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Full Issue: July 9, 2014

CUNA's Hampel in The Hill: CUs a good option for anyone

Washington
WASHINGTON (7/9/14)--Washington, D.C.-based newspaper The Hill featured an op-ed by Credit Union National Association interim President/CEO Bill Hampel that underscored that credit union membership is right for all Americans. The Hill , with a circulation of more than 24,000, reaches many legislators and other federal policymakers.

Hampel's letter is a response to a June 24 op-ed by the American Bankers Association that attacked plans to create a credit union to serve professional athletes and their families.  

The proposed credit union, sponsored by the ex-spouse and the mother of professional baseball players, would have financial education as its mission and aim to meet the unique needs of professional athletes at all levels.

Hampel went on to say that while superstars with eight-figure contracts receive most of the attention--especially from the bankers--the proposed Players Choice FCU would serve all athletes.

"Our understanding is that the new credit union referred to by the leader of the trade group for big banks would provide financial management resources to athletes and their families, and serve a number of organizations focused primarily on professional and amateur sports," Hampel wrote. "Their membership would include associations and businesses, and would serve both active and retired athletes.

"Most pro athletes are not millionaires. Also on the list are minor league baseball, basketball and soccer players, many of whom have quite low incomes. A much greater portion of these lower-income athletes are likely to avail themselves of a credit union than would the high-paid superstars, most of whom are probably served by private bankers," Hampel wrote.

"A credit union makes sense for everyone, offering a place for the members to pool their resources and save for their futures and help their colleagues meet their own financial challenges in the meantime."

Hampel's op-ed comes a week after National Credit Union Administration board member Michael Fryzel weighed in on the same topic in The Hill , saying credit unions are part of a financial system that offers a wide variety of services to meet the needs of consumers of all types ( News Now July 3).

CUNA's Hampel also refuted the ABA's claim that that professional athletes don't deserve membership to a credit union specific to their needs in a June 29 editorial by Wayne Green in the Tulsa (Okla.) World .

Other Resources

NCUA will post recorded Listening Sessions to website

Washington
WASHINGTON (7/9/14)--The National Credit Union Administration will begin posting audios of its June 26, July 10 and July 17 Listening Sessions within the next few weeks.  Although the forums are open to any topic, the NCUA's risk-based capital proposal dominated the discussion at the June gathering in Los Angeles and promises to do so at the final two sessions.
 
Originally, the agency had not planned to record the sessions.  However, the NCUA has subsequently said that within a few weeks of each gathering--which is the amount of time the agency expects it will take to transcribe the audios to comply with federal laws on closed captioning for the hearing impaired--the recordings will be posted to the NCUA website.
 
This week's session in Chicago will be attended by NCUA Chair Debbie Matz, as well as board members Rick Metsger and Michael Fryzel. The sessions are scheduled to run from 1 to 4 p.m. (CT) Thursday. Watch News Now for coverage.

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Rep. McHenry requests explanation on RBC proposal

Washington
WASHINGTON (7/9/14)--Rep. Patrick McHenry (R-N.C.), chair of the House Financial Services subcommittee on oversight and investigations, has asked National Credit Union Administration Chair Debbie Matz for several clarifications to the agency's risk-based capital (RBC) proposal.

The letter requests that the NCUA submit answers to a series of questions to the subcommittee no later than 5 p.m. July 18.

The NCUA's proposal would require credit unions to hold capital at 8% of risk-based assets in order to be considered adequately capitalized and 10.5% to be considered well-capitalized. This is in addition to the 6% and 7% leverage ratio requirements to be adequately and well-capitalized. The NCUA would also reserve the right to require credit unions on a case-by-case basis to hold additional capital.

"It is my understanding that this rule would institute far-reaching changes in the Prompt Corrective Action regime, including replacing the agency's current risk-based net worth requirements with new requirements for federally insured credit unions with over $50 million in assets," McHenry's letter reads.

"Given the breadth and scope of the changes the proposed rule would make, the implementation stage will be critical. As a matter of fairness and transparency, the public deserves the opportunity to understand the logic behind this proposal."

McHenry requested that the NCUA provide the subcommittee with the following information:
  • Any cost-benefit analyses performed by the NCUA or that otherwise form part of the administrative record in this matter;

  • The metrics used to determine what asset classifications required revisions;

  • A justification for the revised weighing associated with each individual asset class; and

  • An explanation of the extent to which NCUA examiners would be empowered to assess and make capital recommendations to credit unions that might deviate from the new RBC standards.

CFPB clarifies mortgage rule for surviving family members

Washington
WASHINGTON (7/9/14)--A clarification has been issued to mortgage lending rules that states when a borrower dies, the name of the borrower's heir generally may be added to the mortgage without triggering the Consumer Financial Protection Bureau's ability-to-repay rule. The clarification, issued by the CFPB, is meant to help surviving family members who acquire title to a property to take over their loved one's mortgage.

"Losing a loved one should not mean also losing your home. Today's interpretive rule makes it clear that when family members inherit property, they can take over the mortgage without jumping through unnecessary hoops," said CFPB Director Richard Cordray. "This gives heirs an opportunity to work with the lender to pay off the loan or seek a loan modification."

If a property is legally transferred from family members to their heirs with an outstanding loan still on the property, there can be consequences if the heir cannot add their name to the mortgage. For example, a creditor can deny a loan modification on the grounds that the heir is not officially named on the mortgage.

Since an heir has already acquired the title to the home, the new rule allows the heir's name to be added to the title without triggering the ability-to-repay requirements. The ability-to-repay rule requires lenders make a reasonable, good-faith determination that prospective borrowers have the ability to repay their loans.

In addition, the rule does not require the creditor to determine the heir's ability to repay the mortgage before formally recognizing the heir as the borrower. As the named borrower, the heir may more easily be able to obtain account information, pay off the loan, or seek a loan modification.

The rule can also apply to other family-related transfers, including transfers to living trusts, transfers during life from parents to children and transfers resulting from divorce or legal separation.

Cordray also issued a memo Tuesday clarifying that the CFPB, to the extent permitted by federal law, "recognizes all lawful marriages valid at the time of the marriage in the jurisdiction where the marriage was celebrated."

This rule means any terms used in laws, regulations and policies administered by the CFPB related to family and marital status shall now include lawful same-sex marriages and lawfully married same-sex spouses. This includes the Equal Credit Opportunity Act, Fair Debt Collection Practices Act, Truth in Lending Act and Real Estate Settlement Procedures Act.

Use the resource links below for more information.

CDFI requests comment on new reporting form

Washington
WASHINGTON (7/9/14)--The U.S Department of the Treasury's Community Development Financial Institutions (CDFI) Fund seeks comment on a new reporting form designed to reduce the burden on CDFIs during the recertification process.

The CDFI Annual Certification and Data Collection Report Form would replace the extensive process currently conducted every three years with a shorter annual report. 

CDFIs traditionally serve economically distressed target markets and provide a range of financial products, such as mortgage financing for low-income and first-time homebuyers and not-for-profit developers; flexible underwriting and risk capital for needed community facilities; and technical assistance, commercial loans and investments to small start-up or expanding businesses in low-income areas. Credit unions represented 177 out of the 811 CDFIs active at the end of 2013, according to a CDFI Fund annual report released last week.

The new reporting form will collect annual financial and impact data from all CDFIs, regardless of whether they have received monetary awards in their last fiscal year. This information will be used to provide the CDFI Fund and the community development finance industry with more insight into the state and accomplishments of CDFIs. 

According to the CDFI Fund, comments are specifically invited on:
  • Whether the collection of information is consistent with the stated background and proposed use necessary for proper performance of the CDFI Fund;

  • The accuracy of the CDFI Fund's estimate of the burden of the collection of information;

  • Ways to enhance the quality, utility and clarity of collected information;

  • Ways to minimize the collection burden, including through the use of technology; and

  • Estimates of operational or maintenance costs to provide information.
Comments are due on Sept. 9 and should be directed to Brette Fishman, Management Analyst at the Community Development Financial Institutions Fund, U.S. Department of the Treasury, 1500 Pennsylvania Avenue NW, Washington, D.C. 20020; by e-mail to annualreport@cdfi.treas.gov ; or by fax to 202-508-0083.

Use the resource link below for more information.

Spots open for OSCUI training sessions July 23 and 26

Washington
ALEXANDRIA, Va. (7/9/14)--The National Credit Union Administration's Office of Small Credit Union Initiatives (OSCUI) is hosting two training sessions during the month of July. Registration for these sessions is still available for credit union staff, managers and leadership.

A training workshop will be held July 23 in Pittsburgh at the Four Points by Sheraton Pittsburgh North Hotel. Industry leaders will lead a discussion on a number of financial operations and strategic management issues.

Sessions include "Protecting Your Credit Union From the Rising Trend of Employment Practices Lawsuits," "Marketing in the Digital Age," "Bank Secrecy Act--Money Services Businesses" and "Examination Modernization."

A leadership boot camp for senior leaders and management will be held July 26 at the Hilton Newark Penn Station Hotel in Newark, N.J. The daylong training program is designed for current and new credit union CEOs.

The program features breakout sessions for managers and directors, providing a chance for credit union leaders to network with their peers. Participants will receive OSCUI's new Credit Union Leadership Resource Guide (see link below).

Consumer Rates

Market

Informa Research Services, Inc.
Daily Rate Comparison

Informa Research Services, Inc.
Deposit Products Credit Unions Bank Average Difference
12 Month CD $10,000 0.45% 0.28% 0.17%
Personal Savings $1,000 0.21% 0.10% 0.11%
Personal Interest Checking $2,500 0.34% 0.15% 0.19%
NSF Fee $27.74 $31.91 $-4.17
Personal MMDA $2,500 0.17% 0.10% 0.07%
Business MMDA $2,500 0.17% 0.09% 0.08%

Consumer Loan Products Credit Unions Bank Average Difference
Unsecured Personal Loan - $5,000 - 4 Years 10.13% 10.42% -0.29%
New Auto Loan - 5 Years 2.58% 3.82% -1.24%
Used Auto Loan - 2 year Old - 4 Years 2.76% 4.01% -1.25%
HELOC - 80% LTV - $50,000 4.19% 4.41% -0.22%
HE Loan - 80% LTV - $50,000 - 15 Years 5.67% 6.00% -0.33%

Mortgage Loan Products Credit Unions Bank Average Difference
30 Year Fixed Conforming 4.19% 4.22% -0.03%
30 Year Fixed Jumbo 4.25% 4.19% 0.06%
5/1 Year ARM Conforming 2.93% 2.89% 0.04%

Credit Card Products Credit Unions Bank Average Difference
Platinum 9.19% 11.04% -1.85%
Annual Fee $25.00 $48.60 $-23.60
Maximum Late Fee $26.17 $34.28 $-8.11
Reward 9.97% 11.94% -1.97%
Annual Fee $26.71 $99.75 $-73.04
Maximum Late Fee $22.51 $33.15 $-10.64

Indirect Auto Loan Products Credit Unions Bank Average Difference
Indirect A Tier New Auto Loan - 5 Years 3.59% 3.77% -0.18%
Indirect B Tier New Auto Loan - 5 Years 5.34% 5.30% 0.03%
Indirect C Tier New Auto Loan - 5 Years 7.53% 6.72% 0.80%

Averages displayed are straight averages of all institutions within the Informa Research Services database for the selected region as of Tuesday, July 08, 2014. For detailed disclosures click here.

Other Resources

Business Rates

Market
Daily Financial Rates -- 2014-07-09

Financial Rates


Wednesday, July 9, 2014

03:55 AM CDT

TREASURY YIELD CURVE
(based on the $1 million market)

TermWed
7/9
Tue
7/8
Fri
6/27
Thu
6/26
Wed
6/25
1 month0.020.020.010.010.01
3 month0.030.040.040.030.03
6 month0.060.060.060.050.06
1 year0.110.120.110.110.12
2 year0.510.520.460.480.49
3 year0.990.000.900.920.95
5 year1.701.741.641.681.70
7 year2.192.242.142.172.19
10 year2.582.632.532.572.59
20 year3.123.173.083.123.14
30 year3.383.443.353.383.41

TREASURY BILLS

Results of the July 7, 2014 auction of short-term U.S. government bills, sold at a discount from face value in units of $10,000 to $ 1 million

TermLatest
Mon, 7/7
Week Ago
Mon, 6/23
13 weeks0.0300.025
26 weeks0.0600.050

PRIME RATE

3.25% Last changed December 16, 2008

FEDERAL FUNDS

TermWed
7/9
Tue
7/8
Fri
6/27
Thu
6/26
Wed
6/25
high0.3120.3120.3120.3120.312
low0.0500.0500.0500.0500.050
near closing bid0.0700.0700.0600.0600.080
offered0.2800.1000.2800.2800.120
effective rate20.1200.1200.1200.1200.130

FREDDIE MAC (Mortgage commitments, 30 days)

TermWed
7/9
Tue
7/8
Fri
6/27
Thu
6/26
Wed
6/25
30 year0.000.000.000.000.00

FANNIE MAE (Mortgage commitments, 30 days)

TermWed
7/9
Tue
7/8
Fri
6/27
Thu
6/26
Wed
6/25
30 year3.8153.8213.7523.7553.782

LIBOR

TermWed
7/9
Tue
7/8
Fri
6/27
Thu
6/26
Wed
6/25
1 month0.221000.219000.149500.151000.15150
3 month0.376000.375000.234100.233850.23360
6 month0.543000.544000.326150.325900.32630
1 year0.857000.859000.546100.547100.54710

COMMERCIAL PAPER (Financial, 90 days)

TermWeek ended
7/8
Week ended
6/24
90 days0.230.23

NA: Data not available at time of page generation (shown at top of page)

Sources:
Wall Street Journal
U.S. Dept. of the Treasury


All rates are from the previous business day unless otherwise noted.

Other Resources

Consumer credit continues to advance in May

Market
WASHINGTON (7/9/14)--Total outstanding consumer credit climbed $19.6 billion in May, according to Federal Reserve data released Tuesday, a number that falls short of expectations, but still points to building consumer confidence, especially in making big-ticket purchases.

Within credit unions, nonrevolving credit, which is associated with purchasing larger items such as automobiles and homes, drove the gains, climbing to $236.5 billion from $232 billion in April.

Revolving credit, tied largely to credit cards, inched up to $42.8 billion from $42.2 billion in April for credit unions.

"Extremely low interest rates and easier access to credit are enticing consumers to finance large purchases such as education and vehicles," said Moody's analyst Andrew Davis ( Economy.com July 8).

The rise in total outstanding consumer credit in May falls far behind April's $26.1 billion surge and sits below the average increase over the last three months of $21.8 billion.

Further, revolving credit balances overall only gained $1.8 billion in May after an $8.8 billion boom in April.

"Revolving balances decelerated as consumers remain hesitant to take on higher-interest debt," Davis said. "It is encouraging that this segment added $1.8 billion in May, but the pace will have to pick up considerably to make up for the sluggish growth that has persisted throughout the recovery."

Other Resources

News of the Competition (07/09/2014)

Market
  • WASHINGTON (7/9/14)-- The U.S. Department of Justice has announced that SunTrust Mortgage Inc. agreed to a $320 million settlement intended to resolve Justice's criminal investigation of SunTrust's administration of the Home Affordable Modification Program (HAMP).  The settlement is divided as follows: the bank will pay up to $284 million in restitution to borrowers; $16 million in forfeiture, which will fund future law enforcement investigations into mortgage and Troubled Asset Relief Program-fund fraud; and $20 million to a grant administrator to fund housing counseling agencies and other consumer advocacy non-profits. Justice charges that SunTrust "misled numerous mortgage servicing customers" who sought mortgage relief through HAMP. Justice alleges that SunTrust made misrepresentations and omissions to borrowers in HAMP solicitations, and failed to process HAMP applications in a timely fashion. As a result of SunTrust's mismanagement of HAMP, thousands of homeowners who applied for a HAMP modification with SunTrust suffered serious financial harm, the department said in its release...
     
  • WASHINGTON (7/9/14)-- Homeowners have pulled in $3.1 billion in cash from a recent federal settlement with a baker's dozen of big banks over alleged shoddy mortgage processing and wrongful foreclosure action, according to a report released by the Federal Reserve Monday ( CBSNews.com July 7). With individual settlement amounts awarded to about 4.2 million borrowers ranging from a few hundred dollars to $125,000, the Federal Reserve's report said 3.4 million homeowners already have cashed checks as of late April. The 13 banks involved in the settlement include Aurora, Bank of America, Citigroup, Goldman Sachs, HSBC, JPMorgan, MetLife Bank, Morgan Stanley, PNC Financial Services, Sovereign, SunTrust, U.S. Bank and Wells Fargo. The original $9.3 billion settlement requires the banks to pay $3.6 billion in cash as well as $5.7 billion in aid in the form of reduced mortgage loans...

Other Resources

121 Financial emphasizes CU safety, soundness to WJXT-TV

CU System
JACKSONVILLE, Fla. (7/9/14)--The regular "4 Your Money" features by 121 Financial CU on Jacksonville's WJXT-TV typically offer consumer education, but during the July 5 segment, the $449 million-asset credit union took the opportunity to dispel misconceptions brought about by a national news article on credit union lending practices.
 
Rebecca Hulett, senior vice president/chief financial officer, 121 Financial CU, Jacksonville, Fla., explains credit unions' safety and soundness to WJXT-TV host Marques White in a "4 Your Money" segment. ( WJXT-TV Photo)
The piece led off with a reference to a June 6 article in The Wall Street Journal about credit unions' interest-rate risk and if they were as safe as banks ( News Now June 9).
 
The tone quickly changed to a positive one as Rebecca Hulett, 121 Financial CU senior vice president/chief financial officer, explained more about credit unions.
 
The article was "a little bit shaded toward the worrisome side," Hulett noted, adding, "In reality, credit unions have never taken these substantial risks that happened before the bubble burst in 2008, which is why credit unions survived so well throughout the financial crisis."
 
Hulett said that credit unions are easing lending standards slightly, but she credits that to a swing back from the "bit too far" conservative standards created by the financial crisis.
 
She also affirmed the insured status of credit unions--$250,000 per account by the National Credit Union Share Insurance Fund, the same as banks under the Federal Deposit Insurance Corp.
 
Hulett took the opportunity to share the services that credit unions provide, how consumers can learn about the right credit union for them to join and the not-for-profit cooperative structure.
 
"Credit unions are member-owned, so if you hold an account at a credit union, you own the credit union and have a right to vote for the board of directors," Hulett said.

Other Resources

Bay Area CUs prepared for housing market challenges

CU System
SAN JOSE, Calif. (7/9/14)--In the always-volatile California real-estate market, Bay Area credit unions may soon face more mortgage challenges.
 
The "b-word," as in bubble, has surfaced in several recent articles focusing on the local housing market, Dan Hapner, director of mortgage sales for $1 billion-asset Meriwest CU, San Jose, told National Mortgage News (July 7), as starter homes prices have increased to as high as $800,000.
 
Once those prices reach $1 million, most, even buyers with incomes of $250,000, will be priced out of the market, Hapner said.
 
To minimize risk, on any loan above 75% loan-to-value or $1 million, Meriwest CU requires two appraisals, according to Hapner. And the loans the credit union does make are to well-qualified borrowers, he added.
 
The median purchase price for a mortgage made by Meriwest CU in April was $808,000, and the average is above $1 million, National Mortgage News reported.
 
Considering those numbers, most of the mortgages Meriwest CU books are jumbos, which the secondary market has minimal interest in. Investors are looking for six to 12 months in payment history. That means the credit union is placing most of its mortgages in portfolio at the current time, with hopes that the secondary market will open up in the future.
 
Part of the reason for the Bay Area market explosion is foreign investment in real estate, particularly from China, said Dwight Johnston, chief economist for the California and Nevada Credit Union Leagues.
 
But Johnston did offer some good news when comparing the current housing market with the market that led to the crash of 2008: The previous crisis was caused by bad mortgages, which are not driving the current market increase.
 
Steve Donahue, vice president of mortgage origination for $1.8 million-asset Technology CU, also based in San Jose, went a step further. He said talk of a housing bubble was unfounded.
 
Donahue said the Silicon Valley housing market is hot because numerous tech companies are moving to the area, creating a demand for expensive housing. With that kind of money coming in, a drop-off is unlikely, he told National Mortgage News .
 
Vince Salinas, vice president of home loans for $4.1 billion-asset Patelco CU, Pleasanton, said that it was unlikely there enough volume in the local housing market to create a bubble. High prices do not equate to a bubble, he told National Mortgage News .

Other Resources

College an investment worth saving for, GCUA survey finds

CU System
DULUTH, Ga. (7/9/14)--In a recent survey by Georgia Credit Union Affiliates (GCUA), more than 71% of respondents said saving for a college degree is worth the financial investment, with 60% answering that saving for college in general was important to them.

The Mid-Year 2014 Consumer Survey also found that only about 20% of people believe students loans are a good way to pay for a college education, a result that could be driven by ever-escalating costs to attend college.

A recent evaluation of college pricing, reported by GCUA, found that as prices rise for education, so does student debt.

But considering the long-term benefits of receiving a college degree--Americans with a four-year degree make an average of 98% more than those without, according to the Economic Policy Institute in Washington--people still find it imperative to save.

"With tuition costs on the rise, it is important for consumers to begin planning their financing as soon as possible," said Laura Sterling, vice president, Georgia's Own CU, Atlanta, with $1.9 billion in assets. "Even if you have been proactively saving for college, it does not guarantee you won't need financial assistance, and student loans are a great help."

GCUA offers several college savings-related tips, including starting to save as soon as possible, seeking assistance from a financial adviser and researching different ways to save for college.

Sterling, meanwhile, suggests the types of questions those considering taking out a student loan should ask themselves before they sign on the dotted line.

"How much can you afford? Is the school worth the cost of education? How long will it take to pay back the loan?" Sterling said. "What kind of income will you make after you graduate, and what is the job market like in that field?"

Sterling also notes that federal student loans funded by the government can carry less risk and that they're often less expensive than other types of financing options.

"If you need assistance paying for college, it is generally a good rule of thumb to consider federal loans first," Sterling said.

Other Resources

Ind. joins prize-linked savings movement

CU System
INDIANAPOLIS (7/9/14)--Indiana recently joined the growing list of states in which credit unions have the authority to offer prize-linked savings (PLS) accounts when Gov. Mike Pence formally signed into law HB 1235.
 
Click to view larger image From left: John McKenzie, Indiana Credit Union League (ICUL) president; Carrie Summers, ICUL director of advocacy; State Rep. Gail Riecken (D-Evansville); Connie Gustafson, Indiana Department of Financial Institutions general counsel; Indiana Gov. Mike Pence; Chris Beaumont, ICUL vice president of governmental affairs; Kristi Lowell, vice president of brand strategy and development, FORUM CU, Fishers, Ind.; Doug True, FORUM president/CEO and ICUL vice chair; State Rep. Woody Burton (R-Whiteland); and State Rep. Eric Koch (R-Bedford) (Indiana Credit Union League photo)
Nationally, credit unions have led the development of PLS programs by creating savings accounts and other financial literacy tools that reward members who save money by offering chances to win prizes. The programs have been developed as a way to help encourage people to save money and develop good spending and debt management habits.
 
In Indiana, legislative changes were required to ensure that PLS programs would be in compliance with state gaming laws. Previously, PLS programs had to be offered with a "no purchase necessary," sweepstakes-type approach. This meant that members had to be offered a chance to win prizes, even if they did not make deposits or otherwise participate in the programs.
 
In late 2013, State Rep. Gail Riecken (D-Evansville) approached the Indiana Credit Union League about helping her to draft legislation that would authorize credit unions to offer PLS programs without a sweepstakes approach. The legislation also was designed to clarify that credit unions' PLS programs would not fall under Indiana's gambling, lottery, promotions or charity gaming laws.
 
The league worked with Rep. Riecken to draft legislation that would create PLS programs that would be consistent with already-existing PLS programs in other states and those currently being offered by Indiana credit unions as sweepstakes. Although the bill did temporarily get caught up in some minor controversy related to other charity gaming legislation, HB 1235 received wide support from legislators as it moved through the process in the spring session and passed in its final form the day before session ended.
 
Other states that have passed PLS legislation include Connecticut, Maryland, Nebraska, North Carolina, Washington, Maine and Rhode Island. New York has passed a bill that is currently awaiting the signature of Gov. Andrew Cuomo.

Other Resources

Young investors prefer older, experienced advisers

CU System
NEW YORK (7/9/14)--While the digital age and social networking have raised the value of peer endorsements, experience still counts with younger generations when it comes to investing, according to one focus group.
 
And--surprise!--digitally savvy Gens X and Y would rather meet face to face with an adviser than seek investment counsel online ( ThinkAdvisor June 27).
 
Young investors value experience, a group of Gen X and Y investors told financial advisers at a recent Securities America conference. Several members of the group work with their parents' advisers and were not likely to work with an inexperienced adviser without much time or experience in the game, said Janine Wertheim, Securities America Advisors president.
 
During the conference session, a group of young investors listened to recordings of advisers describing what they do for clients. The young investors provided their immediate reactions to the advisers' thoughts.
 
The group of Gen X and Gen Y investors was diverse, and included married and single participants, and couples with and without children. Some had already worked with advisers. Others had invested on their own.
 
Young investors were most impressed with advisers who were interested in getting to know their clients and their unique circumstances, Wertheim said.
 
Among the topics they are most like to seek advice on is real estate, and whether they are better off renting, buying or investing.

Other Resources

Michaud addresses Maine league meeting

CU System
PORTLAND, Maine (7/9/14)--The potential future governor of Maine dropped in to speak at the Maine Credit Union League's annual meeting and convention last month, discussing the positive impact credit unions have had on his life as he addressed the nearly 750 attendees at the event.

Rep. Mike Michaud (D-Maine) tells the credit union professionals in attendance at the Maine Credit Union League's annual meeting and convention that his history with credit unions is "decades long for good reason."
Rep. Mike Michaud (D-Maine), a longtime credit union member and a current board member at Eastmill FCU, East Millinocket, Maine, with $61 million in assets, described his history with credit unions as "decades long for good reason."

"Credit unions are always there to help people," said Michaud, who's been endorsed by the league in his bid for governor. "They helped me as a teenager when I needed a loan for a car and have helped me ever since. The league and credit unions have supported me in every one of my campaigns and I very much appreciate their support again this year because it will be critical to helping me become the next governor."

League President John Murphy called Michaud's understanding and support for credit unions very helpful over the years and said he has been a great friend to the movement through his days in the state Legislature, which included a stint as Senate President, and as a member of Congress for the past 12 years.

"He would be a great governor and be a leader on credit union issues," Murphy said. "As we have on his other campaigns, we will work hard to make that happen."

Other Resources

Truliant members share 'Life Improved' stories

CU System
WINSTON SALEM, N.C. (7/9/14)--To illustrate its new brand--called "Life Improved"--Truliant FCU, Winston Salem, N.C., is asking members to share just how the credit union has enhanced their financial livelihoods with video testimonials.

Broken down into four categories, each featuring members at various stages of their lives, the videos represent anyone from new members to those who have been a member of the $1.7 billion-asset credit union for more than 14 years.

"We share stories internally every day about the ways members' lives are improved by a Truliant membership, but we also wanted to show it," said Karen DeSalvo, Truliant's chief marketing officer. "These videos demonstrate our 'Life Improved' brand by showing members who genuinely benefit financially from a membership with us."



For example, Troy Knight describes in his video testimonial how after being discharged from the U.S. Army, the credit union helped him refinance an auto loan and subsequently set and begin working towards his financial goals.

"The No Cost Credit Review was a great help coming out of the Army," Knight said. "It really gave me a better understanding of my personal credit situation, where I was, where I needed to be, and helped me establish goals."

Another video features a married couple who have four children and $60,000 in credit card debt that Truliant helped take charge of their financial situation.

The videos demonstrate "the guidance we give individuals to help them persevere in difficult financial situations," DeSalvo added. "Both are ways Truliant executes our mission to improve the quality of life of our members."

Other Resources

CU System briefs (07/09/2014)

CU System
  • SANTA ANA, Calif. (7/9/14)-- Counterfeit official checks bearing the name of Orange County's CU, Santa Ana, Calif., are being circulated as part of a national survey scam for a mystery shopper program , according to the $1.1 million-asset credit union. So far, four checks in the amount of $998 have been caught. The counterfeit items display a memo with "June 2014 PYMT" and have the credit union's routing number on them. However, Orange County's CU official checks are issued through Fifth Third Bank ...
     
  • COLUMBIA, Md. (7/9/14)-- As of July 1, Gordon M. Cooley assumed the position of acting commissioner of financial regulation for the Maryland Department of Labor, Licensing and Regulation . He previously was deputy commissioner under Mark Kaufman, who stepped down after four years. The Maryland and D.C. Credit Union Association said it plans to meet with the new acting commissioner soon to make sure industry issues continue to be front and center ( The Daily Scoop June 30) ...
     
  • BOSTON (7/9/14)-- Joseph Finn, board member and clerk for Boston Firefighters CU, Dorcester, Mass., was named commissioner of the Boston Fire Department by Mayor Martin Walsh ( Daily CU Scan July 8). Finn has been on the board of the $193 million-asset credit union for eight years ...
  • MADISON, Wis. (7/9/14)-- UW CU, Madison, Wis., has installed an urban bike-sharing station at one of its branches . With the partnership between UW CU and Madison B-Cycle, members will be able to receive a discounted annual membership. "We're also committed to doing what's right for the environment by supporting this alternative form of transportation," said Brad McClain, executive vice president/chief financial officer at the $1.8 million-asset credit union ...
     
  • HARRISBURG, Pa. (7/9/14)-- Glen Yeager, who has been president/CEO of Utilities Employees CU, for 27 years, announced his retirement ( Life is a Highway July 8). Yeager became CEO in 1987, and the credit union has since grown to more than $1.1 billion from $90 million in assets. It serves 44,000 members from public utilities and energy sector companies in all 50 states, from its sole office in Wyomissing, Pa. "Together we've honed a low-cost 'virtual credit union' model that allows UECU to pay members some of the highest savings rates and rewards of any institution in the country," Yeager said. Upon Yeager's retirement Oct. 1, current Executive Vice President Patricia Zyma will become president/CEO ...
     
  • ST. PAUL, Minn. (7/9/14)-- St. Pascal Parish CU, with $383,000 in assets, has merged with another St. Paul, Minn., credit union . St. Paul FCU, with $129 million in assets, will now serve the parish, school and family members of St. Pascal Baylon Catholic Church ...

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Emergency savings bleak? Starting to save is key

Consumer
NORTH PALM BEACH, Fla. (7/8/14)--More than a quarter of Americans do not have an emergency savings account. Of those who do, two-thirds have less than six months' worth of living expenses, according to a Bankrate.com survey (Bankrate.com June 23).
 
The percentage of respondents who say they have no emergency savings has fluctuated between 24% and 28% since 2011. Student loan debt, high household expenses and flat wage growth all contribute to Americans' low savings rates (USAToday.com June 23).
 
If you have no emergency savings, getting started is the most important step. Follow this advice from the consumer publications editors at the Credit Union National Association in Madison, Wis., to cut spending and build your account:

* Get cooperation from family. Discuss money management with your partner, develop a spending plan together, and agree who will take financial responsibility for what. Be honest about your finances. Set SMART goals: specific, measurable, attainable, results-oriented, and with fixed time frames. Once you and your partner are the same path, involve your children. Make learning about money fun, be consistent in your teachings and be a good financial role model.

* Control living expenses. Try to reduce monthly expenses by evaluating TV, Internet and phone bills. Check with providers to make sure you're getting the lowest rates. Compare insurance policies. Check the Association of Insurance Commissioners website (naic.org) for price comparisons and the Insurance Information Institute (iii.org) for advice about picking reputable companies. Take a close look at what you're spending on food; cut back on going out for meals and picking up takeout. Buy ingredients for interesting meals and make extra for leftovers for lunches.

* Make your credit union your partner. Use direct deposit and automatic transfers from your checking into savings. Automate payments and transfers by using online or mobile bill pay. Refinance your home loan or car loans to take advantage of lower rates, if you qualify. The professionals at your credit union can help you get and stay on track with saving and prudent borrowing.
 
For related information, read "Practical Ways to Save Money" and "Live Simply, Reap Savings" in the Home & Family Finance Resource Center.

Silanis ties e-SignLive to MeridianLink

Products
MONTREAL and COSTA MESA, Calif. (7/9/14)--e-SignLive by Silanis has partnered with MeridianLink as the preferred e-signature solution for MeridianLink's account opening and loan origination platform.
 
Silanis is a CUNA Strategic Services alliance provider.
 
MeridianLink's financial institution clients will be able to originate, approve, sign and fund all of their transactions from within MeridianLink's workflow, eliminating paper, saving time and improving compliance.
 
"By integrating e-SignLive, MeridianLink is creating the kind of experience customers are demanding when they apply for a loan or open an account," said Silanis CEO/co-founder Tommy Petrogiannis.
 
MeridianLink's platform is an online application that instantly generates pre-qualified loan decisions for consumer and commercial loans and generates new accounts for consumer and commercial deposit accounts.
 
With the integration of Silanis' e-SignLive e-signature service, online transactions can be completed straight through, creating a completely paperless lending and account opening program for any financial institution and a seamless process for members and customers in branch, online or via call centers and kiosks.
 
"Our relationship with Silanis not only provides the benefits of completing transactions completely online and from within our workflows but Silanis' relationship with CUNA in the credit union world and their cost competitiveness provides MeridianLink the adoption incentives we're looking for in an electronic signature partner," said Edward Guerin, MeridianLink vice president of business development. "We expect significant adoption of e-SignLive."
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