Massachusetts CUs Pilot Tax Credit Loan Program
BOSTON-Four credit unions have joined the Massachusetts Housing Authority's first-time homebuyer program that will provide low- and moderate- income borrowers interest-free loans of up to $8,000 for downpayments and closing costs.
Under the Tax Credit Loan Program individuals will be able to borrow up to $8,000 against next year's federal income taxes interest-free, according to Eric Gedstad, a spokesman for the program. If the loan is not repaid by June 1, 2010, it will be amortized at the same rate as the mortgage.
The mortgages must be originated through one of the approved lenders and MassHousing will buy the loans, he said.
"We now have 20 lenders who are trained and ready to go originate these loans," Gedstad told Credit Union Journal.
The tax-credit loans are aimed at low- and moderate-income families, meaning an annual income of around $67,000 in Massachusetts.
The participants include: Greater Springfield CU, Holyoke CU, Metro CU and St. Anne's CU.
MBS Losses Push Corporate One Into Red
COLUMBUS, Ohio-Corporate One FCU last week reported an $8.2-million loss for the first six months of the year, which it attributed to $17.1 million of charges on its mortgage-backed securities.
The first half loss compares to a $12.8 net for the same period last year.
Corporate One said the losses of $17.1 million on 30 MBSs represent the difference between the discounted cashflows of the impaired securities and their current book value. But total credit losses in these securities are estimated to be closer to $25 million. At mid-year, Corporate One had unrealized losses of $332.1 million on its $4.1 billion of securities, up from losses of $247.7 million a year ago. About two third of the unrealized losses in the first half, or $222 million, were attributed to MBSs.
Corporate One, like most of the other corporates, has yet to report its annual financials for 2008 because it is waiting to see how much of its capital in U.S. Central FCU it will have to charge off.
CUNA Mutual, State National Team Up
MADISON, Wis.-CUNA Mutual Group and State National Companies said they are forming an alliance to provide tracked collateral protection insurance to CUs.
The two companies said the alliance creates the largest consumer CPI affiliation serving CUs.
State National is assuming the insurance tracking, underwriting, claims processing and customer service for CUNA Mutual's tracked consumer CPI business. CUNA Mutual will continue to offer its other collateral protection products, including blanket, immediate issue, real estate, title tracking and several optional coverages.
For info: www.cunamutual.com or www.statenational.com
Navy Fed Trims Sails For Expansion
VIENNA, Va.-Navy FCU, which has embarked on the most ambitious expansion plan in credit union history, has trimmed plans for new branches, in light of the economic slowdown.
The world's biggest CU, which committed four years ago to 30 new branches annually, is now looking at around 10 a year, "as economic conditions allow," said Cutler Dawson, Navy Fed president.
The credit union giant added 34 new branches in 2007, 24 in 2008 and 10 so far in 2009, bringing its worldwide network to 180 branches, according to Dawson. During that time, Navy Fed has grown from $28 billion in assets to $40 billion.
Whatcom Donates $13,000
BELLINGHAM, Wash.-Whatcom Education CU contributed a total of $12,900 to 10 local non-profit organizations as part of its annual community grant program.
The groups receiving donations include ALS for the Walk to Defeat ALS, Arthritis Association for the Jingle Bell Run, Birchwood Elementary School garden, Ferndale School District, Interfaith Community Health Center, Kulshan Supported Employment, Nooksack Salmon Enhancement Association, Rebound of Whatcom County, Whatcom Center for Early Learning and Western Washington University for Woodring College's Latino Empowerment Project.
