LAS VEGAS, Nov. 3 NV-ACUMA-services
"Almost Everyone on Main Street can benefit from Credit Unions"
LAS VEGAS, Nov. 3 /PRNewswire-USNewswire/ -- Consumers are deluged with headlines leading them to believe that there is no money available for lending and the tightening of requirements have made it impossible to be approved for a mortgage, even with good credit.
But that's just wrong.
Recent financial statistics support the concept that credit unions are doing more lending for housing finance amid the credit crisis than the big players these days. Most consumers have no idea that they may qualify to join a credit union, which still has the ability and willingness to make loans to its members.
"Most credit unions have seen tremendous growth in deposits, partly due to the current financial crisis. Credit unions are safe and secure and have earned over many years, trust from their member depositors. Therefore, most credit unions have plenty of liquidity and have for years made prudent loans at very competitive rates and terms," explained ACUMA (American Credit Union Mortgage Association) Chairman John Reed, President/CEO of Maine Savings FCU in Hampden, ME.
"The fact remains that Credit Unions did not participate in the subprime lending crisis, and will not receive any bail out funds from the federal government," he said. "For credit unions, it's business as usual, just as we have done for decades. Our challenge is to provide more funds for housing finance, and to tell our story and educate American homeowners about the value that America's Credit Unions bring to this situation."
Though the vast majority of credit unions have not directly been affected by the subprime meltdown, not all have escaped the impact from the economic downturn.
"Some credit unions are downsizing and a few have lost money, but for the most part, credit unions are suffering as collateral damage in regards to the subprime market," Reed explained. "What happened was some credit union members who couldn't obtain a loan from their credit union went elsewhere and found a subprime loan. Now they can't pay their mortgage and they can't pay other loans, some which are to their credit union. That's where the problems are coming from."
But the good news can be found in the long history of credit unions. We didn't go under during the Great Depression and we don't need government help now. In fact, the nation's credit unions could be facing brisk business when it comes to home loans.
"The Credit Union concept dates back to the 19th century in Europe where small businesses and consumers could not obtain funds from the large banks," Reed said. "Their answer was the formation of Cooperatives or Credit Unions and the US Credit Union system will turn 100 in 2009. It's about time for American's to recognize the great potential credit unions have to offer when it comes to mortgage lending."
ABOUT ACUMA: ACUMA (American Credit Union Mortgage Association) is the only non-profit Credit Union trade organization dedicated to the principle that credit unions have both an obligation and a competitive need to become premier providers of home loans for their members. ACUMA brings together interests of more than 8,000 credit unions and CUSOs (Credit Union Service Organizations). Member organizations include federal and state chartered organizations.
FOR MORE INFORMATION
Bob Dorsa, President/CEO of ACUMA
877-442-2862
bdorsa@acuma.org
www.acuma.org
SOURCE American Credit Union Mortgage Association
