ANAHEIM, Calif. – In an additional sign of the times, another church, the tenth since 2007, has defaulted on a loan from Evangelical Christian CU, the lender to more than 1,000 ministries across the country.
Heritage International Family, a church founded in 1978, has been notified by the credit union it is in default of a $172,000 payment on a $5.5 million loan.
Jac Latour, a spokesman for the $1.3 billion credit union, confirmed that the church had been sent a default notice, preliminary to a foreclosure. "We’re working with the church, trying to come up with some arrangement, but we’re not there yet," Latour told The Credit Union Journal yesterday. "We have a lot invested in the relationship."
He said after 44 years the credit union, based in nearby Brea, reported its first two defaults on church loans in 2007 and another seven in 2008. "It’s not surprising, given the state of the economy over the last 12 months," said Latour.
The number and total amount of the defaults are very small, compared to the total number of ministry loans made by the credit union, he stressed.
"Ministries are really diligent about paying their loans," he added, noting that 99% of the credit union’s $1.1 billion loan portfolio are to churches.
