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July 2012

NCUA Unveils Financial Literacy Website for Kids

Housed within NCUA’s free consumer website, MyCreditUnion: Pocket Cents provides access to tools and information designed to teach school-aged youth positive financial habits.

The website offers important lessons about the value of a dollar and allows youth to explore the different currencies from around the world on an interactive map. At Pocket Cents, youth will also discover the vital role credit unions play in their financial future, how to locate a credit union, and how to start a credit union right in their school.

Bookmark this valuable resource for young consumers on your website. To view Pocket Cents, go to http://mycreditunion.gov/pocketcents.


collaborateCollaboration Corner

SHARED FACILITY for SERVCO FCU & Eagle One FCU

SERVCO FCU and Eagle One FCU recently held a grand opening of their new shared office space in Philadelphia. SERVCO FCU is a small credit union (assets of $3 million) and could not afford to operate a full-service office. Eagle One FCU has assets of $40 million and wanted to expand their branch network. The solution for both was to enter into an agreement to share office space and staff.

SERVCO’s CEO Joni Brown and Eagle One’s CEO John King are to be congratulated on their collaborative efforts! To discuss your next collaborative adventure, email Rick Myxter, at rick.myxter@pcua.org.

Collaboration Resource Created
CUNA has created a repository to collect examples of successful collaborative efforts and to find ways to encourage credit unions, leagues, and CUSOs to share their stories. The site presents users with the opportunity to join a collaboration list serve, and to share information about initiatives. Sign up now at http://www.cuna.org/collaborate.


CU PolicyPro Tip of the Month

TDR’s (Troubled Debt Restructurers’) have been high on the examiners watch list. NCUA has amended its regulations to require federally-insured credit unions (FICUs) to maintain written policies that address the management of loan workout arrangements and nonaccrual policies for loans, consistent with industry practice or Federal Financial Institutions Examination Council (FFIEC) requirements. The final rule includes guidelines, set forth as an interpretive ruling and policy statement (IRPS) and incorporated as an appendix to the rule, that will assist FICUs in complying with the rule, including the regulatory reporting of troubled debt restructured loans (TDR loans or TDRs) in FICU Call Reports.

The effective date for this rule is July 2, 2012. The compliance date is extended to October 1, 2012, for the rule’s requirements to adopt written policies addressing loan workouts and nonaccrual practices and to December 31, 2012 to collect nonaccrual status data.

Are there plans to create a new policy to conform with the new guidance issued by the NCUA with regard to TDRs and non-accruals?

As part of the next update (August 2012), CU PolicyPro will be working on a modified TDR policy that gets into workouts and non-accruals. Currently, the master manual has the following policies that cover different kinds of modifications and workouts:

7315 - Commercial Real Estate Loan Workouts
7616 - Loan Extensions
7625 - Residential Real Estate Loans Loss Mitigation Strategies
3170 - Troubled Debt Restructure

For further assistance with CU PolicyPro or to schedule a training session, contact Elaine Royer 800-932-0661, extension 5341, or elaine.royer@pcua.org.

OfficeMax: Exclusive Credit Union Discounts

Let OfficeMax help you reduce costs in areas that are easily overlooked: office supplies, furniture & workspace planning and technology purchases.

A partnership through CUNA Strategic Services provides credit union with substantial savings - 31% to 88% off manufacturers’ list price on your most frequently purchased items with Credit Union Only discounted pricing.

You’ll save time and money when you buy office supplies from OfficeMax®. Only OfficeMax® gives you all these advantages:

+ Free next-day delivery to most locations, and no minimum order required.

+ Credit Union Only pricing on over 12,000 additional products

+ Credit Union Only discounted pricing on furniture, technology, and managed print services

Want to get started? Click Here and an OfficeMax representative will contact you to set up your credit union's account.

Card Services Offers FREE Credit Card Bootcamp

Do you utilize the Association's Card Services Department for your credit card program? If so, plan to attend one of the FREE training academies being offered in several locations across the state.

Whether you are new to your credit card program, or a veteran, this training has something to offer you!

For more information and to register, click here.

Questions? Contact Sheba Wallish, Card Services Manager.


Compliance Q&A

Q: A husband and wife are co-borrowers on a vehicle loan. The husband wants his name removed from the account as they are in the midst of a divorce and the wife will retain the vehicle. Should we remove his name?

A: No. As joint borrowers both are equally responsible for repayment of the balance regardless of their marital status.

Pennsylvania Credit Union Association