Michigan Monitor: May 12, 2008 Monitor Headlines for May 12, 2008
Michiganians to ‘Hike the Hill’ June 11-12
Michigan credit union people are urged to participate in the 9th Annual MCUL “Hike the Hill” grassroots lobbying trip to Washington, D.C., on Wednesday and Thursday, June 11-12.
Registration for the event is free and CURE Defense Fund Scholarship funds are available to help defray travel and lodging expenses. A tentative Hike the Hill agenda, registration form, flight and hotel information and CURE Defense Fund Scholarship Application were recently sent to all MCUL-affiliated credit unions.
“Participation in this year’s Hike the Hill is as important as ever,” said MCUL Executive Vice President Patrick La Pine. “With 11 members of Michigan’s congressional delegation on board as co-sponsors of CURIA (the Credit Union Regulatory Improvements Act) in the House — and a Senate version of CURIA now introduced as well — the bankers have really intensified their grassroots lobbying efforts against credit unions in Washington.”
Each member of the Senate, including U.S. Sens. Carl Levin, D-Mich., and Debbie Stabenow, D-Mich., is being sent a letter from CUNA urging them to support and co-sponsor S. 2957, the Senate version of CURIA recently introduced by U.S. Sen. Joe Lieberman, I-Conn.
“In addition, issues such as the mortgage foreclosure crisis, data security, identity theft and predatory lending all make our presence at Hike the Hill tremendously important,” La Pine said.
Michigan credit unions have long been known for their grassroots lobbying strength, La Pine added, and that reputation needs to be upheld to keep the credit union movement safe and strong.
“We can’t let others have the final word in shaping the future of the credit union movement,” he said. “We need the strongest showing ever for this year’s Hike the Hill to demonstrate to our lawmakers that, if they support credit unions, we will be there to support them.”
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MCULAF Ranks among Top 25 State PACs
MCULAF, the MCUL’s state PAC, ranks 22nd among all state political action committees in the 2008 election cycle, according to data recently released by the Michigan Campaign Finance Network.
From January 2007 through mid-April 2008, MCULAF raised $212,851 or 41.3 percent more than in the same period in the previous election cycle — making the MCUL’s state PAC one of the fastest growing during this time frame.
“Interestingly, more than one-third of the state's top 150 PACs are actually down in their fund raising from the previous election cycle,” said MCUL Executive Vice President Patrick La Pine. “This could be a reflection of the state’s weak economy — but it also underscores the remarkable achievement of Michigan credit unions.
“Kudos to all the credit union people who put in the time and effort to make our PAC fund raising a success. But we need to keep up this pace through the general election in November — and beyond. The banking industry is certainly very adept at raising PAC funds, too.”
The Michigan Bankers Association PAC ranks 16th among state PACs with $342,391 raised in the 2008 election cycle. The Comerica Bank PAC ranks 18th at $316,025.
Michigan’s current top 15 state PACs are the Michigan House Democratic Fund; the Senate Republican Campaign Committee; House Republican Campaign Committee; Michigan Education Association PAC; Michigan Association of Realtors PAC; Coalition for Progress; Blue Cross/Blue Shield of Michigan PAC; Senate Democratic Fund; Granholm Leadership Fund; Dillon Leadership Fund; United Auto Workers PAC; Michigan Beer and Wine Wholesalers Association PAC; Michigan Health and Hospital Association PAC; Michigan Trial Lawyers Association PAC; and Auto Dealers of Michigan PAC.
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Get Ready to ‘Move Michigan Forward’ at 2008 MCUL AC&E
More than 1,000 Michigan credit union professionals, vendors and guests will shortly be heading to Grand Rapids for the biggest annual event on the League’s calendar — the MCUL Annual Convention & Exposition (AC&E).
 Hosted at the Amway Grand Plaza Hotel and DeVos Convention Center, the 2008 AC&E is slated for Thursday through Saturday, May 15-17. Those wishing to attend can still show up and register on-site to participate for one, two or all three days of the AC&E.
New this year, AC&E registration and general information has been moved to the Amway Grand Plaza’s Crown Foyer, so attendees should proceed to the second floor to get checked in and pick-up their conference badge and materials.
A first time attendee orientation will be held at 9 a.m. Thursday in the Grand View room (third floor) and will include a brief overview of the conference, as well as a short walking tour to get acquainted with the facility.
The Cyber Café, sponsored by John M. Floyd and Associates, will be available to attendees during registration hours to make it convenient to check or send e-mail free of charge.
Donations are still being sought for the Children’s Miracle Network Credit Unions for Kids Silent Auction. Themed baskets, event tickets, electronics, gift certificates and other auction donations may be brought directly to the Amway and dropped off with MCUL staff Wednesday evening. This year’s auction boasts an impressive selection of items and bidding will take place Thursday from 8 a.m. - 6 p.m. and Friday from 7 a.m. - 2:30 p.m.
Attendees are also reminded that suggested attire is business casual, such as khaki-style slacks, golf shirts and comfortable shoes. Similar attire is also appropriate for the Thursday night Welcome Reception at the VanAndel Museum, the Friday night “Moving Michigan Forward” Party and the “Patriotic Broadway” symphony performance. Since room temperatures can vary, a light jacket or sweater is recommended throughout the conference.
Event registration confirmations have already been sent out. Those who haven’t received their confirmation notice may call MCUL Ext. 245 or 225 to follow up. Last minute information on the AC&E is also available on the MCUL Web site, www.mcul.org, Keyword: 2008ACE.
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Mortgage Lending Summit Provides ‘Valuable Information’
The MCUL Mortgage Lending Summit May 2 at the Michigan Credit Union Center in Northville Twp. proved to be a day full of information relating to the foreclosure crisis, including updates from MSHDA, HUD, state and federal credit union regulators, and a panel of mortgage lending and insurance experts.
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From left, OFIR’s Roger Little and the NCUA’s Jeff Pike and John Karisny lead one of two panel discussions at the MCUL Mortgage Lending Summit
A full house of attendees listens to one of the MCUL Mortgage Summit presentations.
MSHDA’s Carol Brito details how the Michigan State Housing Development Authority programs work
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Following an update on the MCUL and CUNA response to the mortgage foreclosure situation from MCUL Executive Vice President Patrick La Pine, representatives from MSHDA and HUD provided detailed information and material related to various housing programs they oversee.
Their presentations included borrower eligibility requirements, income limits, requirements imposed on the buyer and on the property, down-payment programs, homeownership counseling assistance, and how to access these programs by the borrower and the lender.
MSHDA’s two new “Save the Dream” programs — Assist Finance and Rescue Finance — were reviewed and HUD representative John Niebieszczanski provided a detailed overview of the agency and its beneficial programs.
Two panels rounded out the day. The first was the Regulatory Roundtable, as OFIR Deputy Commissioner Roger Little and NCUA Supervisory Examiner Jeff Pike provided overviews of the state of the industry for both state and federal credit unions operating in Michigan. Perhaps surprisingly, given the state’s economic difficulties, the two regulators reported that the list of problem credit unions in 2008 so far was shorter than last year.
Little and Pike were joined by NCUA Specialized Lending Subject Matter Examiner John Karisny, who provided several suggestions to credit unions on dealing with troubled borrowers, as well as ideas on collections, real estate foreclosure practices and credit risk monitoring.
The second panel consisted of representatives from two of Michigan's mortgage lending CUSOs, Member First Mortgage and Mortgage Center, a senior mortgage lender from Credit Union ONE (OC) and Michigan's mortgage insurance representative from the CUNA Mutual Group.
The message from all of the participants was to educate troubled borrowers that workout assistance is available and to urge them to consider talking with their credit union first before “handing over the keys and walking away.” The goal is to keep even troubled borrowers in their homes, and keep the property value from deteriorating and shifting the risk to the credit union.
“There was a lot of valuable information on the Mortgage Lending Summit agenda,” La Pine said. “I think many of the participants were surprised to learn how many programs are offered in today’s marketplace.”
A podcast interview is planned with the NCUA's John Karisny on the suggestions he made during the panel discussion. Its availability will be announced in Michigan Monitor during the second quarter.
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St. Lucia Cooperative League Delegation to Visit MCUL
St. Lucia Co-operative League President/CEO Alexander Joseph, joined by two St. Lucia credit union representatives, will be the special guests of the MCUL and Michigan credit unions when the trio visits the Great Lakes State May 11-17.
The St. Lucia credit union representatives scheduled to participate are Rupert Branford, board president for the Elk City of Castries Co-operative CU; and Emmerlyn Monrose, general manager for the St. Lucia Civil Service Co-operative CU.
“We’re delighted to be able to play host to Mr. Joseph, Mr. Branford and Ms. Monrose here in Michigan,” said MCUL President/CEO David Adams. “I’m sure this visit will be both enjoyable and informative for both sides.
“One of the highlights of the visit will be the signing of a formal cooperative partnership agreement between the MCUL and the St. Lucia Cooperative League,” Adams added. “This agreement will form the basis of a close relationship of information and knowledge sharing between our two organizations.
“The bond between credit unions and cooperatives around the globe transcends cultures and national boundaries. Michigan is proud to be doing its part in showcasing the international character of the credit union movement.”
The World Council of Credit Unions (WOCCU) will also be assisting in the visit, represented by WOCCU International Program Coordinator Matt Garcia and International Partnership Manager Victor Corro.
The St. Lucia visitors’ week-long agenda includes visits to the Michigan Credit Union Center in Northville Twp and Central Corporate CU in Southfield; tours of Telcom CU (MW), Community Choice CU (OC) and Lansing Postal Community CU (LN); a visit to the MCUL Lansing Office and the Michigan State Capitol, including a visit with OFIR’s John Kolhoff; attendance at the 2008 MCUL Annual Convention and Exposition in Grand Rapids. Time for sightseeing and shopping are also included on the group’s itinerary.
The signing of the formal partnership agreement between the MCUL and the St. Lucia Cooperative League will take place during the MCUL AC&E on Thursday, May 15, at 10:30 a.m. in the Amway Grand Plaza Hotel’s Gerald R. Ford Ballroom.
In November 2007, the MCUL’s Alan Babcock and Judy Gardi joined Community Choice CU President/CEO Catherine Roberts in making a fact-finding visit to St. Lucia, meeting with credit union and cooperative leaders to assess their challenges and needs.
Several issues were identified in which the MCUL could provide assistance, including the merger process, shared branching, board governance and new product development.
An island nation approximately 28 miles long and 13 miles wide, St. Lucia is home to 15 credit unions. Approximately 150,000 people call St. Lucia their full-time home, with one-third of the population belonging to a credit union. According to 2006 WOCCU statistics, St. Lucia credit unions have the seventh highest asset total among countries in the Caribbean.
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Automotive FCU, MPG Community CU Merge
Automotive FCU (HV) has merged with MPG Community CU (ME), creating a new community-based credit union — Community Driven CU.
As a result of the merger, the 43-year-old Automotive FCU — originally organized for Ford Motor Company employees — is now able to serve any person residing, working, worshipping or attending school in Washtenaw and Macomb counties.
The merger became official May 1 and combined Automotive FCU’s $58 million in assets and 11,600 members with MPG Community CU’s $4 million and 1,500 to create the new Community Driven CU.
According to Community Driven CU President/CEO Kevin Finneran, the merger is a win/win for members of both credit unions. Continued job loss at Ford prompted Automotive FCU to seek a community charter — but merging with a state-chartered credit union proved to be an easier path than seeking a federal charter expansion due to the less restrictive provisions in the modernized Michigan Credit Union Act.
“Ford continued to close plants, a lot of our members were moving away and loan demand has continued to decrease,” Finneran said. “The community charter will enable us to serve a broader and more diverse membership, while former members of MPG Community CU will now have access to a greater variety of products and services.”
The new Community Driven CU is planning a special “grand opening” event in June to heighten awareness among its current members and introduce itself to new potential members, Finneran added.
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Financial Literacy Focus of this Week’s Blog Link
MCUL Financial Education Coordinator Beth Troost writes about what’s new in the world of financial literacy education in this week’s Michigan Monitor blog link.
Her blog, focusing on the recent naming of Warren Fitzgerald High School junior Art Konotopskiy as 2008 Money Smart Ambassador, can be found at http://mi.community.cu-campus.com/YmF0QG1jdWwub3Jn/weblog/.
A video of Konotopskiy talking about his essay and the importance of financial literacy is included on CUTV at http://www.youtube.com/user/MCUL6.
Michigan Monitor includes a blog link each week provided by CU Campus, featuring a credit union industry leader, high-profile educator or consultant, or other individual with valuable knowledge, experience or information for credit union professionals or volunteers.
A kind of on-line journal, a “blog” is a Web site featuring the writer’s entries of news and commentary listed in chronological order. Many blogs are also interactive, allowing readers to post their own comments and feedback. The word itself is a portmanteau of “web log” and as of September 2007, one search engine was tracking no fewer than 106 million blogs worldwide.
Blogs are a prominent feature of CU Campus, the recently launched Internet-based tool developed by CU Village. An on-line social networking, learning and article database, CU Campus allows credit union management, staff, and volunteers across the state to connect with colleagues using cutting edge “Web 2.0” technologies.
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Regulatory Affairs
