13.The criteria are as follows:1) Best practice must have been deployed since June 1, 2006. 2) Credit union (or vendor) selects (or even creates) a category and nominates itself/client CU.3) The entry should include: 500 words or less on why it believes it has created a best practice within its operation. The nomination essay should include as many tangible measures as practical (including ROI where available) documenting the best practice; the background on environment prior to the implementation of the best practice;and factors driving adoption of the best practice, and any new products/solutions deployed to achieve the best practice.4) A credit union may enter more than one category. 5) Nominations should be e-mailed to the Managing Editor Lisa Freeman at lfreeman cujournal.com. Winners will be profiled in Credit Union Journal later this year.

PHOENIX – Desert Schools FCU said it is throwing a three-day CARnival auto sale through the weekend with Enterprise Rent-A-Car which will benefit the local children’s hospital. Enterprise will donate $150 in the credit union’s name to Phoenix Children’s Hospital each time a credit union member finance their auto loan through Desert Schools. Enterprise will also give away $150 gas cards to participating credit union members.

BROOKLYN, N.Y. – Polish & Slavic FCU, the nation’s largest ethnic-based credit union awarded almost $300,000 in college scholarships last week to 191 students, one of the largest scholarship grants by a credit union. The grants ranged from $1,000 to $5,000. All recipients were credit union members. The $1.1 billion grant has awarded more than $1 million in scholarships since it began the program six years ago. The program is the second-largest credit union scholarship, exceeded only by North Carolina State Employees CU’s annual $7 million program.

LOWELL, Mass. – Jeanne D’Arc CU, one of the oldest credit unions in the nation, said yesterday it has hired Mark Cochran, executive vice president chief operating officer at $1.4 billion Affinity FCU in New Jersey, as its new president and CEO. Cochran will succeed well-known Paul Mayotte, who is retiring August 1, after 24 years with the credit union. Jeanne D’Arc CU was chartered in 1912 and has more than $600 million in assets.

ALEXANDRIA, Va. – Pentagon FCU, one of the fastest growing credit unions in the country, said mortgage volume soared to a new high of $300 million last month, even as the overall market continued to fall. The $10 billion credit union, which opened its own real estate agency last year, reported a 8.5% rise in mortgage lending through the first six months of the year, to $1.46 billion. Pentagon officials attributed the surge in mortgage lending to lower rates offered on 5/1 ARMs; a 90-day lock-in provision on rates; and the elimination of numerous fees for processing, underwriting and closing, as well as those for appraisals, flood certification, tax service and credit reports.

DENVER – Credit union boards would have the option of requiring a super-majority of members in order to approve a conversion to mutual savings bank, under new bylaw amendments approved by the state regulator. Under the new bylaw, available to all state chartered credit unions, a board could choose between requiring a simple majority of members approve the conversion, or a much tougher two-thirds majority. The Department of Regulatory Agencies also approved a bylaw that will also help credit unions defend against hostile takeovers, like the one proposed by Wings Financial FCU of Continental FCU, which was eventually abandoned.

McLEAN, Va. – Mortgage rates rose higher this week, after falling the previous three weeks, according to Freddie Mac. The average for the 30-year, fixed-rate loan climbed to 6.73% this week, from 6.63% last week; while the average for the 15-year, fixed-rate loan rose to 6.39%, from 6.30%. ARM rates were mixed, with the average for the five-year ARM moving up to 6.35%, from 6.29% last week; and the average for the one-year ARM holding steady at 5.71%. Frank Nothaft, chief economist for Freddie Mac, said he expects rates to remain steady around the current levels for the remainder of the year. "Freddie Mac expects weakness in the housing market to persist in the second half of the year, with 2007 total home sales and housing starts hitting five-year lows," he said.

LA HABRA, Calif. – American First CU announced yesterday it has begun originating and funding mortgages online under a pilot with Fannie Mae, the first credit union in the state to offer fully electronic mortgages. The electronic mortgages were created in conjunction with Fannie Mae, Settleware Secure Services and Mortgage Electronic Registration System under a pilot program that will be marketed to other credit unions and banks. Each party plays a role: Settleware offers technology for the preparation, digital signature and delivery/transfer; MERS provides the ability to e-register the loan for public record; while Fannie Mae electronically purchases and funds the loan.

WASHINGTON – Credit union lobbyists are hoping to convince lawmakers to exempt them from the multi-billion dollar cuts in the guaranteed student loan program that are moving quickly through Congress. CUNA and a hand-full of credit union executives deeply involved in student loans are trying to delineate themselves from the four huge lenders–Sallie Mae and three banks–that dominate more than 75% of the student loan market. The credit union representatives are telling Congress that in cotrast, credit unions are owned by the students themselves, as well as by teachers, staff and alumni, which means that profits from the student loan program are cycled back into the student community. Gary Perez, president of USC FCU, one of the biggest credit union student lenders, said they are worried that a reduction in yields on the loans will fall more on smaller lenders, like credit unions. “Credit unions would be disproportionally impacted because, by and large, credit unions are very small student lenders and do not have the volume to make up for the reduction in yields,” he told The Credit Union Journal. The House passed a bill Wednesday to cut as much as $20 billion from the student loan program, money that will come out of the pockets of lenders in the form of lower rates, cutbacks in subsidies and guarantees. The Senate is expected to follow soon with its own cutbacks bill. The proposals were fueled by the recent scandals in the student loan business in which hundreds of schools were found to have given preferential access to students in exchange for gifts and money from lenders, like Sallie Mae. Sallie Mae, the largest player in the market, has agreed to be taken over by a group including JP Morgan Chase and Bank of America, which will combine the nation’s three-largest providers of student loans.

MADISON, Wis.– The average base salary for credit union CEOs rose 8% over the past year, almost twice the rate of inflation, according the CU Executive Society’s annual survey of more than 900 credit unions. The CUES Executive Compensation Survey found similar pay increases for other credit union executive. The study found that among executive vice presidents, chief operating officers, chief financial officers, chief lending officers, branch executives and CUSO executives the average salary rose 7.7%. Eighty percent of the CEOs reported receiving bonus or incentive payments, with the bonuses averaging less than 14% of base salary. The primary drivers for those bonuses were credit union earnings and board evaluations. The study further found that more than 80% of the participating CEOs have spent over 15 years working for credit unions, and almost 50% have been in their current position for more than 10 years.