Published by the New Jersey Credit Union League, www.njcul.org
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In this issue:
NJCUL’s Annual Leadership Conference - April 16-18, 2007
You won’t want to miss this year’s Annual Leadership Conference at the Borgata Hotel, Casino and Spa in Atlantic City.Registration materials are in the mail, or download your copy here. ( http://www.njcul.org/07leaderconf.asp)
Save the Date: NJCUL’s 19th Annual Golf Outing
Mark your calendar and get ready to tee off! The 19th Annual NJCUL Golf Outing is scheduled for Tuesday, June 12, 2007 at the Cranbury Golf Club in Cranbury, NJ. More information is coming soon, but if you’d like to be a sponsor at this popular outing, contact Yvette Segarra at ysegarra@njcul.org or call 609.448.2426 x103.
73rd Annual Meeting & Convention - September 23-25, 2007
New place. New Dates. Great New Opportunities. This year’s Annual Meeting & Convention is poised to be our best yet. Some of the great reasons to mark your calendar: We’ve moved to the Tropicana! That means there will be no more trouble getting rooms! That’s right. Our entire group will be housed under one roof and what a roof it is! With great shops and restaurants, you’ll never have to venture outside, but if you want to, the beautiful September air will be there to greet you. Stay tuned and watch your mailboxes for information on this exciting event! If you’d like to exhibit or know someone who might, please contact Yvette Segarra at 609.448.2426 x103.
Join the Advertising Cooperative: We Need YOU!
The NJCUL Advertising Cooperative is hard at work planning our next round of advertising and advocacy efforts. If you haven’t paid your voluntary dues yet, please hurry. The sooner we have the funds set aside, the sooner we can move on our next round of exciting activities. Need more info? Visit: http://www.njcul.org/members/index.asp or call Sharon Dilling at 609.448.2426 x110.
A Clip From CUNA’s NEWS NOW: CUs get good press in Consumer Reports
NEW YORK (2/1/07)--Get ready for more inquiries about joining your credit union. None other than Consumer Reports is advising its nationwide readership on how to join a credit union.
"Credit unions serve up rates that will often beat your local bank's offerings," says the new March issue of Consumer Reports. In its "CR Money" section, the publication reports on "Credit unions: Now almost anyone can join."
"Those in the know have always understood that credit unions offer the best banking deals around. But to get in on them, you have to become a member," says the article.
It reports on the history of credit unions and says "switching from a bank can really pay off." It provides examples: In January, credit unions paid an average annual interest rate of 1.9% on money-market accounts, compared with banks' 1.2%. For a four-year new-car loan, banks charged 7.6% a year on average, while credit unions charged 6.2% on average, the article says.
Credit unions can offer those rates because Congress exempted them from federal income taxes in 1937. Regulators have allowed credit unions to begin serving groups with common bonds and later large geographic areas, the article says.
It also notes that credit unions have broadened their product lines and that they are extremely safe, with federal insurance. And it recognizes that banks are irked at credit unions' expansion.
To join a credit union, the publication advises, stop by your human resources office, poll your family, or try the Credit Union National Association.
CULAC Trustees Announced
The Credit Union Legislative Action Council of CUNA confirmed 23 trustees to serve two-year terms of office. The trustee from New Jersey is Cindy Rein-Zima, CEO of Hamilton Horizons Federal Credit Union and Secretary of the NJCUL Board of Directors.
Are You Connected?
The League’s new bi-monthly government affairs newsletter Capitol Connections keeps readers plugged-in to the public policy arena. It includes briefings on important goings-on in Washington (On-the-Hill) and Trenton (Under-the-Dome) and has sections on credit union movement grassroots activities (In-the-Trenches) and key issues (On-the-Soapbox) as well as backgrounders on who’s who (Meet-the-Players), interesting facts (Trivia-not-Trivial) and important calendar items (Save-the-Date).
If you’re not already plugged-in, contact Chris Abeel, the League’s director of government affairs to be added to the Capitol Connections electronic distribution list.
Credit Union Movement’s Agenda for the 110th Congress
Credit Union Regulatory Improvement Act (CURIA)
Credit unions remain the most highly regulated and restricted of all insured financial institutions, particularly after the passage of CUMAA in 1998, which imposed new, severe restrictions on credit unions in several areas. Though four technical provisions were enacted last Congress as part of the Regulatory Relief Act, there are several key issues that would help eliminate some of the worst examples of statutory micromanagement that have placed unreasonable constraints on the ability of credit unions and their boards to function efficiently and in the best interests of their members. CUNA is working with the Congress on the reintroduction of a new and enhanced version of CURIA, focusing on the following issues:
Prompt Corrective Action (PCA) Reform: CUNA is working closely with the NCUA and the Treasury Department to develop revised language that will modernize credit union capital requirements by reducing net worth ratio requirements and including a risk-based asset approach to PCA, thereby instituting a new measurement that would improve the safety and soundness of credit unions and the safety of the National Credit Union Share Insurance Fund;
Underserved Areas: CUNA is working to include language in the new CURIA legislation that would restore the ability of single common bond and community chartered credit unions to add underserved areas to their field of membership (FOM). As a result of a lawsuit filed by the American Bankers Association (based on a misinterpretation of CUMAA) the NCUA was forced, in July 2006, to issue a regulation that prohibits these credit unions from adding underserved areas to their field of membership. The ability for all credit unions to serve underserved areas is part of the core mission of credit unions. CUNA urges Congress to provide the technical fix that is necessary to allow all credit unions to continue to serve underserved areas, and strongly urges the banking industry to put an end to their hypocrisy;
Member Business Lending (MBL): CUNA supports provisions that will provide a substantial increase in the current limit of 12.25 % of assets on credit union member business lending (prior to CUMAA there were no limitations), and allow the NCUA to raise the loan cap from $50,000 to $100,000 and index for inflation. The Small Business Administration issued a study in March 2005 and found that the growth in bank consolidations was leading to a decline in access to credit for small business owners. Credit unions are uniquely positioned to fill the niche that is not being served by many banks.
Federal Fee Study / Business Checking Bill
Representative Nydia Velazquez (D-NY) introduced legislation, H.R. 41, the Business Checking Fairness Act, on the opening day of the 110th Congress that would renew, on a permanent basis, the requirement that the Federal Reserve Board conduct an annual survey of retail financial services fees, and include credit unions as a part of the study. Including credit unions in the Fed’s annual retail bank fee survey will document the differences in costs between banks, thrifts and credit unions in a way that helps consumers and enhances competition in the marketplace. CUNA urges swift action on this important provision.
Data Security
CUNA supports legislation that would prohibit the retention of sensitive, identifying information by merchants and certain non-financial companies from plastic card magnetic strips that could be obtained in connection with financial transactions, including the imposition of fines for failure to comply. CUNA also supports the requirement that the breaching party (i.e., the merchant) reimburse the consumer or financial institution for any losses incurred, as well as a uniform national standard. CUNA urges Congress to incorporate credit union backed provisions in any data security legislation that moves forward this year.
Credit Union Tax Exemption
The credit union federal tax-exemption is bound by the not-for-profit, cooperative nature of credit unions, not by the size of the credit union, those it serves, or the products and services that are offered. This rationale for the tax-exempt status has been ratified several times by Congress, the most recent in 1998 as part of the Credit Union Membership Access Act (CUMAA).
Although the bank lobby claims credit unions are “growing beyond their means” and should therefore pay taxes, the credit union share of total assets has remained virtually unchanged. From 1992 to 2006, credit unions’ market share has remained at a constant 6% of total assets in America's financial depository institutions. Most importantly, credit unions exist to serve their members, providing financial literacy counseling, short-term loans and other unique services when members are in need. CUNA opposes all attempts to subject credit unions to taxation, as well as efforts to use the tax debate to prevent credit unions from gaining regulatory relief.
Financial Services Appropriations
The House and Senate appropriations committees created a new subcommittee in the 110th Congress: the Financial Services Committee. This subcommittee will have jurisdiction over CUNA supported programs such as the Community Development Financial Institutions (CDFI) Fund at the Treasury Department, the Community Development Revolving Loan Fund (CDRLF) and the Central Liquidity Facility (CLF) under the NCUA, as well as funding for Small Business Administration (SBA) programs. The FY2007 appropriations are operating on a continuing resolution until February 15, 2007, and will likely be rolled into another continuing resolution to carry through October 1, 2007. Once the Administration’s 2008 budget is released, CUNA will advocate for the highest levels of funding for the FY2008 cycle.
International Issues
The World Council of Credit Unions (WOCCU) is the international trade association and development agency for credit unions, representing the interests of 43,000 credit unions in 91 countries. WOCCU is primarily funded by the US Agency for International Development (USAID) through microenterprise funding, and also receives contributions from US credit unions through CUNA, CUNA Mutual, and the National Credit Union Foundation (NCUF). Additionally, WOCCU is one of eight cooperative groups that receive funds from the Cooperative Development Program (CDP) at USAID. WOCCU uses CDP funds to expand low-cost transaction services for members (including remittances), create enabling regulatory environments, train credit union managers and directors, and extend credit union operations to difficult operating environments.
See You at the GAC? Hike-the-Hill, Make a Difference!
CUNA’s 2007 Government Affairs Conference (GAC) is scheduled for February 25-28 at the Washington Hilton. On Wednesday, February 28th we will Hike-the-Hill to visit members of New Jersey’s delegation to the 110th US Congress. GAC attendees and those able to make the trip to Washington for the day are encouraged to join us for this important grassroots program.
For additional information on both the GAC and our Hike-the-Hill contact Chris Abeel, the League’s director of government affairs.
Education at the League is off to a great start!
The Branch Management Strategies session was well attended and received high scores for content and the level of interaction. We had a nice turnout for the Increasing Revenue and Net Margins class. The first Finance, Accounting and Investments Roundtable was held at Novartis Federal Credit Union. Thanks to Ann South and Jason Reed at Novartis for hosting! The Small Credit Union Roundtable held their first session at the NJ Credit Union League in Hightstown. Attendees from both roundtables found the information and networking valuable. We hope to see more of you at future sessions!
February Educational Offerings:
Consumer Lending Fundamentals I: Feb.13, 2007 at NJ Credit Union League, Hightstown, NJ.
Compliance Roundtable: Feb.27, 2007 at Proponent FCU in Nutley, NJ.
Compliance Roundtable: Feb.28, 2007 at Bay Atlantic FCU in Vineland, NJ.
March Educational Offerings:
Advanced Lending Strategies: March 6, 2007 at the NJ Credit Union League, Hightstown, NJ
Managing the Performance Appraisal: March 8, 2007 at the NJ Credit Union League, Hightstown, NJ
FEDCOMP - TNG Data Processing System: March 10, 2007 at the NJ Credit Union League, Hightstown, NJ
Our first mini session, Decedent Accounts, is offered in three locations:
March 21, 2007 at the NJ Credit Union League in Hightstown, NJ
March 28, 2007 at Proponent Federal Credit Union in Nutley, NJ
April 4, 2007 at Camco Community Federal Credit Union in Camden, NJ
Two NEW Roundtables in March for HR and Lending professionals!
Lending Roundtable: March 20, 2007 at Fort Billings FCU in Paulsboro, NJ
Lending Roundtable: March 22, 2007 at North Jersey FCU in Totowa, NJ
HR Roundtable: March 27, 2007 at the NJ Credit Union League in Hightstown, NJ
HR Roundtable: March 29, 2007 at Novartis FCU in East Hanover, NJ
Have you signed up for the CUNA Compliance School yet? Are you considering taking advantage of CUNA’s National School brought to you locally in Albany, NY on March 12-16, 2007? The NJ Credit Union League is offering a $100 Education Voucher for the first 10 credit unions to enroll and attend this valuable conference. Visit our website for more detailed information. If you have not received your brochure in the mail, please call us at 800-792-8861 and we will be happy to send you one.
Shared Branching is Branching Out
We invite you to visit the newest addition to the shared branching network: NOVARTIS FCU, 124 S Ridgedale Ave, East Hanover NJ 07936. At this new service center you can expect to get the same great service you receive at your credit union because shared branching locations all have a common goal-great member service. When you enter this new service center, simply supply the teller with your credit union’s name, your account number and photo identification to easily access your account [free of charge]. Here are some examples of transactions available at NOVARTIS FCU, and other shared service center locations nationwide:
- Deposits
- Withdrawals
- Check cashing
- Transfers between accounts
- Loan payments
- Money orders and traveler's checks
In New Jersey, Shared Branching participation has grown more than 40 percent in the past year. For a complete directory of participating locations in New Jersey and across the country, visit www.cuservicecenters.com to access addresses, phone numbers, and hours of operation.
Would you like to know how your credit union can join the Shared Branching network? Call Chris Zahne at 609.448.2426 x104 or email czahne@njcul.org.
NJCUL’s Vendor Involvement Program
Looking for a mortgage company to help your credit union better serve your members? Want more info on ATM cards? Click here to read about NJCUL’s new Vendor Involvement Program with more vendors being added soon.
Jobs, Jobs and More Jobs
Find a job at a credit union or post a vacancy. It’s easy if you are a league member. Click here to see current vacancies.
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