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Filed on November 5, 2009, published the first business day after.
- Community First UBIT decision backs other exemptions claims
- NCUA meets to discuss corporate capital issues
- House clears CARD Act acceleration bill
- Homebuyers tax credit extension OK’d by House
- Inside Washington
- 105 indicted for Florida mortgage fraud
- Biz-lending collections topic of CUNA Council paper
- Calif. CU's card terms haven't changed in years, media told
- CU’s op-ed: Teach young adults to manage credit
- Piedmont Advantage CU has a hit with 6.9% credit card
- Pa. large-CU CEO forum addresses challenges
- Springfield chapter prepares for the flu season
- California DFI shuffles CU division staff
- CU System briefs
- Market News
- News of the Competition
- H&FF Radio covers financial tips for veterans
- CO-OP mobile software now on iPhone
- PSCU Financial Services adds iPhone/iPod touch apps
- Products and Services brief
Community First UBIT decision backs other exemptions claims
WASHINGTON (11/6/09)--The decision in the Community First CU v. United States case constitutes "substantial authority" for the position that the products covered in the case are not subject to unrelated business income tax (UBIT) for credit unions that are situated similarly to Community First, law firm Foley & Lardner LLP concluded in a recent memo to credit unions and credit union legal, tax, and accounting advisors.
The memo provides general information about the Community First case and tax law, and notes that each individual state-chartered credit union—in consultation with its accountant and other advisors—must determine for itself whether the Community First decision constitutes "substantial authority" sufficient for the credit union to not pay UBIT on sales of credit insurance and GAP products without penalty.
A jury on May 14, 2009 found in favor of Community First's refund claim for a total of $54,604 in UBIT taxes that the credit union paid on sales of credit life insurance, credit disability insurance, and Guaranteed Asset Protection products to its members, plus costs. The Justice Department at that time asked a trial judge to overturn the jury's verdict, and a judge in July upheld the jury verdict in a written opinion.
The government did not appeal this decision.
The Internal Revenue Service's UBIT policy addresses income that is deemed to be "substantially unrelated to the purpose of a tax-exempt organization." State-chartered credit unions with more than $1,000 in UBIT must report the tax on an IRS 990-T form. However, federally-chartered credit unions are not subject to UBIT.
Foley & Lardner LLP is counsel to the UBIT Steering Committee, which is composed of representatives from the Credit Union National Association (CUNA), CUNA Mutual Group, the American Association of Credit Union Leagues and the National Association of State Credit Union Supervisors.
To read the Foley & Lardner LLP memo in full, use the resource link.
NCUA meets to discuss corporate capital issues
ALEXANDRIA, Va. (11/6/09)—At a National Credit Union Administration (NCUA) meeting Thursday on corporate credit union issues, Credit Union National Association (CUNA) President/CEO Dan Mica urged the agency to allow a process that would leave the door open to future capital recoveries if the magnitude of losses at the corporate credit unions is not as great as the NCUA has estimated.
The meeting was called by NCUA Chairman Debbie Matz to conduct a wide-ranging discussion of issues related to the treatment of corporate capital and the upcoming NCUA corporate rulemaking. About 40 representatives of corporate credit unions, natural person credit unions, CUNA and the leagues, and others, attended the meeting.
The session facilitated an open and frank discussion of the NCUA's decision to deplete capital in Western Corporate CU and U.S. Central CU and the consequences of that decision, according to CUNA Deputy General Counsel Mary Dunn, who attended the meeting. Also discussed were possible approaches to mitigate the impact of that decision.
After the meeting at NCUA headquarters here, Matz said in a statement that the agency will immediately begin analysis of the information gathered, "take a fresh look at the capital depletion issue and its component parts, and make certain that NCUA is proceeding in a way that satisfies all legal, policy and accounting requirements."
She said the corporate review will be completed in a way that will "enable all stakeholders to move forward with full transparency of corporates' financial statements and full confidence in the stability of the credit union industry."
The NCUA is expected to come out this month with its anticipated draft plan for restructuring corporate credit union regulations.
Among those attending the Thursday meeting were California League President Bill Cheney, Utah League President Scott Simpson, CUNA Accounting Task Force Chair Scott Waite, CUNA General Counsel Eric Richard, and Senior Economist Mike Schenk.
House clears CARD Act acceleration bill
WASHINGTON (11/6/09)--The House this week passed H.R. 3639, the "Expedited CARD Reform for Consumers Act of 2009," by a 331 to 92 vote.
The legislation would accelerate the effective date of the Credit Card Accountability, Responsibility and Disclosure (CARD) Act to Dec. 1 of this year, rather than the Feb. 22, 2010 deadline originally proposed in the bill.
The committee also approved an amendment, offered by Rep. Betty Sutton (D-Ohio), that would place a moratorium on raising interest rates between the date of enactment and the original February 22, 2010 deadline.
"We are grateful that the House retained language we were able to secure at mark-up to limit the accelerated effective dates to card issuers with more than 2 million credit cards in circulation. However, we are concerned that an amendment placing a moratorium on raising interest rates on credit cards between the date of enactment and February 22, 2010, was adopted. This proposes an unnecessary restriction where credit unions are concerned and we will be raising this issue with the Senate," Credit Union National Association Vice President of Legislative Affairs Ryan Donovan said.
The Associated Press on Thursday reported that the legislation's Senate prospects are "dim," as many lawmakers are concerned by the negative effects that the bill could have on the industry and credit availability for consumers.
Homebuyers tax credit extension OK’d by House
WASHINGTON (11/6/09)--The House on Thursday passed by a 403-12 vote legislation that would extend access to the $8,000 first-time homebuyer tax credits that were set to expire at the end of the month.
The homebuyer tax credit, which also creates a new $6,500 tax credit for current homeowners that purchase a new home between Dec. 1, 2009 and April 30, 2010, was attached to H.R. 3548, the Worker, Homeownership, and Business Assistance Act of 2009. The bill will extend unemployment insurance benefits for a 14-week period.
The tax credit will be made available to single homebuyers with up to $125,000 in income and joint income tax filers with up to $225,000 in total income. It will not be available for home purchases totaling more than $800,000. The homebuyer will need to close by 60 days to be eligible for the credit. The bill also extends the tax credit to individuals who are in the market for a new home but have owned their current home for five years or longer.
H.R. 3548 passed the Senate on Wednesday by a 98-0 vote. To become law, it must be signed by the president.
Elsewhere in the Senate, it is widely reported that Senate Banking Committee Chairman Chris Dodd (D-Conn.) could introduce his own comprehensive regulatory restructuring legislation as a draft bill as early as Monday. The Wall Street Journal on Thursday reported that Dodd's legislation would remove the supervisory authority of the Federal Reserve and Federal Deposit Insurance Corporation and create a new single agency for bank and holding company supervision.
The committee has also announced a Nov. 10 hearing, entitled Protecting Consumers from Abusive Overdraft Fees: The Fairness and Accountability in Receiving Overdraft Coverage Act, and Pentagon FCU President/CEO Frank Pollack will be among those testifying. Other witnesses scheduled to testify during the hearing on S. 1799, The FAIR Overdraft Coverage Act, include the Consumer Federation of America's Travis Plunkett and the Center for Responsible Lending's Eric Halperin. The Senate may announce further witnesses at a later date, according to a release.
The legislation, introduced by Dodd, would limit the fees that financial institutions can charge on overdraft protection services.
Potential changes to overdraft legislation were discussed in a House Financial Services Committee hearing held in late October, and witness President/CEO Rodney Staatz, of SECU of Maryland, speaking on behalf of the Credit Union National Association, advised members of the panel to conduct an "independent, unbiased" survey of consumer opinions on overdraft before they act on any legislation. He also stated that responsible overdraft protection plans are an important service to members, and oversight should remain in the regulatory arena.
National Credit Union Administration Chairman Debbie Matz has also recently spoken out on overdraft issues, saying that she supports overdraft protection plans that are carefully done with minimal impact on members.
Inside Washington
- WASHINGTON (11/6/09)--House Financial Services Committee Chairman Barney Frank (D-Mass.) wrote in a letter Tuesday to the Commodity Futures Trading Commission and Securities and Exchange Commission that he would continue to strengthen his bill on derivatives. Frank said he would draft amendments that would address who has the power to decree that a derivative should be cleared and to determine which derivative users can be exempted from clearing requirements (American Banker Nov. 5). Originally, Frank's bill would have given for-profit clearing platforms the ability to decide what contracts to clear. But observers have said clearinghouses would base their decisions on their own interests ...
- WASHINGTON (11/6/09)--Guidelines released Friday by the Federal Deposit Insurance Corp. provided needed clarification for banks on how they should handle troubled credits when modifying commercial real estate (CRE) loans, financial observers said (American Banker Nov. 5). The guidance includes a series of examples of CRE loan workouts. It also aims to cover examiners who would penalize banks for not marking down poor performing loans. Though the guidance will provide clarity for banks, it's unknown if it will stabilize the housing market, observers said. Richard Spillenkothen, former Federal Reserve Board director, said the guidance is helpful, but it's also a reiteration that for certain borrowers, restructuring can be helpful for both the borrower and lender. But judging that is "tricky and difficult," he said. Ron Glancz, partner at Venable LLP, said the guidelines could have a big impact on the CRE market. If examiners apply the guidelines, it could be a great help to banks with large CRE portfolios, he said ...
105 indicted for Florida mortgage fraud
TAMPA, Fla. (11/6/09)--Roughly 105 individuals have been charged with fraudulently procuring more than $400 million in loans on more than 700 properties in Florida as a result of a nine-month Mortgage Fraud Surge investigation, announced the U.S. Attorney's Office for Middle Florida.
Those being charged with fraud for property and/or housing, or fraud for profit include lenders, real estate brokers, multiple borrowers, realtors, sellers, financial institution branch managers, financial institution employees, contractors, mortgage brokers and loan originators, the office said in a press release issued Wednesday..
Of the 105 defendants, 32 arrests were in Ft. Meyers, 30 in Tampa, 19 in Orlando and 24 in Jacksonville. The cases involve both mortgage schemes designed to defraud mortgage lenders and foreclosure-rescue schemes that prey on homeowners distressed by the economy. Some credit unions are believed to be among the victims.
There currently are already 500 defendants in federal mortgage fraud cases around the nation.
The newest investigation was conducted by the U.S. Attorney's Office and the Federal Bureau of Investigation (FBI) Tampa and Jacksonville divisions and spanned 15 different agencies, including the Florida Office of Financial Regulation.
The announcement said it is the first phase of a continuing effort to investigate and prosecute not only mortgage fraud professionals and other individuals engaged in multiple fraudulent mortgage transactions, but also larger organizations and even financial institutions.
Biz-lending collections topic of CUNA Council paper
MADISON, Wis. (11/6/09)--A rare confluence of events is occurring in the American economic landscape that offers credit unions once-in-a-lifetime business lending opportunities, according to the CUNA Lending Council.
Banks and other lenders are restricting credit to established business owners and the growing pool of new entrepreneurs laid off from corporate and other jobs during the recession. Evidence indicates that credit restriction will continue. The CUNA Lending Council recently released a white paper, "Business Lending Collections," which offers insight into the specialized field of collections.
The paper contains interviews with credit union lenders about the state of business lending and collections in the industry. Also included is information on third-party collections, negotiating with business owner members, recognizing red flags, creativity in collections and telephone call tips.
Several credit unions view the current environment as an opportunity to lend to small business owner members. They are ramping up their business lending portfolios and fine-tuning their business lending collections departments. Business collections--like business lending--succeed or fail depending on the quality of the relationship developed and nurtured.
"The key to effective business-lending collections is relationships--how you treat people," notes Bill Klewin, associate general counsel, CUNA Mutual Group, Madison, Wis. "You have to find people who work well with others, who have exemplary people skills."
An August Federal Reserve survey in reported that 55% of banks said their lending standards for business loans would remain tougher than long-term average levels until the second half of 2010. In the same survey, one in four banks said they decreased the limits for business credit cards over the past three years. Most bankers said their standards for credit card loans to their best customers would remain tighter than normal into 2011 and beyond.
Calif. CU's card terms haven't changed in years, media told
BAKERSFIELD, Calif. (11/6/09)--Many banks and credit card issuers are hiking their fees and rates to beat the clock before all provisions of the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009 take effect. An article about that trend points out that one California credit union hasn't changed the terms of its credit card rates in years.
The proposed acceleration of the act's implementation date from Feb. 22 to Dec. 1 has prompted a hike in complaints and inquiries about credit card companies increasing their rates, says the California Attorney General's office (Bakersfield Californian Nov. 4).
The acceleration was absolutely necessary, Donna Severs, CEO of Bakersfield (Calif.) City Employees FCU, told the newspaper. Some lenders, including predatory lenders, "were rushing to circumvent the intent of the law by putting in place exactly the kinds of changes that the law would make illegal," Severs said.
She noted that the credit union hasn't changed the terms on its Visa cards in years.
Kern Central CU CEO Carl Trejo told the newspaper Kern Central increased rates on some cards in October but the timing wasn't related to the new law or delinquencies. Trejo said the credit union performs quarterly surveys and it found it was below market.
The article noted that Chase Bank has recently converted some of its fixed-rate cards to adjustable rates. Wells Fargo notified cardholders in October that most would see interest rates climb up to 3% beginning Nov. 30. Bank of America wouldn't boost its rates again before February unless the borrower misses two or more payments in 12 months.
Analysts said that consumers will see more initially low promotional offers that increase their interest rates significantly after several months and that consumers will need to stay on top of when the promotional rates end because some banks charge interest retroactively if the balance isn't paid off by the expiration date.
CU’s op-ed: Teach young adults to manage credit
ROCK HILL, S.C. (11/6/09)--Teaching young adults how to prudently manage their credit before they go into the real world is vital in today's economy, according to an opinion piece by a local credit union staffer in a South Carolina newspaper.
"With the economy being at such a low point, young adults need to learn how to build and maintain good credit," wrote Jennifer Panther, a certified financial counselor for the $231.7 million-asset Family Trust FCU in Rock Hill, S.C., in a Thursday op-ed article in The Herald.
"Before helping your children establish credit, teach them about credit," she continued. "Explain to them the concept of credit, the responsibilities that come with using credit, and the reason credit is out there. Start by showing them one of your credit card statements. Show them how to read it, how interest accrues, and how late fees and over-limit fees can apply.
"Stress to them that every swipe of their card will count and appear on the statement," she added.
To read the article, use the link.
Piedmont Advantage CU has a hit with 6.9% credit card
WINSTON-SALEM, N.C. (11/6/09)--Piedmont Advantage CU is offering a credit card with a 6.9% fixed rate and without annual fees. The credit union has opened nearly 700 Visa accounts and approved $3 million in balance-transfer requests.
Most credit union members who are transferring balances are trying to find a financial partner to understand their circumstances and help them, the credit union said.
"One member is dealing with cancer and had to charge some surgeries on her credit card accounts," said Judy Tharp, Piedmont Advantage president/CEO. "Not only was she having to deal with being sick, she had to worry about making ends meet with a 15% variable card."
Most people who transfer their balances to Piedmont have good credit histories, but have seen their interest rates skyrocket as their card providers try to turn a profit during the recession, Piedmont said.
"Our members have shown a lot of enthusiasm for this new product," Tharp said. "It's very simple to understand--no tricks, no gimmicks, no gotcha fees."
Piedmont said it researched other cards and could not find a lower rate. The average annual percentage rate on a credit card is around 9.5%, according to Bankrate.
"Many lower-interest cards are hard to get now since credit is so tight," Tharp said. "And others come with fees that don't make them a very good deal."
Piedmont Advantage CU has $238 million in assets.
Pa. large-CU CEO forum addresses challenges
HARRISBURG, Pa. (11/6/09)--Attendees at the Pennsylvania Credit Union Association's (PCUA) Large Credit Union CEO Forum in Hershey, Pa., Wednesday discussed the challenges the credit union movement is facing.
Rep. Jim Gerlach (R-Pa.), who is a member of the House Financial Services Committee, updated attendees on pending legislation regarding a proposed Consumer Financial Protection Agency, credit card reform and systemic risk (Life is a Highway Nov. 5).
Stan Hollen, CEO of CO-OP Financial Services, provided an overview of the payment systems marketplace and future innovations using CO-OP's Next Generation Network, fast branch kiosks and mobile services.
Hollen commended credit unions for their iBelong campaign to attract membership.
"You're doing it right with the focus on membership," Hollen said. "If membership is growing, everything else is okay."
Other speakers included Dr. Terry Madonna, political professor and pollster, who spoke about elections in the state for the U.S. Senate and governor; and State Treasurer Rob McCord, who restated the State Treasury's commitment to PCUA's Credit Union Better Choice program. Credit Union Better Choice is a payday lending alternative program.
McCord said he is "honored to be a credit union friend" and that "credit unions are fulfilling consumers' flight to quality and need for trust."
The forum was scheduled to finish Thursday with a speech by CUNA Mutual Group President/CEO Jeff Post about why the credit union system is needed now more than ever.
Springfield chapter prepares for the flu season
SPRINGFIELD, Mo. (11/06/09)--The Springfield (Mo.) Chapter of Credit Unions met Oct. 30 for its fall breakfast to discuss the fears of H1N1 and a severe pandemic flu season, which are dominating news coverage in Missouri.
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| Brent Davis (standing) of Postal Federal Community CU shares his flu season disaster-recovery plan with members of the Springfield (Mo.) Chapter of Credit Unions. (Photo provided by the Missouri Credit Union Association) |
Brent Davis, internal audit officer at Postal Federal Community CU, Springfield, shared the credit union's pandemic flu disaster recovery plan with the group, according to the Missouri Credit Union Association (MCUA) (The Missouri difference Nov. 4).
Davis advised attendees to be informed, take preventative measures, communicate with staff, and expect increased staff absenteeism.
"This is a level-headed and measured approach that will remove confusion and fear to allow your credit union to continue providing great member service. Now, go wash your hands," he said.
MCUA encouraged its member credit unions to implement these precautions to help stop the flu from spreading:
- Provide hand sanitizers in the office, especially on the front lines where tellers interact frequently with the public;
- Encourage ill employees to stay home if they have flu-like symptoms;
- Offer reimbursements to employees who get the flu vaccine; and
- Send employees information on how to prevent the flu. MCUA provided a sample brochure.
California DFI shuffles CU division staff
SACRAMENTO, Calif. (11/6/09)--The California Department of Financial Institutions (DFI) announced management changes in its Credit Union Division.
The changes may affect a credit union's point of contact for administrative applications--such as field of membership expansions, bylaw amendments, merger applications, statutory approvals and regulation variances, said the DFI.
The changes also may affect examination scheduling, and other relevant dialogue regarding a credit union's strategic business plans and general financial condition, DFI said.
Also, two new regional portfolio management positions were established to provide better coverage for the increasing workloads of regulatory matters relating to state-chartered credit unions, DFI added.
In Northern California, Lara Leung will be joining Lana Tom, out of San Francisco, as the two portfolio managers for that area.
In Southern California, Les Thompson will be joining Joni Kimbrell, as the two portfolio managers for that area.
For more information, use the link.
CU System briefs
- NEWARK, Del. (11/6/09)--Newark Delaware City Employees FCU (NDCEFCU) has merged into Louviers FCU, announced Louviers President/CEO James E. Everhart Jr. (Together Nov. 4). The merger will allow NDCEFCU members to take advantage of several branch locations and additional products and services such as mortgages, internet banking and bill payment, student loans, checking accounts, credit and debit cards, and small business financial services. "It's a positive move for Louviers as we reach out to serve more members of the greater Newark, Delaware and Cecil County, Md., areas," he said ...
- SAN DIEGO, Calif. (11/6/09)--John Tippets has been hired as the new president/CEO of North Island CU based in San Diego, the credit union announced. He started Thursday, and replaces Michael Maslak who retired in January. Tippets is former CEO of the American Airlines FCU, Dallas, which has $5.4 billion in assets and is the ninth largest credit union in the nation. He retired in June 2008 after 42 years in the airline industry, the last 17 as the credit union's CEO. "North Island Financial CU has long been recognized for its strength and innovation in providing high quality financial services to consumers and businesses in San Diego," said California and Nevada Credit Union Leagues President/CEO Bill Cheney. He noted that Tippets " is a highly regarded national credit union leader who will continue that tradition" and is a "welcome addition to the California credit union community" ...
- VENTURA, Calif. (11/6/09)--Joseph Schroeder, a long-time leader in the California credit union movement, is the new president/CEO of Ventura (Calif.) County CU (VCCU). He will replace Carol A. Harris, who recently retired after 22 years at VCCU. Schroeder has more than two decades of senior-level credit union management experience as president/CEO at three of southern California's largest credit unions, and as a vice president over both operational and marketing departments. VCCU has $483 million in assets ...
- TACOMA, Wash. (11/6/09)--Tacoma, Wash., Mayor Bill Baarsma
declared Oct. 27 as "TAPCO CU Day." The credit union celebrated its 75th anniversary that day, thanking its board, employees and members for helping the credit union through the nation's economic crisis. TAPCO has $243.9 million in assets. From left are: Denis Timmerman, supervisory committee chair; board members Jeanne Werner-Spaulding, Richard Williams, Pat McElligott (in front), and Rob Masko; David Smith, credit union service organization board member; John Bechtholt, CEO; Mike Weinman, consultant; and Mike Fitzgerald, supervisory committee member. (Photo provided by TAPCO CU) ...
- YUBA CITY, Calif. (11/6/09)--Sierra Central CU evacuated its staff and members at about 9:15 a.m. Thursday because of a strange odor that caused individuals to have eye irritation (TheUnion.com Nov. 5). Firefighters were searching the building to find the source of the odor. Credit union Manager Tamara Salas told The Union that some thought the smell was chemical or like burnt wiring. The credit union's employees were checked out by an emergency medical technician to make sure they were okay. Sierra Central CU, Yuba City, Calif., has $651 million in assets ...
Market News
MADISON, Wis. (11/6/09)
- Initial claims for unemployment benefits fell by 20,000 to 512,000 for the week ended Oct. 31--the lowest level since Jan. 3. In the meantime, continuing claims decreased by 68,000 to 5.749 million for the week ending Oct. 24. Because businesses are slowly cutting back on layoffs, the latest data indicate that the labor market is gradually improving, analysts said. Fewer jobless claims were filed last week than economists had expected, the Labor Department said Thursday in its weekly report. Economists surveyed by Dow Jones had expected a decrease of only 5,000 claims. Because initial claims still remain relatively high, the implication is that the job market has a long road to recovery, analysts said. Also, the Monster Employment index gained one point between September and October to finish at 120--a mark that is consistent with a lack of improvement in job availability, according to Monster Worldwide Inc. The index is down 20% from the same period last year (Moody's Economy.comand The Wall Street Journal Nov. 5) ...
- U.S. chain store sales increased 2.1% in October from a year ago. However, this is not a sign of resurgence in consumer spending, but rather "easier year-ago comparisons," analysts said. The month's sales were helped by cooler weather and early holiday shopping, they added. Although consumer fundamentals are not as bad as earlier in the year, they remain restrictive for sustainable growth in spending, analysts said (Moody's Economy.com Nov. 5). Although teen-focused retail chains posted lower-than-expected results in October, a handful of retailers--including Stage Stores Inc., Stein Mart Inc. and Gap Inc.--reported better-than-expected results, analysts said. Usually, October is not a strong retail sales month, but rather a lull between back-to-school shopping and the holiday season in its final two months, analysts said (The Wall Street Journal Nov. 5) ...
- In the third quarter, nonfarm business productivity increased at a 9.5% annualized rate--the biggest gain in six years, according to the Bureau of Labor Statistics. Also, unit labor costs decreased 5.2%. The productivity gain was due to a sharp drop-off in hours worked, while output increased. The significant and larger-than-expected decline in labor costs will result in improved profitability. However, productivity gains will temper the need for hiring, analysts said. In the longer term, the better balance between labor and output is necessary for higher profitability and eventually increased hiring as aggregate demand turns around, analysts said (Moody's Economy.com Nov. 5) ...
- More than half of U.S. consumers intend to pay cash for this year's holiday purchases, said two surveys released this week. Opinion Research Corp. conducted a telephone survey this month of 1,005 adults in which 85% of respondents said they plan to use cash for their holiday purchases this year. Also, 62% of respondents plan to use cash more often, the survey indicated, while 55% said they do not plan to use credit or charge cards for holiday purchases this year. Concurring with the Opinion Research poll was a separate online survey of 3,880 adults conducted in November by the nonprofit group National Foundation for Credit Counseling. It found that 68% of respondents intended to use cash for holiday purchases (Cardline via American Banker Nov. 5) ...
News of the Competition
MADISON, Wis. (11/6/09)
- GMAC Inc.--which is 35% owned by the government--is cutting back on disclosures about its embattled mortgage unit. The finance company said Wednesday it no longer would provide separate quarterly or annual reports for Residential Capital LLC (ResCap). The Securities and Exchange Commission does not require the reports because only 300 investors hold ResCap's $4 billion of debt, analysts said. The change will result in saving a "tremendous" sum of money, said Robert Hull, GMAC chief financial officer, although he did not specify the amount. Several banking industry observers are upset by the move, which follows controversy over GMAC's negative advertising and its online bank's high deposit rates, analysts said (American Banker Nov. 5) ...
- MasterCard Inc. Tuesday reported a third-quarter profit, compared with a loss in the year-ago period. Results in the quarter were aided by cost-cutting measures, a higher volume of transactions processed, and lower litigation settlement charges compared with the year-ago period, analysts said. Third-quarter adjusted earnings per share jumped 41% from last year. The company's gains come despite general negative impacts from a global slowdown in consumer spending and a high worldwide unemployment rate, analysts said (www.rttnews.com Nov. 3) ...
H&FF Radio covers financial tips for veterans
WASHINGTON (11/6/09)--Sunday's H&FF Radio show addresses financial topics for military families: Cutting grocery costs, the Better Business Bureau (BBB) Military Line, and veterans benefits.
Home & Family Finance airs Sundays at 3 p.m. ET 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.
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:
- "Ways to Cut the Cost of Your Groceries," with Sgt. Shopper, a.k.a. Karen Jowers, contributor, Military Times, Springfield, Va.;
- "U.S. Better Business Bureau Military Line--What's There for You?" with Holly Petraeus, director BBB Military Line, U.S. Better Business Bureau, Arlington, Va.;
- "Veterans Benefits," with Keith Pedigo, associate deputy undersecretary for policy and program management, Department of Veterans Affairs, Washington, D.C.; and
- "Navigating the Veterans' Benefits Maze," with Shad Meshad, founder and president, National Veterans Foundation, Los Angeles, Calif.
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 (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: Gouged by Groceries" and "Tough Times Series: Services, Sites Help Veterans Navigate Benefits Maze" in Home & Family Finance Resource Center.
CO-OP mobile software now on iPhone
RANCHO CUCAMONGA, Calif. (11/6/09)--CO-OP Financial Services announced that CO-OP Mobile Banking is now available on the Apple iPhone.
CO-OP Mobile integrates into CO-OP's Next Generation Network (NGN). Members of credit unions in NGN can use CO-OP Mobile to verify balances, view transaction history and transfer funds between accounts. iPhone support began live testing last month.
iPhone users can deploy CO-OP Mobile by downloading the CO-OP application from the Apple iTunes Store.
Apple's iPhone is a multimedia smart phone. Apple has sold more than 7.4 million units this year, CO-OP said.
"Adoption of mobile banking services is essential for credit unions to attract and retain members, especially among the young, tech-savvy, high income, upwardly mobile and the underserved," said Stan Hollen, CO-OP president/CEO.
CO-OP Financial Services, a credit union service organization based in Rancho Cucamonga, Calif., offers ATM and debit processing services, shared branching, check imaging, mobile payments and access to 28,000 surcharge-free ATMs.
PSCU Financial Services adds iPhone/iPod touch apps
ST. PETERSBURG, Fla. (11/6/09)--PSCU Financial Services' mobile banking platform, mBanking, can now be used on the iPhone and iPod Touch, the company announced this week.
The new capability will help credit unions attract Generation Y and other member segments that use iPhones and iPods.
"iPhone and iPod Touch users represent a significant percentage of mobile banking customers," said John Pembroke, PSCU Financial Services chief marketing officer.
PSCU Financial Services, St. Petersburg, Fla., serves more than 1,300 financial institutions nationwide.
Products and Services brief
- NAPERVILLE, Ill. (11/6/09)--OfficeMax, an office supplier and CUNA Strategic Service provider, earned the Highest Customer Satisfaction for the Call Center Award from Service Quality Measurement Group (SQM). SQM provides quality assurance services for benchmarking, tracking, evaluating and improving call centers. OfficeMax earned the award based on high marks and the rating it received from customer satisfaction surveys conducted by SQM. About 94% of customers rated their experience with OfficeMax as "very satisfied." The award is the sixth honor OfficeMax has received this year for exceptional customer service ...
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