N.Y. CDCUs Meet To Help Fight Poverty

NEW YORK - The National Federation of Community Development Credit Unions (Federation) held a special gathering at its offices with a goal of identifying ways to fight poverty in this city. The meeting brought together CDCU leaders from New York City for a meeting with representatives of New York City’s Office of Financial Empowerment (OFE) and Department of Homeless Services (DHS). During the meeting, OFE representatives spoke about the various programs and studies underway at the agency and requested feedback to increase CDCU involvement in the various initiatives, including expanded CDCU participation in the Earned Income Tax Credit program, development of a financial literacy database, both online and through the City’s 311 telephone information clearinghouse program, and CU service to participants in the city’s Work Rewards Program.

Mortgage Meltdown Also Discussed

Separately, more than 40 credit union leaders joined the Federation for a special conference call on the “Mortgage Meltdown: The Effects on CDCUs and Local Communities.” During that call, credit unions from across the country shared their experiences in dealing with the subprime mortgage crisis.

Brenda Weaver, CMB, director of the Federation’s CDCU Mortgage Center, LLC, and Greg Gemerer, Federation director of policy research, began the call by discussing nationwide trends in the subprime crisis and comparing how those trends have affected CDCUs, conventional credit unions, and banks. Gemerer said that the effects on credit union bottom lines appear to be manageable at the present time.

The Federation also reported that:

* Year-to-date real estate delinquency ratios for the third quarter of 2007 are up 41 BPs to 1.90% from 1.49% for CDCUs; 28 BPs for all CUs (to 0.57% from 0.29% ); and 57 BPs for banks (to 1.27% from 0.70%).

* CDCU net charge-offs have increased by a small margin of 1.62% year-on-year in the third quarter. This is compared to 1.44% and 1.65% increases in net charge-offs for credit unions and banks respectively. (c) 2007 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com