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MemberNews
May 2012
FHA Loan Refinance Opportunity
There will be a refinancing opportunity in June 2012 for
people with FHA loans who are current in their payments
in the previous 12 months. The FHA will be rolling out
a new streamline refinance loan that they say will save
millions of FHA borrowers an average of $3,000 per year.
Your loan must have been endorsed before 5/31/09.
There are a couple of things about this loan that make
it great for the consumer. For example, the fee savings:
Right now if a borrower were to purchase or refinance
their home using an FHA loan they would be paying a
1.75% upfront funding fee and 1.25% annual premium,
but with the streamline refinance, the upfront fee will
only be .01% (not a typo), and .55% for the annual
premium. Additional cost savings will be realized
because no appraisal is required which helps if your home
has lost value. Your home must have been purchased or
refinanced before 5/31/09. Borrowers will still be able
to get the same low market interest rate as any other FHA
borrower, and your income level is not a requirement as
long as you are currently employed.
Call Jennifer or Rhonda of Arbor Mortgage today
to find out more (541) 323-0422.
Positive
Reflections
As of March 31, 2012
Assets
$159,758,325
Loans
$102,981,754
Shares
$144,826,720
Members
21,295
PO Box 6749 | Bend OR 97708-6749
(541) 382-1795 | (800) 452-3313
w w w. m i doregon.com
Get where you want to be!
Get that car, boat or RV you’ve been wanting, or
refinance your higher rate loan and have the extra
bucks for ... the things you really enjoy!
Mid Oregon has saved members money by offering
better rates, extending the term, or lowering the
payments. Go ahead, give us a call at (541) 3821795 and start saving today.
Access Mid Oregon Auto & RV Financing
Right at the Dealership!
Mid Oregon’s affordable auto and RV loans are available at the dealership any day including
weekends, evenings, and holidays. Visit a participating dealership listed below, select the
new or used vehicle you want, and get your loan approved in minutes. Just let them know you
are a Mid Oregon Credit Union member!
AAA Oregon Auto Source in Bend
Approved Auto (A division of Subaru of Bend)
Chevrolet/Cadillac/Honda of Bend
Carrera Motors in Bend
Central Oregon Motors in Redmond
Gary Gruner Chevy/Pontiac/Buick in Madras
Hertz in Bend
Pro Caliber Motor Sports in Bend
Jim Smolich in Bend
Jim Smolich in Redmond
Bend: 202 NE Olney (Corner of 2nd & Olney)
East Bend: 1386 NE Cushing Drive (South of Neff, off 27th)
Prineville: 305 NE Hickey Farms Road (In front of Bi-Mart)
Redmond: 2625 SW 17th Place (Next to Bi-Mart)
Madras: 395 SE Fifth Street (At Fifth and “F” Streets)
Just Used Cars in Bend
Miller Ford/Nissan in Madras
Murray & Holt Motors in Bend
Robberson Ford (Pre-owned) in Bend
Robberson Ford in Prineville
Subaru of Bend
Team Kia of Bend
All Seasons RV & Marine in Bend
Big Country RV in Bend
Federally insured by NCUA
Your savings federally insured to at least $250,000
and backed by the full faith and credit of the United States Government
NCUA
National Credit Union Administration, a U.S. Government Agency
President’s
Message
I wanted to share a letter that was personally
delivered to Congressman Walden on our recent trip to
Washington D.C.
Dear Congressman Walden:
I am asking for your support of H.R. 1418 to help small
business owners and our economy throughout Oregon’s
2nd Congressional District through legislation to expand
the ability of credit unions to lend to small business. Over
the last several months, we have discussed this issue
in depth with many community leaders and members of
the credit union. The conversations were quite engaging
and informative. In the simplest form, this is an economic
development issue and we can be a viable and sustainable
solution for small business lending now and in the future.
Currently our business lending portfolio is near the cap of
approximately $18M, we have helped small businesses with
almost $16.8M in lending. We have more demand than our
remaining capacity. The increase would free up an additional
$21M in lending availability for Mid Oregon Credit Union,
and we are sure that you understand what kind of impact
that would make on our local economy in Central Oregon.
In the state of Oregon, the conservative estimate is that
$254M would be available from credit unions, potentially
creating over 2700 jobs.
1. Expanded business lending does not change the credit
union mission.
The credit union mission is to serve the credit needs of their
members, including those of modest means. Credit unions
have been making business loans since their inception in
the early 1900s. The arbitrary 12.25% cap came about in
1998 as a result of the CU Membership Act.
2. Business lending does not relate to tax status.
The tax exemption is a result of the structure as a notfor-profit, democratically controlled cooperative. The tax
exemption has nothing to do with the breadth of credit
union products and service offerings.
3. Raising the cap would not raise safety and soundness
concerns.
This is not the case. The legislation explicitly states that
only well-capitalized credit unions would be eligible to do
expanded business lending. Also, credit union member
business loan net charge-off rates have been significantly
lower than bank rates year-in and year-out for over a decade.
4. Credit unions need this legislation in order to continue
to lend.
Rhonda Nelson Joins Mid Oregon’s
Arbor Mortgage Team
In line with their mission
to provide a positive,
professional and personal
loan experience for every
client, Arbor Mortgage Group
Rhonda Nelson MLO-217807
is pleased to have Rhonda
Arbor Mortgage Group
A Division of Pinnacle
Nelson join them as a Senior
Capital Mortgage Corp. NMLS-81395
Mortgage Advisor. Rhonda will
head up Arbor Mortgage Group’s residential lending
services at the Redmond, Prineville and Madras Mid
Oregon Credit Union branches.
Rhonda comes to Arbor with 15 years as a trusted
Mortgage Advisor. As with all Arbor employees, Rhonda
shares in a passion for the mortgage business
and all its opportunities to find the right solutions
for her clients. Give her a call at (541) 323-0422.
president’s message continued
Since the beginning of the recession, total bank business
loan portfolios have declined by almost 14%, but credit
union business loan portfolios have grown at a rate of over
40%. As credit unions engaged in member business lending
approach their cap, they will need to pull back from lending.
5. Small businesses need access to additional sources of
credit.
More than 25 Congressional hearings have been held in
the last 3 years to discuss small business owners and their
access to capital. Access to capital still remains a primary
concern for small business owners.
6. Expanding the ability for credit unions to do additional
business lending will not hurt banks.
The bank lobby grossly misrepresents the impact of raising
the credit union business lending cap on their own lending
volumes. Independent research indicates that additional
credit union business lending would not crowd out bank
business lending. Only after several years would this cap
result in a in a loan market increase of 5% to 10%, leaving
90% of the small business loan market to banks.
Mid Oregon and other credit unions are going to be
providing updates to our memberships on the status of
credit union legislation on the state and national level. I
would like to be able to put an article in our newsletter to
over 21,000 members in Central Oregon announcing your
support of small business and credit unions. If there is
more information or data I can provide, please let me know.
Thank you for your service.
Sincerely,
Bill Anderson
MaximizeYour Money
workshops to help you make the most of your financial resources
FREE Financial Workshops are held at the East Bend Branch, 1386 NE Cushing Drive, unless noted otherwise.
Call 541- 382-1795 to reserve your seat. Refreshments will be served.
FREE WORKS H O P
How to Start a Business
Tuesday, May 22 - 6 p.m.
Presented by:
Central Oregon
Community College
Small Business
Development Center
Learn the steps that will help you on
your way to success including: rules
and regulations, a business checklist,
creating a business plan, funding, and
cash flow.
››
Are you ready to be in business?
››
What are your options for funding
your business?
››
How much money do you need to
get started?
››
What are the legalities involved?
F R E E WO R K S H O P i n
MADRAS
F R E E WO R KSHOP
Build a Strong Credit History
Organize Your Financial
Records
Tuesday, May 29 - 6 p.m.
Thursday, May 24 - 6 p.m.
Presenter:
Riki Strong, Mid
Oregon HR/Training
Coordinator
At this workshop you will learn the
benefits of getting organized, why
some record keeping systems fail,
how to develop an efficient bill pay
system, what records to keep and
for how long, how to take a home
inventory, what to have handy
in case of a natural disaster, and
where to go for help.
FREE WORKSH O P
Senior Financial Scams
F R E E WO R K S H O P
Tuesday, June 19 - 6 p.m.
Thursday, June 21 - 6 p.m.
Presenter:
Steve Esselstyn,
Community Liaison
Bend Police Dept.
As the net worth of seniors increases,
so does the likelihood they’ll be
targeted by con artists trying to strip
them of their life savings.
Senior scams are on the rise, but with
proper prevention and education we
can reverse that trend.
ABC’s of Internet Security
Presenter:
Ray Spreier, CIO
Mid Oregon Credit
Union
Incidents of identity theft,
compromised systems, and data
theft seem to dominate the news
these days. Minimize the chance
of an Internet mishap and learn
how you can be on guard online
to help protect your information,
your computer, even yourself.
Presenter:
Bob Mullins, CMMV | Improving Lives
Through Financial Education
Money Management International
The difference between getting
a loan with a low interest rate vs.
getting a loan with a high interest
rate could mean thousands of extra
dollars in interest payments over the
life of the loan. Topics include:
››
The importance of building good
credit
››
The significance of your credit
report and credit score
››
How to establish credit, and
more!
Welcome
John Gould
Mid Oregon welcomes
John to the East Bend
branch as Cascade
Insurance Center’s
account executive.
John P. Gould
541-382-7772
As a Bend native, John brings with
him over 20 years of insurance
experience here in Central Oregon.
He is active in the community, enjoys
running, hiking and exploring the
beautiful Central Oregon outdoors.
If you have any insurance questions
or you want a free insurance quote,
don’t hesitate to give him a call or
just stop by to say “hello”.
Enjoy extra cash this summer and
support children and families!
Qualified members may choose to skip
their loan payments for May, June, or
July by paying a small fee of $25 per
loan skipped. Plus, a portion of the fee
supports children and families through
the St. Charles Foundation.
Some restrictions apply, so please
contact us for complete details.
Your loan(s) must be in good standing
and not under a modification agreement.
You must have made at least six (6)
consecutive payments. Interest will
continue to accrue on all skipped
payments which may extend the term
of your loan. Skip-a-Payment does not
include real estate secured loans.
Go to midoregon.com for a Summer Skip
form, visit us at any branch location, or
call 541-382-1795.
Holiday Closings:
May 28 - Memorial Day
July 4 - Independence Day
The CD Quandary
JC Hallman
(541) 322-5745
Today’s yields can’t beat inflation.
Presented by JC Hallman
CD investors are effectively losing money. According to Market Rates Insight, a
research firm tracking bank rates, annualized inflation has surpassed long-term
certificate of deposit rates since February. In April, 12-month inflation hit 3.16% while
the highest-yielding 5-year callable CD on the market offered a 2.4% interest rate. May’s Consumer
Price Index put annualized inflation at 3.6%; as of mid-June, the highest-yielding nationally available
5-year CD was at 3.05% APY.
1,2,3
Still, the Federal Reserve found that almost $9 trillion of4 American wealth was held in CDs, bank
accounts and various FDIC-insured products as of April.
It’s a case of déjà vu. This is the second time in recent history that CD investors have been punished
for assuming so little risk. During the period from January-July 2008, the negative yield on 5-year
CDs was 1.8% according to MRI.
5
They might come out ahead … should inflation diminish. As Bankrate.com senior financial analyst
Greg McBride reminded Bloomberg, “Investing in a CD isn’t compensating you for last year’s
inflation; it’s compensating you for next year’s inflation, which is unknown.” Will inflation ease in the
long term? Many analysts aren’t betting on it.
The appeal of CDs remains strong. After all, not many investments are federally insured. MRI vicepresident Dan Geller said it best to Bloomberg: “Right now, people are more concerned about the
return of their deposits rather than a return on their deposits.”
With 63% of Americans still believing the nation is in a recession (according to a recent Rasmussen
Reports poll), there is still plenty of skittishness about equity investment. Even with the Fed’s
bond-buying campaign sending yields on short-term Treasuries and CDs toward all-time lows, some
investors really aren’t hungry for risk.
5
Are CDs still worth it? There is no pat answer. Your own answer will depend on your preferred
investment style, your risk tolerance and your financial objectives. Many people choose to park some
of their invested assets in CDs and other savings instruments as part of a diversification approach.
The inflation-adjusted return is dismal at the moment, but knowing that your principal is safe
certainly has its appeal.
Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member
FINRA/SIPC , a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free 800-369-2862. Nondeposit
investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by
the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to
members. This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their
affiliates. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. The publisher
is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of
a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of
avoiding any Federal tax penalty. Citations:
1 - bloomberg.com/news/2011-05-23/savers-lose-as-long-term-cd-yields-fall-below-inflation.html [5/23/11]
2 - bls.gov/news.release/cpi.nr0.htm [6/15/11]
3 - depositaccounts.com/blog/2011/06/highest-5year-cd-rate-in-the-nation-at-fort-knox-federal-credit-union.html [6/17/11]
4 - articles.philly.com/2011-06-13/news/29653033_1_inflation-rate-mutual-funds-stock-market/2 [6/13/11]
5 - online.wsj.com/article/BT-CO-20110523-712255.html [5/23/11]
6 - montoyaregistry.com/Financial-Market.aspx?financial-market=roth-ira-rules-and-regulations&category=1 [6/19/11 06242011-WR-302]
PO Box 6749
Bend, Oregon 97708-6749
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ummer
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