The Boardcast

UFirst Annual Meeting 9-20-2009

The UFirst FCU Annual Meeting was held at the Burgundy Room in Plattsburgh on Sunday, September 20, 2009. The significance of the gathering was not lost on the members who were present. We celebrated the past year at UFirst as well as anticipating the merger that will take place on October 1, 2009 when Northern Corridor Community Credit Union joins the UFirst family. The slide show included below gives just a glimpse of the wonderful time we had at this year's annual meeting.

Deborah Matz Update

The National Credit Union Association made the following announcement today:

"August 6, 2009, Alexandria, Va. -- NCUA Board nominee Deborah Matz was confirmed today by the U.S. Senate to a seat on the NCUA three-member Board. As the NCUA chairman designee, Debbie Matz she will be replacing Republican Michael E. Fryzel as chairman. His NCUA Board term expires August 2, 2013.
“I congratulate incoming Chairman Debbie Matz on her confirmation by the U.S. Senate and extend to her my support and best wishes during her NCUA tenure,” Chairman Michael E. Fryzel said. “Current economic turmoil and challenges demand strong, practical, progressive leadership. I am certain Debbie Matz will meet the challenges with confidence, and stand ready to assist her in the transition.”
Deborah Matz’s experience spans many years in the public and private sector. After concluding a three-year stint on the NCUA Board in October 2005, she was executive vice president and CEO of a Maryland credit union. Her 26-year government career includes 10 years on Capitol Hill as an economist with the Joint Economic Committee and 8 years as a senior executive at the Department of Agriculture, including 3 years s as Deputy Assistant Secretary."

Who is Deborah Matz?

Financial regulators have gained particular prominence during our current economic crisis. Recently, the Obama administration and Congress have examined the possibility of creating a “super” regulator who would oversee all financial institutions. It does not appear that Congress will create this type of central regulator. The National Credit Union Administration (NCUA) will continue to hold the position as the regulatory body for federal credit unions throughout the United States. I’m certain that the name Deborah Matz is not familiar to most credit union members. She is notable for being President Barack Obama’s nominee as Chair of the National Credit Union Administration. The Senate Banking, Housing and Urban Affairs Committee expressed their support for the nomination of Ms Matz by unanimous consent on Thursday, July 30. Confirmation by the US Senate is expected before the August recess. As the Deputy Assistant Secretary for Administration at the Department of Agriculture under President Clinton she chaired the Loan Resolution Task Force. Ms Matz who has an MA from Washington University is not new to the NCUA Board. She served as a board member from March 2003 to September 2005. Ms Matz also held the position of Executive Vice-President and Chief Operating Officer at Andrews FCU in Suitland Md from 2005 to 2008. Her service as a member of the management team of this $800M cooperative gave her an insider’s view of the challenges faced by credit unions.

Ms Matz comments at her July 22nd confirmation hearing give a window into her priorities if she is confirmed as the Chair of NCUA. Ms Matz reviewed the major financial challenges facing credit unions as a result of the damage the corporate credit union system has sustained. She reminded Congressional Representatives that, 

“While the severe economic downturn which propelled the corporate credit union crisis was not predictable, there are steps that could have been taken which might have mitigated or prevented its effect on these institutions. In 2002, the last time NCUA wrote a corporate regulation, I cast the lone vote against it. I did not believe the crucial issue of risk concentration was adequately addressed. Additionally, I believed that the investment authority being granted was overly broad and permissive, particularly in light of the complexity of the financial instruments that were available to the corporates.”

One of the first tasks that Ms Matz faces if she is confirmed by the Senate will be to guide the corporate credit union restructuring initiative which NCUA began in early 2009. If she is confirmed, our members will be hearing more from Ms Matz and NCUA as they attempt to steer credit unions through these difficult economic times.

Debt In Focus

UFirst FCU has launched a new service on our website. UFirst Debt In Focus provides members with an opportunity to

• Review and analyze their debt
• Obtain their yearly credit report from a legitimate site
• Get debt control and budgeting advice
  
• Develop a personal budget
  

I used this valuable tool for the first time this weekend. It was easy to follow and provided me with excellent information on my debt to income ratio. My Mac computer allowed me to "print to pdf" a copy of the report. I noticed the information I provided to develop the report is saved. I can revisit my information quite easily by entering the ID number that I was assigned when my report was completed. I also received a reminder and a link to a legitimate site where I could get my yearly credit report.

The colorful report provided by UFirst Debt In Focus includes a pie chart suggesting percentages for spending as they relate to my income for budgeting purposes. This same information has been transferred to a pdf form provided which allows me to develop a realistic budget for my personal use.

UFirst Debt In Focus is a valuable addition to our website. Thanks to our management team Linda Bourgeois, Shari Seney and Jody Carpenter for finding and introducing this wonderful tool.

Credit Card Differences

Consumer debt and its stranglehold on individuals has been in the news often during 2008/2009. Last month President Obama signed the Credit Card Accountability, Responsibility and Disclosure Act (CARD) of 2009. The focus of this bill provides an insight into the ways in which financial institutions have been profiting from the widespread circulation and use of credit cards. CARD bans unfair and hidden rate increases. In particular, it restricts rate increases which are retroactive due to late payments. Credit card companies can still make introductory offers which entice consumers with low temporary rates that sky rocket but the lower rates must remain in effect for at least six months. The central focus of this legislation is clear and understandable disclosure that explains terms, interest rates and fees.

UFirst FCU has a 3 pronged approach to our products and service including our credit card: Savings, Financial Literacy and Sensible Credit. Providing members with a reasonable source of credit to achieve their financial goals has always been part of the credit union promise. The recent CARD legislation is designed to return to a source of consumer credit that our credit union has always provided. Our low inrerest rate of 9.9% has never changed. Unlike many credit cards this rate has remained the same since our credit card product was introduced. UFirst is committed to offering products and services that are designed to improve rather than weaken the financial position of our members.