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Washington, D.C. (OCTOBER, 2007) —The nearly 5,000 members of the Independent Community Bankers of America (ICBA) help millions of Americans in communities throughout the country to become and stay homeowners each year through the personal attention that only a local community bank can offer.
“Talking first to a community banker is a great idea,” said James P. Ghiglieri, Jr. ICBA chairman and president of Alpha Community Bank, Toluca, Ill. “Community bankers want to establish long-term relationships with their customers and take the extra steps necessary to give potential homebuyers the service and attention they need. We are not only interested in helping a homebuyer purchase a home, but in helping them find a mortgage they can live with so they stay in the home as long as they want to.”
In addition to working with a community banker, ICBA offers the following suggestions:
- Know your budget: how much you spend on rent, utilities, entertainment, clothing, food and transportation.
- Organize paperwork: pay stubs, W-2 forms, tax returns, and bank and investment statements.
- Check your credit report and bring it to your community banker. Credit reporting agencies must give you one free report annually.
- Work with your community banker to find out how much you can borrow and which mortgage is right for you.
- Get pre-approved. It helps you shop for a home that fits your budget and shows sellers you are a serious buyer who can close on a home quickly.
- Learn as much as you can about the home buying process. Your community banker can help explain it to you. Look for classes on home buying and home maintenance. There are free online educational tools at www.hud.gov, www.federalreserve.gov/consumers.htm.
- If you are a first time homebuyer, ask if there are special first time homebuyer loan programs available, or grant programs to assist with down payment and closing costs.
- Consumers have a wide variety of mortgages to choose from. Ask your loan officer to carefully explain payment options, rate adjustments and other loan features so that you aren’t surprised by payment increases down the road. Don’t be taken in by promises of low payments and 100 percent financing.
- Always ask for a written good faith estimate to compare the real costs of your mortgage. It will tell you what your interest rate, monthly payment and closing costs will be.
- Visit homes to learn what you are getting for your money and what fits your budget.
About ICBA
The Independent Community Bankers of America, the nation’s voice for community banks, represents the largest constituency of community banks of all sizes and charter types in the nation, and is dedicated exclusively to representing the interests of the community banking industry.
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 The use of ATMs continues to grow at record rates. It's estimated that there are more than 1.5 million machines installed worldwide and new ATMs installed every five minutes.
With millions of successful ATM transactions carried out daily and the ATM being used safely for more than three decades, it should be noted they are susceptible targets of fraud. And, being a part of the electronic world means that the thief doesn't have to be nearby or even in the same country.
In fact, financial security leader Diebold reported in a recent white paper that last year Russian police arrested a group of criminals accused of stealing at least $500,000 from U.S. bank accounts in a cross border ATM scam and those defrauded had never been to Russia. The gang had obtained stolen account information and Personal Identification Numbers (PINs) from organized crime groups in the United States, Canada and France.
It is important to note that most of what is commonly called "ATM Fraud" is actually Debit Card Fraud having much more to do with the compromise of PINs and fraudulent Debit Card use that with the integrity of ATM hardware. (The Global ATM Security Alliance reports that just .0016 percent of all ATM transactions are affected by crime or fraud, worldwide.)
Armed with a card holder's PIN---often obtained through casual observation---a thief can use data from a magnetic stripe to reproduce or clone ATM cards using inexpensive, commercially available equipment---and, could easily empty the targeted bank account within a matter of days.
PULSE EFT Association has put together a check list to follow for card security and personal security.
- Treat your card like cash. Keep it in a safe place.
- Keep your personal identification number (PIN) a secret.
- Do not disclose card information over the phone to anyone. No one needs to know your PIN, not even your financial institution.
- Never disclose information about your card in response to an unsolicited e-mail or request.
- Make certain your Internet shopping sites are secure.
- Protect your card's magnetic stripe. Do not expose your card's magnetic stripe to magnetic objects.
- Report a lost or stolen card at once.
- Carefully review your account statements.
- Observe the ATM surroundings before approaching a walk-up ATM. If anyone or anything appears to be suspicious, cancel your transaction and leave the area at once.
- If an ATM is obstructed from view or poorly lit, go to another ATM. It is a good idea to take along a companion when using an ATM, especially at night.
- Minimize time spent at the ATM by having your card out and ready to use. Do not let anyone see how much money you withdrew, and never count your money at the ATM.
- Never allow a stranger to assist you in conducting an ATM transaction, even if you have trouble or if your card is stuck.
- Stand between the ATM and anyone waiting to use the terminal so that others cannot see your PIN number or transaction amount.
- Look for possible fraudulent devices attached to the ATM. If the ATM looks different or appears to have any alterations or attachments to the card slot or PIN pad, do not use it.
- Keep the doors locked, windows up and engine running at all times when waiting in line.
- Leave enough room between cars to allow for a quick exit should it become necessary.
- Before lowering the window to use a drive-up ATM, observe the entire surrounding area. If anyone or anything appears to be suspicious, cancel your transaction and drive away at once.
- Minimize time spent at the ATM by having your card out and ready to use. Once your transaction is complete, take your money, card and receipt and immediately drive away from the terminal.
- If anyone follows you after you have completed your ATM transaction, go immediately to a crowded, well-lit area and call the police.
This information is provided with the understanding that the association is not engaged in rendering specific legal, accounting, or other professional services. If specific expert assistance is required, the services of a competent, professional person should be sought.
Provided as a public service by the members of the Nebraska Independent Community Bankers.
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 The holidays are over and you realize that you over-extended your already shaky finances. You receive either an e-mail, a letter in the mail, hear a radio ad or see a television commercial offering you a loan, regardless of your credit history, to help you consolidate your bills and get out of debt fast. What do you do?
If you are a savvy consumer, you delete the e-mail, throw the letter in the trash, and turn off the radio or television. You may also see these types of loan offers in the classified sections of the newspaper. Be wary of applying for loans where you call an 800, 877 or 866 area code. Be mindful that just because your local television, radio or newspaper airs or publishes these types of ads does not mean that the company placing the ad is legitimate or trustworthy.
If you investigate further, you'll find that the "free" loan includes an upfront fee, sometimes ranging in the hundreds of dollars. These ads will say that the upfront fees are for processing your loan and credit checks. However, after you pay the fee, chances are you'll either receive nothing or a "credit" card that can only be used for a certain company’s products. This scam is called the "advance-fee loan" scam and it is illegal in the United States.
No legitimate lender would require you to pay fees prior to receiving your loan. This is not to say that a legitimate lender would not charge you fees to get a copy of your credit report or for an appraisal, but these fees would be part of the total loan amount that you receive, or are payable at closing.
Another consideration to keep in mind is that a legitimate lender would never promise you a loan without first carefully reviewing your application and checking your credit report.
There is never a quick credit fix. These unscrupulous scam artists prey on the elderly, the unemployed and those in dire financial straits. If you find yourself a victim of this scam, call the Federal Trade Commission at 1-877-FTC-HELP or file a complaint online. Keep in mind that these scam artists are usually working for an unscrupupous company.
Here's a checklist with some suggestions to help you avoid being victimized:
- If you cannot get a loan through your local community bank or other reputable financial institution, ask a friend or family member to co-sign a loan for you.
- Do not respond to an e-mail offering you a "free" loan as it is probably fraudulent.
Do not agree to pay any fees before you receive your loan. Remember, a legitimate lender will not require upfront fees.
- Do not be tricked into believing that your loan will be guaranteed regardless of your credit history.
- Be sure to get in writing exactly what you have been promised.
- Never give out your bank account information, social security information or credit card information unless you are positive that the originator is legitimate. However, understand that federal law requires regulated financial institutions to notify customers in writing that this information is required at the time of the loan application.
- "If it sounds too good to be true, it most likely is!"
This information is provided with the understanding that the association is not engaged in rendering specific legal, accounting, or other professional services. If specific expert assistance is required, the services of a competent, professional person should be sought.
Provided as a public service by the members of the Nebraska Independent Community Bankers.
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