WASHINGTON–Credit unions told the House Small Business Committee that the process for becoming a qualified Small Business Administration lender is too complex, during a hearing before the panel yesterday. Jeff Rodman, CEO of Actors FCU, New York City, testified on behalf of CUNA, saying his credit union has “found the process for qualifying as an SBA lender, and the requirements for underwriting and servicing individual loans, to be too cumbersome and time consuming to recoup the expense for the small size or number of loans we would make.” NAFCU wrote a letter to committee Chairwoman Nydia Velazquez and Ranking Member Steve Chabot expressing concern that “credit union members will be hardest hit due to the continuation of increased fees coupled with the Administration’s ongoing reduction in budget funding requests for 7(a) program. Their loans are often smaller than the average small business loan. The SBA’s access to capital programs will undoubtedly suffer, programs vital to credit unions will become more expensive and the result will be less accessibility and capital for small businesses and lenders.”

WASHINGTON–Credit card banks came under fire in a hearing before the Senate Permanent Subcommittee on Investigations, where the chairman, Sen. Carl Levin, said attempts by the credit card industry to institute reforms haven’t gone far enough. "The relatively new reforms that you folks have made when the spotlight is on you…we can't have hearings here every day," Sen. Levin said. "So you have to have some regulation, and you have to have legislation, and that's the line we have to figure out where we stop, where to cross." At issue are a variety of billing practices Levin said he believes are designed to confuse consumers. Although Levin is pushing for a bill, such legislation typically would come out of the Senate Banking Committee, led by Sen. Christopher Dodd, who has indicated he wants to give the industry a chance to reform itself before writing any laws or regulation.

BURNSVILLE, Minn.—U S Federal Credit Union went “hillbilly” in its sponsorship of the Twin Cities North Chamber’s annual gala, in keeping with the gala’s “Heehaw Hootenanny” theme. To compliment the chamber’s theme and décor, the credit union adorned the photo shoot area with a rundown farm setting–displaying a giant barn backdrop and old-fashioned milk cans and barrels. “When we chose to sponsor the photo area, it was clear that we needed to go beyond a couple hay bales and create a real-life feel to depict the ‘hick’ theme,” said Rachel Gronewald, Community Development Specialist. “It was our chance to give attendees an opportunity to visit with us and leave with a credit union branded memento, a photo framed with a specifically designed heehaw border.”

MARLBOROUGH, Mass.–For the fifth consecutive year, Massachusetts credit unions are sponsoring efforts to gather books to be distributed to children in the state as part of the Massachusetts Credit Union League’s Children’s Book Month Project. Credit unions in the Bay State are being encouraged to collect the books in branches. The league is supplying promotional materials including posters, counter top signs and statement stuffers. It has partnered with the Massachusetts Coalition for the Homeless to distribute the books.

SALT LAKE CITY—Member Business Lending (MBL) here is reporting that during February, for the second consecutive month, it processed more than 100 business loans. The CUSO said it underwrote 112 loans for small businesses, including 103 Small Business Administration (SBA) loans. "The large number of small loans we are processing is a testament to the growing influence of credit unions in the small business lending community," said Kent Moon, president and CEO of MBL. "Small business is the life blood of the U.S. economic life, and we are honored to help fuel the vital yet underserved entrepreneurs propelling our economy forward." Moon said the average MBL SBA loan is for approximately $60,000."

PAYSON, Utah—A man wanted in connection with the armed robbery of Utah Community CU here has turned himself into police, according to several local news reports. Ricky Brost allegedly walked into the credit union on Tuesday with a bucket of change, seeking to convert the coins to bills. When the teller returned to finish the transaction, Brost allegedly pulled out a gun and demanded money. He then fled the scene with an undisclosed amount of cash.

BOSTON—Getting to the heart of member and/or product profitability is often bedeviled by a lack of data. But one expert says credit unions often overlook key data captures they already have regarding which members are contributing to the co-op (and which are a drain), what those members’ specific needs are, and how information on current members can even be used to effectively target new members. Chris Braccia, director of product marketing-retail solutions with Harland Financial Solutions, said that turning that data “into actionable information is the first step in effective member development.” Braccia will lead a session offering a “Reality Check” on member growth strategies during the Credit Union Journal’s Business Development & SEG Conference, April 12-13 at the Hyatt Regency Hotel, Boston.

SASKATOON, Saskatchewan—A number of Canadian credit union members were unable to use their debit cards Tuesday due to a software glitch. Cards were not working at either point-of-sale terminals or ATMs all day Tuesday, according to local news reports. The vendor providing the ATM/debit technology reported there was a glitch in the software but that the problem has since been resolved.

TAMPA, Fla.—Of all the people Lois Kitsch could have brought to an NCUA summit on short term lending, she picked a payday lender. But there as a good reason. Kitsch, who heads up the National Credit Union Foundation’s REAL Solutions effort, which includes programs to counter payday lenders, was among those on hand with NCUA Board Member Gigi Hyland, who brought the agency’s Access Across America series to the west coast of Florida to discuss short-term lending, free tax help for members and check cashing. Kitsch brought payday lender Kirk Chewning, EVP with TranDoCom Solutions, Kennesaw, Ga., to discuss why CUs need to offer a viable alternative to payday loans. Chewning said a payday lender can offer a first-time customer a small cash amount in less than 10 minutes and a return customer can get approved in roughly three minutes. A credit union member himself, Chewning said payday lending can provide revenue for credit unions, show commitment to the membership and community and help break the cycle of debt with financial education and old-fashioned credit union concern for the member. He added that a shor- term loan can be part of a solution and can come before a credit union learns a member is in trouble via recurring NSF charges, courtesy pay events or late credit card payments.

SALT LAKE CITY–Both the Utah League of CUs and its CEO, Scott Simpson, on Wednesday issued media advisories regarding conversions. While neither advisory named Beehive CU, they were made public just four days after the credit union’s annual meeting where management said it would “explore” conversion to a federal mutual savings bank. The Utah League said it has adopted a “position” on credit union-to-bank conversions. Among the statements the ULCU made on this topic: “the issue of credit union charter conversions should be approached from the point of view of the members of the credit union, since they are the owners of the institution.” and “[W]e cannot conceive of any circumstance under current law and regulation that members would be better off after a conversion to either form of bank charter.” Simpson’s statement declared it was “not specific to any credit union,” and emphasized the ULCU’s primary concern is education. “What makes this process unique, however, is that ultimately credit union members are the ones that will decide their own fate,” Simpson said. “It is our ongoing hope that credit union members will understand fully the many consequences of a conversion vote.” A vote of Beehive’s membership on the proposed conversion will be scheduled for later this year, the CU said.

DALLAS — The Texas Credit Union League’s name and logo once again adorn the Town North Bank Building, formerly called Texas Credit Union Center. “Although the TNB name will continue to occupy the top of the building, we are proud to again have our name on the front of the building–this time above the main entrance,” said TCUL CEO Dick Ensweiler. “It has been the Credit Union Center for a quarter of a century, and now all who pass the building on the very busy I-635 LBJ Freeway, as well as all who enter the building, will know that we are still here and plan to be for at least the next 10 years.”

SIOUX CITY, Iowa–A former branch manager of Advantage One CU has been indicted on four counts of bank fraud and two counts of money laundering in federal court, according to local news reports. Robin E. Anderson was charged in federal court and is scheduled to be arraigned in the U.S. District Court here later this month. Anderson allegedly used the names and personal data of CU members to obtain loans and credit cards over a period of four years.

BOULDER, Colo.–Elevations CU is moving forward with its conversion to state charter following a vote of its membership approving the proposal. Of those casting ballots, a whopping 81% favored converting to a state credit union charter. The credit union cited the need to expand its service areas as the high cost of housing in Boulder County has driven members to move to markets outside of the CU’s area. “A State Charter gives us the flexibility to locate new branch and ATM services in areas more convenient to where our members live,” said Elevations Chair Lynn Walloch. “We want controlled growth that will allow us to serve current members while increasing our overall membership base and diversity,” added Elevations CEO, Bill Sterner. “Our next step is to analyze membership clusters to identify potential growth areas and evaluate communities for expansion.”

DALLAS–The Texas Credit Union League’s name and logo once again adorn the Town North Bank Building, formerly called Texas Credit Union Center. “Although the TNB name will continue to occupy the top of the building, we are proud to again have our name on the front of the building–this time above the main entrance,” said TCUL CEO Dick Ensweiler. “It has been the Credit Union Center for a quarter of a century, and now all who pass the building on the very busy I-635 LBJ Freeway, as well as all who enter the building, will know that we are still here and plan to be for at least the next 10 years.”

NEW YORK CITY–The Financial Services Technology Consortium (FSTC) has completed the Camera Calibration project aimed at understanding the key drivers of differences among check imaging systems. During the six-month project, the team developed test documents to be used in the field to ensure image systems are calibrated to improve image consistency and maintain image usability. This is especially important with the proliferation of remote image capture systems, FSTC said. The Camera Calibration Project is one of a series of on-going projects that FSTC has completed in the last four years to help the financial services industry move toward fully functional check image exchange.

WASHINGTON–Two NCUA officers have won the African American CU Coalition’s Pete Crear Lifetime Achievement Award for 2007. NCUA Region III Director Alonzo Swann and NCUA Director of the Office of Small CU Initiatives Tawana James took this year’s top honors an will be honored at the aACUC’s 9th Annual Summer Conference in Baltimore, Aug. 10. The award was developed four years ago to recognize CU professionals or volunteers “whose sustained excellence in career achievements exemplify” the ACCUC’s mission to “increase the global credit union movement's strength by adding the focused perspective and energy of credit union volunteers and professionals of African-American and African descent.”

NORTHVILLE TOWNSHIP, Mich.–With the pending departure of Comerica, Michigan’s oldest and largest bank, to new digs in Dallas, the Michigan CU League took the opportunity to point out that part of the credit union difference is in their commitment to their communities. Michigan CU League CEO David Adams said Comerica cited the need to diversify its customer base and extend into high-growth areas as well as a limited local talent pool as the reasons for relocating. “This creates a stark contrast between big banks and not-for-profit credit unions,” Adams said. “The state of Michigan is struggling right now, and for Michigan’s oldest bank and a stalwart supporter of Metro-Detroit communities for many decades, to relocate for the purpose of growing profits is a real psychological blow to the state. Michigan credit unions are headquartered here in Michigan and don’t relocate outside the state to grow their profits. What’s more, Michigan credit unions are locally-owned and locally-staffed. They put people–our state’s consumers–before their bottom line. That’s the credit union difference.”

BOSTON–A primary focus of credit unions offering business services has been lending. But one expert believes credit unions are drastically underestimating other related opportunities in business services, including becoming a key driver for attracting SEGs and new members. Moreover, says Bert Bryan, president of CU Business Capital, LLC, Miramar, Fla., a CUSO that was originally chartered by Eastern Financial Florida Credit Union, a comprehensive business services program can also play a significant role in increasing fee income and providing low-cost deposits to the credit union. Bryan, who calls business services and "irreversible trend" for credit unions, will share strategies for leveraging the potential of business services during the Credit Union Journal's Business Development & SEG Conference in Boston, April 12-13 at the Hyatt Regency. The meeting focuses on strategies for growing membership, and also kicks off on April 11 with a very special "Night at the Museum," in which those who register for the event will travel to America's Credit Union Museum in Manchester, N.H., for a night of history and camaraderie, followed by dinner inside the building that housed America's first credit union. Note: Attendance is capped at 85 for the Museum event.

SANTA ROSA, Calif.–Redwood CU and First Napa FCU have completed their merger, with RCU as the surviving institution serving 135,000 members and assets exceeding $1.5 billion. “We are pleased to welcome the Members of First Napa Federal Credit Union to our membership, and look forward to the opportunity to offer expanded financial services to these new Members, as well as to the entire Napa community,” said RCU’s CEO Brett Martinez. All former FNFCU employees were retained on staff of the merged institution.

PENSACOLA, Fla.–Gulf Winds FCU has established an Enterprise Tornado Relief Fund to assist those affected by the recent tornado in the City of Enterprise, Alabama. "Thoughts and prayers from our Gulf Winds family go out to the people affected by this disaster," said Chris Rutledge, CEO of Gulf Winds. "Our members and employees have been very supportive through the Gulf Coast's recent hurricane activity. We believe it is important to support the victims, volunteers, and relief workers of this tragedy." Those interested in making a donation to the Enterprise Tornado Relief Fund through Gulf Winds, can make checks payable to Enterprise Tornado Relief Fund, and send to: Enterprise Tornado Relief Fund, Gulf Winds Federal Credit Union, 220 E. Nine Mile Road, Pensacola, FL 32534.