TO:Mutual CU*Answers / NMS Clients

October 25, 2011

Page 1

Memo

DATE: October 25, 2011

TO:Mutual CU*Answers / NMS Clients

FROM:Randy Karnes, CEO

SUBJECT:Recommended CU*BASE Security Access for Neighborhood Mortgage Solutions (NMS)

One of the most innovative initiatives here at CU*Answers is our “Starting a Business in the CU*Answers Network”program. It’s intuitive, and on the surface almost everyone gets it: If the participants in the CU*Answers network can leverage the current relationships and technical coordinating resources of the network to create new solutions, revenue sharing, extended capabilities for gain, then we should do so.

But just because it’s intuitive doesn’t mean it’s easy. These businesses have to be documented, and the due diligence has to be consistent with what you would do with any vendor. In some cases, that due diligence can be even more sensitive, because you’re doing business with a peer rather than some impartial third party. Now that isnot intuitive.

When organizations try to innovate, they know they will be scrutinized greatly for going in a new direction and building new solutions. In practice, I often see organizations struggle with peer relationships and how to properly account for them, maintain them, and explain them to third parties. To help with this, CU*Answers is going to start issuing some Best Practice recommendations for security access, technical configurations, and general business practices related to CU*Answers tools.

These recommendations are not an insurance policy for your due diligence; they are simply our opinion on how we would set up security (or how we request that you set up security, in cases where CU*Answers is doing the work). You still need to think it through, make decisions for yourself, and be ready to document those decisions as part of your management of this new vendor relationship.

I encourage you to take advantage of peer-to-peer businesses and innovate your business practices to include your partners in your future. I encourage you to start businesses, and to work with CU*Answers at every opportunity to leverage what you can offer to your peers or even to CU*Answers. And I encourage you to do so with the spirit of keeping costs down, improving efficiencies, and being more effective than ever in meeting your members’ goals. I hope this helps, and I look forward to watching everyone’s businesses grow.

RK:dm

enclosure