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CU System Archive

CU System

Southwest Bridge Corporate council votes for merger

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PLANO, Texas (12/3/10)--Southwest Bridge Corporate’s Member Advisory Council voted in favor of merging with Georgia Corporate FCU Tuesday. “Yes, the committee voted 86% in favor of the proposal,” Kerry Parker, chair of the Southwest executive committee and president of A+ FCU in Austin, Texas, told News Now. “That’s the first tier. Then the 1,400 member credit unions [affected by the plan] will hold town halls and webinars to go through the proposed plan. Then NCUA decides. If NCUA says no, then we’ll have to go back to the drawing board. “A lot of hard work went into this,” she added. “The team at Southwest Bridge Corporate was very good. I don’t think people realize how quickly this has to be done. There’s a short time frame to do something, and we will do it.” Three corporates--Constitution Corporate FCU, Members United Corporate FCU, and Southwest Corporate FCU--were placed into conservatorship by the National Credit Union Administration (NCUA) Sept. 24 (News Now Nov. 2). NCUA in October chartered the two bridge corporate credit unions to assume the operations of now conserved U.S. Central Corporate FCU (US Central) and Western Corporate FCU (WesCorp), completing another step in its corporate credit union resolution process (News Now Oct. 6). “Any final approval authority resides with the NCUA board,” John McKechnie, NCUA director of public and congressional affairs, told News Now. “No proposal has been presented for NCUA review.”

CUNA Mutual broadens help to CUs for real estate lending risks

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MADISON, Wis. (12/3/10)--CUNA Mutual Group has partnered with WNC Insurance Services, Inc., to deliver a broader array of insurance solutions to help credit unions cover real estate lending risks. CUNA Mutual’s Collateral Protection and Mortgage Security programs protect the collateral on credit unions’ loan portfolios against uninsured exposures. Coupled with its existing consumer auto and real estate alliance with State National Companies, the addition of WNC enables CUNA Mutual to offer a strategic mix of manufactured and brokered products to protect credit unions against both consumer auto and real estate lending risks, said Chad Nitschke, CUNA Mutual vice president for commercial products. WNC will be the service provider for the expanded lender-placed and blanket real estate programs. WNC Insurance Services, Inc. is a lender-placed insurance program administrator for hazard, flood and wind risks, CUNA Mutual said. Unlike other providers who subscribe to a static “one size fits all” real estate approach in terms of coverage and price, CUNA Mutual offers the most variety of options available in the credit union marketplace today, Nitschke said. “Depending on a credit union’s specific situation we can build a real estate program using a fully tracked, immediate-issue or blanket solution across first and second mortgages, and [home equity lines of credit],” he added. “WNC welcomes the opportunity to work with CUNA Mutual to serve the mortgage protection needs of credit unions,” said Carl Herrmann III, WNC executive vice president for products and operations. “We are confident our 30-year experience in lender-placed insurance, our innovative approach and iClient technology provide quick and full protection of a lender’s interest in real estate collateral.” Existing CUNA Mutual customers are being notified about details of the new real estate options. Other credit unions interested in information about consumer auto or real estate coverage should contact their CUNA Mutual sales executive at 800-356-2644. “Based on credit unions’ specific needs for consumer auto and real estate loans, we will work with them to craft an ideal program, and I’m confident they will like what they see,” Nitschke said.

N.C. soldier says thanks for SECU care packages

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RALEIGH, N.C. (12/3/10)--As the saying goes, one good turn deserves another. When local students took part in State Employees CU’s (SECU) Support the Troop campaign little did they know that their example of good citizenship would be met with such heartfelt appreciation from one soldier. The Raleigh, N.C.,-based credit union organized the effort to collect supplies for care packages and send messages of appreciation to North Carolina soldiers serving in the Middle East. In Surry County, 35 schools, organizations and government agencies took part in the project filling 33 boxes, collecting $277 and accumulating 2,000 cards and letters (Mount Airy News Nov. 30). Sgt. Gregory Dillon, who is deployed aboard the USS Kearsarge in the Middle East, was touched by the gesture. He felt the care packages and the warm messages from Dobson Elementary School second grade class were just what his fellow troops needed so far from home. Dillon looked up the school and sent the class an e-mail of thanking them for their efforts. Thus began a correspondence between Dillon and the class. Dillon shared pictures of himself, his unit and his ship with the students. The students sent a class picture to Dillon. Leigh Brady, SECU senior vice president of education services, said it was gratifying to see the students receive positive feedback for their good citizenship. “The students are learning how important is it to recognize those who serve and protect our country in such a fine manner,” Brady said. “Because of SECU’s existing relationship in serving North Carolina’s public schools, we felt getting school children involved would be a great opportunity for them to be part of this project. These students are seeing firsthand the positive impact of their handwritten thank you letters. What they did made such a big difference.” To read the Mount Airy News’ account of the story, use the link.

Conn. Banking Dept. holds town hall meeting with NCUA

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MERIDEN, Conn. (12/3/10)--The State of Connecticut Department of Banking recently hosted a town hall meeting in conjunction with the National Credit Union Administration (NCUA) to update Connecticut credit unions on the conservatorship of Constitution Corporate FCU.
Presiding at the Connecticut Dept. of Banking Town Hall Meeting were, from left, Charles Furbee, Acting CEO, Members United Bridge Corporate FCU; Bill White, Interim CEO, Constitution Corporate FCU; Scott Hunt, Director, NCUA Office of Corporate Credit Unions; and Connecticut Banking Commissioner Howard Pitkin. (Photo provided by Credit Union League of Connecticut.)
Connecticut Banking Commissioner Howard Pitkin welcomed nearly 75 representatives from Connecticut credit unions and introduced guest speakers who addressed the transition as Members United Bridge Corporate FCU assumes the assets of Constitution Corporate FCU. Keynote speaker Scott Hunt, director of the NCUA Office of Corporate Credit Unions, outlined the steps leading to the assumption of Constitution Corporate FCU’s operations by Members United Bridge Corporate FCU. “When looking at the placement of Constitution’s operations,” Hunt explained, “we held two principles up front: minimal cost to you [Constitution’s member credit unions] and the cost effect to the [NCUSIF] insurance fund. That, and a number of other factors, including shared systems-related operations, led us to select Members United Bridge as the ideal choice for assumption.” Charles Furbee, acting CEO of Members United Bridge FCU, reviewed the bridge corporate’s position on a number of issues and offered his assurance of a transparent transition takeover with full cooperation of Constitution Corporate FCU’s staff. Bill White, interim CEO of Constitution Corporate FCU, reviewed the developments leading to the conservatorship proceedings and thanked member credit unions for their support during his 23 years of service at the corporate.

Iowa CU Foundation awards 22500 in financial education grants

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DES MOINES, Iowa(12/3/10)--The Iowa Credit Union Foundation (ICUF) awarded $22,500 to nine credit unions to further advance their financial education efforts. The recipients were chosen based on their financial education plans to reach a specific target market, or for the strategic direction set by that credit union’s board of directors. Each credit union will receive a $2,500 financial education grant. The Iowa credit unions selected to receive the grants are:
* Alliant Credit Union, Dubuque; * Ascentra Credit Union, Bettendorf; * Community 1st Credit Union, Ottumwa; * Financial Plus Credit Union, West Des Moines; * Greater Iowa Credit Union, Ames; * Midwest Utilities Credit Union, Waterloo; * Town and Country Credit Union, Harlan; * Veridian Credit Union, Waterloo; and * Village Credit Union, Des Moines.
“During these tough economic times, it is more important than ever that we equip our credit union members with the information they need to make sound financial decisions,” said Marybeth Foster, executive director of the Iowa Credit Union Foundation. “This grant is designed to help credit unions develop a financial education program or enhance an existing financial education program.” Winners were selected by the ICUF Grant and Scholarship Committee. Funds for the project came through a grant from the Northwest Area Foundation.

Philippine government honors WOCCU for development support

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WOCCU, which developed credit unions in the Philippines from 1997 to 2010, recently received a citation from the Philippine government for its efforts. (Photo provide by World Council of Credit Unions)
MADISON, Wis. (12/3/10)--Former President of the Republic of the Philippines Gloria Macapagal-Arroyo has awarded World Council of Credit Unions (WOCCU) a presidential commendation in recognition of its credit union development work in the island nation. The honor commends WOCCU for “its steadfast support, vital partnership and full cooperation with the Philippine government ... and to the upliftment of the lives and welfare of the Filipino people.” “We’re honored by the recognition WOCCU has received for its work in the Philippines,” said Pete Crear, WOCCU president/CEO. “We hope our efforts in support of Philippine credit union development have made a significant difference in the lives of the members they serve.” The citation specifically recognizes the ways in which WOCCU’s work supported “Beat the Odds,” a long-term social and economic initiative by Macapagal-Arroyo, whose term ended June 30. The Cooperative Development Authority (CDA), part of the Philippines’ Department of Finance, praised WOCCU for its technical support and financial assistance, particularly in identifying institutional gaps and furthering CDA’s capabilities in light of credit union legislation passed several years ago. “WOCCU also assisted CDA in the development and enhancement of new tools, systems and mechanisms, allowing us to provide quality service to the cooperative sector in the Philippines,” wrote Lecira Juarez, chairperson of CDA and a graduate of WOCCU’s Credit Union Empowerment and Strengthening (CUES) executive training programs, in a letter accompanying the presidential citation. The honor was first announced just prior to the end of Macapagal-Arroyo’s term in June. WOCCU provided development assistance to credit unions in the Philippines from 1997 to 2010, focusing on model credit union building and institutional branding. WOCCU’s Philippines program also promoted savings and credit education for poor women entrepreneurs, created the Model Credit Union Network and provided executive-level training of CDA staff to help prepare the agency to assume its role as regulator of the Philippine credit union sector. In 2002, the National Credit Union Foundation honored the CUES program in the Philippines with the Herb Wegner Memorial Award. The honor was presented that February at Credit Union National Association's Governmental Affairs Conference in Washington, D.C. According to WOCCU’s 2009 Statistical Report, 1,276 credit unions in the Philippines served 2.2 million members last year.