Becker: CUs A 'Beacon Of Hope'
SEATTLE-NAFCU President Fred Becker called credit unions a "'beacons of hope" amid the current market turmoil in remarks before the Credit Union Housing Roundtable Annual Meeting. Becker emphasized that some of the upheaval in the mortgage and financial markets could provide opportunities for CUs, saying the changes will assist credit unions in reaching the Roundtable's goal of a 10% share of the mortgage market by 2016. In fact, Becker said, "We have seen our share of the mortgage market jump to 3.6% from last year."
Becker told attendees the average amount of first-mortgage loans has continued to rise for credit unions this year, with a significant increase in the second quarter. The numbers show that NAFCU-member credit unions are even doing a little better than federally insured credit unions overall, he said. "As we all know, mortgage lending continues to be the greatest source of loan growth at credit unions," Becker said. He observed that "NAFCU-member credit unions have a slightly higher first-mortgage loan-to-total loan ratio."
After praising CUs for doing workout loans with members in trouble, Becker said the central challenge now is to build on the momentum established over the past year. One sign of encouragement he pointed to was the fact that over the next 10 years, the U.S. is expected to create 15 million new households. "That's a lot of opportunity for credit unions, especially in underserved markets."
Fitch Ratings: Outlook Is Stable
NEW YORK-Fitch Ratings has affirmed the long-term and short-term Issuer Default Rating (IDR) for Mid-Atlantic Corporate Federal Credit Union at 'AA-' and 'F1+', respectively. The firm also said the rating outlook is "stable."
"The affirmation reflects Mid-Atlantic's sound financial condition and low risk profile. As a corporate credit union, credit risk remains low and liquidity is strong, while earnings are lean and capital remains lower than many other financial institutions. Mid-Atlantic is conservatively managed and the company fulfills its mission without taking on undue risk," Fitch said. "The company has minimal exposure to structured securities and no exposure to subprime or Alt-A mortgage-related products in its investment book. Fitch also notes that management is implementing prudent enhancements to the credit risk management function. Mid-Atlantic maintains sufficient liquidity in the form of overnight funds and access to contingent funding sources. Capital levels are in line with other corporate credit unions."
St. Mary's Hosts Historic Tour
MANCHESTER, N.H.-As part of St. Mary's Bank's 100th anniversary celebration, the credit union is hosting a free walking tour of this city's historic west side. The two-hour tour on Oct. 25 gives the public an opportunity to step back in time and learn more about the people and events surrounding the formation of America's first credit union. It is part of a series of events the CU is holding to mark its centennial, including a re-enactment of the very first credit union transition in the U.S.
NCUF OKs $10K Grant
HELENA, Mont.-To help more low-income families receive free tax filing from a special corps of volunteers, the National Credit Union Foundation (NCUF) has approved an Innovation Grant of $10,278 to Montana CUs for Community Development (MCUCD). The NCUF grant will empower MCUCD to expand Montana's Volunteer Income Tax Assistance program to 13 CUs and 16 sites.
