News & Notes

How Are DOY's Dividends Determined?

The DOY Board of Directors meets every month to review the financial status of the credit union.  Income and expenses are carefully studied, and at the end of the quarter, the Board then determines how much of the net income for that quarter will be expensed for dividends and sets the dividend rates accordingly.  Since this is done at the end of each quarter, dividends are declared for the previous months in that quarter.  For example, dividends for the second quarter are determined in late June.  The declared dividend rates will be for the months of April, Mary, and June.  If you are comparing rates with other financial institutions, be sure that comparisons are for the same months.  The Board’s philosophy has always been to apply as much net income as possible back to DOY’s members the form of higher savings rates and lower loan rates.  At the end of the year, if there is sufficient excess income accumulated over the previous three quarters, a bonus is awarded to the savers and posted in the fourth quarter.

Dormant Account? Read This Now!

Ohio Law requires all financial institutions to monitor all dormant accounts. If an account has not had any transactions for five years, then the money must be sent to the State. Posting of dividends or interest is not considered a transaction, nor is a dormant fee considered a transaction. As of February 1, 2014, DOY instituted the following procedure to handle all dormant accounts.

*** After three years of no transactions, DOY will send a notice to the last known address informing the member of the dormant account. The notice will inform the member that their account is dormant and will be charged a dormant fee of three dollars per month. The fee will begin the following month after the notice. If these fees cause the account to drop below ten dollars, then the account will be closed.

*** If there is money in the account after five years of no transactions, the balance in the account will be sent to Ohio Department of Unclaimed Funds.

To avoid any fees or to prevent your money from going to the State, just conduct any transaction before three years of dormancy. Remember after any transaction, the clock will start ticking again for another three years. So, by just making one transaction every three years, your account will not be classified as dormant. Here are a few suggestions of simple transactions you can perform to keep your account active.

• Mail in a small deposit (no cash)
• Make a small withdrawal
• Transfer a small amount from your account to another member's account (e.g., a parent transfers $1.00 to a child's account or vice versa). Then both accounts would be considered active for another three years.
• Call and have a small donation ($1.00 or more) debited from your account to the Jack Thomas Scholarship Fund. This scholarship fund was developed and is sponsored by DOY. If you are uncertain of how long your account has been dormant, call DOY to obtain the date of your last transaction.

New High

DOY has reached a new plateau in its growth. For the first time in DOY's history, the asset size has surpassed $50,000,000. This is a milestone since DOY will be compared with credit unions with asset sizes from $50 million to $100 million. Before reaching this plateau, DOY was at the top of its peer group ($10 million to $50 million). Now, DOY is the baby in the new peer group. Other than some new regulations that will be imposed because of moving into the larger peer group, members will not see any changes. Outlined below are some milestones in DOY's history that you might find interesting:

• DOY 's Charter is approved by NCUA on July 16, 1971.
• DOY's first financial statement shows assets of $8,576.
• Jim Bellavia, after serving as board president, becomes DOY's Treasurer (3/1980).
• St. Elizabeth's decides to let its employees join DOY (2/81).
• DOY's assets reach the $1 million mark in 11/81.
• Local 87 merges with DOY on 9/1/1985.
• United Engineering Credit Union merges with DOY 4/1/90.
• DOY expands its Board to nine members (4/90).
• DOY's assets go over $5 million in 5/90.
• DOY starts its mortgage program (10/90).
• DOY reverts to a seven-person board (10/91).
• DOY expands its charter to include all students and their families who attend diocesan schools (4/96).
• DOY introduces its Tuition Loan Program (5/96).
• John (Jack) Thomas, DOY's founder, passes away (6/13/99).
• DOY's assets go over $10 million (12/99).
• DOY's assets go over $25 million (1/2008).
• DOY builds and moves into its new home on Gypsy Lane (1/09).
• DOY reverts to a five-person board (2/2009).
• DOY expands its charter to include all members of Catholic Churches in the Diocese of Youngstown (5/2010).
• DOY expands its board to seven members (1/2019).
• DOY's assets go over $50 million (2/2019).

Try DOY’s Audio Teller

330-744-3DOY(744-3369)
If you do not know your PIN number, call DOY.

Mortgage

Do It Now Before It's Too Late

Mortgage interest rates are still extremely low.  With the economy heating up, interest rates may start to increase.  Before you purchase, remodel, or refinance your home, call DOY for another option concerning your financing needs.  With DOY's extremely low closing costs and very competitive if not lower interest rates, you might be losing thousands of dollars by not calling DOY and comparing. If nothing else, call DOY and have its printed brochure mailed to you explaining DOY's Mortgage Program or click on the "Mortgage Program"  tab.  Also, read the excellent article below, DOY's Mortgage Loan's Impossible Math. It details how DOY calculates its mortgage interest.  A few minutes of your time might save you thousands of dollars.

DOY Mortgage Loan's Impossible Math

Can you believe that refinancing a mortgage loan at DOY at a higher interest rate could actually save you money?  In some instances that savings could be substantial. Here's why.  DOY calculates your mortgage interest totally different than other financial institutions, including other credit unions. This is the main reason why DOY can NOT sell their mortgages on the secondary market.  If you are the type of borrower that applies extra to your principal so you can pay off your loan early, then you can save money by refinancing with DOY even at a higher interest rate.  When you apply extra towards your principal at other financial institutions, it is applied at the end of the loan. Let's say you pay your loan off five years early.  The only interest you save is the last five years of payments. Guess what?  If you check your amortization schedule, the interest you save during the last five years is not very much.  Whereas at DOY, any extra you apply toward principal causes an up-front savings on the amount of interest due. That's because DOY only charges interest on your unpaid balance for the exact number of days you carry that balance.  For example, let's say you get the loan today for $100,000, and tomorrow you apply $10,000 toward your loan.  At DOY, you would only be charged one day's interest on the unpaid balance ($100,000) and all the rest of the payment would be applied to principal.  When you make your next payment, the interest will be calculated on an unpaid balance that is nearly $10,000 less. Elsewhere, in the same example, you would be charged a full month's interest as shown for payment ONE of your payment schedule, and the extra amount of paid principal would be applied at the end of the loan. When you make your next payment, there is not any interest savings since the interest amount is predetermined according to your amortization schedule given to you when you first signed for the loan.  At DOY we cannot give you an amortization schedule since the moment you make an extra principal payment or make an early payment, the schedule changes.  It's the best type of mortgage loan if you plan to pay off your loan early. Still confused, call DOY and talk to our mortgage department for more details.

DOY’s Second Mortgage Program

DOY does not have home equity loans.  Instead, we have fixed-rate second mortgage loans.  The home equity loan is a very deceptive loan if you do not understand how the loan is structured.  Most home equity loans have variable interest rates and are amortized over ten years.  Every time you advance yourself more money, the loan restructures for another ten-year term.  This means you will pay double interest on a portion of the principal since most equity loans are front loaded (most of interest is paid at the beginning of the loan term).  If then at some future time you advance yourself money again, you would pay triple on part of the original principal.  This is why these types of loans have such low teaser rates.  The only way to beat the home equity loan is to borrow a fixed amount of money, never advance yourself any additional money, and pay off the loan as quickly as possible.  This is why DOY only has fixed interest second mortgage loans, for a fixed amount of money, for a fixed amount of time.  As with all of DOY loans, your interest for each payment is always calculated on your current unpaid balance.  This means the more you apply towards the principal of the loan, the less interest you will pay.  This is a great loan for home improvements or for any major purchase.  Fees are low and the application is simple.   For more information on DOY's Second Mortgage Program, just give us a call.

Don’t Just Compare Mortgage Rates

Most financial planners will tell you it is not worthwhile to refinance a mortgage unless you can drop your interest rate at least by a full 1.00%. This is because many financial institutions charge huge fees and points added to your loan. Refinance costs could cost you as much as $3,000-$4,000. This is money just thrown away and reduces the equity you have in your home. These costs are usually added to your loan principal which means you are not only paying thousands of dollars but also 15-20 years of interest on those costs. In general for every $1,000 in costs, you can add approximately 0.15% to the interest rate you are quoted. For example, an interest rate of 3.90% rate with $3,000 in costs, would be comparable to the 4.35% with no costs. With the DOY's refinancing program, the costs are extremely low and there are NO points or broker fees. In most instances the total cost (this is everything) is $450. When refinancing your bank loan with DOY, not one penny of costs is added to your payoff balance. Call DOY for rates and details.

High Equity – Short Term Mortgage

DOY has a great short-term mortgage loan (seven years or less) at a very low rate. This is for members that have at least 40% equity in their homes. Members who have small mortgage loan balances or have their homes paid off can transfer their loan to DOY and borrow the additional money needed for major purchases. This loan would be great for doing major home fix-ups, landscaping, purchase new cars, college tuition, etc. Not only do you get cheap money with a low interest loan, but the interest may be  tax deductible. Here are the requirements to apply:

1. loan duration cannot be more than seven years;
2. equity in the property must be at least 40% after receiving the loan;
3. DOY must be in the first mortgage position;
4. total cost to process the loan is $450;
5. no points or any other fees except as noted in #4;
6. new mortgages only, existing DOY mortgages do not qualify for this promotional loan;
7. the new loan must have a balance of $15,000 or more.

For more information call DOY and be sure you specify your interest in the High Equity-Short Term Mortgage Loan. Please have your account number available when you call.

Why Obtain a DOY First Mortgage?

Simple – Honest – No Surprises – No Prepayment Penalties – No Application Fee – No Points – No Hidden Costs – Always Talk to Real People – Loans Stay at DOY (loans not sold to other lenders) – Low Fixed Interest Rates – Very Low Refinance Fees ($450) – Very Low Closing Costs For New Home Purchase ($700 - $1,400)

Need we say more?

We do business in Accordance with the Federal Fair Housing Law

Simple Calculation Saves Thousands

DOY's mortgage refinance program is so simple and honest that you can figure out the exact savings when switching your loan to DOY.  All you need to know is your exact payoff amount of your existing loan and the exact number of payments you have left. Then call DOY with those two figures along with your current payment (principal & interest only).  DOY will determine the DOY payment from this information and then compare it to see if there is a worthwhile savings.  Since DOY only charges a flat $450 fee, the comparison to calculate your savings is easy.

For example a member calls and indicates his payoff balance is $103,200, and has 230 payments remaining on their loan with a principal and interest payment of $726.  DOY then calculates the payment for the same exact amount using the same number of remaining payments and tells you the DOY payment would be $659.00. Now the math is elementary as illustrated below.

Total payback for existing loan = $726 X 230
= $166,980

Total payback for DOY Loan = $659 X 230
= $151,570

Savings = $166,980 - $151,570
= $15,410

Total Savings = $15,410 - $450 fee
= $14,960

DOY's loan rates are fixed, there are no prepayment penalties, no closing costs, no points, no PMI insurance or any other hidden costs.  Just an honest program that keeps all its loans in Youngstown.  Ever since DOY started its mortgage program in 1991, it has never sold a loan in the secondary market. Shouldn’t you call today? What do you have to lose, except thousands of $.

Note: This comparison only applies to loans transferring from other financial institutions.

Need to Know

Spread the Word

As you know, DOY does not advertise due to the unique nature of our field of membership.  Since our membership is not open to the public, the best way to promote DOY is by personal contact.  So that you can be aware of who can join DOY, we have listed below all the groups that are eligible for DOY membership.

1. All employees and retirees (including family members living in the same household) who work for any agency listed in the Diocese of Youngstown Directory.  This would include all the parochial schools, parishes, hospitals, nursing homes, hospices, charity agencies, cemeteries, ministries, etc.
2. All parishioners (including family members living in the same household) who belong or who were baptized in any Catholic church listed in the Diocese of Youngstown Directory.
3. Any student (including family members living in the same household) who attend any private Catholic or Christian school in the Diocese of Youngstown.
4. Employees of any Mercy Health facility.
5. Physicians, staff, or technicians who have privileges in Mercy Health hospitals and the employees of such physicians.
6. Members and retirees of Local 87 United Association of Journeyman and Apprentices of the Plumbing and Pipe Fitting Industry of the U.S. and Canada. Note: In 1985, DOY assumed the membership of Local 87 Credit Union due to merger.
7. Employees and retirees of the former Cold Metal Products Company of Youngstown and Wean United (Youngstown and Canton). Note: In 1990, DOY through merger assumed the membership of this credit union that represented the employees of these companies.

So, if you know of someone who is looking to buy or refinance a house, or purchase a new car, suggest DOY as an option.  And nobody does it better than DOY when it comes to paying interest on regular savings accounts.  By promoting DOY, our credit union can continue to grow.

Sound Conservative Approach

With all the news in the media concerning the financial markets, it is great to know that DOY's policies and management has never put members' money at risk.  All of our members' money is invested in either sound member loans or in short-term (one year or less) federally insured investments. DOY has NEVER invested in any funds with Fannie Mae or Freddie Mac.  DOY has NEVER sold any of its loans on the secondary market nor have we bought or borrowed from any mortgage stock funds or derivatives.  DOY has NEVER issued or bought any subprime mortgage loans.  DOY has NEVER processed any commercial loans.  This means DOY is very well insulated from any potential crisis that might occur in the financial markets. Because DOY's loan under- writing policies are very conservative and loans are only given to worthy members, DOY has very few loan delinquencies or charge offs.  In particular, DOY's Mortgage Loan Portfolio is extremely strong.  Our mortgage loans make up the vast majority of our loan portfolio and have a loan total of over $19 million.  Since 1991, when DOY started its mortgage program, the total loss from this portion of the loan portfolio was not even a half of a percentage point.  In fact the exact figure is 0.138%!  Even in a possible economic downturn, DOY's mortgage portfolio is strong enough to weather a crisis.  And DOY maintains a well-capitalized fund in case there are any major loan losses.  What does all of this mean?  Simply, your savings are totally safe and are federally insured up to $250,000.

IRS Phone Scams

The IRS is currently warning consumers about a scam that has hit taxpayers, including recent immigrants, in nearly every state in the country.  Victims are told they owe money to the IRS and it must be paid promptly though a pre-loaded debit card, credit card, or direct debit out of your savings or checking accounts.  If the victim refuses to cooperate, they are then threatened with arrest, deportation, or suspension of a business or driver's license.  Typically, the caller becomes hostile and insulting.

The IRS DOES NOT and WILL NOT ask for credit card numbers, account numbers, or for prepaid debits cards or wire transfers over the phone.  If the IRS wants to contact you about a tax issue, you will probably receive your first notice through the mail.

You should also know that scammers use fake names and generally use common names and surnames to identify themselves.  Scammers could possibly recite the last four digits of your SSN and may spoof the IRS toll-free number on your caller ID to make it appear that it’s really the IRS calling.  You may even hear background noise to mimic a call center.  After threatening you with jail time or driver's license revocation, scammers may hang up, but then other scammers may soon call back pretending to be from the local police or DMV and your caller ID may support this claim.

Scammers sometimes send bogus IRS emails to support their bogus calls.  The IRS encourages you to be vigilant against phone and email scams.  The IRS doses not initiate contact with taxpayers by email to request personal or financial information.  This includes any type of electronic communication, such as text messages and social media channels. If you receive an email, you should not open any attachments or click on any links contained in the message. Instead, forward the email to phishing@jrs.gov.  For more information on how to report phishing scams involving the IRS, go to the genuine IRS website, IRS.gov.

Watch Out for Skimming

Credit and debit card skimming is when potential thieves steal or "skim" you card information.  They use it to create an illegal copy of your card (called "cloning") or to charge items to your card over the phone or internet.  It can also be done to sell your information to others.  Thieves use skimming devices that are small, easily portable, and hard to detect.  Certain types are illegally installed on ATM machines and sales terminals such as those on gas pumps.

Card Skimmers: These devices fit over original card readers.  As you insert your card, the account information stored on the card is "skimmed" by the device.  If you suspect a card reader is fitted with a skimmer, jiggle it. If it moves or seems loose, don't insert your card.

Keypad Overlays: These overlays are placed directly on top of factory-installed keypads.  The circuitry inside the overlay stores your keystrokes, such as those you make when you enter your PIN.  If a keypad looks thick, seems raised, or is loose when wiggled, it could be a keypad overlay. Don't use it!

Hidden Cameras: With cameras being so small and record from many different angles, thieves may install hidden cameras to record you entering your PIN.  Always cover the hand entering your PIN.

Remember: If anything looks suspicious, don't use the machine.  It's better to be safe than sorry.

For Our New Members – What’s A DOY?

DOY is the acronym for Diocese Of Youngstown; however, we are not affiliated with the Diocese in any manner except to define our closed field of membership.  DOY is a Federal Credit Union dictated by the rules and regulations of the National Credit Union Association (NCUA), an agency of the Federal Government.  All of DOY's savings accounts are Federally insured up to $250,000.  The Diocese of Youngstown does not have any input or control concerning the policies or operations of DOY.  However, many agencies in the Diocese provide payroll deduction and/or direct deposit as a convenient way for our members to deposit money and/or make loan payments.  In case you want to know the correct pronunciation of our name, just remember DOY rhymes with BOY.

Tips if You Become a Victim

If you become a victim of identity theft, do the following:

• File a police report.  You should not only file a report, but also get a copy of the report in case you need proof of the crime later for credit card companies.
• Contact the fraud departments of each of the three major credit bureaus to report the identity theft and request that the bureaus place a fraud alert status in your file.
  • Fraud Department Phone Numbers
    • Equifax 888-766-0008
    • Experian 888-397-3742
    • TransUnion 800-680-7289
• Visit the Federal Trade Commission’s website to report and recover from your identity theft at IdentityTheft.gov.  This is an excellent site that will help you devise a recovery plan and to put your plan into action.
• Contact all your creditors and inform them of your identity theft.  Close all your accounts, change all account passwords, and obtain new credit, debit and ATM cards.

Graduates – Don’t Be Stupid!

Did you know that the Deferred Federal Student Loan Program converts your deferred interest charges to principal when the payments begin?  That’s right, you pay double interest when this occurs.  In other words, you pay interest on top of the interest you were charged while the student is in school.  This could add up to a very large amount by the time the student graduates.  Anyone who takes out one of these loans should make monthly interest payments throughout the life of the loan. This will insure that you will only be charged interest on the original principal amount borrowed when it is time to repay the loan.

True or False?

If you have no cash on hand and need to make a $1.50 purchase with your credit (or debit) card, it is perfectly acceptable.

TRUE. If you see one of those cash register signs that says "$5 or more for credit card charges,” that merchant is out of line.  Both MasterCard and Visa have rules that require the merchants that accept their cards to process purchases in any amount, even tiny amounts.  Wayward store owners can incur fines or possibly lose the right to process MasterCard or Visa purchases if the policy isn't changed.

Don’t be Fooled

There are many commercials claiming to monitor your credit bureau reports free of charge, but then you find out there is an annual fee or another gimmick.  According to the law, you can get a free copy of your credit report every year from each of the three national credit reporting agencies; however, there is only one on-line source authorized to give you your report free: www.annualcreditreport.com.

Note: you may be offered additional products or services while on the authorized website, but you are not required to make any purchases.  You can also call toll free at 877-322-8228.

Since there are three reporting services and each must give you a free report once a year, that means you can monitor your credit year-round ordering a report from one of the three bureaus every four months.