Following up on statements made during his 2012 State of the Union address, President Barack Obama announced his latest plan to reform the housing market. The plan includes ways to help responsible homeowners refinance their mortgages, along with other initiatives to address issues that have plagued the housing market since the onset of the financial crisis.
Obama said he wants to help homeowners who are current on their mortgages obtain refinancing at today’s low interest rates. In order to do so, he’s calling for an expansion of the Home Affordable Refinance Program, which allows borrowers with loans backed by government-affiliated mortgage giants Fannie Mae and Freddie Mac to refinance at lower rates.
To date, about 1 million homeowners have taken advantage of HARP to refinance, well short of the 4 million to 5 million the Obama administration had expected. Moreover, many "underwater" borrowers — those who owe more than their homes are worth — couldn't qualify.
The plan is expected to cost between $5-10 billion, and would be funded by a fee on the largest financial institutions that would vary based on the institution’s size and riskiness of its activities. These refinanced loans would be guaranteed by FHA, who would run the program.
Among the factors which make the plan’s implementation uncertain: it would require congressional action, and though Obama has urged Congress to pass the necessary legislation to enact it, there is no guarantee that will happen.
It’s unclear at this time what impact the plan, if passed by Congress, would have on the credit union industry. MCUL & Affiliates CEO David Adams said the league is still reviewing the plan, however there are some areas that are cause for concern.
“Any proposal that seeks out a few players in an industry and assesses a fee in order to help cover the costs of a program would appear to be problematic,” Adams said. “We also are concerned that certain elements of the proposal could create increased risk for the government and lenders with potentially more poorly underwritten loans. He added that the league will continue to study the proposal in conjunction with credit unions and CUNA.
The administration estimates that 3.5 million borrowers with privately held mortgages have high enough interest rates that they would have incentive to refinance under the new plan. That's in addition to 11 million borrowers who have Fannie- or Freddie-guaranteed loans who could be eligible for refinancing under the proposed changes.
The White House fact sheet with more specifics on the plan is available by clicking here.
Michigan Businesses to Receive New Bill on Unemployment Bonding
The MCUL & Affiliates has been alerted to a new “obligation assessment” on Michigan businesses’ state unemployment tax bills that will go toward paying off the bonds used to repay the federal government.
In December, the state of Michigan repaid the $3.2 billion Unemployment Trust Fund balance to the U.S. Treasury which was made possible through the sale of variable rate demand bonds by the Michigan Finance Authority. Paying off the U.S. Treasury before 2011 year end benefited the state and the business community through significant interest savings, restored FUTA tax credits, avoiding future tax penalties and the elimination of the solvency tax on Michigan employers.
A letter from the Department of Licensing and Regulatory Affairs to businesses is expected to go out this week explaining the bill. On the positive side, state officials noted the $3.3 billion in Michigan’s unemployment benefit bonds that need to be repaid is much less than what businesses would have paid if the state had continued borrowing money from the federal government. According to LARA Director Steven Hilfinger, Michigan employers were experiencing "increasing penalties and costs" to pay for the rising amount of unemployment benefits the state had to borrow to provide. Last year, the Legislature approved the bonding measure, which in its first month has saved $10 million in what would have been interest collecting on that debt. Businesses will soon pay their 2011 federal unemployment tax penalty (assessment of $84 per worker), but that will go away starting next year, according to Gongwer News Service) The change will save Michigan businesses $264 million in 2013.
The state is avoiding the threat that the federal government could have assessed Michigan businesses $233 per employee because the state had borrowed for unemployment benefits five years in a row. The benefit cost ration penalty is a 3.3 percent tax increase on business, or an estimated $739 million. While businesses have to pay back the bonds issued, their costs will be far less than the tax and penalties for borrowing from the federal government. It’s estimated there will be a $600 million positive balance in the unemployment trust fund by year’s end and $2.5 billion by 2018. Businsses’ taxable wage base will go from $9,500 to $9,000 per employee wages once the trust fund balance reaches this level.
Click here to read the MI Treasury Department’s press release from late 2011 on the bond sale. Click here to access a recent letter from LARA on the 2012 changes.
The NCUA is urging credit unions that provide tax assistance services to remind their members of the Earned Income Tax Credit (EITC). Taxpayers who qualify and claim the credit could pay less federal tax, pay no tax, or get a substantial tax refund.
“The EITC is a federal income tax credit specifically for low-income working families,” said NCUA board Chair Debbie Matz. “The tax credit goes directly to families who may use it for living expenses or to offset depleted savings.”
Congress originally approved the tax credit legislation in 1975 to offset, in part, the burden of social security taxes and to provide an incentive to work. Income and family size usually determine the amount of the EITC, but individuals without children may also quality.
“We hope the thousands of credit unions who have members that qualify for the credit will also carry this message, especially those credit unions that participate in the Volunteer Income Tax Assistance Initiative,” Matz added.
NCUA’s Office of Small Credit Union Initiatives awards technical assistance grants to low-income designated credit unions that operate or participate in Volunteer Income Tax Assistance (VITA) sites. The credit unions receiving funds under this initiative for the 2010 tax year reported more than 16,055 tax returns prepared and $5.6 million Earned Income Tax Credits returned to the members in the low-income communities. OSCUI awarded more than $100,000 to credit unions for operating or participating in VITA sites for the 2010 tax year, with individual credit union awards up to $6,500.
EITC can put up to $5,751 into the pockets of eligible taxpayers. There are many resources for finding out about EITC including NCUA’s consumer website www.mycreditunion.gov where you will find many helpful links including:
Michigan credit unions supported EITC through the Just file it! tax assistance program. In 2010, Michigan credit unions helped their members obtain more than $1.6 million. That was up from $1.5 million in 2009 and $1.1 million in 2008.
CUNA Testifies Before the House Financial Services Committee
Ken Watts, president and CEO of the West Virginia Credit Union League testified on behalf of CUNA at a Wednesday hearing on H.R. 3461, the Financial Institution Examination Fairness and Reform Act.
Watts told lawmakers that the proposed legislation would help strengthen the safety and soundness of the financial system by increasing the consistency and fairness of financial institution examinations.
NCUA Executive Director David Marquis also testified.
CUNA supports the legislation, calling it a firm step toward ensuring that federal regulators conduct fair exams which are consistent with the law and ensure safety and soundness.
In addition to Marquis and Watts, a broad range of financial industry leaders, including representatives from the Federal Reserve, the FDIC, the American Bankers Association and the Independent Community Bankers of America also testified.
To read the full text of Watts’ prepared testimony, click here.
Prince Fielder’s Mother Plans CU for Athletes and Families
While the Detroit Tigers’ newest free agent acquisition is making headlines in the sports world, Prince Fielder’s mother is shaking up the financial arena with plans to charter a credit union.
Stacy August, the mother of the 2011 All-Star MVP and new Tiger first baseman, is on a mission to help professional athletes and their families develop lifelong financial literacy and she believes the key to doing that is to open a credit union focused on their specific needs.
August is the founder of the nonprofit advocacy group Leagues of Their Own Inc. Her organization is teaming up with the Professional Sports Wives Association to launch a credit union focused on educational wealth empowerment for professional athletes and their families.
“We believe that a family’s human capital is just as important as financial capital,” August said. “Our mission of chartering a federal credit union is to implement education focused on total wealth family leadership and legacy planning that redefines what we are doing in our own lives and in the larger community.”
Gena Pitts of the PWSA said it’s a misconception that highly paid athletes don’t have any financial issues. "Until now, there has been a void to provide professional athletes and their families with a practical, viable educational training program to learn how to preserve and protect athletes' wealth in an industry where nearly 85 percent of pro athletes are divorced and a quarter of a million dollars in debt when they retire."
There’s no word on when the credit union will open or where it will be headquartered. August’s organization is based in the Houston area.
Survey: Small Business Owners Support MBL Increase
By a two-to-one margin, small business owners said they support giving credit unions the authority to increase member business lending, according to a poll by a small business trade group.
In addition, the survey shows that 90 percent of small business owners consider access to credit to be a major problem.
“Loans that will help small businesses grow and create jobs are harder and harder to come by,” said John Arensmeyer, founder and CEO of Small Business Majority. “With banks’ lending portfolios shrinking and small businesses’ dependence on credit cards growing, lawmakers need to look for smart ways to revamp the credit landscape.”
“Small businesses create 65 percent of the net new private sector jobs in America,” said David Brodwin, co-founder and board member of ASBC. “Our deregulated, damaged banking system isn’t providing the credit they need, and they are calling for change.”
The Internet poll of 500 small business owners nationwide was commissioned by the three groups and conducted by Lake Research Partners. The survey was conducted between Dec. 8, 2011 and Jan. 4, 2012 and has a margin of error of +/- 4.4 percent.
Banks testified in a hearing on MBL legislation in the House that banking industry witnesses said their small businesses are not experiencing a credit crunch.
CUNA testified that an increase in the credit union member business lending cap to 27.5 percent of assets would infuse $13 billion in new credit for small businesses and add 140,000 new jobs within the first year of enactment, at no cost to U.S. taxpayers.
Both of Michigan U.S. senators, Debbie Stabenow and Carl Levin, both Democrats, have signed on as cosponsors of legislation in the Senate to raise the cap on MBL. Eight of the state’s 15 members of the U.S. House have signed on to similar legislation in the House. The cosponsors are House Republicans Fred Upton, Thaddeus McCotter and Candice Miller and Democrats Sander Levin, John Conyers, Hansen Clarke, Dale Kildee and Gary Peters.
“Small business owners want action from Congress to boost the economy,” said Kelly Conklin, a small business owner from Bloomfield, N.J., and a leader with Main Street Alliance. “Invest in infrastructure to build the foundation for business success. Take serious steps to deal with the mortgage crisis and restore consumer purchasing power. Put teachers and firefighters back on the job serving our communities and boosting local economies. That’s what small businesses need.”
Big Supporter of credit unions wins Oregon Special Election
Bonamici
Credit unions gained a big supporter in Congress when Democrat Suzanne Bonamici won a special election for Oregon’s First Congressional District. She said member business lending will be one of her first orders of business.
CUNA backed Bonamici’s candidacy as part of its 535-seat strategy, which is aimed at building credit union champions one seat at a time in the 435-member House and 100-seat Senate.
Bonamici, a former Oregon state senator who was born in Detroit, beat Rob Cornilles with 53.8 percent of the vote. Mr. Cornilles has served on the board of Umpqua Bank Regional Division. Umpqua’s CEO testified against the credit union public deposits bill in the Oregon State Legislature.
Oregon credit union supporters volunteered for Bonamici’s campaign and CULAC gave her a $10,000 donation, the maximum allowed.
CUNA, MCUL Collaboration Leads to NCUA Rule Change
A proposed NCUA rule change on troubled debt restructuring (TDR) which was heavily advocated by both MCUL and CUNA could provide some regulatory relief for credit unions nationwide.
Under the proposal, the agency would remove the requirement that credit unions report TDRs as delinquent on call reports after six months. Additionally, federally insured credit unions would be required to have written loan workout policies, and would be mandated to calculate and report troubled debt restructuring loan delinquency based on restructured contract terms.
Recognizing the burden the TDR requirement has placed on many credit unions, CUNA President and CEO Bill Cheney said the proposal has “the potential to ensure consistent guidance from the agency to its examiners – and help credit unions help their members in this time of need.’’
MCUL & Affiliates CEO David Adams said the proposed change is an illustration of advocacy in action. “Our goal as a league is to listen to our members, to do what we can to ensure their concerns are being heard, and to translate those concerns into action that ultimately will impact the whole credit union community.”
The proposed rule has been sent out by the NCUA Board for a 30-day comment period.
The CU Difference Campaign: Thanks for Making a Difference
The MCUL & Affiliates would like to thank the 125 credit unions who have contributed $654,289 to this year’s CU Difference campaign. The goal in 2012 is to continue increasing consumer awareness, strengthening consumer trust and further advancing consumer perception of credit unions. The 2012 CU Difference campaign plan includes:
A longer media flight
New or revised TV and radio spots using the “own your money” theme
A $10,000 sweepstakes program to promote membership
A social media strategy targeting 80- to 35-year-olds
A public relations push to discuss key consumer financial issues
$500,000 worth of marketing kits and incentives to help credit unions like yours leverage the campaign
The marketing incentives will be provided to all credit unions that contribute their full fair share to the campaign
For those credit unions that still haven’t contributed to the CU Difference campaign – it’s not too late – you can contact your League Representative at (800) 262-6285 or MCUL.info@mcul.org, or mail a check made payable to “MCUL-Your DMA,” (example: MCUL-Detroit) to:
Attn: Accounting
Michigan Credit Union League & Affiliates
P.O. Box 8054
Plymouth, MI 48170-8054
Matching funds will be allocated to all contributors’ media markets on Feb. 8. To help your media market out, please make sure all contributions are received by then.
Help the MCUL continue to make a difference. Make your contribution today.
The nominations period is now open for the 2012 MCUL and Michigan Credit Union Foundation Awards. This is the chance to recognize those tireless individuals and outstanding organizations that work so hard to make the Michigan credit union community as successful as it is.
Nominations for the awards are currently being sought for the following categories:
Credit Union Professional of the Year
Distinguished Service Award
MCUL Chapter Effectiveness Award
Outstanding Credit Union of the Year Award
Young Professional of the Year Award
Credit Union Youth Advocate of the Year
Award for Excellence in Consumer Education
Credit Union Community Volunteer
International Credit Union Development (ICUD)
Anyone affiliated with a member credit union can submit a nomination. The entire process can now be completed online with the capability of uploading supporting nomination documentation.
These prestigious awards will be given out at a special breakfast presentation at the 2012 AC&E in July.
Click here for a full description of the different awards and the associated criteria.
The nomination period will remain open through March 16.
Winners of the Michigan Maxwell, Herring and Desjardins Awards
The MCUL & Affiliates celebrates the 2011 winners of the state-level Dora Maxwell Social Responsibility Community Service Award, the Louise Herring Philosophy in Action Member Service Award and the Desjardins Youth and Desjardins Adult Financial Education Awards.
First place Maxwell Awards went to Shore to Shore Community FCU in the $20M - $50M asset category for its Warm Clothing Drive working with high schools to help the community’s homeless families and the unemployed; Isabella Community CU in the $50M-$100M asset category for support of youth reaching their financial goals in the self-sustaining County Youth and Farm Fair cooperating with the 4-H Clubs; Advantage One FCU in the $100M -$200M asset category for Operation Care Package for making monthly selections of a soldier overseas (one of its members) and shipping donated items they specifically need; ELGA CU in the $200M-$500M asset category for making over an abandoned house for use as a transition home for homeless women with children collaborating with a local radio station and mechanical firm; and MSUFCU in the $1B plus category for their Charity Committee-led employee-donation of more than $29,000 for Sparrow Hospice Services.
First place Herring Awards went to Communicating Arts CU in the less than $50M asset category for opening of the Mack/Alter branch in the underserved/neglected community in Detroit’s lower east side; Public Service CU in the $50M-$250M asset category for its Credit Repair Seminar, which helps economically challenged members who are typically older, nontraditional students attending a community college; and MSUFCU in the $1B plus category for providing financial education seminars from budgeting and credit score info to estate planning and fraud/identity theft.
First place Desjardins Youth Awards went to Public Service CU in the $50M -$150M asset category for teaching financial literacy and responsible money management in community classrooms; Extra CU in the $150M-$500M asset category for its financial education department offering National Endowment For Financial Education to CU employees and teachers in central and eastern Michigan and teaching the NEFE curriculum weekly at seven high schools in five school districts; and MSUFCU in the more than $500M in assets category for its new education outreach specialist position working with more than 45 youth groups at several schools and community organizations.
A first place Desjardins Adult Award went to Michigan Schools & Government CU in the more than $500M asset category for providing monthly financial educational seminars to hundreds of adult members and free financial counseling to individual members struggling with money management.
Second place Maxwell Awards went to Education Plus CU, Oakland County CU, Wanigas CU, and Genisys CU. Honorable Mention Maxwell Awards went to Gerber FCU and Alpena Alcona Area CU. Honorable Mention Herring Awards went to Education Plus CU and MSGCU.
Click here to visit the MCUL & Affiliates award website for more information about these CUNA Award programs.
MCUL Redirects SAS Initiative Fund to Assist Financially Challenged Affiliated CUs
The MCUL & Affiliates is opening up the former MCUL Small-Asset-Size Initiative Fund to all affiliated Michigan credit unions, regardless of size. Grants from the fund will be based on need.
Renamed the MCUL Credit Union Assistance Fund, the league wants to offer assistance to the state’s credit unions facing the most significant financial challenges. While the funds will assist fewer Michigan credit unions, the MCUL will take a more targeted approach to assisting the credit unions in need by offering free or discounted services on a variety of offerings; including regulatory compliance, board governance, education, ALM, marketing and more.
Due to the success of the league’s subsidiaries, and the continued support from credit unions, the league is increasing the fund from $70,000 to $100,000 to assist in these efforts.
If your credit union is facing significant financial challenges and you would like additional information about the MCUL Credit Union Assistance Fund, contact your league representative.
CAMEL Rating Discussion with Regulator Planned for Spring Leadership Development Conference
Capital. Asset quality. Management. Earnings. Liability management. These are the five critical elements that make up the acronym for CAMEL ratings, a method of evaluating the financial health of a credit union.
During the MCUL & Affiliates Spring Leadership Development Conference, taking place at the Soaring Eagle Casino and Resort, March 9-11 in Mount Pleasant, John Kolhoff, OFIR deputy commissioner of the credit union division, will lead an optional discussion session on CAMEL ratings.
Kolhoff will provide a general explanation of how CAMEL ratings are determined, including an explanation of how the agency views inherent risk exposure and risk management. Attendees are welcome to bring their questions and take this opportunity outside of the examination process to dialogue with the regulator.
The discussion takes place the afternoon of Saturday, March 10 when attendees and/or their guests may also choose to participate with an optional offsite excursion to downtown Mount Pleasant and enjoy a wine & cheese tasting experience, lip balm making demo and shopping.
More details on the full conference agenda, speakers, hotel accommodations, pricing and online registration may be found here.
Seating Still Available for Lending and Marketing Conference
It is not too late to register and benefit from the excitement, energy and impact of experiencing the MCUL & Affiliates Lending and Marketing Conference. Taking place Feb. 14-15 at the Amway Grand Plaza Hotel in Grand Rapids, attendees will find all the latest about growing loans, monitoring risks, embracing social media, managing member relationships and more.
The two great conferences include opening keynote presentations, general sessions and breakout topics that provide outstanding insights from national experts, as well as through networking with peers from across the state. Highlights also include opening remarks and a League update from MCUL & Affiliates CEO David Adams, as well as keynote presentations on "Truth in Marketing: How Domino's Broke the Rules and Turned Itself Around" by Tim McIntyre, vice president of communications at Domino's Pizza and "Consistently Growing Loans in a Tough Economy" by consultant Brett Christensen of CU Lending Advice.
Over 200 credit union professionals are already registered to participate. To learn more and register, click here.
Compliance for Executives Taking Place in Grand Rapids
MCUL & Affiliates developed Compliance for Executives as a one-day training session for busy executives to help them manage a myriad of critical compliance issues. The session takes place Feb. 16 at the Amway Grand Plaza Hotel in Grand Rapids, which is immediately after the MCUL Lending and Marketing Conference.
Offering an executive-level overview, the event allows credit union management to stay current with ever-changing compliance topics they need to understand in order to protect their credit unions, management teams and volunteers from legal liability.
The event features an opening session on "When Does a Credit Union Need Legal Counsel" and a closing session on the "Dodd-Frank Act/Consumer Financial Protection Bureau," as well as six breakout sessions throughout the day.
Additional information on the agenda and online registration may be found here. Registration is $199 per person. Credit unions in the upper peninsula of Michigan will have the opportunity to attend a Compliance for Executives training event at the Holiday Inn in Marquette on June 7.
To help members stay in their homes and avoid foreclosure, credit unions have used creative approaches to modifying loan terms. As a result of these modifications, there are requirements for tracking, monitoring and accounting for these loan modifications within the allowance for loan losses.
On Feb. 21, MCUL & Affiliates will host a webinar on Troubled Debt Restructuring that will cover the most recent clarifying accounting guidelines and related allowances for loan losses. The session will take place from 1 p.m. to 2:30 p.m. and is discount priced at $129 per connection, which includes a complimentary archive for future reference. For additional information and to register, click here.
Credit union net interest margins have been squeezed for years and some have been relying upon non-interest fee income to help make up the difference. On Feb. 14, MCUL & Affiliates will host a webinar on Strategies to Increase Noninterest Income that will explore the future of fee income. Is it a strategic income item? Can it be earned from members and non-members? Can it be earned off the balance sheet as well?
Participants will learn methods for managing non-interest income in a way to balance the financial health of both the credit union and members.
The webinar will be from 1 p.m. to 2:30 p.m. (EST) and is priced at $169 per connection, which includes a post-event archive that can be downloaded and saved for permanent reference. To learn more or to register, click here.
Pow! Sign Up to Participate in National Credit Union Youth Week
Participation in the free National Youth Saving Challenge is your opportunity to build strong relationships with youth and their families. Help youth start a savings habit while creating member loyalty. You'll also get the chance to win $100 for one of your young members.
Last year nearly 146,000 young members deposited $28.5 million into their saving accounts during this national event—with 9,000+ opening new accounts.
Click here for registration, which is now open to credit unions that are affiliated with CUNA.
Each week MCUL Public Affairs adds new links to the Press Room area of its website featuring credit union media coverage in a variety of formats statewide and nationally. If your credit union has been featured in the media, please let us know. E-mail a link to Mona.Shand@mcul.org.
Novi Patch: DFCU Financial Donates $10,000 to Novi Education Foundation
Battle Creek Enquirer: Local CUs Make a Donation to Food Bank of South Central Michigan
The latest articles are kept in the Press Room, but other clips are still available in the archive.
CUBE TV is the MCUL's online video portal, with regular updates of topics and information for CUs:
CU National Update: For the week of Feb. 6, CUBE TV’s Mona Shand details CUNA’s testimony on Capitol Hill in the effort to reform the examination process, and also explains why a celebrity credit union advocate is now making waves in the industry. Plus, find out what one factor an industry analyst says will cause consumers to flee their banks this year.
Michigan Priority Report: After a banner year in 2011, MCUL & Affiliates has even bigger plans for 2012. CEO David Adams lays out the organization's strategic priorities with important updates on federal and state legislative issues, regulatory compliance, the CU Difference campaign, and the overall financial progress of the company. He also offers a detailed look at new tools available to help credit unions and an expanded partnership with the Illinois Credit Union League.
CU Campus: CUBE TV's Shawn Wolbert explains the steps a credit union must go through to create and maintain a successful record retention program.
Special Reports: 2011 MCULLAF Grand Raffle Winner. The 2011 Grand Raffle was one for the record books, raising an unprecedented $168,990 for the MCULLAF federal PAC fund. Another first: this year’s grand prize winner, Gail Fillman, is a member of U.P. State CU, while the winning ticket was sold at Great Lakes First FCU. The Escanaba CU community came together to celebrate this unprecedented event.
...Tips to Managing Interest Rate Risk will be featured as a webinar topic presented by consultant Rick Menton on Feb. 9 from 1 p.m. to 2:30 p.m. (EST). The session will explore what regulators are saying about managing interest rate risk, the impact of long term assets, GAP analysis vs. other methods and what examiners will be looking for when they visit credit unions. The session is priced at $129 per connection and qualifies for the MCUL & Affiliates' "buy three compliance webinars, receive 50 percent off a fourth compliance webinar" offer. More details about the event and online registration are available here.
...The adoption of Check21 standards has made it possible to replace paper check exchange and settle with an electronic image, and has fostered inexpensive technology to create and exchange check images as well. On Feb. 16 MCUL & Affiliates will host a webinar on Getting Serious About Remote Deposit that will share innovations that have been brought to the market for remote capture and transmission of check images. From small business oriented dedicated terminals, to basic multi-function scanners, to Apple and Android smart phones, remote capture devices are transforming standards of service and convenience. Learn more about this webinar that takes place from 1-2:30 p.m. (EST) and is priced at $129 per connection, by clicking here.
... Be sure to mark the calendar for the Residential Mortgage Fraud webinar that has recently been added to the MCUL & Affiliates' training line-up for Feb. 23 from 1 p.m. to 2:30 p.m. (EST). The webinar will focus on the new Michigan statute regarding mortgage fraud and will explain what conduct constitutes mortgage fraud, what the penalties for mortgage fraud are and what kind of mortgage fraud policy credit unions should have in place. The session is discount priced to $129 per connection. Those busy this date may register for the "recording-only" option and receive access to the event archive following the session. Additional information and details may be found here.
…Did you miss any of these January webinars: Preparing Frontline Staff for Robbery Response, Member Investment and Insurance Solutions, Michigan IRA/Pension Withholding: Tax Restructuring Legislation, Concentrating on Concentration Risks or Can They Really Garnish My Social Security? If so, they are still available for purchase as a 24/7 access Webinar on Demand. Sessions may be downloaded and saved for permanent reference. Priced at $129 or less, these sessions make a great addition to a credit union’s learning library. Learn more here.
… CUcorp’s Lending Solutions, an affiliate of the MCUL & Affiliates, is sponsoring its sixth annual Risk Management Session, March 27-28 at Soaring Eagle Casino and Resort in Mount Pleasant. Speakers will include: Bob Hackney, president of Card Services for CUs; Mike Hamblin, sales executive for FIS Loyalty & Fraud; Veronica Madsen, director of regulatory affairs for the MCUL; Ann Davidson, senior consultant of CU Protection Risk Management for CUNA; Jim Holt, vice president of CU Student Choice; Kristine Kline, vice president of marketing for Mortgage Center; Josh Sheehan, business development manager for Advanced Fraud Solutions; Kristi Lockhart, business development manager for Discover Network, and Blake Councell, sales manager for Financial Instant Issue Datacard Group. The price is $99 for the first attendee and $50 per additional attendee from the same credit union. Click here to register.
... The husband of the former CEO of Financial Health CU, which is now Option 1 CU, has died. Jim Fillwock, husband of retired CEO JoAnne Fillwock, died on Wednesday, Feb. 1. Current Option 1 CEO Andrew J. List offered his condolences. JoAnne Fillwock is currently the chairwoman of the Center for Financial Health board. James Fillwock is survived by his wife of 27 years, JoAnne; son Matthew Beard; parents Bill and Pat Fillwock of Lansing; siblings Judy (Maurice) Mead of Mason, Dennis (Linda) Fillwock of Albuquerque, N.M., Jerry (Nancy) Fillwock of St. Johns and many nieces and nephews. The family thanked the doctors and nurses in the Sparrow Hospital ICU who cared for Jim during his 7-week stay there including a special thanks to Dr. Marc Basson, who never gave up hope that Jim could get better. Funeral services were Friday, Feb. 3, at 4 p.m. at the Gorsline Runciman Funeral Home, 1730 E. Grand River Ave., East Lansing. In lieu of flowers, the family requests that donations be made to the Capital Area Humane Society, 7095 W. Grand River Ave., Lansing, MI 48910, or an animal shelter of your choice. A celebration of Jim's life will be held the first day of golf season for the Bush League on Wednesday, April 18, 2012, at El Dorado Golf Course from 1 p.m. to 4 p.m. Online condolences may made to www.greastlansing.com. Click here to read the full obituary.
… Iron Mountain-Kingsford Community FCU has established a new scholarship at Kingsford High School. The IMKCFCU Scholarship will provide for the award of two $1,000 scholarships to students pursuing post-secondary education in either a 4-year college program or a 2-year vocational program. IMKCFCU has been supporting academic achievement in the area for a number of years. The credit union’s vision is to promote academic achievement and raise awareness of the value and importance of a solid, well- rounded education. Encouraging students to continue their education in a post- secondary setting through scholarship dollars is just one way they promote this vision. IMKCFCU gives support to our local schools with thousands of dollars annually. One of their major initiatives is providing T-shirts to locals to recognize the hard work and achievement of area students that excel academically. The Board of Education of Breitung Township Schools and the administration of Kingsford High School graciously accepted the opportunity to coordinate the scholarship venture for the graduates of Kingsford High School.
Sara Briggs of the Kingman Museum accepts a OMNI Gives Back grant check from Brenda Smith of OMNI Community CU.
… OMNI Community CU has awarded the Kingman Museum a $1,500 OMNI “Gives Back” Grant to purchase supplies and equipment used in the STEM (Science, Technology, Engineering and Math) program for children ages toddler through 12th grade and their families. In this program, every third Saturday of the month is Science Saturday, where activities are free with regular admission. Parents receive “parent to child” cards with talking points and online resources they can access at home to continue the learning that was done at the museum. Children receive activity pages and products that relate to the experiments and activities that were presented that day. “This program is designed to engage the whole family from the youngest to the oldest,” Kingman Museum CEO Sara Briggs said. “This grant could not have come at a better time. We have been planning this program for a full year and we are so excited to have additional resources necessary to make it what we had imagined.” OMNI CEO Ted Parsons said: “Starting kids off early with an interest in science, technology, engineering and math is wonderful. These are the careers that will always be in demand, and if our funding can help start kids on a path for success we are always happy to help.”
Winners from Oakland County CU’s scholarship contest at Our Lady of the Lakes stand with OCCU President/CEO Allan McMorris.
… Fourteen school children were awarded $4,000 in scholarships in the Oakland County CU scholarship contest at Our Lady of the Lakes school in Waterford, Mich. All entrants received at least $5 for their efforts. Students were asked to write an essay on the topic, “What I have done (or could do) to help those less fortunate.” The grand prize winner, freshman Sara Fluegel, won $1,000. The others received either $500 or $250 each. “It’s a wonderful event, possibly my favorite day of the year,” OCCU President/CEO Allan McMorris said. “We’ve created a nice tradition with this scholarship contest and we’re pleased to help out so many students during this difficult economy.”
Volunteers from the Metro East Chapter take a break from sorting food for the Macomb Food Program.
… On Dec. 6, 15 volunteers from the Metro East Chapter sorted food for the Macomb Food Program. The program which is part of the Macomb County Community Services Agency in Macomb County Michigan collects donated food items to be distributed to a network of 53 pantry distribution sites. These sites help individuals and families located in Macomb County who are in need of emergency food. While there, the Metro East Chapter volunteers managed to sort a total of 5,840 pounds of food. In addition, food and monetary donations were collected by several Metro East Chapter credit unions during November and December. A total of $2,500 and 738 pounds of food were collected and given to the Macomb Food Program.
From left, holding the check are Haven House Vice President Debbie Parks, CASE CU CEO Jeffrey S. Benson and Haven House Executive Director Angela Mayeaux. CASE Community Activity Team members in back from left are Robin Bedecs, Lori Randall, Dione Pena, Mary Jo Paddock, Will McSweeney, Nicole Putman, Darcie Vinton-Johansen and Marsha Panik.
… CASE CU employees, lead by their Community Activity Team, raised $10,402.91 for Haven House in East Lansing. The check was presented to Haven House Executive Director Angela Mayeaux and Vice President Debbie Parks during the credit union’s all staff meeting. “It gives us great pleasure to be able to help support such a worthwhile community service. Our employees worked very diligently for the past 6 months to raise the funds to donate to Haven House,” CASE President and CEO Jeffrey S. Benson said. The mission of Haven House is to provide emergency housing and support services for one- and two-parent families. The shelter helps families who are homeless prepare for permanent housing by developing and promoting self-sufficiency, stability and financial responsibility. In past years, with the leadership of the CASE Community Activity Team, CASE members and employees have made donations to such nonprofit organizations as the local Make-a-Wish Foundation, Angel House in Mason, VFW National Home for Children, Greater Lansing Food Bank, American Red Cross, St. Vincent Home for Children, Ronald McDonald House, American Cancer Society, The Salvation Army, America’s Second Harvest, March of Dimes, CASE Cares, Eve’s House, Capital Area Humane Society and Cristo Rey Community Center to name a few.
From left are LCCU board member John Clark; Bill Browning, VA Medical Center chief of voluntary services and LCCU Marketing Specialist Jim Boehler.
… Lakes Community CU employees and members donated $1,750 to the John D. Dingell VA Medical Center. Lakes employees raise money annually for a good cause by donating $1 to wear casual clothing on Fridays and chose the VA Center as the recipient. Lakes members also contributed $1 donations in December and had their names displayed in the credit union on helmet emblems.
Community West CU had trouble selling a 2012 Ford Focus that it repossessed, so the credit union decided to turn it into the CWCU-mobile.
… Community West CU has a new company vehicle sporting some great custom art work. The ‘CWCU-mobile’ is the result of a repossessed auto that we were unable to sell. After sitting in the repo lot for several months with no serious inquiries, the credit union to convert the 2012 Ford Focus into a company vehicle. It was wrapped by Icon Signs of Grand Rapids and the end result is a great marketing piece that really gets people talking. Credit union employees will use the vehicle to travel to meetings, events, community activities and even participate in local parades. Keep an eye out for the CWCU-mobile in the greater Grand Rapids area.
Members of the Michigan Catholic CU staff show off some of the items donated through its Christmas charity project.
… For employees at Michigan Catholic CU, Christmas giving starts in January. A dedicated team of employees at MCCU started an annual Christmas charity project with one goal in mind: to help those in their community who need it most. Since last January, MCCU employees participated in small internal fundraisers to help raise funds for the credit union’s Christmas charity project. “We kept the Christmas spirit alive all year by offering employees opportunities to participate in jeans days, raffles and other events to raise money and have fun,” Human Resource Assistant Mary Ann Trojan said. “By December, MCCU employees raised over $900.” Two charities were selected as recipients of this year’s Christmas charity project: the St. Francis Family Center in Southfield and Mary’s Children Family Center in Clawson. MCCU employees presented a gift card to Mary’s Children Family Center and a collection of toys, games, and activities to the St. Francis Family Center.
AAACU employees present a check to Gerrie LaCross, representing the Alpena Council of the Society of St. Vincent de Paul. From left are Jess Radziejewski, Joan Myles, Jennifer Jackson, Donald J. Mills, Patti Tews, Mary Gliniecki, Gerrie LaCross, Joshua Viegelahn, Sharon Kapalla, Kathy Allen, Angie Hanners, Helen Suszek and Ann Genschaw.
… Alpena Alcona Area CU presented St. Vincent de Paul Society with a check for $1,770 to help needy families in the communities the credit union serves. AAACU offers “Skip‐a‐Pays” during certain times of the year which allows members to skip up to two consecutive loan or VISA payments. There is a service fee per loan to take advantage of the offer, part of which AAACU dedicates to a local charity. St. Vincent de Paul assists less fortunate people with their basic needs — from food pantry items, to financial assistance with utility bills or with other necessities, to clothes and household items from their thrift shop, Alpena St. Vincent de Paul. The mission of the society has two aims: to do a great deal of spiritual good to its members through the exercise of charity and to do a little spiritual and temporal good for poor families.
For detailed information on each listing, visit the MCUL website classifieds page.
For sale
Unisys (Burroughs) NDP Quantum Series NDP 600 Check Processing System, MSUFCU, East Lansing
Remstar Media Station Color Combination Check File, MSUFCU, East Lansing
Personal Advisor Team Lead, Community Choice CU, Warren Personal Advisor, Community Choice CU, Livonia/Redford Township Training Specialist, CASE CU, Lansing Marketing Consultant, MCUL & Affiliates, Livonia Full-time & Part-time Tellers, Chief Financial CU, Pontiac, Orion Township, Westland MSR/Loan Officer, Community Alliance CU, Livonia Business Lending Officer, University of Michigan CU, Ann Arbor Branch Manager, University of Michigan CU, Ann Arbor Onboarding Training Specialist, University of Michigan CU, Ann Arbor Lead Retail Member Specialist, Astera CU, Greenville Part-time Teller, Astera CU, Lansing Part-time Retail Member Specialist, Astera CU, Greenville Consumer Loan Manager, Co-op Services CU, Livonia Call Center Manager, Cornerstone Community Financial, Auburn Hills Part-time Teller/MSR, Members First CU, Midland Head Teller, Co-op Services CU, Westland
Employment and For Sale ads may be submitted by email to Monitor@mcul.org or by fax to (517) 482-3762.
Submissions to Monitor may be sent to Monitor@mcul.org. Bryan Laviolette is the editor of Monitor. Contact him at (800) 262-6285, ext. 233, or Bryan.Laviolette@mcul.org. The newsletter of the Michigan Credit Union League is published Monday mornings or Tuesday mornings when Monday is a holiday. There is no Monitor the week after Christmas and the week after the Annual Convention and Exposition. The MCUL reserves the right to edit submissions for clarity and space.
Regulatory Affairs
Capital. Asset quality. Management. Earnings. Liability management. These are the five critical elements that make up the acronym for CAMEL ratings, a method of evaluating the financial health of a credit union..jpg)
It is not too late to register and benefit from the excitement, energy and impact of experiencing the MCUL & Affiliates Lending and Marketing Conference. Taking place Feb. 14-15 at the Amway Grand Plaza Hotel in Grand Rapids, attendees will find all the latest about growing loans, monitoring risks, embracing social media, managing member relationships and more.
To help members stay in their homes and avoid foreclosure, credit unions have used creative approaches to modifying loan terms. As a result of these modifications, there are requirements for tracking, monitoring and accounting for these loan modifications within the allowance for loan losses. 
Credit union net interest margins have been squeezed for years and some have been relying upon non-interest fee income to help make up the difference. On Feb. 14, MCUL & Affiliates will host a webinar on Strategies to Increase Noninterest Income that will explore the future of fee income. Is it a strategic income item? Can it be earned from members and non-members? Can it be earned off the balance sheet as well? 
Participation in the free 
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...Tips to Managing Interest Rate Risk will be featured as a webinar topic presented by consultant Rick Menton on Feb. 9 from 1 p.m. to 2:30 p.m. (EST). The session will explore what regulators are saying about managing interest rate risk, the impact of long term assets, GAP analysis vs. other methods and what examiners will be looking for when they visit credit unions. The session is priced at $129 per connection and qualifies for the MCUL & Affiliates' "buy three compliance webinars, receive 50 percent off a fourth compliance webinar" offer. More details about the event and online registration are available 
...The adoption of Check21 standards has made it possible to replace paper check exchange and settle with an electronic image, and has fostered inexpensive technology to create and exchange check images as well. On Feb. 16 MCUL & Affiliates will host a webinar on Getting Serious About Remote Deposit that will share innovations that have been brought to the market for remote capture and transmission of check images. From small business oriented dedicated terminals, to basic multi-function scanners, to Apple and Android smart phones, remote capture devices are transforming standards of service and convenience. Learn more about this webinar that takes place from 1-2:30 p.m. (EST) and is priced at $129 per connection, by 
... Be sure to mark the calendar for the Residential Mortgage Fraud webinar that has recently been added to the MCUL & Affiliates' training line-up for Feb. 23 from 1 p.m. to 2:30 p.m. (EST). The webinar will focus on the new Michigan statute regarding mortgage fraud and will explain what conduct constitutes mortgage fraud, what the penalties for mortgage fraud are and what kind of mortgage fraud policy credit unions should have in place. The session is discount priced to $129 per connection. Those busy this date may register for the "recording-only" option and receive access to the event archive following the session. Additional information and details may be found 
