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Products

WesCorp offers guide to fighting fraud

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SAN DIMAS, Calif. (2/15/10)--Western Corporate FCU (WesCorp) has published an instructional document to help credit unions mitigate fraud threats posed by hackers and phishers. The guide was issued after the National Credit Union Administration (NCUA) released guidance about fraud and electronic transfers. The document, “Information Security and Risk Mitigation Guide,” offers information on ways to reduce risk of technology intrusions, regardless of the type of application credit unions are running. NCUA sent a letter to credit unions in September about fraudulent electronic transfers. The Automated Clearinghouse (ACH) Network grew 1.6% in the third quarter of 2009 compared to a year earlier. About 3.77 billion transactions worth $7.3 trillion were conducted during the quarter, according to the National Automated Clearing House Association (NACHA). NACHA expects that more than 25 billion transactions will be made this year. “Unfortunately, such explosive growth in the transfer of electronic funds almost always paves the way for more fraudulent activity,” said Robert Brown, WesCorp director of Internet security. Brown and his team led the WesCorp effort to develop and write the 28-page guide for the corporate credit union’s members using its ACH services. “Anyone who would log in and use an electronic funds transfer could be subjected to fraud,” Brown explained. “All it takes is the wrong click that installs a piece of malicious software stealing your user names and passwords, and the bad guy very quickly has control of your electronic funds.” The guide helps credit unions to identify the top threats and risks to their systems and some of the controls they can put into place to mitigate those threats, specifically around ACH and electronic funds transfers,” he added. WesCorp is based in San Dimas, Calif.

Cardtronics posts net income of 1.5M

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HOUSTON (2/15/10)--Cardtronics, an owner and operator of non-bank ATMs that serves credit unions, announced that it earned a net income of $1.5 million during fourth quarter 2009. The $1.5 million income compares with a $58.5 million net loss the company had in the fourth quarter of 2008. The company attributes the growth, among other things, to its renewal of a contract with CO-OP Financial Services, which also provides ATM services to credit unions. Cardtronics also reported consolidated revenues in the fourth quarter 2009 of $124.8 million, up 6% from the fourth quarter of 2008. Revenue grew about 8% for the company’s core business operations, and gross margins increased 31%, compared with 24% in the fourth quarter of 2008. Revenue for the year ended Dec. 31 was $493.4 million. Other results Cardtronics cited:
* Total cash withdrawal transactions and cash withdrawal transactions per ATM per month increased by 8%; * Total transactions per ATM per month increased by 10%; and * ATM operating gross profit per ATM per month increased by 43%.
Cardtronics renewed its contract with CO-OP through July 2014. The contract includes ATMs located in 7-Eleven convenience stores, in which members conduct more than 3.2 million surcharge-free transactions per month, on average.

XetusOne eases Member Advantage Mortgage RESPA changes

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PALO ALTO, Calif. (2/15/10)--The XetusOne Loan Origination System helped Members Advantage Mortgage, which is owned and operated by seven credit unions, transition easily to new Real Estate Settlement Procedures Act (RESPA) requirements. The program helps lenders become compliant with RESPA changes, which alters the disclosure process for residential mortgages. In the case of Members Advantage, the changes required new versions of the Good Faith Estimate (GFE) and the HUD-1 Settlement document. “We didn’t have to figure out anything with this change,” said Jennifer Durham, chief operating officer of Members Advantage Mortgage. “We simply had to turn on the computer and the loan origination system handled everything.” XetusOne does not require users to install or maintain software, and it provides videos to make the regulations easy to understand, the company said. “Some of our loan consultants took classes through title companies in their various states and had gone away terrified and nervous about the changes, but Xetus’ videos gave them a better grasp of the subject,” Durham added. The interface allows loan officers to convert loans initiated prior to 2010 to the format required by the new RESPA regulations. It also compares GFE and HUD-1 changes, and tracks the cost changes from the initial disclosure to the closing. Members Advantage Mortgage is a wholly owned subsidiary of CUSO Development LLC, which is owned and operated by seven credit unions in New Hampshire, Virginia, Massachusetts, Pennsylvania, Nevada and the District of Columbia. Xetus provides software as a service to the mortgage industry.