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September 2, 2008 HEADLINE NEWS
Congressional Candidate Frank Kratovil Named a “Friend of Credit Unions” COLUMBIA, Md. - The Maryland and District of Columbia Credit Union Association Board of Directors has named Congressional candidate Frank Kratovil (Democrat – Stevensville) a “Friend of Credit Unions.” As a result, the association has indicated it supports Kratovil’s effort to gain the seat being vacated by longtime “Friend of Credit Unions” Rep. Wayne Gilchrest (R-MD).
On September 2, Rep. Gilchrest announced that he endorses Kratovil.
MDDCCUA supports political candidates and elected officials, regardless of party affiliation, who have maintained a positive relationship with credit unions by working on behalf of their members. The association also supports candidates whose policies and platforms will allow them to support credit unions future efforts to serve their communities.
MDDCCUA will confer “Friend of Credit Unions” status on congressional, senatorial, statewide, and citywide candidates who have demonstrated a willingness to protect, promote and advocate for a positive legislative and regulatory environment for credit unions, which serve 2 million credit union Marylanders including approximately 90,000 residents in the first congressional district.
“The designation reflects the belief that in these unstable economic times Mr. Kratovil will use the same energy and zealousness that he currently displays as the State’s Attorney for Queen Anne’s County to protect the rights of Maryland citizens to choose credit unions as low-cost and safe financial services providers,” said Mike Beall, MDDCCUA CEO.
MDDCCUA will officially bestow the “Friend of Credit Unions” designation on Frank Kratovil at a formal ceremony later this month.
DENVER - Speak to middle America in addressing the credit and housing crisis, was the advice that CUNA President/CEO Dan Mica had for the presidential nominees when asked by FOX Business Network last Thursday.
Mica said whether the new president is Democrat Barak Obama or Republican John McCain, their first order of business would be "do no harm." A new president must assure Americans that their government is there as a back stop but won't do anything to create any more jitters in the markets.
Appearing live from INVESCO Field here just hours before Barack Obama accepted the nomination to become the Democratic Party's presidential candidate, Mica also touted the strength of the credit union system to a national audience during his Fox interview at the Democratic National Convention.
Coolly espousing credit union virtues above the sound of a loud practice session of Michael MacDonald singing "America" in the background, Mica reiterated that credit unions have not been part of the subprime lending mess; rather they are helping to address the country's credit crunch by continuing to lend.
"Credit unions are part of the solution, not part of the problem," Mica told his Fox interviewers. "We weren't part of the 125% loan, the liar loans."
For credit unions, Mica said, "liquidity is there" and he assured that deposits in credit unions are "absolutely" safe.
"We have solid asset ratios. In fact, we are still lending and we've always had good, solid lending practices," Mica said, adding, "Amid all this (market) chaos, there is a calm, a reasonable place to go—credit unions."
MDDCCUA Chief Advocacy Officer Jennifer Porter Gore and Director of Legislative Affairs Aaron Glaser attended the events at last week’s Convention, and volunteered on the floor of the convention. Local government officials at the Democratic Convention included Governor Martin O’Malley, Congresswoman Eleanor Holmes Norton, Senators Barbara A. Mikulski and Benjamin L. Cardin, House Majority Leader Steny H. Hoyer, Reps. Elijah E. Cummings and Chris Van Hollen and Montgomery County Executive Leggett, among others.
Use the resource link below to see full interview of Mica on Fox Network - http://www.cuna.org/download/video/mica_0828/mica_082808.html
COLUMBIA, Md. - John McKechnie's lobbying experience and his current role as NCUA's Director of Congressional Affairs gives him an extensive background in dealing with the media and elected officials. John will share lessons he has learned that you can take back to your credit union at the MDDCCUA Annual Volunteer Leadership Conference in Ocean City, Md., October 24 to 26.
Breakout sessions on topics including the mortgage crisis, fraud, the greening of your credit union, loan file reviews and BSA make this a conference you don’t want to miss.
New - and experienced - board and committee members, this conference is specifically developed for you! It provides the opportunity for volunteers to improve their knowledge, enhance their leadership skills and network with their peers. Click here for details.
Attention State Chartered CUs - UBIT Issues: Quarterly Filing and Court Date WASHINGTON - State-chartered credit unions filing Internal Revenue Service (IRS) Form 990-Ts, the "Exempt Organization Business Income Tax Return," and paying unrelated business income taxes (UBIT), will want to consult their accountants or tax advisors to discuss the need to file quarterly estimated tax returns on UBIT income, advises the Credit Union National Association (CUNA).
That consultation should be pursued, CUNA says, whether the credit union has filed a 990-T or plans to do so for 2008.
CUNA has learned that a handful of credit unions have been told by the IRS that they may be subject to interest or penalties if they fail to submit quarterly estimated tax reporting in years when they file, or expect to file, a 990-T form.
At least one credit union received a notice after it filed a 990-T form for the first time in May 2008, for the 2007 tax year, stating that it not only had failed to include the UBIT tax payment due but also that it was being penalized for having not begun quarterly estimated tax reporting by April 15, 2007.
The April date would have been 13 months before the credit union filed its first 990-T form and only a few weeks after the IRS issued its first technical advice memoranda (TAMs) taking the position that UBIT is due on the income from certain credit union products and services.
CUNA says fair or not, the law is applied strictly and there is no "reasonable cause" excuse for failure to pay estimated taxes.
"Unfortunately, the tax law and the 990-T instructions state that 'generally, an organization filing Form 990-T must make installment payments of estimated tax if its estimated tax… is expected to be $500 or more ,’" says Eric Richard, CUNA general counsel. Estimated tax is tax minus allowable credits, and the applicable section of the tax code is 26 USC Section 6655(g)(3).
CUNA advises that IRS Form 990-W can be used to help figure estimated UBIT liability. The estimated tax is due April 15, June 15, September 15, and December 15 for the tax year.
"Whether there will be any broad effort by the IRS to enforce quarterly UBIT reporting is unknown, which is why it is important for state-chartered credit unions filing 990-T forms to discuss this issue with their accountants," said Richard.
On a related topic, a trial date of Aug. 31, 2009, has been set for Bellco CU vs. the Internal Revenue Service, a case filed earlier this year to challenge the government's policies on UBIT issues.
Bellco, of Greenwood Village, Colo., is seeking a refund of $199,000, based on UBIT taxes paid for 2000, 2001 and 2003.
The Colorado credit union refund claim is based on income generated primarily through sales of credit life and credit disability insurance over those three tax years. Revenue generated from sales of accidental death and disability insurance, and the credit union's involvement with CFS Member Financial Services, a credit union service organization, were included under the 2003 refund claim.
The Bellco lawsuit was the second filed by a credit union on UBIT issues this year. In January, Community First CU, Appleton, Wis., filed a complaint in federal court challenging the IRS on its determinations that certain insurance products offered to members fall outside the credit union's main mission and are subject to UBIT.
The UBIT Steering Committee, comprised of CUNA, CUNA Mutual Group, the American Association of Credit Union Leagues, and the National Association of State Credit Union Supervisors, as well as MDDCCUA, strongly support the credit unions' efforts.
Resource Links UBIT Resources for CUs (affiliated CUs only) - http://www.cuna.org/reg_advocacy/member/hot_topic/ubit.html
Washington Post on Advance-Fee Loans: Join a CU WASHINGTON - A Kiplinger's Personal Finance columnist writing in the Sunday, August 24 Washington Post about advance-fee loans cites credit unions as a way to avoid those fees.
Military personnel, often susceptible to exorbitant fees from payday lenders, are now being targeted with so-called advance-fee loans.
Because military personnel are often young and transient, when they apply for a loan, they are told they are credit risks. The lender asks them to pay $900 to $1,800 or more upfront before getting the loan. Then the money disappears.
The article cited advice from the Better Business Bureau Military Line, which noted two things a borrower can do to avoid advance-fee loans.
One of them was "Join a credit union. Credit unions on base often offer short-term loans at competitive interest rates."
The other was to get a zero-interest loan through a military emergency relief fund.
8th Annual Montgomery County Housing Fair and Financial Fitness Day MDDCCUA Outreach Committee to Host CU Booth COLUMBIA, Md. - Join us at the 8th Annual Montgomery County Housing Fair and Financial Fitness Day on Saturday, September 27 at the Activity Center at Bohrer Park, Summit Hall Farm (next to Gaithersburg High School), 506 S. Frederick Avenue, Gaithersburg, Md. 20877 from 10:00 a.m. until 3:00 p.m. Thanks to the support of MDDCCUA and the credit unions that contributed to the Cooperative Advertising fund, we are a Platinum Sponsor of the event.
Sharon Sykes, MDDCCUA’s VP of Marketing, and members of the Community Outreach Committee will staff the MDDCCUA booth at the fair. We’d be happy to distribute materials on membership, mortgages, and other services from credit unions with members in Montgomery County. You’re also welcome to join us at the event by providing volunteers to staff the booth. Please let Sharon know if you will provide staff and/or information. Just send any materials and giveaways to Sharon Sykes, MDDCCUA, 8975 Guilford Road, Columbia, MD 21046 by Monday, September. 22. Materials in Spanish are welcome!
For more information, including a flyer, click 8th Annual Housing Fair and Financial Fitness Day.
September Packed with Financial Fitness Events Members Can Benefit from these Free Programs COLUMBIA, Md. – The MDDCCUA Community Outreach Committee has learned of several financial fitness events in September that members can take advantage of. Here are a few with links to more information: · Mortgage Matters – Wednesday, September 10 at Northwood City Library, 4420 Lock Raven Boulevard, Baltimore, Md. from 6:00 p.m. until 7:30 p.m. Sponsored by Housing Authority of Baltimore, Mayor’s Office of Neighborhoods and Baltimore Homeownership Preservation Coalition. For more information, call 410-727-0169, ext. 1802 or visit http://preservehomeownership.org/documents/MortgageMattersFlyer2.pdf. There are three more workshops through December. For a copy of the flyer, click here. · CFP Financial Clinic – Saturday, September 13 at the Grand Hyatt in Washington, DC, from 11:00 a.m. until 4:00 p.m. Certified financial planners will be available to provide free financial advice. DC Saves Partners, including MDDCCUA, will be on hand. For a copy of a flyer, click here. · 8th Annual Montgomery County Housing Fair and Financial Fitness Day – Saturday, September 27 at Activity Center at Bohrer Park, Summit Hall Farm (next to Gaithersburg High School), 506 S. Frederick Avenue, Gaithersburg, Md. 20877 from 10:00 a.m. until 3:00 p.m. MDDCCUA is a Platinum Sponsor. Free admission, free credit reports, free one-on-one counseling. And, there is a first time home buyers’ class from 12:00 p.m. until 3:00 p.m. For more information, including a flyer, click 8th Annual Housing Fair and Financial Fitness Day.
Application Process for Community Development Grants Announced WASHINGTON - The U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund on August 12 released its Fiscal Year 2009 Notice of Funds Availability (NOFA) for the CDFI Program. This annual funding notice provides up to $54 million in appropriated funds, subject to final appropriations, in the form of awards to community-based organizations, known as community development financial institutions (CDFIs) including credit unions. CDFIs provide affordable financing and related services to low-income communities and populations that lack access to credit, capital and financial services.
"I am happy to announce the opening of the 2009 award round of this critically important program. In these turbulent times, building the capacity of CDFIs serving the nation’s distressed communities is more important than ever," said CDFI Fund Director Donna J. Gambrell.
The deadline is October 29, but institutions not certified as CDFIs need to apply for the designation by October 1.
The CDFI Fund posted the NOFA electronically on the Grants.Gov website at www.grants.gov. Additional guidance can be found on the CDFI Fund’s website.
Register Today for ICU Day Celebration on the Hill – Oct. 16 COLUMBIA, Md. – MDDCCUA is celebrating International Credit Union Day on October 16 with a reception at Credit Union House, 403 C Street, NE, Washington, D.C. 20002 from 5:30 p.m. to 7:30 p.m. The ticket is $40 per person. Credit unions also have the opportunity to sponsor the event which helps to fund international projects. The recommended sponsorships are $250 for credit unions below $35 million in assets, and $500 for credit unions above $35 million in assets.
Click here to register for the event.
Also, credit unions have access to various resources for their own celebrations. Click here to see the resources.
Please send announcements or descriptions of your celebrations to Sarah Turner at sturner@mddccua.org.
Call for Volunteers IT Specialists Needed for Nicaraguan Central Service Organization COLUMBIA, Md. - The Maryland and District of Columbia Credit Union Association has had a long term partnership with the Central de Cooperativas de Ahorro y Crédito Financieras de Nicaragua, or Central Service Organization (CSO). The CSO has requested onsite technical assistance from Maryland and District of Columbia credit unions to further develop its information technology system by having a U.S. credit union IT professional visit the CSO.
The current proposal of training activities specifically addresses the issue of implementing information system policies and structuring the IT security infrastructure. These measures need to be implemented at the CSO level with a greater level of sophistication, and also at the credit union level. The CSO seeks assistance with setting up its own secure IT facility, complete with new servers and security measures. For complete information on the Nicaraguan scope of work please click here.
For more information, please contact Martha Ninichuk at mninichuk@mddccua.org or by calling 443-325-0782.
REMINDER: September 5 is the Deadline for Voting on Proposed MDDCCUA Dues Reallocation and Bylaw Change COLUMBIA, Md. - Voting opened on August 1, 2008 for the MDDCCUA proposed bylaw change and dues reallocation plan. Click Here to access the electronic ballot and cast your vote. User names and passwords were mailed to all member credit union CEOs and Chairmen on July 16, 2008. All votes must be cast NO LATER THAN midnight on September 5, 2008. Please contact Jennifer Simmons at 410.290.6858, Ext. 118 or jsimmons@mddccua.org if you need additional information on the voting process.
Register Today for Upcoming Training Events COLUMBIA, Md. – Take advantage of these educational opportunities. Just click on the title for details.
Fortifying your Front Line - For members to have faith in your credit union, expertise needs to start at the front line. This training, to be held on Thursday, September 9 from 9 a.m. to 4 p.m., will help front line employees make a good first impression on new members and keep existing members faithful full service users. This seminar will cover account options, compliance issues and fraud prevention.
Human Resource Seminar - In this session on Wednesday, September 10 from 9 a.m. to 4 p.m., you'll learn the difference between a performance plan and a development plan and how to: identify competencies and create a learning plan, prepare and deliver effective performance appraisals and difficult feedback, and set performance expectations that truly motivate employees.
Bank Secrecy Act - NCUA and state examiners are committed to enforcing the Bank Secrecy Act (BSA), so complying with the regulation should be a top priority for every credit union. Get the information you need to ensure your training requirements have been met before your examiner walks in the door. This training will be held from 9 a.m. to 4 p.m. on September 11 in DC and repeated on September 12 in Columbia.
CUNA Payment Systems Conference Coming to Baltimore, Sept. 8–10 COLUMBIA, Md. - Hear from industry experts on the pressing issues in today's world of payment systems. This conference will kick off with an industry overview and end with a look at innovative payment system products and services. You'll hear about the latest and coolest innovations that are being tested in the marketplace and others yet to come. From best practices and regulatory updates to networking and asking questions of payment system experts... it's all at this conference! The conference will be held at the Sheraton Baltimore City Center.
For program content specifics or to request a brochure, call 800-356-9655, ext. 4249 or email elearning@cuna.coop. For registration questions, call 800-356-9655, ext.4400 or e-mail reginfo@cuna.coop.
Ocean City Hotels Lined Up For 2009! COLUMBIA, Md. - For those of you who plan ahead, Ocean City hotels are now available for registration for MDDCCUA‘s 4th Annual Meeting and Convention, scheduled for June 10-13, 2009. Make your reservations now to ensure your accommodations for next year.
A list of hotels is available online for your review. Please note that 2008 prices are listed and are subject to change.
For more information contact Diane Pinter at 443-325-0779.
CU HAPPENINGS
1st Armored Division Recognizes Andrews Federal Credit Union
Cynthia Alvarado, Andrews Federal Credit Union Regional Manager, Colonel James L McGinnis, Jr., Commander, 1st Armored Division, Wiesbaden Army Garrison
“We want to assist the soldiers and families of our community with their overall financial readiness so they do not have to worry about money matters while they are away serving their country,” stated Alvarado.
Andrews FCU has served the Wiesbaden Army community since 1968. It sponsors a variety of events for the soldiers and their families including holiday parties, retirement award ceremonies and other events. The credit union also offers financial education by way of classes to the base community, interactive sessions via its online Education Center and free financial counseling through an international toll-free number.
Three CUs Support the Introduction of Financial Literacy in Cecil County Schools COLUMBIA, Md. - Cecil County School Employees Federal Credit Union and APG Federal Credit Union, worked collaboratively with Cecil County Public Schools educators to define the newly-revised Cecil County Public School (CCPS) 9th grade curriculum, previously entitled Freshman Seminar.
“The team addressed the need for a comprehensive financial literacy curriculum which was considered a critical need area for student instruction,” Tina Mike, Education Director for APGFCU said. “It evaluated and considered several options, and decided to use the Cemark Making the Right Money Moves program which was previously used by students of the Technical High School as well as business students at Elkton High School.” The funding for this program is provided by Cecil County School Employees, Thiokol-Elkton and APG FCUs.
This curriculum will be taught to all incoming freshmen in CCPS beginning with the 2008-2009 school year. CCPS received 1,500 student workbooks and 60 teacher guides.
GPOFCU Members are ‘Greeted, Educated and Appreciated’ at Annual Member Appreciation Day WASHINGTON - “Go Green with GPOFCU” was the theme of the 3rd Annual GPOFCU Membership Drive and Appreciation Day, held at the Government Printing Office Harding Hall on August 21. Members received green GPOFCU backpacks and were greeted by the credit union’s Board members and staff, as well as several credit union vendor partners.
“We are dedicated to growing GPOFCU one member at a time, and
providing our members with exceptional service and financial
resources to cope with today’s struggling economy,” said Marcia
Dixon, GPOFCU Lending Manager. “GPOFCU staff members have worked
diligently to provide a complete resource table of financial
education
William Lewis, GPOFCU’s CEO, welcomed GPO’s Public Printer, Robert Tapella, and thanked longtime credit union members who were greeted and honored with boutonnières and special gift bags. Several in attendance have been proud members of GPOFCU for more than 30 years.
GPOFCU Members at Annual Member Appreciation Day.
National Capital FCU Offers Members VISA® PayWave™ LANDOVER, Md. - National Capital Federal Credit Union recently announced it has partnered with Primax, formerly known as T. K. Keith Company, Inc., to add the VISA® PayWave™ contactless payment technology to its portfolio of VISA credit card offerings. The Visa PayWave-enabled card will be offered in the Washington, DC area and provides a faster, more convenient method of payment. NCFCU members will be able to make payments by waving their Visa payWave-enabled card in front of a secure contactless reader. Cards must be held within two inches to be accepted, and there generally is no need for the customer to hand the card to a cashier.
“This technology will provide an added benefit for our members.” said Jo Ann Talbot, President of National Capital FCU. “It makes users’ transactions faster, more convenient and secure. These features are important to our members in the fast-paced DC environment. We are excited about being the first credit union in the Washington, DC area to introduce this service and look forward to partnering with Primax.”
REGULATORY AFFAIRS
IRS Issues Instructions for New Form 990 WASHINGTON - The Internal Revenue Service last Tuesday released revised instructions that will be needed by tax-exempt organizations to fill out the tax agency's redesigned Form 990.
The new IRS form, Return of Organization Exempt from Income Tax, is effective for the 2008 tax year, for returns filed in 2009. Maryland state-chartered credit unions are required to file Form 990 with the IRS annually. Federal credit unions are not required to file, since they are not subject to unrelated business income taxes.
The new instructions are more comprehensive than earlier ones and have been modified to reflect the new format of Form 990.
The Credit Union National Association is currently executing an in-depth review of the instructions to see how they will affect credit unions.
CUNA had expressed concern about that the changes to the instructions for filing the IRS form when they were proposed. CUNA warned the new form, when used to report the pay of executives at state-chartered credit unions, could result in filers reporting "inflated figures" that do not reflect true compensation.
Use the resource link below to access the IRS instructions.
Resource Links
IRS
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CUNA Comment Letter on Revised Form 990
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NCUA Board Meeting Schedule for 2008 Click here to get a copy of the NCUA Board meeting schedule for 2008.
Resource Information for Area Roundtables Our area has several active Roundtable Groups that provide essential services and promote professional growth and development. Please direct your email or phone calls to the contacts shown in the respective Roundtable listings located on the MDDCCUA Roundtable web page.
CHAPTER CORNER
Get Your Tickets Soon for the Bull & Oyster Roast – Oct. 3 COLUMBIA, Md. – Join members of the MDDCCUA Baltimore Chapter on Friday, October 3 for their annual Bull & Oyster Roast. It will again be held at the Parkville American Legion Post #183 on Putty Hill Avenue. Beer and set-ups will be provided as well as music by T. J.’s Dee-Jays, Inc. Door prizes will be awarded throughout the evening. Tickets must be purchased in advance and are $35 per person on or before September 15 and $40 per person after this date. No tickets will be sold at the door and ticket orders will not be accepted after October 1. The Bull Roast has sold out in the past so order your tickets soon! Click here for the order form.
Red Flag Requirements is Topic at Sept. 9 Baltimore Chapter Meeting TIMONIUM, Md. – The next meeting of the MDDCCUA Baltimore Chapter is September 9 from 5:30 p.m. to 8:00 p.m. at the Crowne Plaza Hotel located at 2004 Greenspring Drive,Timonium, Md. 21093. Doug Seitz of the Offit Kurman law firm will provide an update on Red Flag requirements.
To register, click here.
Western Chapter Meeting Will Address Fall Financial Fitness Fair FROSTBURG, Md. – The MDDCCUA Western Chapter meeting will be held on September 10 at 5:30 at Failingers Hotel Gunter, Frostburg, Md. Sharon Sykes, MDDCCUA’s VP of Marketing, will cover the details of the Financial Fitness Fair being held at Allegany College of Maryland on October 25. Reservations for the Chapter meeting must be made by 10:00 a.m. on September 8 by calling Patricia Folk or Christie Keplinger at 301-729-8015,or by faxing 301-729-2147.
Suburban Chapter Meeting to Focus on Indirect Lending – Oct. 15 COLLEGE PARK, Md. – The MDDCCUA Suburban Chapter is meeting on Oct. 15, from 5:30 p.m. to 7:30 p.m. at the Holiday Inn, 10000 Baltimore Avenue, College Park, Md. 20740. The meeting topic is Indirect Lending. A representative of Credit Union Auto Network (CUALN) will discuss the potential benefits and pitfalls of indirect lending. The meeting is sponsored by Credit Union Auto Loan Network, Credit Union Mortgage Association, and Mid-Atlantic Corporate FCU.
To register, click here.
Mark Your Calendar …DC Chapter Meeting on Oct. 2 at the Channel Inn
Submit Press Releases and Photos to FOCUS If your credit union has an upcoming event, news, or a milestone such as an anniversary, please e-mail releases and photos (in .jpg format) to sturner@mddccua.org. The deadline for submission of articles is close of business on Wednesdays.
Maryland and District of Columbia Credit Union Association
8975 Guilford Road, Suite 190 1701 Pennsylvania Ave, Suite 450
Washington, DC 20006-5805 (800) 492-4206 (Toll free)
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The mission of the Maryland and District of Columbia Credit Union Association is to promote, develop and support the credit union movement through advocacy and education.
FOCUS Newsletter Submissions: Press releases, stories or other submissions for FOCUS should be sent to sturner@mddccua.org by close of business each Wednesday and will be published in the following edition, space permitting.
The format should be in Word and the font should be Arial 10. We will make every effort tomake your information available, either directly in the FOCUS or on the MDDCCUA website with a link in the newsletter. If you would like to subscribe to FOCUS, please email Sarah Turner.
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Mica
Touts Strength of CU Movement on FOX at Denver Convention 
SUITLAND,
Md. - Andrews Federal Credit Union was recently presented with a
certificate of appreciation and a "”Task Force Iron Sentinel” coin
by Colonel James L. McGinnis, Jr., First Armored Division Support
Command “Task Force Iron Sentinel” at Wiesbaden Army Garrison,
Germany. The organization was recognized for its support of the
soldiers and families at Wiesbaden Army Garrison, Germany. Cynthia
Alvarado, Regional Manager, proudly accepted the awards on behalf of
the credit union.
