McLEAN, Va. – Long-term mortgage rates rose again this week, for the fourth time in the past five weeks, according to Freddie Mac. The average for the benchmark 30-year, fixed-rate loan inched up to 6.21% this week, from 6.18% last week; while the average for the 15-year, fixed-rate mortgage rose slightly to 5.96%, form 5.94%. ARM rates also crept up, with the average for the one-year rising to 5.44%, from 5.42%; and the average for the five-year ARM moving to 5.96%, from 5.94%. Frank Nothaft, chief economist for Freddie Mac, predicting a moderating of long-term rates this year. “We expect rates on 30-year fixed-rate mortgages to remain below 6.5% in the coming year and for adjustable-rate mortgage rates to be less attractive to borrowers in 2007 than they have been in recent years," Nothaft said. "We now expect the ARM share of home purchase mortgages in 2007 to fall below 20% for the first time since 2003."

ROSEVILLE, Mich. – Christian Financial CU said yesterday it has signed with Diebold to offer customized marketing messages on its ATMs through Diebold’s Campaign Office software. Campaign Office uses demographic and other account information to determine relevant marketing messages for individual ATM users. This allows financial institutions to deliver targeted marketing messages.

WASHINGTON – Regulators warned credit unions and other lenders yesterday of loading on too much risk with exotic new loan products, a practice known as risk-layering. Federal Reserve Governor Susan Bies told attendees to NCUA’s Risk Mitigation Summit that regulatory supervisors have noticed that lenders are increasingly combining non-traditional mortgage loans with risk layering practices, such as by not evaluating a borrower’s ability to repay the loan. “We are also seeing more frequent use of limited or no documentation in evaluating an applicant’s income and assets,” said Bies, warning that the increasing easing on credit requirements, combined with non-traditional loan products, especially to subprime borrowers, “may generate losses on these products greater than has been observed in the past.” “The greater prevalence of risk-layering practices and sales of non-traditional mortgage products to non-prime borrowers have occurred in the past few years as competition for borrowers and declining profit margins has prompted lenders to loosen their credit standards to maintain loan volume in a slowing environment,” said Bies. She called on credit unions and other lenders to make sure the complexity of these new mortgage products is clearly understood by both the lenders and the borrowers. Other speakers at the event organized by NCUA Vice Chairman Rodney Hood emphasized the need for credit unions to adopt a balanced approach to risk mitigation, no matter how large or small the institutions. Leo Tillman, a senior managing director with Bear Stearns, insisted that even the smallest credit union should be engaged in evaluating and managing the risks.

WALL, N.J. – A member of First Financial FCU who won a new Honda Accord turned around and gave it to her parents to say thanks for all they have done for her. First Financial gave the car away as part of a sweepstakes open to new or existing members who opened a qualifying account. The purpose of the promotion was to ‘shift’ the members’ banking relationship to First Financial. The $180-million First Financial reported that in addition to having more than 1,000 ACH transactions switched over to the credit union, the promotion brought in $1.3 million in core deposits, $3.7 million in auto loans, and more than $2 million in home equity loans and lines. After receiving more than 10,500 entries, Deborah Stabile-Wisniewski’s name was drawn. A single mother of three, Stabile-Wisniewski told the credit union that she was giving the car to her father, whose car broke down the week prior. She went on to explain that 2006 was the year that she wanted to become financially healthy and that she purchased a new car in October 2006, never thinking that she could possibly win. She said that her parents have always been there for her – watching her children while she works nights at the hospital and have never asked for a dime.

WATERLOO, Iowa – Veridian CU said it made $25,000 in awards to local groups that celebrate and raise community awareness of traditionally excluded groups or cultures. The awardess were: Cedar Falls Human Rights Commission; Lutheran Services of Iowa; Bright Move Network; Latinos Unidos and Big Brothers Big Sisters. The $1 billion credit union provides several grants programs each year supporting the arts and education as well.

IOWA CITY –A controversial name change that was approved, then delayed after some members questioned the narrow vote favoring the change , was ratified by the Iowa Division of CUs. The regulator said it has reviewed the issues surrounding the University of Iowa Community CU’s change to Optiva CU and has given the go-ahead. In October, members voted 198-192 in favor, but some members complained that some ballots were cast prior to a special meeting. Other members were permitted to cast votes by phone. In a letter to the credit union Jim Forley, superintendent of the Iowa Division of CUs, called the voting process “unconventional” but said the credit union had also made a “good faith effort to properly conduct the special membership meeting." The $520 million credit union will implement the new name on March 1.

RALEIGH, N.C. – State Employees CU is giving is members a million reasons to convert from paper to electronic statements–$1 million reasons exactly. Members converting to the credit union’s e-statements from now until the end of February could win up to $25,000 as part of the $13 billion credit union’s Million Dollar Sweepstakes, which will award 100 members $5,000 each and 20 members $25,000. The idea for the million-dollar sweepstakes came from SECU’s 1,500-member voluntary advisory board, which sees it as a way to increase member convenience, cut costs for the credit union and save paper, according to Leigh Brady, marketing director for SECU. Delivery of each mailed monthly statement costs more than $1 , including paper, handling and postage. Credit union executives figure that if 15% of their 675,000 members with checking accounts switch to e-statements SECU will recover the cost of the sweepstakes. The initial response has been positive, said Brady, with twice as many members switching to e-statements last week, as in the entire month of December.

SYRACUSE, N.Y. – Beacon Federal Savings Bank has never left its credit union roots far behind since becoming just the second credit union to convert to a mutual savings bank in July 1999. The credit union for the once proud air conditioner manufacturers Carrier Corp. has tripled in size since then by acquiring four other credit union-converts, including two that served Carrier. Beacon, which now claims almost $600 million in assets, was at it again last month, acquiring Marcy FCU, after the $20 million credit union converted to mutual thrift just before the new year. Other credit union deals by Beacon Federal for Salt City Hospital FCU, Caney Fork FCU and Professional Teachers FCU gave it a disparate market that includes branches in Syracuse, Massachusetts, Texas and Tennessee. “Some credit unions merge with other credit unions; other credit union merge with us. There’s no difference,” said Darren Crossett, senior vice president of Beacon Federal, asserting that the mutual structure allows them to retain their mutual heritage. Despite being one of the first credit unions to convert, Beacon has yet to go public. “This demonstrates that you can continue with the credit union philosophy after you become a bank,” said Alan Theriault, consultant on credit union conversions, who was not involved in the deals. “Your membership is essentially the same and you can double your capital potential by being a bank.”

NEWBURG, Ind. – Heritage FCU said yesterday it has hired Ruth Gaon, a long-time credit union manager, to be its president and CEO, the first woman to lead the credit union in its 40-year history. Gaon was most recently president of Northeast Arkansas FCU, and has also managed credit unions in California, Arizona and New Mexico. Heritage FCU has about $300 million in assets and about 30,000 members.

DALLAS – Southwest Corporate FCU said yesterday it has implemented the 3n mass notification system to automate emergency communications with its employees. The $10 billion corporate said it uses the 3n system as an enhancement to its business continuity program. 3n is a privately held company based in Glendale, Calif.

BASKING RIDGE, N.J. – Affinity FCU announced yesterday it has launched a new home equity product that is a closed-end, adjustable-rate loan. The 5/5 Flex offers a fixed rate for the first five years, then adjusts every five years after until the end of the term. The rate at each adjustment will be equal to the credit union’s home equity line of credit at that time. There is no prepayment penalty. The available terms are 10, 15 or 20 years. All options have the same interest rate.

FRANKFORT, Ky. – Commonwealth CU said yesterday it has signed with The Edcomm Group to implement the company’s eLearning program on elder financial abuse training. The $620 million credit union will also implement Edcomm’s Learing Management System, called Learning Link, for hosting and maintenance of online training. Edcomm’s Focus on Elder Financial Abuse provides training on how best to serve elderly members while reducing risks to the credit union. The course covers defining elder financial abuse and laws governing it, detecting red flags of elderly financial abuse, and reporting cases of abuse to the proper authorities.

TUKAWILA, Wash. – Boeing Employees CU said it is the first financial institution to implement a new consumer calling service offered by check-printer Deluxe Corp. DeluxeCalling is aimed at strengthening new consumer relationships and expanding consumer portfolios. After a consumer is issued a loan from the credit union, the DeluxeCalling team provides information about the loan terms and service, as well as other products and services offered by the $6.6 billion credit union.

AUSTIN, Texas – AMPLIFY FCU said yesterday it has deployed Hyland Software’s OnBase enterprise content management system to automate its business processes, improve member service and manage records retention. The implementation of OnBase is part of a transformation of the $400 million credit union, known until recently as IBM Texas Employees FCU, which cost the credit union about $1.2 million in related expenses. OnBase is an ECM software suite with applications that include document imaging, workflow, electronic document management, COLD/ERM and records management. Hyland Software is based in Cleveland.

DALLAS – The Federal Home Loan Bank of Dallas announced yesterday that two of its credit union members were awarded $280,000 in affordable housing grants. The grants include a $200,000 award to MobilOil FCU, in Beaumont, Texas, which will administer a 20-unit project for Beaumont Habitat for Humanity; and $80,000 to First Delta FCU, in Marks, Miss., for a 12-unit project. The grants were part of $9.2 million awarded yesterday by the Dallas FHLB to help fund 65 projects providing 2,015 affordable housing units in five states.

HARAHAN, La. – Audrey Cerise, the well-known leader in the community development credit union movement, retired this week as president and CEO of ASI FCU. Cerise, who helped build the CDCU to over $300 million in assets, ran the credit union for 27 years, during which time she helped develop innovative programs for payday lending, check cashing and individual retirement accounts. Cerise will serve as adviser to the credit union’s new CEO, Mignhon Tourne, president of the credit union’s board the past 17 years, who was working for Louisiana Medical Mutual Insurance Co.

BILOXI, Miss. – Keesler FCU, battered last year by Hurricane Katrina, announced a second special dividend for 2006, a $3 million bonus paid to members. That follows a mid-year payout of $863,000 to savers at the end of June. Credit unions large and small all around the country continue to share their success with members in the way of bonus dividends. Ascend FCU (formerly AEDC FCU), in Tullahoma, Tenn., paid members a $3 million bonus dividend. TDECU, formerly Texas Dow Employees CU, in Lake Jackson, Texas, paid its members a $1.7 million bonus. Tulsa Teachers FCU, Tulsa, Okla., paid out a $1.5 million bonus dividend. Hanscom FCU, in Lexington, Mass., paid members a $620,000 loyalty dividend. Western New York FCU, in Buffalo, paid out $500,000; First Energy Family CU, Akron, Ohio, paid $470,000; Neighbors CU, in St. Louis, paid members $410,000; MIT FCU, Cambridge, Mass., $200,000; and City Employees CU, in Koxville, Tenn., gave back $75,000.

KENSINGTON, Md. – Dissident members of Lafayette FCU said yesterday they are approaching the necessary signatures to force a member vote on the future of credit union’s board of directors, currently engaged in a battle to convert the $330 million institution to a mutual savings bank. Scott Stiens, one of the members spearheading the petition drive, said he was thrown out of the credit union’s branch in the U.S. Small Business Administration yesterday, as he tried to collect names, but not before a dozen more members enlisted in the bid to recall the board. Separately, hot money appears to be rolling in to the prospective bank from new depositors hoping to cash in when the institutions goes public after switching to a bank. Stiens said while collecting signatures he encountered a local stock broker who said he was joining just to establish rights to buy the stock when the credit union turns bank. Other speculators are also reported to be finding ways to join through one of the credit union’s many select groups. Richard Lashley, a New Jersey speculator in mutual thrifts, said the practice of speculative depositors in mutual thrifts is a common one, especially as the market for thrift conversions has proved lucrative in recent years. Lashley, who won a proxy fight last year with converted credit union Synergy Financial (Synergy FCU), said he has deposits in several local mutuals in the speculation that they will eventually go public. One company, SNL Securities, in Charlottesville, Va., even publishes a list of credit unions that are a good bet to convert to mutual thrifts sometime in the future. Mutual thrift conversions, including those of former credit unions, have proved hot recently, with shares in Viewpoint Bank (Community CU), the most recent credit union convert to go public, up 73% since their October debut.

TALLAHASSEE, Fla. – Sunshine State CU said its members approved the switch of the $170 million credit union to a bank–for the second time. The credit union announced that 58% of the 4,078 members voting approved the switch. Voting members amounted to 24% of all eligible voters. Members approved the switch more than two years ago, but the credit union was forced to withdraw its bid to convert to a mutual savings bank after an upheaval in management left it without a CEO and chief lending officer.

SYRACUSE, N.Y. – Six-year-old Cara Miller learned a profitable lesson last week when she grabbed $67 in wind-blown cash during ESM-NS FCU’s ‘Bank at School’ promotion. The Fremont Elementary School first-grader caught hold of the currency in the wind-blown cash vault, an attempt to illustrate part of the school’s and the credit union’s efforts to teach good savings habits, or ‘how to hold on to your money.’ More than 75 elementary students participated in the program developed by the $55 million credit union. Students who opened new accounts or made deposits during Bank at School Days in November and December were entered into a drawing for a chance for cash in the portable vault. The vault was loaded with $300. Miller, wearing safety glasses and an apron, stepped into the vault set up in the school’s gym, and clutched as much flying cash as she could while classmates looked on and cheered. Before the event took place, Miller practiced using hair dryers, fans and play money. After Cara grabbed the $67, Bill Sweeney, president of the credit union, bumped it up to $75–to teach the kids about interest. When the first-grader told him she planned to donate half the wind-fall to the local charity, the credit union executive doubled her catch to $150–so she could keep the $75 she had cornered on her own.