NCUA Call Center Launched For Insurance Queries

The National Credit Union Administration today opens a call center and posts an electronic tool kit to help members and credit unions better understand the insurance protection NCUA provides for member accounts. The call center is staffed by insurance experts available to answer questions about share insurance coverage provided by the agency's National Credit Union Share Insurance Fund (NCUSIF), which is backed by the full faith and credit of the U.S. government. "With the well-publicized turmoil in the financial markets, consumers need assurance that the federally insured funds in their credit unions are safe up to the insured limits," said Chairman Michael Fryzel. The agency also posted an electronic tool kit to enhance overall consumer understanding of how credit union deposits are insured. Fryzel urged credit union volunteers and professionals to make sure they are well-versed in the details of the protections offered to credit unions members through the NCUSIF. He encouraged those individuals to use the resources the NCUA is providing through the call center and toolkit.

The Insurance Call Center is available Monday through Friday, from 8:00 a.m. to 6:30 p.m. (EDT). The toll-free number is (800) 755-1030, extension 1.

The electronic tool kit is available on the NCUA Web site and provides information on share insurance coverage, including:

• An “insurance estimator,” which calculates an estimate of share insurance coverage;
• “Your Insured Funds,” a brochure detailing insurance coverage and examples;
• “How Your Accounts Are Federally Insured,” a brochure that provides basic insurance information;
• "Special Bulletin," which explains increased retirement account coverage in addition to basic insurance protection; and
• “Letter to Credit Union 08-CU-18,” Educating Members on Share Insurance Coverage.

The Credit Union National Association (CUNA) and the state leagues are working on behalf of credit unions to reassure their members about the safety of their deposits in the credit unions system and its overall soundness despite recent upheavals. President/CEO Dan Mica posted a video on CUNA’s Web site dispelling misinformation that federally-insured banks are the only safe places for consumer funds right now. He explains that only tells part of the story and emphasizes that almost all credit unions are also federally insured and probably "the safest depository institutions in the country right now."

Several newly designed resources are available from CUNA to help credit unions and their staffs address the public's questions and concerns about the safety of their money in trying economic times. A two-page "Primer on Share Insurance Coverage for Individual Credit Union Members," is available. For compliance staff, there is a two-page piece on operational questions affecting share insurance coverage.

To access the NCUA’s resources, Dan Mica’s video, and CUNA’s resources visit the links below. (Source: CUNA News Now)

http://www.ncua.gov/ShareInsurance/Index.htm
http://www.cuna.org/index.html
http://www.cuna.org/download/newswatch_072808.pdf
http://buy.cuna.org/detail.php?sku=13103
 

Sun Federal Is Financially Strong
A Message From Gary Moritz, President & CEO

As you watch or read the financial news, it would be understandable to question the soundness of all financial institutions. As I have written earlier this year, the financial news from Sun Federal is positive. While some other institutions are being severely tested, we are reporting solid earnings and core financial strength. Our financials reflect this good news.

The Credit Union’s largest holdings, some $216 million of the $322 million in assets, are in loans to members. I’m proud to report that members continue to repay their loans here in spite of the challenging economy. The number of American homes in foreclosure is at the highest level on record and homeowners’ equity is now at a post-World War II low. The quality of a loan portfolio is largely measured by overall delinquency. With only 1.52% of our loans in technical delinquency, 98.5% are current; this is a fraction of the national bank average and also better than most other credit unions. Thanks to our members for honoring their commitments!

Equally important, our investment portfolio is sound. We have no sub-prime securities because our investments are federally backed. If the difficult times have proven anything, it’s that members can count on the trusted integrity and long-term focus that guides Sun Federal’s mission.

The shares in Sun Federal Credit Union are insured by the National Credit Union Share Insurance Fund (NCUSIF), where not one penny of insured savings has ever been lost by a member. The fund is backed by the full faith and credit of the United States Government. Members may read the details in the lobby brochure “Your Insured Funds.” 

Each Sun Federal share account is federally insured to at least $250,000 (as of 10/3/2008) by the NCUSIF and privately insured for an additional $250,000 by Excess Share Insurance (ESI), the largest private deposit insurer. Traditional and Roth IRAs and KEOGH retirement accounts are insured up to $250,000 by the NCUSIF and are also covered for an additional $250,000 by ESI.

This is certainly a challenging time; likely to get even more challenging. The good news is that Sun Federal remains strong and very capable of navigating difficult waters. Remaining faithful to our mission, we have a trusted opportunity and responsibility to make a life-impacting difference for every member. We are honored to serve in this cooperative movement where “People Caring about People” matters more than making a profit. Thank you for being a member!

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