Credit Union Times - May 16, 2012

Must Reads
CORPORATES
Catalyst, FirstCorp P&A
In an attempt to achieve econo-
mies of scale, the $2.2 billion
Catalyst Corporate FCU and the
$1.1 billion First Corporate CU
announced on May 9 that the two
have signed a nonbinding letter
of intent to consolidate through a
purchase and assumption transac-
tion later this year.

“Since the early planning stages, Catalyst has promoted the reality that corporates must be able to achieve scale in this new operating environment in order to Y18

Credit Unions Tutor Students In the Fourth 'R'–Repayment LENDING

NATASHA CHILINGERIAN

nchilingerian@cutimes.com

Loan Cap,
TIPS Ripe
For Change
NCUA

GROWTH

Island Branch Blossoms

The 7,600-member, $75 million
Puget Sound Cooperative Credit
Union has continued to benefit
from its decision to open a branch
on a sparsely populated island off
the coast of Washington State.
Vashon Island, home to about
11,000 full-time residents, sits in the
middle of Puget Sound and is con-
nected by ferry service to the Seattle-
Tacoma metropolitan area as well as
communities on other islands.
PSCCU opened a branch on the
island in March 2011 after a Y18
ll student loan borrow-
ers are out to get an
education, but for those
who belong to credit
unions, a different kind of school-
ing might be in store. Some credit
unions say they’re placing an em-
phasis on educating their student
loan recipients about the borrow-
ing process, from application sub-
mission through repayment.
The $1.5 billion, Madison, Wis.-
based University of Wisconsin
Credit Union, for example, just an-
nounced the launch of a free exit
counseling program for students
graduating in May or this summer.
UW CU will host in-person educa-
tional seminars on six University of
Wisconsin campuses.
The credit union’s seminar topics
will include estimated student loan
payments, repayment options, who
to contact with questions, federal fi-
nancial aid, post-college bud- Y21

HEATHER ANDERSON

handerson@cutimes.com

he NCUA’s second lis-
tening session, which
attracted approximately

100 participants to the Westin Hotel in Alexandria, Va., was intended to address exam issues and the regulatory burden. The event did address exams, but questions also revealed two potential regulatory changes.

SERVICES

Unemployment Insurance

For many who have been laid off
from their jobs, unemployment
benefits can keep some sort of in-
come coming in, but it is almost
always not nearly enough.
To help fill in the gap, UNFCU
Financial Advisors has formed
a unique partnership to make it
happen.
Offered by Assura Group of NY
Ltd. and underwritten by the Great
American Insurance Group, Inco-
meAssure replaces 50% of Y18

Morgan Sees No Conflict of Interest

REGULATION

HEATHER ANDERSON
handerson@cutimes.com
labama Credit Union
Administrator Larry
Morgan, who was chair-
man of the board for
the $3.7 billion Corporate America
Credit Union as recently as 2010,
denied accusations that he has a
conflict of interest acting as regula-
tor on issues between the corporate
and the NCUA.
“I don’t think it has,” Morgan
said, when asked how his Corpo-
rate America stint has affected his
position.

APCO and on the
Corporate America
board, APCO was
Corporate America’s
largest depositor.
“Therefore, I had
an interest in Cor-
porate America be-
ing a safe and sound
institution,” Morgan said. “After re-
tiring from APCO and later becom-
ing the Alabama CU administrator,
my focus remained in Corporate
America being a safe and Y20

Morgan
NCUA Chairman Debbie Matz
addresses attendees of NCUA’s second
listening session in Alexandria, Va.

The most exciting news is the scrapping of the proposed 25% participation loan cap, which would limit credit unions to investing 25% of their net worth in one participation loan originator. Chairman Debbie Matz said the NCUA has heard “loud and clear” that credit unions do not want that limit. Y20

Trailblazer 40 Below Despite his CU Warrior persona, Matt Davis is actually a nice guy. “It’s funny, people think I’m always looking for a fight,” said Davis. Y6