TIME.com featured credit unions in a piece headlined, "Bad Times for Banks Mean Boom Times for Credit Unions." The article included quotes from Ed Speed, CEO of Texas Dow Employees CU, documenting how its real estate lending has doubled and auto lending is up more than 40%. The article also noted how credit unions have avoided risky lending practices, saying they are now "having their turn in the sun after years of sticking to boring, old-fashioned banking practices." "In good times, you'd say these guys are much too conservative," says George Hofheimer, chief research officer the Filene Research Institute was quoted as saying. "But in times like these, it's just what the doctor ordered."
The work being done by community development credit unions was recognized by several national media outlets. Much of the coverage detailed efforts related to assisting members who are saddled with subprime loans. Among those providing coverage have been Newsweek Magazine, which refers to credit unions as the "ethical subprime lending industry" and quotes National Federation of CDCUs Executive Director Cliff Rosenthal, and National Public Radio. Both reports are available on the respective sources‚ websites.
New Mexico Educators FCI Mortgage Manager Angela Muxworthy appeared on Albuquerque's Channel 4's "Eye on New Mexico" program. Muxworthy, who is the incoming president of the New Mexico Mortgage Lenders Association, appeared with outgoing president John Snyder to discuss New Mexico's current mortgage market and what has transpired with the government bailout and the future of lending in the state.
The Seattle Post-Intelligencer highlighted BECU‚s overall financial soundness and bottom line in a report on how financial institutions are faring. "Like many financial institutions, BECU-the state's largest and the nation's fourth-biggest credit union - is feeling the pinch of the economic downturn in the form of declining earnings, rising delinquencies and higher provisions to reserves for future loan losses," the article said, before noting that it has earned $35.7 million for the first nine months of the year, down from the $69.3 million for the same period of 2007. The piece added that the provision for loan losses has increased, but so, too, has membership, which is up 12%. CEO Gar Oakland was quoted as saying, "We're on target to have a reasonable year."
The Detroit Free Press provided a report on how a credit union has opened in "one of the nation's most economically depressed cities." In this case, the city was Highland Park, Mich., and the credit union was Communicating Arts CU. The story noted the facility has added 800 members since April, attracted $400,000 in new deposits and made $619,000 in loans. "It's pretty much a banner year for us," CEO Hank Hubbard was quoted as saying. "We didn't think there would be a lot of deposits here. A lot of people in these neighborhoods have money." Members of the CU were also quoted.
WARMINSTER, Penn.-The Intelligencer published a letter to the editor from Freedom CU Chairman Joe Yerkes titled, "Banks Need to Stop Credit Union Fight." The letter addressed what Yerkes called the banks' misuse of bailout money and their costly attacks and lawsuits against credit unions, which are designed to take away people's right to choose a credit union for their financial services.
