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Full Issue: July 28, 2014

House FSC markup of Reg D Study Act set for Tuesday

Washington
WASHINGTON (7/28/14)--The House Financial Services Committee will begin a markup of the Regulation D Study Act (H.R. 3240) Tuesday, a bill supported by the Credit Union National Association.
 
The bill, introduced by Rep. Robert Pittenger (R-N.C.), requires the Government Accountability Office (GAO), in consultation with credit unions and community banks, to study the Federal Reserve's Regulation D minimum reserve requirements.
 
The bill calls for the study to report:
  • A review of how the Fed has used reserve requirements to conduct U.S. monetary policy;

  • The impact of the maintenance of reserves on depository institutions;

  • The impact upon consumers in managing their accounts; and

  • Alternatives available to the Federal Reserve Board to maintain reserves to effect monetary policy.
 
Regulation D affects credit union members by limiting the number of automatic withdrawals from a member's savings account to six per month. This can cause members to overdraw checking accounts when a debit draws the account balance below $0 and the number of transfers for the month has already happened. Members who might have the funds in a savings account are unable to automatically transfer the funds, which could lead to a nonsufficient funds fee.
 
"We would like to see this cap increased or eliminated altogether, but we understand that one of the reasons the regulation is in place is because the Federal Reserve uses it as a tool to conduct monetary policy," said Doug Fecher, president/CEO of Wright-Patt CU, Beavercreek, Ohio, with $2.8 billion in assets, on behalf of CUNA to the House Financial Services Committee earlier this month.
 
CUNA's testimony referenced a quote from former Fed Chair Ben Bernanke, who said reserve balances far exceed requirements, and play only a "minor role" in the daily implementation of modern monetary policy.
 
"A GAO study will allow an objective assessment of whether the rarely changed monetary reserves imposed on depository institutions and consumers are necessary in order for the Fed to implement monetary policy in the 21st century," Fecher said.
 
The committee will also mark up another bill CUNA testified in support of--the Access to Affordable Mortgages Act of 2014 (H.R. 5148). The bill would amend legislation including the Truth in Lending Act to provide regulatory relief to institutions originating mortgages of $250,000 or less from appraisal requirements listed in the Dodd-Frank Act.
 
"The bill would provide both regulatory relief to mortgage lenders as well as increase access to mortgage credit availability for borrowers purchasing lower cost dwellings," Fecher said. "The bill would allow credit unions that offer mortgage loans secured by covered properties to better serve their middle to lower income members."
 
The markup is scheduled to begin at 10 a.m. (ET) Tuesday in the Rayburn House Office Building.

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McCaskill: RBC proposal means downgrade of 79% of Mo. CUs

Washington
WASHINGTON (7/28/14)--Missouri credit unions have raised several issues with the National Credit Union Administration's risk-based capital proposal, prompting Sen. Claire McCaskill (D-Mo.) to write to the agency.

McCaskill, chair of the Senate Commerce, Science and Transportation subcommittee on consumer protection, product safety and insurance, expressed her concern that the new rules will have a negative affect on credit unions in her state and around the country.

"There is concern that the new risk weights are not each set at appropriate levels to best reflect the risks present in the market. These new calculations will result in a downgrade of 79% of Missouri credit unions covered by the new rules," she wrote. "With this drastic impact, credit unions should have confidence that these numbers were achieved with careful study. I urge NCUA to conduct further examination of the risk weights applied to each form of capital to ensure they are appropriate."

McCaskill also raised concerns about the proposed implementation period, citing the unique difficulties faced by credit unions when it comes to raising capital.

NCUA Chair Debbie Matz said during the agency's series of Listening Sessions that the implementation period would be more than the originally proposed 18 months. The agency has since stated that risk weights would be adjusted, particularly in the areas of mortgages, member business loans, investments, credit unions service organizations and corporate credit unions.

McCaskill is a proponent of several regulatory relief measures. In February she introduced a bill that is designed to require minimum disclosures from entities that send abusive patent demand letters, known as "patent trolls."

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FHFA seeks input on draft PMI requirements

Washington
WASHINNGTON (7/28/14)--The Federal Housing Finance Agency (FHFA) is seeking comments on draft requirements for private mortgage insurance (PMI) companies that insure mortgages owned or guaranteed by Fannie Mae and Freddie Mac.

These requirements would apply to private mortgage insurers currently approved to do business with Fannie Mae or Freddie Mac, as well as those who wish to do so in the future.  

"Mortgage insurance counterparties must be able to fulfill their intended role of providing private capital, even in adverse market conditions," said FHFA Director Mel Watt. "FHFA's Strategic Plan calls on Fannie Mae and Freddie Mac to strengthen the requirements for private mortgage insurance companies that do business with them in order to reduce Fannie Mae's and Freddie Mac's overall risk exposure and protect taxpayers."

Fannie and Freddie are required to obtain PMI or another acceptable form of credit enhancement for loans that have loan-to-value ratios of more than 80%. According to the FHFA, PMI from a sound counterparty helps reduce the credit risk exposure to Fannie and Freddie, while shifting the first-loss exposure to the private market from taxpayers.

The updated financial requirements incorporate a new risk-based framework designed to ensure approved insurers have a sufficient level of liquid assets from which to pay claims. The draft requirements also include enhanced operational performance expectations and define remedial actions that would apply should an approved insurer fail to comply with the proposed revised requirements.

According to the FHFA, the draft requirements are the result of a multiyear, collaborative process among Fannie, Freddie, state insurance commissioners and private mortgage insurers to produce a comprehensive set of standards.

Comments are due by Sept. 8. Use the resource links below for more information.

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 0.35% 0.15% 0.20%
NSF Fee $27.77 $31.91 $-4.14
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 10.17% 10.43% -0.26%
New Auto Loan - 5 Years 2.58% 3.83% -1.25%
Used Auto Loan - 2 year Old - 4 Years 2.76% 4.02% -1.26%
HELOC - 80% LTV - $50,000 4.18% 4.42% -0.24%
HE Loan - 80% LTV - $50,000 - 15 Years 5.68% 6.02% -0.34%

Mortgage Loan Products Credit Unions Bank Average Difference
30 Year Fixed Conforming 4.16% 4.21% -0.05%
30 Year Fixed Jumbo 4.23% 4.17% 0.06%
5/1 Year ARM Conforming 2.94% 2.90% 0.04%

Credit Card Products Credit Unions Bank Average Difference
Platinum 9.17% 11.03% -1.86%
Annual Fee $25.00 $48.60 $-23.60
Maximum Late Fee $26.22 $34.29 $-8.07
Reward 9.95% 11.94% -1.99%
Annual Fee $26.71 $99.75 $-73.04
Maximum Late Fee $22.48 $33.15 $-10.67

Indirect Auto Loan Products Credit Unions Bank Average Difference
Indirect A Tier New Auto Loan - 5 Years 3.60% 3.77% -0.17%
Indirect B Tier New Auto Loan - 5 Years 5.34% 5.30% 0.04%
Indirect C Tier New Auto Loan - 5 Years 7.53% 6.72% 0.82%

Averages displayed are straight averages of all institutions within the Informa Research Services database for the selected region as of Sunday, July 27, 2014. For detailed disclosures click here.

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Business Rates

Market
Daily Financial Rates -- 2014-07-28

Financial Rates


Monday, July 28, 2014

03:55 AM CDT

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

TermMon
7/28
Fri
7/25
Thu
7/24
Wed
7/23
Tue
7/22
1 month0.030.040.030.030.02
3 month0.030.030.030.030.03
6 month0.060.060.050.070.06
1 year0.110.110.110.110.11
2 year0.530.530.500.490.51
3 year0.980.000.960.970.99
5 year1.691.721.671.681.70
7 year2.142.182.122.132.14
10 year2.482.522.482.482.49
20 year2.993.040.000.003.01
30 year3.243.303.263.253.26

TREASURY BILLS

Results of the July 21, 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, 7/21
Week Ago
Mon, 7/14
13 weeks0.0250.025
26 weeks0.0550.060

PRIME RATE

3.25% Last changed December 16, 2008

FEDERAL FUNDS

TermMon
7/28
Fri
7/25
Thu
7/24
Wed
7/23
Tue
7/22
high0.3120.3120.3120.3120.312
low0.0500.0500.0600.0600.060
near closing bid0.0700.0600.0500.0700.060
offered0.1000.0800.0800.0900.080
effective rate20.1200.1200.1200.1200.130

FREDDIE MAC (Mortgage commitments, 30 days)

TermMon
7/28
Fri
7/25
Thu
7/24
Wed
7/23
Tue
7/22
30 year0.000.000.000.000.00

FANNIE MAE (Mortgage commitments, 30 days)

TermMon
7/28
Fri
7/25
Thu
7/24
Wed
7/23
Tue
7/22
30 year3.8073.7763.7403.7723.759

LIBOR

TermMon
7/28
Fri
7/25
Thu
7/24
Wed
7/23
Tue
7/22
1 month0.226000.225000.224000.223000.21900
3 month0.380000.379000.378000.375000.37400
6 month0.546000.546000.544000.544000.54000
1 year0.855000.856000.855000.854000.85300

COMMERCIAL PAPER (Financial, 90 days)

TermWeek ended
7/22
Week ended
7/15
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

Auto-loan balances race to all-time high: Equifax

Market
ATLANTA (7/28/14)--Halfway through 2014, auto-loan balances have surged to $902.2 billion, an all-time high, according to the Equifax National Consumer Trends Report, released last week.

Total loan balances have jumped 10% since this time last year, while the total number of auto-loans outstanding climbed by 8.1 million to 64 million over that same stretch.

Meanwhile, serious delinquencies continue to hover near all-time lows, making up less than 1% of total outstanding balances for the third straight month.

"Auto lending continues to thrive, accounting for more than 50% of all new non-mortgage lending through April," said Dennis Carlson, Equifax deputy chief economist. "Lenders are responding to record-low delinquencies by offering great rates and terms, while consumers are responding to the improving economic conditions by making the decision to purchase newer vehicles."

Subprime lending also has swelled across all sectors this year, Carlson said, which could signal prosperous times ahead as a "fully functioning second-chance market is essential for a healthy economy."

Subprime borrowers, or those with credit scores of 640 or lower, made up 32% of all new auto loans originated over the last 12 months.

The total balance of subprime auto loans sits at $46.2 billion, an 8-year high and 28.2% of all new auto-loan balances.

CUs differ from banks in approach to subprime auto loans

CU System
MADISON, Wis. (7/28/14)--A July 21 article in The New York Times described how the subprime auto loan market has grown 130% in the five years since financial crisis, with roughly one in four new auto loans last year going to borrowers with credit scores at or below 640. Credit unions and banks approach the market quite differently.
 
The increase is driven by some of the same factors that fed the runaway growth of subprime mortgages that led to the financial crisis, the article explained. Banks are charging rates that can exceed 23% and making loans to consumers without the means to make payments. And, as with subprime mortgages leading into the Wall Street implosion, some subprime auto loans are bundled into complex securities sold as investments--a process that creates more demand for the loans. (See related story: Auto loan balances race to all-time high: Equifax.)
 
The vast majority of banks largely rely on dealers to screen potential borrowers. The arrangement, which means the banks rarely meet customers face to face, mirrors how banks relied on brokers to make mortgages.
 
Credit unions interviewed by News Now take a vastly different approach to subprime auto lending. "We're trying to set our members up for success," Jim Brown, senior manager of consumer lending at University FCU, Austin, Texas, with $1.7 billion in assets. "The last thing we want to do is set somebody up to fail."
 
University FCU participates in Non-Prime Auto Loans, a partnership between the National Credit Union Foundation and the Filene Research Institute that tests the viability of subprime auto lending in credit unions. Fourteen credit unions participate in the program.
 
"These are members who have the fewest options out there," Brown told News Now . "Credit unions were initially formed to serve these members: the underserved. We've found that if we help these members, they're very loyal, and they come back to us time and time again for future loans."
 
University FCU has been offering subprime auto loans since 2004. The credit union classifies subprime auto loans as D and E loans, which represent consumers with credit scores below 600, Brown said. The credit union currently makes the loans at annual percentage rates between 12.05% and 14.85%
 
"In our market, we have people who are coming to us that were at 23% and 24% through dealers and other financial institutions," Brown said.
 
Among the keys to making subprime auto loans is focusing on the overall member relationship. Seasons FCU, Middletown, Conn. with $142 million in assets, also participates in the NCUF/Filene subprime auto loan initiative. When it screens subprime applicants, the credit union considers if the member has a direct deposit or a checking account with a debit card, said Jeff Rindfleisch, vice president of financial services ( News Now April 23).
 
Indeed, credit unions appear to know their members before lending to them for subprime loans. While subprime auto loans account for 14.2% of credit union auto lending portfolios, compared with 13.7% for banks, credit unions' 30-day delinquency rates on subprime auto loans in the first quarter of 2014 was 1.20%, compared with 1.93% for banks, according to data from Experian.
 
Denver Community CU, with $263 million in assets, is another NCUF/Filene program participant. "One of our components of underwriting that we take a lot of pride in is lending based on character, and that can make or break a program like this," Tessa Bonfante, Denver Community CU chief operating officer, told News Now . "You do need to understand the member and ask what their intent is and how they are trying to improve their lives financially to create some kind of comfort that lending to them is going to work."
 
In many cases the vehicles provided through subprime loans can literally change lives. "It can be a matter of going to work, or getting to the doctor's office," said Helen Gibson, Denver Community CU vice president of marketing and education.
 

Neb. Hike the Hill focuses on reg relief

CU System
LINCOLN, Neb. (7/28/14)--Nebraska credit union advocates took their message of regulatory relief to Capitol Hill during a Hike the Hill event earlier this month.
 
Click to view larger image Nebraska credit union advocates met with Sen. Deb Fischer (R-Neb.) during their Hike the Hill visit to Washington, D.C., earlier this month. (Nebraska Credit Union League Photo)
"Our credit unions are being inundated with hundreds of new complex regulations from multiple agencies that they must now comply with," said Scott Sullivan, Nebraska Credit Union League president/CEO ( The Affiliate July 21).

There have been 180 new regulations from 15 separate agencies since 2008, not including those from the CFPB, according to the Credit Union National Association.
 
Ronny Miller, president/CEO of $16 million-asset Gallup FCU, Omaha, Neb., told lawmakers that small credit unions are bearing the brunt because of their limited staff and resources. "Their staffs (small credit unions) are spread so thin that it hurts the members," said Miller.

Steve Edgerton, vice president of operations and governmental officer for Centris FCU, Omaha, with $531 million in assets, said that larger credit unions are hiring more compliance officers to keep up with the new rules and regulations coming out of Washington, D.C.
 
Nebraska advocates thanked U.S. Reps. Jeff Fortenberry (R-Neb.), Adrian Smith (R-Neb.) and Lee Terry (R-Neb.) for co-signing the risk-based capital (RBC) letter sent to the National Credit Union Administration. The letter was co-sponsored by Rep. Peter King (R-N.Y.) and Rep. Greg Meeks (D-NY).  The letter garnered support from more than 300 House members.  During visits to Sens. Deb Fischer (R-Neb.) and Mike Johanns (R-Neb.), Nebraska credit union representatives asked them to pen a letter to the NCUA.
 
In addition to meeting with federal lawmakers, the advocates met with NCUA Chair Debbie Matz and NCUA board member Rick Metsger. Much of the focus of both meetings was the proposed RBC rule.
 
Other states participating in Hike the Hill visits this spring and summer include Michigan, Minnesota, Maine, Missouri, New Mexico, Arkansas, Oklahoma, Texas, North Carolina, South Carolina,  New York, Ohio, Iowa,  Oregon, Washington, California, Nevada, Alabama, Florida, Wisconsin, Georgia, Kentucky, Montana, Massachusetts, New Hampshire and Rhode Island.

Other Resources

Maine league rallies volunteers for Michaud campaign

CU System
WESTBROOK, Maine (7/28/14)--The Maine Credit Union League is soliciting volunteers to help elect U.S. Rep. Mike Michaud (D-Maine) for governor.
 
The league endorsed Michaud for governor last fall and highlighted Michaud's track record of supporting credit unions during his 12 years in Congress and 20 years in the Maine Legislature. Michaud also served as a longtime credit union board member and remains an honorary credit union board member at Eastmill FCU, Millinocket, Maine, with $60 million in assets.
 
"Helping to successfully elect Mike as Maine's next governor is going to take a strong, coordinated and involved effort on the part of Maine's credit unions," said John Murphy, league president ( Weekly Update July 25). "We played a critical role in helping him first get elected to Congress in 2002, by participating in leaflet drops in key areas, hosting him at credit union-related events and working in other aspects of his campaign. In fact, Mike has never forgotten our involvement, as he often cites the work of credit unions as helping to put him over the top in that race.
 
"We have continued to support him during his other campaigns, but the race for governor is shaping up to require a 2002-like effort, as it is anticipated to be a hard-fought and close race," Murphy added. "It is going to take a strong effort on the part of your league and Maine credit unions so we need to get this process under way now and identify individuals and credit unions that are willing to help."

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CUNA BSA training to reach 38 Mich. state examiners

CU System
MADISON, Wis. (7/28/14)--The Credit Union National Association has been invited by the Michigan Department of Financial Institutions to provide CUNA Bank Secrecy Act (BSA) training to 38 state examiners during a Department of Insurance and Financial Services training event later this year.

The training, offered in partnership with the National Association of State Credit Union Supervisors, is scheduled for Oct. 8-9 in Ann Arbor, Mich. Michigan credit unions are invited to participate in the certification opportunity as well.

Tracy Blaske, CUNA director of compliance education, said that it's an honor to bring the training program to the compliance experts "who safeguard the Michigan credit union system year-round."

Examiners who complete CUNA's BSA designation training will receive the CUNA BSA Compliance Specialist (BSACS) designation, which recognizes them for their expertise in the field and for their dedication to the advancement of credit union compliance.

CUNA also will host the Bank Secrecy Act Conference later in the month, from Oct. 26-29, in Las Vegas.

The conference brings together BSA compliance officers, state and federal examiners, industry experts and regulators, and provides attendees with updates from the Financial Crimes Enforcement Network, the National Credit Union Administration and agencies from the Office of Foreign Assets Control.

Those in attendance will learn the statutory and regulatory training knowledge needed to comprehend and comply with the complex federal BSA law.

For more information on the training use the link.

Minn. league provides state-mandated elder fin. abuse training

CU System
ST. PAUL, Minn. (7/28/14)--Attuned to the devastating consequences of elder financial abuse, last week the Minnesota Credit Union Network hosted more than 50 credit union representatives at a forum focused on providing front-line staff the tools needed to identify and report instances of fraud.

Former Minnesota Attorney General Hubert H. "Skip" Humphrey III addresses the participants of the Minnesota Credit Union Network's forum on financial elder abuse, calling credit unions a friend he's comfortable dealing with. (Minnesota Credit Union Network Photo)
Front-line credit union staff are often the first to encounter, and thus the first able to spot, instances of elder abuse, according to the league.

"Prevention is key for credit unions, due to the relationships you have (with your members)," said former state Attorney General Hubert H. "Skip" Humphrey III during the event. "I personally feel more comfortable dealing with a credit union. You're a friend. You have that knowledge of what (your members) do, and that gives you the opportunity to spot unusual behavior and provide protection."

In April, Minnesota became the first state in the United States to mandate that state-chartered credit unions and banks diligently protect senior citizens and report irregularities to local law enforcement agencies.

The forum included a panel discussion among elder financial abuse experts that covered how to communicate with those being defrauded, how to report abuse and what happens when an abuse report has been filed.

Credit union staff in attendance, many of whom are trainers at their organizations who teach employees how to identify and report possible fraud, learned additional prevention tips from the following experts:
  • Shane Deal, deputy commissioner of financial institutions for the Department of Commerce. Deal is responsible for state regulatory oversight of state-chartered financial institutions;
     
  • Jay Haapala, associated state director of AARP Minnesota and a leader of the state's Fraud Watch Network, which educates consumers about scams and fraud;
     
  • Sean Burke, steering committee member of the Minnesota Elder Justice Center at William Mitchell College of Law, an organization dedicated to tackling elder and adult financial exploitation; and
     
  • Mary McGurran, agency policy specialist for the Department of Human Services' Adult Protective Services unit and a licensed social worker specializing in working with vulnerable adults, their family members and caregivers.

CUNA Mutual Group pledges $35K to Cooperative Trust

CU System
MADISON, Wis. (7/28/14)--CUNA Mutual Group has committed $35,000 over the next year to The Cooperative Trust to support the future of credit unions. This new sponsorship continues CUNA Mutual Group's long-standing involvement with the trust and will increase leagues' efforts to engage young adults.
 
"The leagues' ability to engage young adults, and credit unions attracting and retaining them as members and employees, is key to the future of our industry," said Gerry Singleton, CUNA Mutual Group's vice president of credit union system relations. "Our industry needs to pursue the next generation of members and employees, and we see our support of The Cooperative Trust as an investment in the future of credit unions."
 
The Cooperative Trust, founded by Filene Research Institute in 2010, is a grassroots group of young people working in credit unions and cooperatives with the goal to learn from the vast amount of talent among industry veterans while aggressively shaping the future. CUNA Mutual Group is a charter and founding member of the Filene Research Institute.
 
CUNA Mutual Group's funding will help The Cooperative Trust community attend, learn from and be heard at nontraditional industry events.  It will also support the leagues' desire to engage and maintain relationships with young professionals by providing on-site facilitation for young professional events, guidance, templates, mentorship best practices and more.
 
"Our continued relationship shows CUNA Mutual Group's commitment to the future of credit unions," said James Marshall of Filene Research Institute and manager of The Cooperative Trust.

Other Resources

CU System briefs (07/28/2014)

CU System
  • WHITEFISH, Mont. (7/28/14)-- The 112-year-old Flathead County Fairgrounds in Kalispell, Mont., has its first partnership, and it's with Whitefish (Mont.) CU . "This partnership allows Whitefish Credit Union to further promote our message of thrift and financial responsibility to an even wider audience throughout the year," said Jim Kenyon, president/CEO of the $1.2 billion-asset credit union. The Flathead County Fairgrounds will host its largest event of the year, the Northwest Montana Fair, Aug. 13-17, with an expected 78,000 attendees. "Without community support and participation, then our programs, our events and our activities don't exist," said fairgrounds Manager Mark Campbell ...
  • FITCHBURG, Mass. (7/28/14 )--IC FCU, Fitchburg, Mass., with $538 million in assets, helped bring to life little-known history of African-American achievements with a visit from actress Karyn Parsons from "The Fresh Prince of Bel-Air." Parsons' Sweet Blackberry Foundation recently visited the Leominster Boys and Girls Club. "These stories deserve recognition," said Parsons, left, with Tony Emerson, IC FCU president/CEO and vice chair for the Boys and Girls Club (IC FCU Photo) ...
  • TRENTON, N.J. (7/28/14)-- Albert C. Lukowicz of Millstone, N.J., died July 21 . He was 85 ( The Star-Ledger July 23). Lukowicz was a charter member, treasurer and president of the New Jersey Law and Public Safety CU , Trenton, N.J., now with $46 million in assets. The credit union was chartered in 1958 for employees and retirees of the Office of Law and Public Safety, inclusive of the Division of Motor Vehicles, employees of the New Jersey Judiciary and Office of the Public Defender ... 

Other Resources

It's time for 529 plan withdrawals

Consumer
NEW YORK (7/22/2014)--College is just around the corner for newly graduated high school seniors, which means the first tuition bills will appear at any moment.
 
To help guide families who are using 529 plans to pay for tuition, the College Savings Plans Network (CSPN) offers these guidelines (July 10):
  • Start early. Find out from your plan how long the funds transfer will take, whether the plan will send a check to you or directly to the college, and if there's anything else you should know as you start withdrawing funds. Once your beneficiary decides on a school, the earlier you start the process, the better.
     
  • Know before you go. Tuition due dates vary--some are not until after the course add/drop period, some are before the semester starts. Check with your school to find out its due date for tuition payment, and make sure you start withdrawing your funds well in advance.
     
  • Do your homework. Make sure to check with your plan to find out what it defines as qualified higher education expenses. This generally includes tuition and fees, room and board, and the cost of books, supplies, and equipment required for enrollment or attendance. If you are unsure if any specific item qualifies, ask your plan administrators.
     
  • Keep a record. For tax purposes, keep records and documentation of higher education expenses for any withdrawal you intend to treat as qualified.
     
  • Be prepared. Make sure your distributions do not exceed your higher education costs. If the distribution does not exceed the amount of the student's qualifying expenses, you do not have to report it as income on your tax return. But if the distribution exceeds those expenses, you must report the earnings on the excess as "other income" on your tax return.
For related information, read "Money 101: School Your College-Bound Child" and "The College Affordability and Transparency Website: Tools to Make Informed Choices" in the Home & Family Finance Resource Center.

Cardtronics to acquire Welch ATM for $160M

Products
HOUSTON (7/28/14)--Cardtronics Inc. will acquire Welch ATM for $160 million under an agreement reached between the two companies last week.
 
The acquisition will add 26,000 U.S. ATMs to the Cardtronics fleet, bringing its global portfolio to 109,000, including 92,500 in the United States.
 
The combination of Cardtronics and Welch ATM will bring together two retail ATM services providers, with complementary customer bases and sales capabilities. Cardtronics has demonstrated success placing ATMs with national chain retailers and forming ATM branding relationships with national and international financial institutions.
 
Welch ATM has established its core strength around delivering ATM services to mid-market retailers such as Rite-Aid and ATM branding to mid-tier credit unions and banks.
 
A combined Cardtronics and Welch ATM organization will also bring together the leading providers of ATM services to Walgreens. The collective Walgreens portfolio totals 5,100 ATMs, which is a significant portion of the retailer's nationwide footprint. Additionally, Welch ATM will add 3,100 company-owned, Rite Aid-located ATMs to Cardtronics' roster of retailer locations.
 

Other Resources

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.@FinancialCmte markup of Reg D Study Act set for Tuesday. CUNA will submit support letter. http://t.co/cDWkZ0Q0x1
1 hours ago
The 54th Western CUNA Management School graduated 89 students on July 25.
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.@CUNA Bank Secrecy Act training to reach 38 Mich. state examiners #NewsNow http://t.co/7HDPgwih8G
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St. Louis treasurer taps #creditunion to serve unbanked #NewsNow http://t.co/lWtcezJOej
20 hours ago
.@CUNAMutualGroup has committed $35K to @trustdotcoop over the next year to suppor the future of #creditunions.
21 hours ago