ALEXANDRIA, Va. - Credit union executives overwhelmingly oppose NCUA's recent efforts to increase transparency for members, putting the federal regulator at odds with the industry.

RALEIGH, N.C. - Homeowners across the country are at risk of losing their homes as adjustable rates are ticking up, which is why one credit union is trying to do something about it.

DATCU Credit Union, Denton, Texas, promoted Jon Madsen to SVP of operation, Melanie Vest to VP-controller, Pat Sherman to director of marketing and Kay Schroeder to director of HR.

LAS VEGAS - It's not just an honor to be named to the Great Place To Work Institute's list of top employers-it also helps attract the best employees, and in turn boosts member service.

As if the summer of 1787 were not hot enough in Philadelphia, the men meeting there wore wool clothing, jackets, long sleeves and in some cases, wigs. Simple fans were a century away; the undreamed of air conditioning nearly two centuries. As if to make hot rooms hotter, lighting came from candles and oil lamps, so they would often convene outdoors and under trees. As was the custom if not outright necessity of the times, men wore generous amounts of colognes and powders to, if nothing else, keep the homicide rate down.

Already this year the credit union industry has seen tangible illustrations of compelling change. In response, every credit union must engage in no-fear, taboo-free strategic thinking in 2007. Anachronistic concepts like "movement unity" and "cooperative values" are impractical strategic launching pads. Despite movement purists' pleadings, consumers see no value there. The financial services marketplace has no mercy and boards that deny marketplace realities will fail dismally.

Editor's Note: This article first appeared in Digest, the magazine of the California/Nevada CU Leagues.

Editor's Note: The following comments were shared by Joshua Kurtz of Millstream Area CU following his graduation from the Credit Union Development Education (DE) program in Madison, Wis. For info: www.ncuf.coop.

LIVONIA, Mich. – In one of the biggest credit union scholarship programs in the country, Michigan First CU awarded $1,000 grants to 86 students last week from three surrounding counties. Each of the recipients received a plaque, a photograph and a bouquet of flowers at the credit union’s annual banquet. The students were all members of the credit union and were nominated by school officials. The credit union, chartered in 1926 as Detroit Teachers CU, has awarded 245 scholarships worth more than $220,000 since initiating the program in 2002.

DETROIT – A former loan officer of Wyandotte CU was sentenced to 64 months in prison and ordered to pay $1.5 million in restitution for a long-running phony loan scam. Karl Hedke, 46, opened 413 loan accounts using false names and identification between 1993 and 2006, then used the proceeds from one loan to make payments on the others. Hedke pleaded guilty in October to fraud charges.

TYLER, Texas – A long-time member of Telco FCU was sentenced Friday to 63 years behind bars for robbing his credit union last year. “We thought we were your friends,” said the former branch manager to Tyran Jones at Jones’ sentencing. The now-retired manager recalled how the credit union had performed several favors for Jones, including giving him loans. Three accomplices have pleaded guilty in the hold-up. The cash stolen during the June 28, 2006 robbery was recovered.

ATLANTA – Navy FCU advanced the most ambitious expansion plan in credit union history last week with the opening of four new branches in this market–all in the same day. All four Atlanta branch offices will host opening celebrations on Saturday, July 14, to invite members to see the new facilities, conduct transactions, and enjoy refreshments and activities. This month the world’s largest credit union expects to open its first of several planned branches in the Tampa, Fla., market. Navy Fed has opened seven new branches so far this year, with plans to open a total of 31 outlets by year-end. The $29 billion credit union now operates 124 branches around the world.

MANHATTAN BEACH, Calif. – Western FCU said Friday it has agreed to acquire Toyota FCU and merge the assets of the $250 million credit union into the much larger, $1.2 billion institution. John Bommarito, president of Western FCU, said the acquisition will allow it to expand its branch network to markets in Indiana, Kentucky and Texas, in communities where Toyota operates manufacturing plants, and enable it to establish a new presence in Michigan and Mississippi, as Toyota expands in those areas. Western FCU itself is the product of one of the largest credit union mergers ever, of Western FCU and TRW Systems FCU in 2003. The merger is expected to be completed by year-end. Western FCU serves 120,000 members and Toyota FCU has 19,000 members.

WEST ALLIS, Wis. – Losses on its mortgage portfolio continue to hurt Allco CU, which reported a first quarter loss of $5.2 million. Rising delinquencies and charge-offs in its mortgage portfolio contributed a large part of the first quarter loss. Officials with the $75 million credit union said last week they are working with NCUA and state regulators on a recovery plan. Earlier this year, Allco’s President Ralph Brunner resigned and was replaced by industry consultant Chris Dawe, on an interim basis. According to the credit union’s first quarter Call Report, Allco had $5.2 million in delinquent loans, $3.1 million of it in mortgages. The credit union has added $5.5 million to its allowance for loan losses to cover potential charge-offs.

WASHINGTON – Tens of thousands of borrowers would be disqualified from taking out a mortgage under new guidance approved Friday by NCUA and the banking regulators. The guidance comes as home foreclosures–specially those tied to exploding subprime mortgages–are skyrocketing, prompting calls by Congress and consumer advocates for action. The new guidelines require lenders to underwrite loans based on a borrower’s ability to make payments on a loan’s adjusted rate–not just its low introductory rate. About 75% of all subprime ARMs offered last year were so-called exploding loans with low flat, or ‘teaser’ rates for the first two or three years, then a higher, floating rates for the life of the 30-year mortgage. The new guidelines will also require lenders to collect more information to determine a borrower’s ability to repay the loan. They also require the lenders give the borrowers the option of refinancing out of an ARM at least 60 days before the interest rate jumps to a higher level, without penalty. The guideline were adopted by NCUA, the Federal Reserve, FDIC, Comptroller of the Currency and Office of Thrift Supervision.

SALEM, Ore. – A state judge refused Friday to block enactment of a new 36% cap on consumer loan rates, which went into effect yesterday. The request came from Northwestern Title Co., which operates 17 car title loan stores in Oregon and was seeking a temporary injunction on the new law while it seeks judicial review. The company, which makes small loans using car titles as collateral, often charging more than 300% APR, said it will be forced to stop doing business in Oregon if the interest rate cap is enacted. State lawmakers, with strong support from the credit union lobby, passed the ban last month on triple rates charged by title and payday lenders, asserting such rates amount to usury.

WALL STREET – Discover Financial Services, the wholly owned subsidiary of Morgan Stanley, will go public this morning when its shares begin trading on the New York Stock Exchange. Discover is being spun off from Morgan Stanley just two years after acquiring Pulse EFT, the electronic funds network for 4,100 credit unions and banks. The spin-off is occurring during a hot market for payments networks, with MasterCard having quadrupled its share price since going public a year ago, and Visa USA poised to test the market with its own IPO. In addition, Metavante, the parent of NYCE, is in the process of being spun off by Marshall & Ilsley, into a publicly traded company.

LENOIR, N.C. – A positive DNA match off an old piece of bubble gum is being credited by police with last week’s charges against three men believed to have robbed the Members’ CU branch here five years ago of $164,000. Investigators at the crime scene on May 28, 2002, found the wires to the alarm system had been cut and there was extensive damage to the safe. They also found a discarded paper towel with dried blood on it and chewing gum, which was stuck on the door lock to hold it in place. The blood and gum yielded DNA that matched a sample taken from Jackie Scarberry, who was arrested for a recent robbery at High Country Bank near here. Two other suspects have also been charged in the credit union heist; David McNeely, and Charles Hildebran.

LITTLETON, Colo. – Tricor Pacific Capital, a private equity fund, said Friday it has acquired CPI Card Group, one of the biggest manufacturers of plastic cards. CPI makes cards for Visa USA, MasterCard, American Express and Discover, as well as gift cards for retail use. Financial terms of the deal were not disclosed.

MINNEAPOLIS – Shares in Fair Isaac & Co., maker of the ubiquitous FICO score, surged more than 7% Friday after a private investment fund called on management to either sell the company or consider taking it private. In a letter to Fair Isaac CEO Mark Green, Sandell Asset Management said it has acquired a 5% stake in the company, also called on Fair Isaac to hire an investment advisor to explore strategic alternatives. Shares in Fair Isaac rose $2.74 Friday, to close at a new high of $40.12, as the market was rife with takeover speculation. The speculation comes as one after another of third-parti service providers for credit unions is being snapped up in takeovers. Last week, eFunds, the processor for the credit union-owned CO-OP Financial Services, agreed to be acquired by Fidelity National Information Services. That followed takeovers of Open Solutions, Digital Insight, John H. Harland Co., Corillian, First Data Corp., Sallie Mae, and Bisys Group.