May 5, 2008

 

HEADLINE NEWS 

 

Gov. O’Malley Signs Financial Literacy Task Force Bills

ANNAPOLIS, Md. – On Thursday, April 24, Maryland Gov. Martin O’Malley signed into law Senate Bill 533 and House Bill 1242 at the Miller Senate Office Building. Now enacted, these bills will lead to the formation of the Statewide Task Force on Financial Literacy, which will study and make recommendations to the Maryland General Assembly as to how to raise the average level of financial literacy among the citizens of Maryland, and how to promote financial literacy education within Maryland’s Public Schools.

 

The signing of these bills represents a great victory for credit unions, as SB 533 and HB 1242 were vigorously supported by the Maryland & DC Credit Union Association. The Association will have three representatives on the Task Force who will advocate for measures to increase financial literacy education within Maryland, an important task given the current mortgage and foreclosure crisis.

 

 

The signings of Senate Bill 533 and House Bill 1242. Pictured and seated from left to right are: Lieutenant Governor Anthony Brown, State Senate President Mike Miller, Governor Martin O’Malley, and House of Delegates Speaker Michael Busch. Standing behind them, from left to right, are: State Finance Commissioner Sarah Bloom Raskin, Bert Hash, President & CEO of Municipal Employee’s Credit Union, Delegate Dana M. Stein, Delegate Dan K. Morhaim, Delegate Ann Marie Doory, James Brown, Esq., Counsel for MDDCCUA, and Aaron Glaser, Director of Legislative Affairs for the MDDCCUA. 

 

Update on Federal Legislation

COLUMBIA, Md. - As the week ended, credit unions were still in close contact with Capitol Hill regarding the Credit Union Regulatory Relief Act (CURRA, H.R. 5519), which had been scheduled for a floor vote on April 29.

 

Because a compromise had been brokered between Hill leaders and the bankers, H.R. 5519 was to have been handled as a non-controversial measure and placed on the suspension calendar.  However, bankers disregarded House leadership wishes and objected to the credit union bill. As a result, the bill was pulled from the suspension calendar.

 

CURRA proposes, among other things, to permit federal credit unions to add service to underserved areas regardless of original field of membership. It would also omit member business loans to underserved areas from counting toward the current cap.

 

The leagues and CUNA have been supporting CURRA while stressing the need for the additional regulatory relief measures that are part of the Credit Union Regulatory Improvements Act (CURIA, H.R. 1537). CURIA would raise the overall member business lending cap and approve a risk-based capital system for credit unions.

 

All members of the Maryland and DC congressional delegation have cosponsored CURIA and last week indicated they would have supported CURRA if the floor vote had occurred.  House Majority Leader Steny Hoyer typically does not cosponsor legislation but has historically supported credit union regulatory relief efforts.

 

“Maryland and DC credit unions have really done a fantastic job of getting our delegation to support regulatory relief,” said MDDCCUA CEO Mike Beall.  “The week’s events were an example of how the legislative process can be unpredictable but we remain hopeful that credit unions will prevail.”

 

In other developments on CURIA, Sen. Joseph Lieberman (I-Conn.) last week introduced the bill in the Senate. The bill mirrors the House version of CURIA and will be referred to the Senate Banking, Housing and Urban Affairs Committee.

 

Learn How Global and National Trends Impact your CU at the June Annual Meeting & Convention

COLUMBIA, Md. -  Steven Rick, the senior economist for CUNA’s Economics & Statistics Department, will discuss how global and U.S. financial events affect the U.S. economy, U.S. interest rates and ultimately credit unions. Steve will analyze recent credit union balance sheet and earnings performance establishing standards against which your credit union’s performance can be measured.  He will also identify factors affecting loan and savings activity, and weigh the influence of future economic events on growth patterns into 2009.

 

Many other educational breakout sessions will be offered during the convention. Click here for details. To get your first choice of hotels in Ocean City, please make your reservations now. If you haven’t already registered for the convention, click here.

 

Exhibitor Booths Still Available for the Annual Meeting

COLUMBIA, Md. - Reserve your exhibit space today to reach more than 700 attendees at MDDCCUA’s Third Annual Meeting and Convention scheduled for June 11–14, 2008, in Ocean City, Md. 

 

Exhibition prices for the 2008 convention are:

·         $1,895 per booth – include two reps.

·         Event sponsorship and advertising opportunities are available. 

 

For more information, contact Dawn Johnson at 443-325-0768.  

 

Scholarships Available for Small CUs for the Annual Meeting & Convention

COLLUMBIA, Md. - If your credit union has assets of less than $20 million, scholarships are now available for you to attend MDDCCUA’s Annual Meeting & Convention to be held in Ocean City from June 11 - 14, 2008. Scholarships cover the cost of registration and associated expenses. Eight are available at $750 each. We thank MECU and SECU for each donating two scholarships, and MDDCCUA’s Baltimore Chapter for donating four scholarships. Please contact Martha Ninichuk at 443-325-0782.

 

Train Your Staff by Registering Today for Upcoming Training Events

COLUMBIA, Md. - Take advantage of these educational opportunities being held in the Columbia office. Just click on the title for details:

 

Vendor Due Diligence:  Outsourcing is an increasingly common way for credit unions to offer more products and services.  But how do you choose the right vendor to ensure that the work is done to your standards?  On May 14 learn how to keep track of all the necessary details while making sure there is adequate transparency and ongoing communication.  

  

Bank Secrecy Act:  This session on May 22 will provide the information you need to ensure that your BSA training requirements have been met. This is an opportunity to provide required training for staff, make your members and the movement safer and support the government in the war on terrorism.   

 

Get Young Adults Involved in Your Credit Union!

MADISON, Wis. - The Filene Research Institute (FRI) is administrating a national project called CU Tomorrow to encourage credit unions to offer products and programs designed to attract young members, young professionals and young volunteers to credit unions.  

 

Filene will research and publish CU Tomorrow Business Briefs, each of which details a product or program targeted toward young people, and gives step-by-step instructions on how a credit union can implement the program. Filene will release approximately one Business Brief per month through spring 2009.
 

To participate, credit unions would commit to the following:

·         Launch three Business Brief products to their own markets.

·         Adopt recruiting and retention practices that will help make credit unions employers of choice for promising young professionals.

·         Adopt practices that will encourage the participation of young volunteers on and with credit union boards of directors.

·         Track relevant product metrics which will be clearly stated within each CU Business Brief. Credit unions would send relevant metrics to MDDCCUA which will be the intermediary to FRI.

·         Meet every-other-month for CU Tomorrow information sessions.

·         Assign a senior manager to attend the CU Tomorrow information sessions to learn the new Business Briefs and share results and prospects with other participating credit unions

·         CU Tomorrow operates a daily blog designed to be a clearinghouse for ideas about how credit unions can attract and better serve younger members and employees. Participating credit unions are encouraged to track the blog and comment accordingly. 

 

If your credit union is interested in participating, please complete the two question online application and return it to Martha Ninichuk, VP Credit Union Consulting, mninichuk@mddccua.org.  For more information, please call Martha at 443.325.0782 or 800.492.4206 ext. 123.

 

New Growth, Governance and Services Group Being Formed for Small Credit Unions – Sign Up Today

COLUMBIA, Md. - MDDCCUA is forming the second group of credit unions for the Growth, Governance and Services II project (GGAS II). There is no cost for your credit union to participate. Funding is provided through grants from the Credit Union Foundation of Maryland and the District of Columbia (CUFMDDC). The GGAS II project will provide individualized, high-touch technical assistance to credit unions of less than $20 million in asset size to enable them to maintain competitiveness within the Maryland and DC financial services industry. 

 

Benefits of participating in GGAS II:

·         CUNA Member Satisfaction Survey (Cost Savings of $2,300)

·         MDDCCUA individualized assistance

·         Strategic Planning

·         Credit Union Individualized Training

·         Group Managers’ Training

·         Board of Directors’ Training

·         Business Partner Relationship Development

·         Products and Services Development Assistance

·         Working with a group of 10 credit unions

 

For more information, please contact Martha Ninichuk, VP Credit Union Consulting, at 443.325.0782 or mninichuk@mddccua.org.

 

MDDCCUA Elections Will Be Conducted Online – Voting Instructions Sent to Affiliates and on Web

COLUMBIA, Md. - In 2007, the membership of MDDCCUA approved bylaws that provide the ability for the Association to conduct its election for the Board of Directors electronically. This year the MDDCCUA election will be conducted online using a secure, third party balloting system provided by VoteNet Solutions. VoteNet Solutions will also be acting as Tellers of Election. 

 

In 2008, the following candidates are running for four at-large Board of Director seats each with three-year terms:

·         Miguel Boluda, Jr., Incumbent

CEO, PAHO-WHO Federal Credit Union

·         Chris Conway, Incumbent

CEO, Educational Systems Federal Credit Union

·         Charles Mallon, Incumbent

CEO, Congressional Federal Credit Union

·         Joe Sparacino

Chairman, Montgomery County Employees Federal Credit Union

·         Rod Staatz, Incumbent

CEO, SECU Credit Union 

 

A letter was mailed to all member credit union CEOs and Chairmen providing complete voting instructions including the usernames and passwords needed to vote.  The 2008 MDDCCUA Board of Director’s election will begin on April 30, 2008.  All votes must be received no later than June 7, 2008.  Election results will be announced at the MDDCCUA 3rd Annual Meeting to be held June 14, 2008 at 10:00 a.m. at the Clarion Fontainebleau Hotel in Ocean City, Md.

 

DC Chapter Holding Bowling Tournament to Benefit Children’s Miracle Network – May 21 & 22

WASHINGTON – Join the fun and support kids too!  The MDDCCUA DC Chapter is sponsoring a bowling tournament to benefit Children’s Miracle Network May 21 – 22 at the AMF Alexandria Bowling Center, 6228A N. Kings Highway, Alexandria, VA 22303.  The cost is $250 per team (five bowlers per team).  Registration includes bowling shoes and three games.  The time is 6:00 p.m. to 10:00 p.m. both nights.  RSVP by May 19.

 

To register, click here.

  

CU HAPPENINGS

 

MECU Mourns Two Long-time Board Members

BALTIMORE, Md. - Charles L. Benton Jr., died of pneumonia on March 22, 2008.  Benton joined the MECU Board of Directors in December 1962 and served as Chairman from 1981 until 1986.  He continued to serve as Vice Chairman from 1986 through 1995, at which time he became an ex-officio member of the Board.  In 2003 he became a director emeritus and continued to serve in that position until his death.

 

John T. O’Mailey, MECU’s former Chairman of the Board, passed away April 22, 2008 at the Gilchrist Hospice Center in Towson.  O’Mailey served MECU and its membership from January, 1961 until his retirement in March, 2000.  He served as Chairman, Vice Chairman and Secretary of the Board of Directors.

 

SECU Holds Ribbon-cutting Ceremony for its 16th Branch in Pasadena

PASADENA, Md. - SECU Credit Union celebrated the ribbon-cutting ceremony for its 16th branch in Pasadena on Monday, April 21, 2008. The new SECU location at 8055 Jumpers Hole Road in Pasadena opened in November 2007. At over 3,900 square feet, the branch boasts four remote teller stations, two drive-up lanes, two drive-up ATMs, a web branch, and friendly staff.

 

“We are very proud of our newest branch in Pasadena. Five months ago it opened for business, and members have grown accustomed to the cutting-edge teller technology, friendly service and open atmosphere,” said SECU Board of Directors Chairman, Gayle Seward. “We’ve come a long way from our modest beginnings in 1951 and opening our first branch separate from headquarters in the late 1970s.”

 

“We’re always proud when Maryland-based companies have achieved what you have achieved,” said Delegate Steven Schuh (R- Dist. 31). “On behalf of District 31, I welcome you to Pasadena.”

 

 

 

 

Anne Arundel County Executive, John R. Leopold; SECU Board of Director, Donald Tynes, Sr.; SECU Corporate Counsel, Jim Brown III; and Secretary of SECU’s Board of Directors, Timothy La Valle  

 

 

Also in attendance were Congressman John Sarbanes (D-MD-3);  Anne Arundel County Executive John R. Leopold; Banking Director, Gregory Saba from the State Treasurer’s Office; Jennifer Porter Gore, MDDCCUA Chief Advocacy Officer; Anne Arundel County Americans with Disabilities Act Coordinator, Pam Jordan; building architects and contractors; SECU executives; board of directors; and staff.

 

(Pictured,Front Row) Vice Chairman, SECU Board of Directors, Mark Reger; Gregory Saba, Dir. of Banking of the State Treasurer’s Office; SECU CEO Rod Staatz; Congressman John Sarbanes; ADA Coordinator Pam Jordan; Del. Steven Schuh; SECU Board Chairman, Gayle Seward; SECU Board of Director, Dr. John Dorsey; MDDCCUA Chief Advocacy Officer Jennifer Porter Gore

 

Pasadena is SECU’s second branch to feature Remote Teller Stations, which combine the convenience of a drive-up teller window with the easy access to other branch staff and resources.   This new technology gives members the option of making a transaction with as much or as little interaction as they choose, with privacy as close as picking up the handset available at each station.

 

 

 

Andrews Federal Credit Union Makes Financial Literacy Fun

SUITLAND, Md. - On Saturday, April 19, Andrews FCU held a Youth Financial Literacy Day to kick off National Credit Union Youth Week (April 20–26).  The event was designed to teach children and teenagers the importance of being financial responsible, now and later in life.  

 

Members of the community enjoyed food, games, prizes, seminars, and music provided by WKYS 93.9 radio station. The fair provided beneficial information such as preventing identity theft, to budgeting and investing money.  The Teens & Money workshop taught teenagers the importance of saving money and smart credit management.

 

“Andrews Federal realizes that it is so important to encourage children to learn about saving money so that they are better prepared to make sound financial decisions.  We are excited to share this knowledge with our community to help them become informed consumers,” commented Melissa Reaves, Andrews FCU Member Education Assistant.

 

 

REGULATORY AFFAIRS

 

NCUA Issues Proposed Rule on Unfair or Deceptive Credit Practices

ALEXANDRIA, Va. – On May 1, the National Credit Union Administration (NCUA) Board approved a joint proposed rule prohibiting credit card and overdraft service practices as unfair or deceptive under Section 5 of the Federal Trade Commission Act.

 

The NCUA, Federal Reserve Board and Office of Thrift Supervision are issuing a joint proposed rule that would prohibit the following seven practices associated with credit card programs:
(1)  Unfair time constraints for consumers to make payments; 
(2)  Unfair allocation of payments among balances with different interest rates;  
(3)  Unfair application of increased annual percentage rates to outstanding balances; 
(4)  Unfair fees for exceeding the credit limit solely because of a hold placed on an account; 
(5)  Unfair balance computation method; 
(6)  Unfair financing of security deposits and fees for issuance or availability of credit; and 
(7)  Deceptive firm offers of credit. 

 

The proposal would also require federal credit unions provide an opportunity for a consumer to opt out of an overdraft protection program, and it would prohibit a federal credit union from charging a fee for an overdraft caused by a hold placed on consumer funds in connection with the use of a debit card.

 

Details of proposed rule provisions follow. 

Prohibited Credit Card Practices

1.  Late payments -- A payment could not be deemed late unless the borrower is given a reasonable period of time to make the payment. The proposal recommends credit card statements be mailed at least 21 days before the payment due date. 

2.  Payment allocation -- When a credit card account balance is attributed to items with different interest rates, e.g., balance transfers, cash advances, and purchases, the proposal would require federal credit unions to reasonably allocate payments in excess of the required minimum payment among each item in a manner no less beneficial to the member than one of the following:

·         First to the item with the highest annual percentage rate, with any remaining portion to other balances in descending order by applicable annual interest rate;

·         Equal portions to each item; or

·         Proportionately based on each item’s outstanding balance.

3.  Retroactive interest rate increases to pre-existing balances -- The proposal would prohibit applying an increased interest rate retroactively to pre-existing balances, except for cases involving a variable rate, the expiration of a promotional rate, or where the member is more than 30 days late in making the minimum payment.

4.  Fees for exceeding the credit limit -- The proposal would prohibit assessing an over-the-credit limit fee against a member who exceeded the credit limit solely because a hold is placed on the account. 

5.  Double-cycle billing -- The proposal would prohibit a federal credit union from computing the finance charge using a “two-cycle” average daily balance computation. 

6.  Security deposits and fees for the issuance or availability of credit -- The proposal would prohibit financing a security deposit or other fees associated with opening an account if the charges constitute more than 50 percent of the available credit offered to the member. Additionally, when the security deposit or the fee exceeds 25 percent of the available credit, the financial institution would have to spread the charge over the first year of the account instead of charging a lump sum. 

7.  Firm offers of credit -- The proposal would require a firm offer of credit with a range of rates and terms to include a description of the factors used to determine whether the member will qualify for the best rates and terms. 

 

Prohibited Overdraft Protection Program Practices

1.  Opt out -- The proposal would prohibit a federal credit union from imposing a charge for payment of an overdraft, unless it has provided the member with an opportunity to opt out of the overdraft protection program, and the member has elected not to opt out. Members may elect to do a partial opt-out to prevent overdrafts caused by ATM withdrawals and point of sale transactions.

2.  Overdrafts created by a debit card. As proposed, no overdraft charge may be imposed if the overdraft is caused solely by a hold placed on funds that exceed the actual purchase amount of the transaction, unless the actual purchase amount would have caused the overdraft.

 

The proposed joint rulemaking is available on NCUA’s website: http://www.ncua.gov/RegulationsOpinionsLaws/proposed_regs/proposed_regs.html.

 

NCUA Board Meeting Schedule for 2008

Click here to get a copy of the NCUA Board meeting schedule for 2008. 

 

Resource Information for Area Roundtables

Our area has several active Roundtable Groups that provide essential services and promote professional growth and development.  Please direct your email or phone calls to the contacts shown in the respective Roundtable listings located on the MDDCCUA Roundtable web page.   

 

BUSINESS

 

FedComp Inc., Releases FedComp Platinum

FAIRFAX, Va. - FedComp Inc., a provider of core data processing software and systems to over 1,200 credit unions, announced last week they have released their most advanced credit union technology solution - FedComp Platinum.  “Our growing family of credit union partners has contributed extensively to the designing of our most sophisticated core data processing system ever.  FedComp Platinum delivers the power and processing necessary to drive even the largest credit unions,” said FedComp’s President, Derrick Smith. 

 

For over 25 years FedComp has served credit unions and “as a core provider, we’re constantly looking to deliver online and in-house solutions our credit unions need to compete effectively in their markets,” said Jim Jessee, FedComp’s Director of Operations.   Among the significant new features included are: Power Teller System, Enhanced Lending, Inventory Management & Reconciliation, Integrated Credit Card Payments, Member Relationship Management, Relationship Pricing, Cross-selling, Virtual File Cabinet, User-defined Wallpaper and Screen Colors.

 

Platinum adds powerful functions to the traditional FedComp platform permitting better use of time and speed to process member requests and get them on their way quickly.  Loan application tracking of Enhanced Lending enables the recall of a member’s complete loan package in seconds and Virtual File Cabinet makes storage and recall of documents effortless.  Platinum’s new Member Information System enables clear and concise understanding of all the credit union’s member and non-member relationships with just a click of the mouse.  Credit unions can customize their screens with wallpaper and colors.  These are just a few of the many enhancements benefiting a credit union of any size. 

 

For more information about FedComp’s innovative technology solutions, call FedComp at 800-733-3266 or email solutions@fedcomp.com or visit their website at www.fedcomp.com.

 

 

CHAPTER CORNER

 

Plan to Attend Your MDDCCUA Chapter Annual Meetings - Coming Up…

 

·         May 13 – Baltimore Chapter Annual Meeting

·         May 14 – Western Chapter Annual Meeting

·         May 29 – DC Chapter Annual Meeting

·         June 4 – Suburban Chapter Annual Meeting & Crab Feast

 

For more information, go to the Chapter page on the Association’s website.  Click here. 

 

FINANCIAL LITERACY

 

Treasury Announces the National Financial Literacy Challenge

WASHINGTON - In January 22, 2008, President Bush signed an Executive Order establishing the President’s Advisory Council on Financial Literacy. The Council’s National Financial Literacy Challenge is a recognition program that uses a voluntary, online test to determine and reward high levels of financial literacy among America’s high school students.

 

High school teachers are invited to save a class period between April 28 and May 16, 2008 for their students to take the National Financial Literacy Challenge. Teachers may choose any day within this three-week competition window for their students to take the Challenge. A computer lab with Internet access will be required.

 

On the day the Challenge is offered at their school, students will have up to one hour to complete all of the questions. The Challenge includes 35 questions on basic personal finance, and should take the average student 40 to 45 minutes to complete. 

 

As a competitive exercise, the Challenge questions will not be released beforehand. The questions correlate to the national standards published in 2007 by the Jump$tart Coalition for Personal Finance.

 

Students must be at least 13 years old to participate. No prerequisite is required, and there is no charge to participate.

 

Student Recognition

Students will individually compete for recognition. Students scoring in the top 25th percentile of the nation’s scores will be recognized by the U.S. Treasury Department. The nation’s top-scoring students will be eligible for additional recognition, including the possibility of a college scholarship from one of the nation’s leading corporate foundations.

 

How to Get Involved

High school teachers may sign up for the official email distribution list by visiting http://FLC.treas.gov. If you are not a teacher, but work closely with teachers in support of financial education, please let them know about the new Challenge.  Although only high school teachers may register their students, high school volunteers are permitted to proctor the Challenge on the day it is offered. Any parties wishing to do this must coordinate their volunteer efforts directly with a high school teacher in their area.

 

 

A WORD FROM OUR PARTNERS

 

Mid-Atlantic Corporate FCU’s Fox Retirement Party, Golf Tournament and Annual Meeting Coming Up

MIDDLETOWN, Penn. – Join Mid-Atlantic Corporate FCU for its annual meeting and special retirement party for Ed Fox, June 18 – 19 in Gettysburg, Pa.  The Charity Golf Tournament is on June 18 at The Links at Gettysburg.  The Annual Meeting, Product Fair, and reception for Fox will be on June 19 at the Wyndham Gettysburg Hotel.  For more information, visit www.midatlanticcorp.org and click on the 2008 Annual Meeting banner.

 

 

Submit Press Releases and Photos to FOCUS

If your credit union has an upcoming event, news, or a milestone such as an anniversary, please e-mail releases and photos (in .jpg format) to sturner@mddccua.org.  The deadline for submission of articles is close of business on Wednesdays.

 

 Maryland and District of Columbia Credit Union Association 

 

8975 Guilford Road, Suite 190
 Columbia, MD  21046

1701 Pennsylvania Ave, Suite 450

Washington, DC  20006-5805
  

(800) 492-4206 (Toll free)

(410) 290-6858 (Local)
fax: (410) 290-7832 MD

Fax: (202) 331-7851 DC 

 

The mission of the Maryland and District of Columbia Credit Union Association is to promote, develop and support the credit union movement through advocacy and education. 

 

FOCUS Newsletter Submissions: Press releases, stories or other submissions for FOCUS should be sent to sturner@mddccua.org by close of business each Wednesday and will be published in the following edition, space permitting.  

 

The format should be in Word and the font should be Arial 10. We will make every effort to make your information available, either directly in the FOCUS or on the MDDCCUA website with a link in the newsletter. If you would like to subscribe to FOCUS, please email Sarah Turner.

 

For previous editions of FOCUS, please search our archives.

 

If you do not want to receive future MDDCCUA Newsletters, please send an email to Sarah Turner requesting removal from this email list.


Policy/Disclaimer: ©2005 Maryland and District of Columbia Credit Union Association. All Rights Reserved.