By Christian Mullins

Executive Summary:

Southern Traditions Credit Union, of Toccoa, Georgia, recently completed their merger into DOCO Regional Federal Credit Union of Albany, Georgia.  The amalgamation of the two financial institutions increases DOCO Regional FCUs total asset size to over $125 million, making them the largest credit union headquartered in Southern Georgia, serving approximately 34,000 members.  Southern Traditions made the decision to merge due to a declining membership base due to job losses in the textile industry.

International Summary:

United Kingdom

The Government recently announced plans to ease the restrictions on credit unions in the UK in an effort to increase membership.  Leading the changes are Treasury plans to broaden the common bond, as well as allowing groups to apply for membership.  The reforms will go into effect next year.  Credit Union membership has faired poorly in the UK, with only 0.5% membership penetration of the population.  In contrast, Ireland has a 50% penetration rate, and the US 25%.

Robbed:

• Mission Federal Credit Union, Chula Vista, California, Tuesday.  A man waited outside the credit union for it to open before displaying a handgun, jumping the counter, and forcing everyone to the floor.  He left with an undisclosed amount of money.  No one was injured.
• Credit Union Center of Indiana, Mishawaka, Indiana, Wednesday.  Wearing a hooded sweatshirt backwards with eye holes cut in the hood and sunglasses on top of that, a man threatened to blow up the credit union if he wasn’t given cash.  He escaped with an undisclosed amount of cash.  No one was injured.
• Arizona Federal Credit Union, Tempe, Arizona, Wednesday.  A man approached a teller around 12pm, advised him the credit union was being robbed, and left after the teller turned over an undisclosed amount of cash.  No weapon was displayed, and no one was injured.
• USE Credit Union, Chula Vista, California, Thursday.  Two men, one armed with a handgun, walked into the branch wearing ski masks and gloves, demanding money.  They took an undisclosed amount of cash and fled in a silver BMW sedan.  No one was injured.

They Fought The Law, And…

• Caroline Domanski, 62, was indicted on charges of embezzling almost $1.3 million from 1993 until April 2008 at First Nebraska Educators and Employee Groups Credit Union in Omaha.  The Vice President of Accounting, Domanski allegedly falsified accounting ledgers and withdrew cash from the vault for her personal use.

By Christian Mullins

Executive Summary:

The Credit Card Fair Fee Act (H.R. 5546), which would allow a three judge panel the ability to determine interchange fees, passed through the House Judiciary Committee by a 19-16 margin. Dan Mica of CUNA believes that the narrow margin of victory and a short legislative calendar means the legislation will likely be tabled until the next Congress convenes in 2009. CUNA has vehemently opposed HR 5546 since the bipartisan legislation was introduced several months ago.

International Summary:

• Nothing to report today.

Robbed:

• Nothing to report today.

They Fought The Law, And…

• Tyre Grigsby, 18, turned himself in for the Tuesday robbery of Tucson Federal Credit Union in Tucson, Arizona after family members recognized his photo on television. Arrangements were made to meet and arrest Grigsby at a relative’s home.

By Christian Mullins

Executive Summary:

New Hampshire Governor John Lynch signed a bill into law that will cap the rate payday and auto title lenders can charge at 36%. Payday lending had been available in the state since the year 2000. The new law will go into effect on January 1, 2009. New Hampshire now becomes the 15th state, along with Washington D.C., to restrict rates at or around 36%.

International Summary:

• Nothing to report today.

Robbed:

• Katema Credit Union, El Cajon, California, Tuesday. Three masked gunmen entered the credit union and ordered everyone on the floor. They fled in a Ford Taurus with an undisclosed amount of cash. No one was injured.
• Consumers Credit Union, Coldwater, Michigan, Monday. A fifty-something man robbed the credit union branch Monday afternoon. While no one was injured, no further details are available.
• Tucson Federal Credit Union, Tucson, Arizona, Tuesday. A young man entered the credit union and asked a teller for loan information. He began acting suspiciously and demanded cash. A weapon was implied but not displayed. Police are questioning a possible suspect in the robbery, but no arrest has been made at the time of posting.

They Fought The Law, And…

• After a five hour standoff with police resulting from the robbery of Premier Services Credit Union in Salt Lake City, Utah, 6 individuals were taken into custody. A tip lead police to a house containing weapons and a methamphetamine lab. In all, it is believed that four men, one woman, and one juvenile was arrested.

By Christian Mullins

Executive Summary:

On Monday, the Federal Reserve Board approved new rules to ban misleading and deceptive practices in mortgage lending. The rules, which will go into effect in October 2009, do not need Congressional approval, and Federal Reserve Board Chairman Ben Bernanke stated that the new measures would not be retroactive. Among other provisions,  the mortgage market’s ability to disburse “higher priced loans” has been restricted unless they can verify the borrower can repay the highest loan rate after the Adjustable Rate Mortgage (ARM) has reset.

International Summary:

Britain’s inflation rate jumped to 3.8% in June, nearly double the 2.0% the Bank of England had targeted for the first half of the year. This marked the third month in a row that inflation figures have come in above forecast and the 2nd time in three months that the annual rate has jumped by at least one-half percentage point. Increased food and fuel prices are the main drivers for the higher inflation rate.

Robbed:

• Nothing to report today.

They Fought The Law, And…

• William Rook Byard, 44, was charged with the robbery of Amarillo Community FCU in Amarillo, Texas on January 29, 2008. Byard allegedly entered the credit union brandishing a handgun, demanded cash, and fled on foot to his getaway vehicle several doors down. The vehicle was identified at a Saturn dealership in June, leading police to Byard’s arrest.
• A teller has been arrested in connection with the July 3, 2008 robbery of Goldenwest Credit Union in South Jordan, Utah. Jeffrey Lyle Nay, 20, allegedly planned the robbery with Curtis Brad Cordery, 20, which entailed taking two credit union staff into the vault, taking an undisclosed amount of cash, and removing the dye pack before exiting the financial institution. Nay is in custody while Cordery remains at large.

By Christian Mullins

Executive Summary:

Lawrence Firefighters Federal Credit Union, of Lawrence, Massachusetts, announced they will merge into NESC Federal Credit Union. The 7,500 member, $40 million asset credit union lost $1.9 million last year, most of it due to losses resulting from an indirect auto loan program. LFFCU CEO Alan Jenne will remain with the credit union as Executive Vice President and Chief Operating Officer. The merger is expected to be finalized by the end of 2008.

On Friday, the U.S. Senate passed a long awaited comprehensive housing and foreclosure bill that would create, among other provisions, a $300 billion foreclosure prevention program. The bill will now head to the House of Representatives, where some fine tuning, and perhaps major overhauls, are expected, meaning the bill is only one step closer, rather than close, to becoming law. Fears over provisions regarding mortgage giants Fannie Mae and Freddie Mac were assuaged when it was announced that the Federal Reserve Bank of New York could lend to the corporations if it were deemed necessary.

International Summary:

• Nothing to report today.

Robbed:

• Nothing to report today.

They Fought The Law, And…

• Carol Aranjo, former CEO of defunct D. Edward Wells Credit Union in Springfield, Massachusetts, faces between 10-12 years in prison after being convicted of 44 charges relating to the embezzlement of $1.5 million from the credit union she ran from 1997 until 2003, when it was shut down by federal regulators. Her sentencing hearing is scheduled for September.

By Christian Mullins

Executive Summary:

With a test vote of 76-10 in the Senate, the mortgage rescue bill moved one step closer to passing Monday. The heart of the bill is $300 billion Federal Housing Authority (FHA) program that will allow homeowners with shaky finances to refinance into a more affordable mortgage. Monday’s vote all but assures passage of the bill, even with a White House veto, which has been threatened due to several provisions within the bill. Final passage could come as early as this week.

International Summary:

• Nothing to report today.

Robbed:

• Nothing to report today.

They Fought The Law, And…

• In 1903, Theodore Roosevelt said, “Speak softly and carry a big stick; you will go far“. Monday morning, 31 year old Terrance Clark used Roosevelt’s Big Stick Diplomacy (and a big stick) to allegedly rob Dade County FCU in Miami, Florida. He left with about $7,500 in a vehicle. Police officers spotted the getaway car, and he was arrested after a ten minute chase. The stolen funds were recovered.

By Christian Mullins

Executive Summary:

John M. Tippets, CEO of America Airlines Federal Credit Union, has announced his retirement, effective June 30.  He will be succeeded by current AAFCU President Angela K. Owens.  Tippets has served as CEO since 1991, overseeing the growth of the credit union from $1 billion to $4.8 billion.  Prior to 1991, he served 8 years on the credit union’s Board of Directors.

Yesterday, we reported a data breach regarding two credit unions in South Bend, Indiana.  Today, it appears that the breach has grown in scope, as police have now confirmed that seven local financial institutions have suffered account breaches.  Four additional FIs have reported account breaches but have not yet been confirmed by police.  The source of the breach has yet to be determined.

International Summary:

• Nothing to report today.

Robbed:

• Nothing to report today.

Arrested, Arraigned, Charged, or Sentenced:

• Tammy Lyn Law, 33, pleaded guilty to embezzling $420,000 from Pioneer Federal Credit Union in Mountain Home, Idaho.  Law managed the credit union’s collection department from 2002 until 2008.  She is scheduled for sentencing on September 15.

By Christian Mullins

Executive Summary:

In South Bend, Indiana, over 100 members from two credit unions have reported fraudulent PIN-based transactions on their accounts over the weekend. Teachers Credit Union confirmed 97 members had been affected, while Notre Dame Federal Credit Union had at least 10 affected members. The withdrawals ranged in size, from $100 to $1,300, and were concentrated at ATMs in Russia, Ukraine, and Nigeria. Police are investigating the source of the data breach.

Kaiperm Federal Credit Union, based in Oakland, California, is the third Bay Area credit union to seek a merger due to losses from real estate loans. They are currently in negotiations with Alliant Credit Union, a $5.33 billion asset financial institution based in Chicago (Chicago?), Illinois. Kaiperm, with $96 million in assets, has lost $6 million since the start of 2007. The merger is expected to be completed by September.

International Summary:

• Nothing to report today.

Robbed:

• Greater Cincinnati Credit Union, Cincinnati, Ohio, Monday. Two men, one armed with a handgun, wearing polo shirts entered the credit union just before 4:00 pm Monday and demanded money. A GPS device was planted inside the bag, but it was discovered and discarded. No one was injured.
• Universal One Credit Union, Springfield, Ohio, Monday. A man dressed in black and wearing purple gloves robbed the credit union at gunpoint around 1:00 pm. While escaping with an undisclosed amount of cash, police say the dye pack given with the money did explode. No one was injured.

Arrested, Arraigned, Charged, or Sentenced:

• Richard Thomas Wright, 44, allegedly robbed First Choice Community Credit Union outside Knoxville, Tennessee Monday, only to run out of gas during his getaway. A Sheriffs Deputy pulled alongside the car about 10 minutes after the robbery took place, and found the stolen cash inside. Wright never displayed a gun, and no one was injured during the robbery.

By Christian Mullins

Executive Summary:

1st Liberty Federal Credit Union of Great Falls, Montana, has absorbed 335 member, $900,000 asset Electric City Federal Credit Union. ECFCU had converted to a community charter several years ago but were unable to attract the necessary membership. 1st Liberty FCU is a $113 million asset financial, and will be able to offer Electric City’s members online banking and bill pay, as well as several other services.

Belco Community Credit Union, a $260 million asset financial institution based in Harrisburg, Pennsylvania, is believed to be the first credit union in the nation to specifically offer a savings account for pet expenses. While an additional savings account has always been available to members, Belco’s aptly named ‘Critter Club’ account has accumulated 112 club members since debuting in May. Similar to a holiday account, members are encouraged to make automatic deposits until the funds are needed for pet expenses.

International Summary:

Barbados:

At a speech honoring St. Mark’s Co-operative Credit Union’s 45th Anniversary, Prime Minister David Thompson stated that 45% of Barbados’ population were supporting the credit union movement. The 130,000 members are spread out over 37 credit unions, with approximately $1 billion in assets.

Robbed:

• Nothing to report today.

Arrested, Arraigned, Charged, or Sentenced:

• Christopher Cook, 34, was arrested for the Wednesday robbery of Community Credit Union in Lewiston, Maine. He was arrested in South Yarmouth, Massachusetts, after a jump off of a Motel rooftop resulted in a fractured foot. Police recovered $760 of the more than $2,000 taken in the robbery.
• A Rochester, New York man was sentenced to 6 years in prison for the second degree robbery of ESL Federal Credit Union in January. Gary J. Beshures, 48, robbed the credit union, then crossed the street and stole an auto from a woman waiting in line for a car wash.
• The alleged ‘Straw Hat Bandit’ has been arrested. Police believe that Michael Osgood is responsible for 7 robberies in the Sacramento, California area, including Sterlent Credit Union on May 12, and one in the Stockton area.

By Christian Mullins

Executive Summary:

It’s a ‘doom and gloom’ day here at ES, as the latest mortgage news is in…

Year over year foreclosures have risen for the 29th consecutive month, according to RealtyTrac, an online marketer of foreclosed properties.  In May alone, 73,000 homes were lost to repossession, an increase of 158% from May 2007.  Florida and California continue to be hit hard, with nine of the ten hardest hit cities located in those states.  Las Vegas, with 1 home in some state of foreclosure for every 96 residences, rounded out the top ten.

The 30 year fixed mortgage rate jumped 23 basis points in the last week, averaging 6.32% with 0.7 point.  It is the highest average mortgage rate in 8 months, when the week ending October 25 averaged 6.33%.  Last year at this time, the rate averaged 6.74%.  The 15 year rate climbed 28 basis points to 5.93% with 0.6 point.  Last year, the rate averaged 6.43%.  The jump is being attributed to comments by the Federal Reserve Board, indicating inflationary concerns could lead to a rate hike.

Salmon Falls Community Credit Union completed its merger into Service Credit Union on June 1, after the New Hampshire credit union’s members overwhelmingly approved the merger with a special vote in May.  Salmon Falls Community’s location will be the first for Service in the city of Somersworth.  Service Credit Union is the largest in New Hampshire, with assets exceeding $1.2 billion.

International Summary:

• Nothing to report today.

Robbed:

• Nothing to report today.

Arrested, Arraigned, Charged, or Sentenced:

• One of three men responsible for the June 6 robbery of Central Credit Union in Pensacola, Florida was arrested Wednesday.  James Johnson, 33, was arrested and charged with armed robbery, theft, aggravated assault, and felon in possession of a firearm.  The other men remain at large.