BARCELONA, Spain — More than 6,600 mortgage foreclosures occur each day in the U.S. as a result of the current financial crisis, and among the hardest hit have been community development credit unions (CDCUs) and the members they serve, according to Cliff Rosenthal.
Rosenthal, president and CEO of the National Federation of Community Development Credit Unions told the World CU Conference, "Even though credit unions have not made these loans, their affects have washed over us."
National statistics show that while 10.5% of whites were the victims of subprime loans, that number escalated to 27.5% for Hispanics and 33.5% for African-Americans, Rosenthal said. "This is not coincidence, but the direct result of targeted marketing," he added.
The fallout continues for the CDCUs, which are realizing record loan losses, mergers and liquidations, Rosenthal said, adding some programs announced by the Obama Administration may offer some hope.
