CINCINNATI – The Federal Home Loan Bank of Cincinnati on Friday announced it is making $250 million in low-cost funds available to its credit union and bank members to help troubled homebuyers refinance their mortgages. Assistance under the FHLB’s HomeProtect Program at the FHLB’s cost of funds to lenders, and will be available to borrowers whose homes are at risk of foreclosure. Mortgages through HomeProtect can be made to homeowners earning 115% or less of an area’s media income. The FHLB Cincinnati serves 740 institutions, including 110 credit unions in Kentucky, Tennessee and Ohio, which has one of the highest foreclosure rates in the country.

LANSING, Mich. -- Gov. Jennifer Granholm and legislative leaders reached a deal last week on an overhaul of the state’s business tax that leaves in place the credit union exemption from corporate taxes. The plan to replace the Michigan Single Business Tax would reduce taxes for nearly three-fourths of employers who pay - especially large manufacturers - and is crafted to make the state more inviting to entrepreneurs and small businesses. The deal must now ve voted by lawmakers. The business tax plan would replace the SBT, which expires Dec. 31, and would generate about the same amount of revenue as the SBT - approximately $1.9 billion annually.

HANFORD, Calif. – Family and Schools Together FCU has acquired a 48,000 square-foot building in the downtown that has been vacant since 1999 and plans to redevelop the property into a branch and leaseable space. The 56-year-old building, once home to a Sears department store, will be renovated both inside and out, part of the city fathers’ aim to revitalize the downtown. The $75 million credit union hopes to occupy the space by early 2009.

ARLINGTON, Va. – NAFCU on Friday joined CUNA in expressing its opposition to an NCUA proposal which would require the disclosure of golden parachutes and other significant remuneration involved in credit union mergers. In a comment letter sent to NCUA, NAFCU said it does not believe the agency has show a need for the proposed disclosure rule, one of several proposals issued by NCUA aimed at creating more transparency for members. “While we recognize that the proposed rule is designed to ensure that executive self-dealing will not be a motivating factor in merger deliberations, NAFCU is extremely concerned that the proposal may have a chilling effect on the right of federal credit unions to make reasonable business decisions to benefit their members without achieving this goal,” said NAFCU, in a comment letter signed by its chief lobbyist Dan Berger. NAFCU’s expression of opposition came two days after CUNA also issued its objections to the transparency rule, saying NCUA has not shown a need for the additional public disclosures. NAFCU also expressed its opposition on Friday to another NCUA proposal which would set clear and uniform rules for member access to books and records. NAFCU said it supports member rights to access of records under state corporate laws, but is not “convinced, however, that these rights should be federally regulated at this time.” NCUA Chairman JoAnn Johnson has proposed the rules because she said credit unions should follow the lead of publicly owned companies and other public entities in opening their records and deliberations to their owners. However, credit unions have been slow to embrace efforts in the overall market to increase transparency, arguing, as NAFCU does in its comment letter on member access, that publicly available records, like 5300 call reports, provide adequate information for members.

BURBANK, Calif. – NCUA said Friday it has approved the combination of the two Disney Co. credit unions, Partners FCU and Vista FCU, creating a credit union giant to serve Mickey Mouse, Donald Duck and Winnie the Pooh–or at least the actors who play them. The credit union, which will retain the Vista name, will serve employees of both Disney World, in Anaheim, Calif., and DisneyLand, in Orlando, Fla., as well as Disney Studios, the Disney cable TV channel and hundreds of select groups that do business with the Disney Co. The combined credit union of $750 million in assets and 100,000 members will be run out of Burbank, the headquarters of the much larger Vista and near the offices of the Disney Co., and retain the Vista name. John Janclaes, CEO of the $500 million Vista, will head the combined entity, while Partners FCU President Penny Tonn will help with transition and retire in July 2008. Vista was started in 1960 out of a trailer on the Disney Studio Lot Burbank. Partners was chartered in 1968 at the request of a group of Disneyland park employees.

KANSAS CITY – Tax preparer H&R Block Inc. said yesterday expanding losses in its subprime mortgage operations pushed it into a large $885 million loss for its fiscal fourth quarter, normally its best quarter because of tax season. In comparison, the company reported a $587.5 million profit last year for the fourth quarter, ended April 30. Block, which has agreed to sell its troubled subprime mortgage lender, Option One Mortgage Corp., reported a $676.8 million loss on discontinued operations, which includes Option One, as well as several other mortgage businesses. Block has agreed to sell Option One to private equity giant Cerberus Capital Management LP. The subprime losses pushed the nation’s largest tax preparation company into the red for the year to the tune of $433.6 million, compared to a profit of $490.4 million for fiscal 2005.

PORTLAND, Ore. – Financially ailing TRM Corp., once the largest renter of photocpiers in the country, sold its remaining photocopier assets for $400,000 yesterday. TRM, the operator of 15,000 ATMs–6,000 of which are connected to the credit unions’ CO-OP Network–said the proceeds from the sale will be used to pay down debt and other corporate purposes. The photocopier assets, all in Canada, were sold to FPC Multitech Services, which is owned by former TRM operations manager Philip Blouin. Over the past year TRM has raised almost $100 million with the sale of its U.S. and Canadian copier business, and its Canadian and U.K., ATM business. TRM reported losses of $120 million last year and is currently fighting a bid by the Nasdaq to delist its stock.

COVINA, Calif. – First City CU has agreed to donate $25,000 to the city to sponsor the annual Bluespalooza/Thunderfest music festival. The $350 million credit union has a branch in the city. The event is a combination blues music festival and car show.

BATTLE CREEK, Mich. – A financial counselor for youths with bad credit has been hired as the president and CEO of a fledgling community development credit union that will serve the area’s low-income community. As president of Inspire Community FCU, Kathie Black will be able to put her advise and counseling to practical use. The proposed credit union, which is waiting for an NCUA charter, plans to open its doors in the fall. The credit union start-up has attracted $500,000 in grants from the W. K. Kellogg Foundation, United Way of Greater Battle Creek, the Miller Foundation, Battle Creek Community Foundation and Battle Creek Unlimited.

PORTLAND, Ore. – Northwest Corporate FCU said yesterday it signed with Jack henry & Associates to implement the Symitar core data processing system. Symitar will provide core processing to the corporate through its Episys-based service bureau offering. Northwest Corporate has been using Symitar’s corporate data processing solution through U.S. Central FCU for more than two years.

NASHVILLE, Tenn.– CUNA Mutual Group believes it has at least a partial solution to the ROA compression nearly every credit union is feeling: significant improvement in performance of the investment portfolio. David P. Marks, who left Citigroup’s Travelers unit, where he oversaw a $70-billion portfolio, before joining CUNA Mutual 16 months ago as chief investment officer, has overseen a 114 basis point increase in the return on CUNA Mutual’s investment portfolio with no change to quality, duration or liquidity. With the completion of its recently unveiled investments room, Marks told the Credit Union Journal CUNA Mutual believes it can do the same thing for the longer duration, excess part of the portfolio by using the heft it brings to the market and the much-improved ties to Wall Street the company now has. Marks noted that in CUNA Mutual’s case, better investment strategies added $60 million to the bottom line during 2006. The plan now, said Marks, is to raise awareness among credit unions that CUNA Mutual can partner on portfolio analysis and performance. Marks, along with CUNA Mutual CEO Jeff Post, stressed the company is not interested in the overnight and shorter-duration funds most credit unions keep in corporates.

McLEAN, Va. – The four-week-long rise in mortgage rates was halted this week, if even for a brief time, as investors digested news that economic drag could last longer than expected. The average for the 30-year, fixed-rate loan dipped to 6.69% this week, from a one-year high of 6.74% last week; while the average for the 15-year, fixed-rate mortgage dipped to 6.37%, from 6.43%, according to Freddie Mac. ARM rates also moved lower, with the average for the five-year ARM dipping to 6.31% this week, from 6.37% last week; and the average for the one-year ARM declining to 5.66%, from 5.75%. Analysts said the slight retreat occurred because financial markets saw two weak reports on housing as indications that troubles in the slumping sector are continuing to mount. The government reported that construction of new homes and apartments fell by 2.1% in May, leaving building activity 24.2% below the level of a year ago, while the National Association of Home Builders said its index of builder sentiment in June fell to a 16-year low. Mortgage rates eased this week due to market concerns that the housing market will be a longer drag on the economy, said Frank Nothaft, Freddie Mac's chief economist.

ORLANDO, Fla. – Fairwinds CU cut the ribbon on its new headquarters building Wednesday. The credit union is renting the first, second and 12th floor of the 12-story building, located in the downtown. The new office project is part of the $1.4 billion credit union’s ambitious expansion plans, which includes the addition of as many as 10 new branches a year. To celebrate the ribbon-cutting, Fairwinds donated $25,000 to the Dr. P. Phillips Orlando Performing Arts Center, a $100 million project still as many as five years away from completion.

ALBANY, N.Y. – At the top of every hour, listeners of radio station WGY, AM 810 hear, ‘Your news. Your talk. From the Capital Communication Federal Credit Union studios.’ before every news broadcast. The hourly tout is part of a unique sponsorship deal the credit union struck which gave it the naming rights to the station’s studios for one year. The newly named, state-of-the-art Capital Communications Federal Credit Union Studios are located at the WGY broadcast center in Latham. WGY is owned by Clear Channel Communications, which has sold the naming rights to other studios around the country. WGY was founded in 1922 and is one of New York’s oldest radio stations. CapCom FCU is the state capital’s second largest credit union, with $550 million in assets and 53,000 members.

INDIANAPOLIS – A jury convicted William Beeler Tuesday of robbing a branch of Forum CU of more than $210,000 in June 2006, but none of the money was ever recovered. Beller, 45, of Indianapolis, maintained his innocence throughout his trial, despite the fact that $11,000 of the stolen loot was traced to him, including $4,000 in cash he used to buy a used Cadilac DeVille and $1,060 he used to pay overdue rent and luxury items, including a flat-screen TV, right after the heist. But the rest of the money was never found. Police said Beeler broke into the credit union brandishing a handgun and ordered the manager to duct-tape the hands and mouth of a member and a teller.

PHOENIX – Credit union partners of Wal-Mart Stores were surprised by this week’s announcement that the retail giant will open 1,000 MoneyCenters inside its stores and are anxious to learn more about the plans. “Just like everybody else, we’re going to wait and see what occurs,” said Jason Meyer, a spokesman for Desert Schools FCU, which has 21 in-store Wal-Mart branches and is poised to open another four by the end of the year. Karen Benedetti, vice president of marketing for Service CU, said the five Wal-Mart branches the New Hampshire credit union has opened this year have been profitable and provide a great way to reach thousands of potential members it might not have had access to. The $1.1 billion credit union, which plans to open two more Wal-Mart branches by year-end, is confident the Wal-Mart MoneyCenters won’t compete to sell the same products. “It looks like the overlap is minimal, but the consumer has to understand that,” Benedetti told The Credit Union Journal. Both Benedetti and a representative of Landmark CU, which operates two Wal-Mart branches in Milwaukee, said that Wal-Mart had not contacted them to explain its plans for the in-store MoneyCenters, but they had been notified by FSI, the Atlanta-based branch developer which helped develop their Wal-Mart branches. Wal-Mart, which abandoned plans for a bank charter earlier this year, said it plans to increase the number of its bank-like MoneyCenters from a current 225 to 1,000 by the end of 2008. The MoneyCenters will offer check cashing, wire transfers, account transfers, bill payment, and a new prepaid Visa debit card for the unbanked, with other services and products planned in the future.

AUSTIN – The Texas CU Commission has proposed a new rule which would effectively ban all hostile credit union takeovers.

MARLBOROUGH, Mass. – Digital FCU announced yesterday it has joined with the Boomer Esiason Foundation to present a $50,000 check to the Massachusetts General Hospital’s Adult Cystic Fibrosis program. The money was raised at the credit union’s DCU for Kids’ annual golf tournament at Wedgewood Pines Country Club, in Stowe, Mass. The Boomer Esiason Foundation was created by the former football star whose son was born with the disease that affects the lungs and digestive system.

RIVERWOODS, Ill. – Discover Financial Services, in the process of being spun-off from Morgan Stanley, said yesterday that first quarter earnings declined a whopping 64%, to $209 million. Last year’s $343 million first quarter earnings were attributed to the fall-off in charge-offs due to the 2005 bankruptcy reform bill months before; while this year’s reflect a more normalized level of charge-offs and loan loss reserves. This year’s second quarter also included $20 million of expenses related to the pending spin-off. Discover is the parent of PULSE EFT, the ATM network which it bought from 4,100 credit unions and banks just two years ago. For this year’s second quarter: managed credit card receivables were up 6% to $51.4 billion; while sales volume also increased 6% to $25.4 billion, compared to the first quarter last year. Total transactions on the Discover and PULSE networks grew by 14% over the same period last year.

WALL STREET – Hedge fund Pennant Capital Management LLC continued to press its bid to stop the takeover of PHH Corp., the largest mortgage bank for credit unions, urging a spin-off of the mortgage bank from the company’s fleet business, instead. In a letter to the PHH board on Monday, Pennant, which has built an 8% stake in PHH, said the spin-off could provide greater value to shareholders than the agreement to sell the company for $31.50 a share to GE Capital, which would then sell the mortgage business to private equity giant The Blackstone Group. PHH, which has long provided mortgage banking services to hundreds of credit unions, became the largest mortgage bank for credit unions when it acquired CUNA Mutual Group’s mortgage business in the fall of 2005. That business included relationships with more than 1,000 credit unions and a servicing portfolio consisting of more than 100,000 residential mortgages valued at over $12 billion. Pennant said the PHH board neglected to explore the spin-off option and said the actions described in the company’s proxy leading up the sale “paint a picture of a seller in panic mode as bidders were dropping out and even Blackstone blinked at the eleventh hour.” “Importantly, the issues that caused this panic were either irrelevant (sub prime meltdown) or self-inflicted and temporary (inability to produce financial statements, failure to cut capacity heading into the declining mortgage market). It is clear you merely sought to do the best you could in a desperation auction of the Company, without giving serious consideration as to whether the Company should be sold in the first place.” PHH, itself, was spun off in 2005 from Cendant Corp.