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Filed on September 24, 2009, published the first business day after.
- Matz’s first meeting: 0.15% NCUSIF assessment, CLF changes
- New bill would advance some CARD Act protections
- Former Fed Chairman Greenspan to speak at CUNA GAC
- Keys FCU placed into conservatorship
- Inside Washington
- WSJ item on GMAC notes CUs' market gain
- Louisiana CUs’ review shows growth across the board
- Community CU conference to focus on hard-hitting issues
- Wisconsin league: Banks put self-interest ahead of consumers
- Consumers revolt online against bank fee hikes
- Indiana league honors six individuals
- I Hate My Car Contest is clunkers alternative
- CU System briefs
- Market News
- News of the Competition
- H&FF Radio: Consumer tips for military personnel
- Member Advantage Mortgage triples origination abilities
- Harland Financial Solutions launches software platform
Matz’s first meeting: 0.15% NCUSIF assessment, CLF changes
ALEXANDRIA, Va. (9/25/09)--As anticipated, the National Credit Union Administration (NCUA) on Thursday approved a 0.15% of insured shares assessment on federally insured credit unions. The action is intended to help the NCUA return the National Credit Union Share Insurance Fund's (NCUSIF) equity to 1.3% of June 30, 2009 shares and repay $310 million in funds the Stabilization fund has borrowed from the U.S. Treasury.
The assessment would also repay all interest accrued by the NCUSIF as of June 30, 2010. Assessments will be invoiced no later than mid-November of this year, and payments will be due by mid-December.
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NCUA Chair Deborah Matz talks with CUNA President/CEO Dan Mica before she calls her first open board meeting to order in her role as the agency's new leader. (CUNA Photo) |
The NCUA did not alter the NCUSIF's operating level of 1.3%, but changes to that level could be proposed in the future. Agency staff indicated they are studying this issue and if an increase is recommended, the agency would seek public comments on such a move. Opening her first meeting as NCUA Chairman, Matz spoke on her new role as leader of the credit union system, saying that her first priority as a regulator is to protect the deposits of all credit union members.
The NCUA Board approved amendments that will "clarify and reinforce" the NCUA's guarantee for corporate credit unions issuing unsecured debt under the agency's Temporary Corporate Credit Union Liquidity Guarantee Program (TCCULGP) and "further enhance" corporate credit unions' liquidity by increasing their access to low-cost borrowed funds. This means that additional borrowing costs for the corporates could be reduced because the "highest possible rating" could now be obtained for debt that is issued under the TCCULGP.
Natural person credit unions could benefit from NCUA's revisions to the investment and earnings retention policies of the Central Liquidity Fund (CLF). These changes will allow the CLF to support its own operations through retained earnings while "greatly enhancing" the CLF's ability to support natural person credit unions, CLF President J. Owen Cole said.
NCUA Chief Financial Officer Mary Ann Woodson also discussed natural person credit unions during the meeting, reporting that there are currently 315 CAMEL 4 and 5 credit unions, an increase from the 242 reported in August of 2008.
New bill would advance some CARD Act protections
WASHINGTON (9/25/09)--Reps. Carolyn Maloney (D-N.Y.) and Barney Frank (D-Mass.) on Thursday introduced legislation that would change the effective date of portions of the Credit Card Accountability, Responsibility and Disclosure (CARD) Act.
Aside from generally setting an earlier effective date for the CARD Act, H.R. 3639, the "Expedited CARD Reform for Consumers Act of 2009," would push forward the effective dates for CARD Act provisions addressing gift cards, reviews of past consumer interest rate increases, and requirements addressing the penalties and fees that can be assessed to credit accounts to Dec. 1.
Commenting on the legislation, Maloney said that the "breadth and depth" of interest-rate hikes that credit card companies are imposing ahead of the full imposition of the CARD Act points to the need for "faster consumer protections."
Ryan Donovan, Credit Union National Association (CUNA) vice president of legislative affairs, said the outlook for the legislation is uncertain. "The legislation seeks to move a February effective date up to this December, which is only about 10 weeks from now. In order for the bill to become law in that timeframe, it would seem that the bill would need to move through the legislative process at incredible speed," he noted.
The legislation will not affect the 21-day rule on open-end credit that took effect in August, and CUNA continues to be in contact with the Federal Reserve, the National Credit Union Administration, and key members of Congress to resolve the compliance issues that continue to face credit unions.
Former Fed Chairman Greenspan to speak at CUNA GAC
WASHINGTON (9/25/09) -- Alan Greenspan, the former chairman of the 
Federal Reserve Board, will be a keynote speaker at the Credit Union National Association's (CUNA's) 2010 Governmental Affairs Conference in February. Greenspan, who served as Fed chairman for 18 1/2 years until Jan. 31, 2006, plans to engage in conversation with GAC attendees, devoting a large share of his presentation to fielding questions from the audience.
"Alan Greenspan last addressed the GAC in 2004 as Fed chairman. In that role, his remarks were carefully measured. It will be very interesting to hear Dr. Greenspan's take on the economy and current events given that he is no longer under those earlier constraints," said Mark Wolff, CUNA senior vice president, communications.
The former Fed chairman joins a GAC lineup that also includes remarks on the economy from Lawrence Kudlow, host of CNBC's The Kudlow Report, and a political point-counterpoint discussion that pairs former Vermont governor and Democratic National Committee chairman Howard Dean with Joe Scarborough, former Republican congressman and now host of MSNBC's popular "Morning Joe" program.
Also, CUNA has already launched its housing and registration process. Those planning to attend can reserve hotel rooms Monday-Friday, 9 a.m. to 5 p.m. ET, both online and via phone call. New this year, a number of state credit union leagues have obtained housing blocks for use by their affiliated credit unions.
CUNA's 2010 GAC takes place Feb. 21–25 at the Washington Convention Center in Washington, DC.
Keys FCU placed into conservatorship
ALEXANDRIA, Va. (9/25/09)--The National Credit Union Administration (NCUA) on Thursday assumed control of the 13,000-member and $180 million assets Keys FCU of Key West, Fla.
According to an NCUA release announcing that the credit union has been placed into conservatorship, service to members of Keys FCU will continue, and they will be able to continue to make deposits and loan payments while the credit union is under NCUA control.
The deposits of members will continue to be insured by the National Credit Union Share Insurance Fund, the release added.
Inside Washington
- WASHINGTON (9/25/09)--H.R. 3614, portions of which correct the America's Recovery Capital (ARC) loan program to give small businesses that qualify for 7(a) and ARC loans greater flexibility in how they use those loans, passed the House by a 417 to 2 vote earlier this week. The bill also extends all Small Business Administration programs through the end of October. The Credit Union National Association recently spoke in support of expanding the 7(a) Business Loan Program, saying that changes in the size criteria would help alleviate negative economic conditions by facilitating lending to small businesses ...
- WASHINGTON (9/25/09)--At a Wednesday hearing, Treasury Secretary Timothy Geithner said that a draft bill by House Financial Services Committee Chairman Barney Frank (D-Mass.) on financial reform embraces some of the Obama administration's reform ideas. Frank's bill is expected to drop a requirement that forces banks to offer "plain vanilla" versions of their products (American Banker Sept. 24). Until Wednesday's hearing, the Obama administration had supported the vanilla products idea, saying that it was necessary to protect consumers. However, banking groups had argued that the vanilla requirement would prevent innovation in the market and limit consumer choice. Geithner did not note any other compromises, but Frank said Wednesday that he expects disagreement in the House committee about a provision that would end national bank preemption. If passed, the legislation would give state regulators the ability to enforce national and state laws governing commercial banks. Lobbyists have said that the preemption rule would making financial institutions' operation more difficult ...
- WASHINGTON (9/25/09)--The Federal Reserve Board was absent at a House Financial Services Committee hearing attended Wednesday by officials of the Federal Deposit Insurance Corp., Office of the Comptroller of the Currency and the Office of Thrift Supervision. Fed Chairman Ben Bernanke did not attend the hearing because of a scheduling conflict and asked the panel if he could meet with the committee later, a spokesperson said (American Banker Sept. 24). He is scheduled to testify in front of the committee Oct. 1. The Fed has been viewed as a contender by financial observers to take over the role of systemic regulator ...
- WASHINGTON (9/25/09)--Senate Banking Committee Chairman Christopher Dodd (D-Conn.) says he doesn't think that easing overdraft fee programs at JPMorgan Chase, Wells Fargo and Bank of America will stop legislative efforts regarding the fees. Dodd is expected to release a bill that would require financial institutions to give accountholders the ability to opt in for overdraft protection (American Banker Sept. 24). He said that the changes enacted by the large banks to ease the fees is a positive step. He added that the legislation would target abusive fee practices that "should have never been instituted in the first place" ...
- WASHINGTON (9/25/09)--A press conference is scheduled for today by Reps. Barney Frank (D-Mass.) and Carolyn Maloney (D-N.Y.) to move up the date that Credit Card Accountability, Responsibility and Disclosure (CARD) Act provisions go into effect. Maloney and Frank hope to move the date to December from February (The Wall Street Journal Sept. 24). Part of the legislation, which requires credit card companies to give their accountholders more time to pay their bills, was effective in August. Other changes aren't slated to go into effect until spring. The conference comes as several card companies have announced interest rate increases and fees, a move that some say is being triggered by a weak economy. If the effective date is moved, it would signal that lawmakers are not happy with how credit card companies have reacted to the legislation, according to John Ulzheimer, president of education at Credit.com, a credit card educational website ...
- WASHINGTON (9/25/09)--The House Financial Services Committee is slated to have a hearing today on H.R. 1207, the Federal Reserve Transparency Act of 2009. Witnesses include Scott G. Alvarez, general counsel at the Board of Governors of the Federal Reserve System, and Thomas E. Woods, from the Ludwig von Mises Institute. H.R. 1207 would change how the Board of Governors of the Fed is audited by the Comptroller of the Currency and how such audits are reported ...
WSJ item on GMAC notes CUs' market gain
NEW YORK (9/25/09)--A Wall Street Journal article about General Motors Co.'s (GM) former captive finance company, GMAC, notes that credit unions have gained a significant share of the auto loan financing market.
Melinda Zabritski, a director with Experian Information Solutions, told the publication that a year ago, credit unions had less than 20% of the auto finance market. Now, "thanks to financial flexibility and a relative lack of exposure to mortgage risk--credit unions have stormed past 30%," she said (The Wall Street Journal Sept. 24).
The article was about GMAC using its new access to low-cost capital and the rising prominence of its Ally bank to compete more directly with banks such as Wachovia Corp. and J.P. Morgan Chase.
GMAC turned itself into a bank holding company after it the federal government rescued and separated it from GM.
GMAC plans to begin offering new auto-related financial programs to card dealers called the Ally Dealer Rewards program, GMAC President Bill Muir told the Journal, to help blunt the gains major banks have made into auto financing.
This year Chase and Wachovia became the top providers of loans for new and used vehicles, according to Experian. Chase has 6.7% of the auto loan market, and Wachovia has 4% share, while GMAC has 3% market share.
Muir said GMAC is shifting from a culture of relying heavily on making GM happy to a culture that is aggressively looking to steal market share from banks, credit unions and captive lenders of other auto makers.
Louisiana CUs’ review shows growth across the board
HARAHAN, La. (9/25/09)--Louisiana credit unions experienced across-the-board growth in assets, loans and membership in the quarter ending June 30, according to data submitted to the National Credit Union Administration (NCUA) in the Second Quarter 2009 Call Report, said the Louisiana Credit Union League.
Total assets of Louisiana's credit unions increased 1.9% during the second quarter to $7.9 billion from $7.7 billion. The increase is slightly higher than the national increase of 1.5% (eNews Sept. 23).
Membership growth in the state during the second quarter continued on a slow but steady pace, reaching 1,163,755 members as of June 30. That is a 1.1% increase over the first quarter, the league said. The number of potential members rose 5.9% from 9.9 million to 10.5 million.
Louisiana's credit unions reported a higher net worth ratio, lower cost of funds, and higher return on average assets as compared to national averages.
The statistics are:
- Net Worth Ratio: Louisiana--12.27; National--10.04;
- Cost of Funds (annualized): Louisiana--1.91; National--2.22;
- Return on Average Assets (annualized): Louisiana--0.53; National--0.26.
Despite the weak national housing market, Louisiana's credit unions continue to see a steady increase in real estate lending, the league said. Louisiana's credit unions reported $1.4 billion in total real estate loans outstanding for the second quarter, which is a 3.8% increase over the first quarter and an 11.5% more than the same period last year.
Total loans rose 3.1% for the quarter and 9.2% from this time last year. Yield on loans (annualized) was higher than the national average, 7.05%, compared with 6.30% nationally. Delinquent loans to total loans was below the national average, at 1.22% for Louisiana compared with 1.59% nationally.
The state's economy has remained healthy despite the national recession, and Louisiana's credit unions are no exception, the league said.
Community CU conference to focus on hard-hitting issues
MADISON, Wis. (9/25/09)--Credit unions attending this year's Credit Union National Association (CUNA) Community Credit Union and Growth Conference can hear from credit union experts on hard-hitting economic, legislative and regulatory issues affecting credit unions.
The conference will be held in Las Vegas Oct. 21-24. It targets not only community credit unions, but all credit unions looking to grow, according to CUNA. The conference is a combination of the YES Summit, the Reach Out! Conference, and the Community Credit Union Conference. This year's theme is "Share the vision. Shape the future."
The conference will feature several hard-hitting sessions regarding core issues facing credit unions. For example:
- Bill Hampel, CUNA chief economist, will provide an economic update and its impact on credit unions during the general session on Oct. 22.
- Gigi Hyland, National Credit Union Administration (NCUA) board member, will provide an update from NCUA. She is slated to speak during the general session Oct. 23; and
- CUNA's Mary Dunn, senior vice president and deputy general counsel, and Ryan Donovan, vice president of legislative affairs, will provide attendees with a legislative and regulatory update during an afternoon general session Oct. 23.
Related breakout sessions include:
- "Handling Problem Loans in this Economy," by Matt Davidson, consultant, and Keith Reynolds, vice president of lending, CEFCU, Peoria, Ill.;
- "Mergers and Future Implications for Credit Unions," by Frank Drake of Smith Debnam Narron Wyche Saintsing & Myers LLP; and
- On The Radar: Credit Unions 2010, George Towle, The Rochdale Group.
For more information, use the link.
Wisconsin league: Banks put self-interest ahead of consumers
PEWAUKEE, Wis. (9/25/09)--Brett Thompson, president/CEO of the Wisconsin Credit Union League, has issued a response to the Wisconsin Bankers Association (WBA) that refutes WBA's rationale for repeated calls of unnecessary regulation, which would prove costly to Wisconsin credit unions and their members, the league said.
"Not-for-profit credit unions remain steadfast about operating in the best interest of their 2.2 million member-owners and providing services that help build savings and wealth over time, regardless of financial position," Thompson said.
The WBA supports its claims with statistically flawed and misleading studies, he added.
The league said WBA misapplied data that showed credit unions overwhelmingly outperform banks--in 64 of 72 areas of service delivery--constituting 89% of the service areas that were reviewed. Also, credit unions' outperformance of banks held true for almost every demographic group and loan type over three years, Thompson said.
"The WBA's efforts to further tax and regulate credit unions demonstrate that they do not keep Wisconsin taxpayers' best interests in mind, but instead are focused on eliminating competition and maximizing profits," Thompson said. "Otherwise, they wouldn't look to harm Wisconsin credit unions and their members, who save $208 million annually by saving at and borrowing from their local credit unions instead of banks."
The WBA uses unreliable data to support its position, including a report by the National Community Reinvestment Coalition (NCRC), which mistakenly assumes that credit unions are intended to serve only the poor. This concept exists nowhere in state or federal law, Thompson said.
The NCRC bases its conclusions on a 2006 Government Accountability Office (GAO) study--another source WBA cites--that has been all but disavowed by the GAO itself, which concluded its data were flawed and that no conclusions about credit unions or the people they serve could be drawn from it, he added.
Thompson outlined several facts:
- "State-chartered credit unions serve their members in a manner consistent with their history as financial cooperatives serving groups based on occupation, association or community, by charging lower loan rates and providing higher return on savings," according to the National Association of State Credit Union Supervisors, 2007: NASCUS Survey of the State Credit Union System.
- "Although no state enabling act establishes as a criterion for organizing state-chartered credit unions an explicit requirement that the institution serve the underserved or low- or modest-income groups, state-chartered credit unions do reach out and provide financial services to all income groups within their fields of membership, both through pricing and community outreach efforts," said the NASCUS study.
- "Despite changes over time in the law, the economy, technology, and member demographics, [credit unions] have remained faithful to their originally conceived cooperative, not-for-profit, democratic structure," reported the National Credit Union Administration, 2006: Member Service Assessment Pilot Program: A Study of Federal Credit Union Service.
- Wisconsin's low-income mortgage borrowers' approval rate is 74.7% at credit unions compared with 49.6% at non-credit union lenders. For minority mortgage applicants, the credit union approval rate is 72% compared with 46.6% at non-credit union lenders, according to Home Mortgage Disclosure Data for 2007.
- Although credit unions have only a 10% market share for financial services in Wisconsin, they operate 40% of the financial institution branches in the state's low-income census tracts. By contrast, 94% of Wisconsin banks--including 12 of the largest 20 banks--have no branches in low-income census tracts, report a number of sources, including the U.S. Census Bureau, Federal Financial Institutions Examination Council, Federal Deposit Insurance Corp., Wisconsin Department of Financial Institutions, and the Credit Union National Association.
"In addition to paying millions in state and local taxes each year, legitimate studies and data have shown time and again that credit unions are meeting the needs of working Americans," Thompson said. "Essentially, what the WBA is calling for is unwarranted, unnecessary, and harmful to Wisconsin families."
Consumers revolt online against bank fee hikes
NEW YORK (9/25/09)--Consumers have gone online before to voice complaints about banks fees and rates and service. But one debtor took her complaint to new heights via the viral route to voice her displeasure when Bank of America raised her interest rate. And she got results.
The "debtors' revolt" on a YouTube video by Ann Minch was viewed more than a quarter million times and resulted in Bank of America calling her to reduce her interest rate, said CBS News with Katie Couric (Sept. 23).
The bank had raised her credit card interest rate to 30% from 13%. "I could get a better rate from a loan shark," she said in the video.
She offered an ultimatum: Lower the rate or she won't pay. "Stick that in your bailout pipe and smoke it," she said.
Thousands of people who saw the video responded, complaining about their own banks.
Minch claimed a small victory for the debtor's revolt movement.
Indiana league honors six individuals
INDIANAPOLIS (9/25/09)--The Indiana Credit Union League recently honored six individuals for their contributions to the credit union movement.
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| Ann Garmon, president/CEO of Horizon One FCU, was inducted in the Indiana Credit Union League's Credit Union Hall of Fame Sept. 11. Pictured are Garmon (left) and league board chairman George McNichols. |
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| Lisa Schlehuber, president/CEO of Eli Lilly FCU, received the Professional Achievement Award from Indiana Credit Union League board chairman George McNichols at the league's state convention Sept. 11. |
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| Vicki Garrett, vice chairman of the board at Energy Plus CU, received the 2009 Leadership Award from George McNichols, Indiana Credit Union League board chairman. (Photos provided by the Indiana Credit Union League) |
All recipients were honored Sept. 11 during an awards banquet at the Indiana league's state convention.
Ann Garmon, Horizon One FCU president/CEO, was inducted into the Indiana Credit Union Hall of Fame. Her credit union career spans four decades. Garmon also is president of the Combined Council of America's Credit Unions and a board member of the Council of General Motors Credit Unions. Horizon One FCU is in Indianapolis.
Lisa Schlehuber, president/CEO of Eli Lilly FCU, Indianapolis, received the league's 2009 Professional Achievement Award. The award honors individuals for their professional accomplishments and commitment to the credit union movement. Schlehuber has been president/CEO of Eli Lilly FCU since January 2005.
Vicki Garrett, board vice chair at Energy Plus CU in Indianapolis, received the 2009 Leadership Award. She has been a credit union official since 1975 when she became a volunteer member of the Supervisory Committee at Citizens Gas Utility CU, now Energy Plus CU.
The league also honored three individuals with Emerging Leadership Awards:
- Michael Hostetler, market research manager at Finance Center FCU, Indianapolis;
- Kevin Sparks, vice president and chief financial officer at Crane FCU, Odon; and
- Matt Snively, senior vice president of sales and marketing at Eli Lilly FCU, Indianapolis.
I Hate My Car Contest is clunkers alternative
BURNSVILLE, Minn. (9/25/09)--US FCU and a Burnsville auto dealer have teamed up with an alternative to the expired "Cash for Clunkers" program. The "I Hate My Car Contest" extends beyond replacing only cars defined by the federal government as "clunkers."
Earlier this month the Burnsville, Minn.-based credit union teamed up with Jeff Belzer's Chevrolet, Dodge, Kia dealership to launch the contest, which enables car owners to vent their frustration with their current vehicle in hopes of winning a new 2009 Chevy Aveo to replace their wretched ride.
So far, in the first two weeks, the contest has generated 300 rants from disgruntled car owners and 2,700 visits to the contest's official website.
US FCU and Belzer's also are offering discounts and I Hate My Car removable car clings so members can publicly profess their anti-love.
CU System briefs
- LANSING, Mich. (9/25/09)--The Kalamazoo (Mich.) Chapter of Credit
Unions hosted four state legislators for a legislative breakfast Sept. 14 at First Community FCU in Parchment (Michigan Monitor Sept. 21). Roughly 27 credit union representatives met with State Sen. Patty Birkholz (shown addressing attendees) (R-Saugatuck) and State Reps. Robert Jones (D-Kalamazoo), Larry DeShazor (R-Portage) and Tonya Schuitmaker (R-Lawton). Schuitmaker made a brief appearance before her legislative assistant addressed the group. Among the topics discussed: financial exploitation legislation, term limits, the state budget, the lottery and its contribution to education, and the House Speaker's healthcare proposal (Photo provided by the Michigan Credit Union League) ...
- ST. PAUL, Minn. (9/25/09)--The Minnesota CU Foundation (MNCUF) launched its new website earlier this month, with a new look, new features and a more navigable organizational structure. All functions of the foundation--including grant program summaries, application forms and e-contributions--are now online. MNCUF Chair Kristi Mukomela, president of Novation CU, noted the site serves as a one-stop shop" for contributors and grant applicants. Website visitors also can explore activities of two foundation committees, Minnesota Credit Unions for Kids and the Minnesota Family Involvement Council ...
- GREELEY, Colo. (9/25/09)--A Colorado woman convicted of murdering an employee of the Greeley branch of Colorado State Employees CU (now Credit Union of Colorado) is seeking a hearing to claim she had ineffective counsel during the trial. Shawna Nelson filed papers to drop her appeal of the first degree murder conviction in favor of the hearing. She is serving a mandatory life sentence for the murder of Heather Garraus outside the credit union. The murder occurred after Garraus' husband ended an affair with Nelson (Fort Collins Coloradoan Sept. 23) ...
- OCALA, Fla. (9/25/09)--A former branch manager of the Gainesville, Fla.-based Campus USA CU has been charged with taking more than $52,000 by creating false loans on a member's account and spending the funds. Michael Aubrey Groves, 32, Citra, is being charged with criminal use of personal identification information, offenses against intellectual property to defraud and grand theft. He was fired from his job in March (Ocala.com Sept. 24). The fraud apparently occurred from June 2007 through February 2009 ...
Market News
MADISON, Wis. (9/25/09)
- In a sign that the housing market may be slow to rebound, existing U.S. home sales unexpectedly decreased in August for the first time in four months, according to the National Association of Realtors (NAR). Purchases--which include single-family, town homes, condominiums and co-ops--declined 2.7% to a seasonally adjusted rate of 5.1 million units in August from a pace of 5.24 million in July. However, the August rate is still 3.4% above the 4.93 million-unit level in August 2008. In the past four months, sales have grown 15.2%. Lawrence Yun, NAR chief economist, said the first-time buyer tax credit is working. "Home sales retrenched from a very strong improvement in July but continue to be much higher than before the stimulus," he said. "The first-time buyer tax credit is having the intended impact of bringing buyers into the market, allowing them to take advantage of very favorable affordability conditions." Also, the housing inventory situation is improving, with the months of inventory level declining to 8.5--the lowest level since April 2007. The 12.5% year-over-year drop in the median home price remains significant but is stabilizing, analysts said (www.realtor.org, Bloomberg.com and Moody's Economy.com Sept. 24) ...
- The number of first-time jobless claims filed in the U.S. for unemployment benefits last week unexpectedly fell to the lowest level in two months, the Labor Department said Thursday. This indicates that as the economy pulls out of the recession, firings are slowing down, the department said. In the week ended Sept. 19, applications declined 21,000 to 530,000 from a revised 551,000 the previous week. The total number of people collecting unemployment benefits dropped the previous week to 6.14 million--less than predicted. Recent gains in manufacturing and homebuilding bolstered forecasts that economic growth will resume this quarter, analysts said. Also, the job market may be beginning to stabilize, but the continuing rise in unemployment indicates a hiring rebound will be gradual and the economic recovery will not be led by consumer spending, they added Bloomberg.com Sept. 24) ...
- The level of mortgage debt outstanding for the U.S. commercial/multifamily sector dropped in the second quarter to $3.47 trillion--a decrease of $9.9 billion, or 0.3% from the first quarter--according to the Mortgage Bankers Association's (MBA) analysis of the Federal Reserve Board's Flow of Funds data. Multifamily mortgage debt outstanding rose to $914 billion--an increase of $6 billion or 0.7% from the first quarter. "Commercial/multifamily mortgage debt outstanding fell by 0.3% in the second quarter, as the amount of loans paid down and paid off exceeded the amount of new mortgages taken out," said Jamie Woodwell, MBA's vice president of commercial real estate research. "Most major investor groups, including the commercial mortgage-backed securities market, life insurance companies and banks and thrifts, saw reductions in their holdings of commercial/multifamily mortgages, while Fannie Mae and Freddie Mac increased their holdings of multifamily mortgages." (www/mbaa.org Sept. 24) ...
News of the Competition
MADISON, Wis. (9/25/09)
- Citigroup Inc.--the third largest U.S. lender by assets--is considering selling or closing some of its 1,001 branches in the U.S. and Canada, and serving only six metropolitan areas. It is downsizing following last year's $45 billion federal bailout, said a person familiar with the plans. The bank would tighten its North American retail presence to areas where it has the highest branch concentration, the source said. The bank may scale back its presence to six areas--New York, Washington, D.C., Miami, Chicago, San Francisco and Los Angeles--the source said. Citigroup's network currently is clustered in California, Chicago, Miami, New York, Washington, D.C., with a lesser presence in Boston, Philadelphia and Texas. The "smaller-but-smarter" approach is Citi's most recent effort to fix a business model that has been beset by management turnover, strategic mistakes and underinvestment, analysts said (The Wall Street Journal and Bloomberg.com Sept. 24) ...
- Wells Fargo Wednesday became the most recent large U.S. bank to announce it will cut overdraft fees. Several other large U.S banks already have announced their intentions to do so amid lawmakers' criticisms that overdraft charges are too costly and levied too often. Bank of America (BofA) and JPMorgan Chase announced their plans earlier this week to significantly revamp their debit card programs by reducing or eliminating fees. Wells Fargo and Chase will cancel fees for accounts overdrawn by $5 or less, they said in separate statements. BofA no longer will assess fees on accounts that are short $10 or less, it said (The New York Times Sept. 24) ...
- Fritz Henderson, CEO of General Motors Co., said he anticipates "modest improvement" next year in nationwide sales of cars and light trucks. The auto industry should sell 11.5 million to 12 million cars in 2010, compared with roughly 10 million to 10.5 million this year, Henderson said. Speaking to reporters in Orlando, Fla.--the final stop of a nine-city tour--Henderson said the credit market for auto financing is on the mend, and as the economy emerges from the recession there should be growing demand for vehicles (The New York Times Sept. 24) ...
H&FF Radio: Consumer tips for military personnel
WASHINGTON (9/25/09)--Sunday's H&FF Radio show includes two segments targeted at military personnel, covering auto insurance and overdraft protection programs. Other experts tackle tax help for older individuals and online resources for consumers.
Home & Family Finance airs Sundays at 3 p.m. EDT on the Radio America Network. The show also is carried on American Forces Radio Network. The one-hour program devoted to consumer finance issues is brought to you by America's credit unions and their 90 million members, and is presented by CO-OP Network.
The Credit Union National Association (CUNA) and Radio America are podcasting Home & Family Finance through iTunes, Podcast Alley, Odeo, and other popular podcast library sites, as well as on Radio America and CUNA's websites. A special welcome is extended to WELW AM 1330 in Cleveland, Ohio, which airs Home & Family Finance on Sundays 3-4 p.m. ET.
Sunday's show, which you also can hear later via the Internet, features Paul Berry, Washington, D.C., journalist and broadcaster, discussing these topics with special guests:
- "Federal Citizen Information Center: Consumer Resources Online," with Teresa Nasif, director, U.S. General Services Administration's Federal Citizen Information Center, Washington, D.C.;
- "10 Things You need to Know About Auto Insurance for Military Personnel," with Ethan Ewing, president, Bills.com, San Mateo, Calif.;
- "Non-Sufficient Funds and Overdraft Protection Programs at Military Financial Institutions," with Marocco Roberts, captain first class, and banking and credit union liaison officer, U.S. Army, the Pentagon, Arlington, Va.;
- "Tax Help for the Elderly," with Bonnie Speedy, national director, AARP Tax-Aide and vice president, AARP Foundation, Washington, D.C.; and
- "Prize-linked Savings Programs: Is This the Incentive You Need?" with Chris Day, senior vice president, Marketing, NUnion CU, Lansing, Mich.
Home & Family Finance is a resource center for personal finance information at CUNA. The radio show is sponsored by CO-OP Network, the national credit union ATM network; Cabot Creamery Cooperative, maker of award-winning cheddar; Western Corporate FCU, also known as WesCorp, and its member credit unions; and the Defense Credit Union Council and member credit unions, serving those who serve the country worldwide.
For more information, read "Tough Times Series: Services, Sites Help Veterans Navigate Benefits Maze" in Plan It: Retire Ready Toolkit.
Member Advantage Mortgage triples origination abilities
ADA, Mich. (9/25/09)--Member Advantage Mortgage announced that it has tripled its mortgage origination capabilities to about 200 per month from 60 per month.
Member Advantage Mortgage is majority owned and operated by seven credit unions in New Hampshire, Virginia, Massachusetts, Pennsylvania and Nevada. The company has three loan processors.
Member Advantage said it increased mortgage origination because it is working with XetusOne, which offers a paperless operation and allows employees to take loan applications at home.
"Before, we could e-mail closing documents, but you couldn't do your application documents," said Jennifer Durham, Member Advantage Mortgage national sales and production manager. "You had to mail them or have a face-to-face with the member. Now we can do things instantly rather than having to wait days or use fax machines if there are changes."
XetusOne can be used through a standard Web browser, which helps originators and third-party servicers collaborate online through the loan process. Managers in charge of multiple branches can view details of any loan folder, look at profitability by branch, and make changes to data fields, said Scott Stein, Xetus vice president of sales and marketing.
Xetus, Palo Alto, Calif., offers "software as a service" to the mortgage industry, including credit unions.
Harland Financial Solutions launches software platform
LAKE MARY, Fla. (9/25/09)--Harland Financial Solutions has launched Phoenix Extended Financial Enterprise (EFE), an integrated enterprise software platform for financial institutions, including credit unions.
PhoenixEFE is designed for credit unions with a focus on business services, including commercial lending and loan participation.
The solution integrates Phoenix System, a real-time core processor, with solutions for risk management, lending and compliance, business intelligence and marketing, branch automation, self-service, enterprise content management, payments and financial accounting.
Consumers CU, Kalamazoo, Mich., is one of two financial institutions that went live on PhoenixEFE in August. The credit union said the solution helped it expand its reach in the commercial market.
PhoenixEFE Core runs on Microsoft Windows and is integrated by a Web services transaction gateway that uses XML and Web services.
The Phoenix System brand will no longer be used in the U.S. All its functionality will be included with PhoenixEFE, Harland added.
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