ST. PAUL, Minn. (9/5/08)--Representatives from the Credit Union National Association (CUNA), the state leagues and credit unions yesterday polished off their final day of advancing the credit union movement during the back-to-back Democratic and Republican National Conventions.
During the conventions, the three-tiered system reinforced credit unions' non-partisan, consumer-oriented position in American politics. That effort was illustrated by CUNA and the leagues' signature project at both party events: Building a home for a wounded veteran with Homes for Our Troops.
Beyond the flurry of meetings, receptions and other events during both party conventions, CUNA teamed up with the National Journal to produce a series of Daily Briefings with national pundits and politicos.
The two organizations also hosted nightly VIP viewing receptions, where those not attending the convention facilities could mix and mingle while watching speeches via television.
CUNA and credit unions have been involved in these national events since 1988, according to CUNA Senior Vice President of Political Affairs Richard Gose.
"Being a part of the party conventions demonstrates CUNA's resolve to put itself in front of the key people who will be making policy affecting credit unions in the coming year," said Gose. "It's just as important to be part of the campaigns as it is to be lobbying in Washington."
courtesy of cuna.org
Monday, September 8, 2008
2008 breaches already break 2007 record
SAN DIEGO (9/4/08)--The number of data breaches for 2008 so far has surpassed the final total of 446 reported in all of 2007--more than four months before the end of 2008.
That's not good news for credit unions and other financial institutions forced to reissue credit and debit cards to protect their members from identity theft and fraud related to data breaches of other companies.
As of Aug. 22, the number of confirmed data breaches in 2008 was 449, said the Identity Theft Resource Center (ITRC).
The actual number of breaches is likely higher due to under-reporting last year and because some of the reported breaches affecting multiple businesses are listed as single events, the ITRC said.
ITRC is a non-profit organization established to support victims of identity theft in resolving their cases, and to broaden public education and awareness about identity theft.
ITRC recognizes that 449 breaches in less than a year is a small number when compared with the total number of businesses, government, health, banking and educational institutions that have databases.
The growth in the number of breaches from year to year can no longer be solely attributed to required reporting laws and media investigative work, the ITRC noted.
Part of the growth of the ITRC's breach list is due to the ability to access state attorney general notification lists, which contain breaches that were not reported via media or other sources, noted Linda Foley, ITRC founder.
"If more states would publish breach notification lists, there would be more information to study and to help us understand this growing concern," Foley said. "At this time, only three states publish such information.
"Additionally, more companies are starting to audit their security and network systems and use readily available security measures. This pro-active approach means that breaches are being identified that might otherwise have gone undetected," Foley added.
"The number of attacks, in addition to publicly disclosed breaches, continues to escalate as criminal networks mushroom around the world, while economies weaken," said Avivah Litan, vice president and analyst, Gartner Inc. "A more concerted effort is required among companies to secure and protect customer data, regardless of regulatory oversight."
The ITRC breach list is a compilation of breaches confirmed by various media sources and notification lists from state governmental agencies. ITRC uses several websites to help search for verifiable breaches, such as pogowasright.org, phiprivacy.net, The Breach Blog and attrition.org. To qualify, breaches must include personal identifying information that could lead to identity theft, especially the loss of Social Security numbers.
The purpose of the ITRC breach list is to study:
What are the weak links in security that might lead to a breach?
What policy changes need to be considered?
What protocols need to be established and then taught to all employees, including the highest ranking executive? and
Can risk levels be predicted or reduced?
courtesy of cuna.org
That's not good news for credit unions and other financial institutions forced to reissue credit and debit cards to protect their members from identity theft and fraud related to data breaches of other companies.
As of Aug. 22, the number of confirmed data breaches in 2008 was 449, said the Identity Theft Resource Center (ITRC).
The actual number of breaches is likely higher due to under-reporting last year and because some of the reported breaches affecting multiple businesses are listed as single events, the ITRC said.
ITRC is a non-profit organization established to support victims of identity theft in resolving their cases, and to broaden public education and awareness about identity theft.
ITRC recognizes that 449 breaches in less than a year is a small number when compared with the total number of businesses, government, health, banking and educational institutions that have databases.
The growth in the number of breaches from year to year can no longer be solely attributed to required reporting laws and media investigative work, the ITRC noted.
Part of the growth of the ITRC's breach list is due to the ability to access state attorney general notification lists, which contain breaches that were not reported via media or other sources, noted Linda Foley, ITRC founder.
"If more states would publish breach notification lists, there would be more information to study and to help us understand this growing concern," Foley said. "At this time, only three states publish such information.
"Additionally, more companies are starting to audit their security and network systems and use readily available security measures. This pro-active approach means that breaches are being identified that might otherwise have gone undetected," Foley added.
"The number of attacks, in addition to publicly disclosed breaches, continues to escalate as criminal networks mushroom around the world, while economies weaken," said Avivah Litan, vice president and analyst, Gartner Inc. "A more concerted effort is required among companies to secure and protect customer data, regardless of regulatory oversight."
The ITRC breach list is a compilation of breaches confirmed by various media sources and notification lists from state governmental agencies. ITRC uses several websites to help search for verifiable breaches, such as pogowasright.org, phiprivacy.net, The Breach Blog and attrition.org. To qualify, breaches must include personal identifying information that could lead to identity theft, especially the loss of Social Security numbers.
The purpose of the ITRC breach list is to study:
What are the weak links in security that might lead to a breach?
What policy changes need to be considered?
What protocols need to be established and then taught to all employees, including the highest ranking executive? and
Can risk levels be predicted or reduced?
courtesy of cuna.org
Large California CU placed in conservatorship
ALEXANDRIA, Va. (9/4/08)—The National Credit Union Administration (NCUA) has been named conservator of state-chartered Valley CU, San Jose, Calif., to ensure safe and sound credit union operations and continuing service to members.
The California Division of Financial Institutions appointed NCUA as conservator because of the declining financial condition of the $257 million-asset credit union, according to an NCUA release. The credit union has almost 27,000 members, three branch offices, and was originally chartered in 1953 to serve telephone company employees.
In announcing it accepted the role of conservator, the NCUA noted that member accounts are insured to at least $100,000 while IRA and KEOGH retirement accounts are insured up to $250,000 under coverage provided by the National Credit Union Share Insurance Fund (NCUSIF). The NCUSIF, the agency reminded, is backed by the full faith and credit of the Unite States government.
The NCUA added that excess insurance protection is currently provided by private insurer American Share Insurance of Dublin, Ohio.
Members with questions about their insurance coverage can contact NCUA's Region V Division of Insurance at 602-302-6000 Monday through Friday during business hours.
Use the resource link below to access the NCUA website.
courtesy of cuna.org
The California Division of Financial Institutions appointed NCUA as conservator because of the declining financial condition of the $257 million-asset credit union, according to an NCUA release. The credit union has almost 27,000 members, three branch offices, and was originally chartered in 1953 to serve telephone company employees.
In announcing it accepted the role of conservator, the NCUA noted that member accounts are insured to at least $100,000 while IRA and KEOGH retirement accounts are insured up to $250,000 under coverage provided by the National Credit Union Share Insurance Fund (NCUSIF). The NCUSIF, the agency reminded, is backed by the full faith and credit of the Unite States government.
The NCUA added that excess insurance protection is currently provided by private insurer American Share Insurance of Dublin, Ohio.
Members with questions about their insurance coverage can contact NCUA's Region V Division of Insurance at 602-302-6000 Monday through Friday during business hours.
Use the resource link below to access the NCUA website.
courtesy of cuna.org
Wednesday, September 3, 2008
Few CUs report damages in Gustav
MADISON, Wis. (9/3/08)--Some credit unions sustained minor damages from Hurricane Gustav, but no major losses have been reported yet, according to CUNA Mutual Group.
Gustav made landfall about 70 miles west of New Orleans. The Category 2 hurricane was responsible for 7 deaths in the U.S. and prompted a massive evacuation in Louisiana (Bloomberg.com Sept. 2).
The CUNA Mutual Credit Union Protection Claims staff is monitoring policyholders in the New Orleans area and southern Mississippi and is not expecting reports of major wind-related damage. Flooding will likely occur along the path of Hurricane Gustav, Phil Tschudy, CUNA Mutual Group media relations manager, told News Now.
"Evacuation losses have prevented some credit unions from getting back to their buildings, but we remain cautiously optimistic that damage to these credit unions will be minor," he said. "Once evacuation orders have been lifted, CUNA Mutual will contact policyholders and will have claim adjusters in the area as needed."
Many credit unions are now open in Mississippi, but they're "operating on skeleton crews," Charles Elliott, Mississippi Credit Union Association, told News Now.
Three credit unions in Mississippi were closed Tuesday--two because of limited staff. Many credit union employees evacuated the area and haven't returned yet, he said. "Many employees evacuated, and hopefully they'll get back today," Elliott said Tuesday.
He also noted that there are power outages in the state.
Keesler FCU, Biloxi, was open Tuesday except for the Stennis branch. The branch was closed because the building in which it is located was closed. Some Keesler branches had limited drive-up service available, the credit union said on its website.
No damages to credit unions have been reported to the association. Access to some areas is still limited due to storm debris and flooding, but most credit unions have provided initial condition reports, with many reporting they were open today, the association said.
"We were prepared for the worst and hoping for the best," Elliott said.
The association is working with the Louisiana Credit Union League on shared branching to help some credit unions that are offline, Elliott added.
The Alabama Credit Union League has been in contact with its credit unions, and there is no reported damage, Adena Whitman Zamora, league director of public and political affairs, told News Now.
"Everyone is doing well," she said. "[The league] is on standby to help where we can."
The league also will help its credit unions prepare for upcoming storms, she added.
Although there were mandatory evacuations for Hardin, Orange and Jefferson Counties, the Texas coastline was spared, according to the Texas Credit Union League (TCUL). No credit unions reported any damage to TCUL, and the league is continuing to follow up with them.
"It looks like our credit unions are in good shape," said Linda Webb-Manon, league communications director, told News Now.
Mobiloil FCU, Beaumont, Texas, was closed Tuesday to prepare for Gustav. Credit union members were able to perform financial transactions at 3,400 CU Service Centers nationwide, including 205 in Texas, the credit union said in a release.
New Orleans was spared from the storm, and Baton Rouge was hit harder than anticipated. Credit unions were not able to open Tuesday because the city was evacuated.
The Louisiana Credit Union League has contacted its credit unions and is staying in touch through text messaging. Phones are working sporadically. The disaster plan and shared branching for credit unions worked well, the league said.
courtesy of cuna.org
Gustav made landfall about 70 miles west of New Orleans. The Category 2 hurricane was responsible for 7 deaths in the U.S. and prompted a massive evacuation in Louisiana (Bloomberg.com Sept. 2).
The CUNA Mutual Credit Union Protection Claims staff is monitoring policyholders in the New Orleans area and southern Mississippi and is not expecting reports of major wind-related damage. Flooding will likely occur along the path of Hurricane Gustav, Phil Tschudy, CUNA Mutual Group media relations manager, told News Now.
"Evacuation losses have prevented some credit unions from getting back to their buildings, but we remain cautiously optimistic that damage to these credit unions will be minor," he said. "Once evacuation orders have been lifted, CUNA Mutual will contact policyholders and will have claim adjusters in the area as needed."
Many credit unions are now open in Mississippi, but they're "operating on skeleton crews," Charles Elliott, Mississippi Credit Union Association, told News Now.
Three credit unions in Mississippi were closed Tuesday--two because of limited staff. Many credit union employees evacuated the area and haven't returned yet, he said. "Many employees evacuated, and hopefully they'll get back today," Elliott said Tuesday.
He also noted that there are power outages in the state.
Keesler FCU, Biloxi, was open Tuesday except for the Stennis branch. The branch was closed because the building in which it is located was closed. Some Keesler branches had limited drive-up service available, the credit union said on its website.
No damages to credit unions have been reported to the association. Access to some areas is still limited due to storm debris and flooding, but most credit unions have provided initial condition reports, with many reporting they were open today, the association said.
"We were prepared for the worst and hoping for the best," Elliott said.
The association is working with the Louisiana Credit Union League on shared branching to help some credit unions that are offline, Elliott added.
The Alabama Credit Union League has been in contact with its credit unions, and there is no reported damage, Adena Whitman Zamora, league director of public and political affairs, told News Now.
"Everyone is doing well," she said. "[The league] is on standby to help where we can."
The league also will help its credit unions prepare for upcoming storms, she added.
Although there were mandatory evacuations for Hardin, Orange and Jefferson Counties, the Texas coastline was spared, according to the Texas Credit Union League (TCUL). No credit unions reported any damage to TCUL, and the league is continuing to follow up with them.
"It looks like our credit unions are in good shape," said Linda Webb-Manon, league communications director, told News Now.
Mobiloil FCU, Beaumont, Texas, was closed Tuesday to prepare for Gustav. Credit union members were able to perform financial transactions at 3,400 CU Service Centers nationwide, including 205 in Texas, the credit union said in a release.
New Orleans was spared from the storm, and Baton Rouge was hit harder than anticipated. Credit unions were not able to open Tuesday because the city was evacuated.
The Louisiana Credit Union League has contacted its credit unions and is staying in touch through text messaging. Phones are working sporadically. The disaster plan and shared branching for credit unions worked well, the league said.
courtesy of cuna.org
CU loans still growing, delinquencies level off in July
MADISON, Wis. (9/3/08)--Credit union loans grew and delinquencies leveled off in July--indicating credit unions are faring well in the credit quality crisis.
Click for larger view
The dollar amount of credit union loans outstanding grew 1.2% in July, compared with 0.9% for the same period in 2007, according to the Credit Union National Association (CUNA) monthly sample of credit unions.
Other loans (3.7%) and adjustable-rate first mortgages (2.4%) reflected the highest monthly percentage increases, followed by used-auto loans (1.3%), home equity loans (1.2%), and credit cards (1%).
Credit union savings balances declined 0.5% in July 2008, compared with a 1.1% decrease in July 2007.
Click for larger view
"As banks tighten their lending underwriting standards, credit unions are picking up market share," Steve Rick, CUNA senior economist, told News Now. "Credit union loan balances rose 5.3% in the first seven months of 2008, up from 3.3% in the similar period last year. Growth in the fixed-rate mortgage portfolio continues to lead the way with an increase of 0.8% in July and 14% year-to-date."
Money market accounts rose 0.7%, while regular shares, certificates and share drafts declined 1.7%, 0.4% and 0.4%, respectively.
With loan growth outpacing savings growth, the loan-to-savings ratio increased to 83% in July from 82% in June. The liquidity ratio--the ratio of surplus finds maturing in less than one year to borrowings plus other liabilities--decreased to 15.6% in July from 17.4% in June.
Regarding asset quality, credit unions' 60-plus-day delinquencies have remained at 1% for the past seven months.
"The overall credit union loan delinquency rate appears to have leveled off around 1.05% over the past couple of months, a hopeful sign that the credit quality crisis infecting other lenders is not having a significant negative impact on credit union balance sheets," Rick said.
The movement's overall capital-to-asset ratio is 11%. The total dollar amount of capital remains at $90 billion.
courtesy of cuna.org
Click for larger view
The dollar amount of credit union loans outstanding grew 1.2% in July, compared with 0.9% for the same period in 2007, according to the Credit Union National Association (CUNA) monthly sample of credit unions.
Other loans (3.7%) and adjustable-rate first mortgages (2.4%) reflected the highest monthly percentage increases, followed by used-auto loans (1.3%), home equity loans (1.2%), and credit cards (1%).
Credit union savings balances declined 0.5% in July 2008, compared with a 1.1% decrease in July 2007.
Click for larger view
"As banks tighten their lending underwriting standards, credit unions are picking up market share," Steve Rick, CUNA senior economist, told News Now. "Credit union loan balances rose 5.3% in the first seven months of 2008, up from 3.3% in the similar period last year. Growth in the fixed-rate mortgage portfolio continues to lead the way with an increase of 0.8% in July and 14% year-to-date."
Money market accounts rose 0.7%, while regular shares, certificates and share drafts declined 1.7%, 0.4% and 0.4%, respectively.
With loan growth outpacing savings growth, the loan-to-savings ratio increased to 83% in July from 82% in June. The liquidity ratio--the ratio of surplus finds maturing in less than one year to borrowings plus other liabilities--decreased to 15.6% in July from 17.4% in June.
Regarding asset quality, credit unions' 60-plus-day delinquencies have remained at 1% for the past seven months.
"The overall credit union loan delinquency rate appears to have leveled off around 1.05% over the past couple of months, a hopeful sign that the credit quality crisis infecting other lenders is not having a significant negative impact on credit union balance sheets," Rick said.
The movement's overall capital-to-asset ratio is 11%. The total dollar amount of capital remains at $90 billion.
courtesy of cuna.org
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