SECU First CU To Sign On To Mortgage Principles
RALEIGH, N.C.-State Employees CU has become the first credit union to sign on to a new set of principles aimed at protecting mortgage borrowers from predatory lenders. The Mortgage Protection Principles, introduced yesterday by state Treasurer Richard Moore and officials in Florida, Kentucky and New York, are aimed at protecting families from being stuck in loans they can't afford.
The principles include: matching borrowers with appropriate, fair and affordable loans for which they qualify; verifying the borrower's ability to repay; not inciting employees or brokers to place borrowers into higher-cost loans; clearly disclosing all broker compensation; providing borrowers with fixed-rate options when offering adjustable-rate products; not charging prepayment fees or penalties on subprime loans; and conducting criminal background checks on all brokers.
Also signing on to the principles is the Center for Responsible Lending, an affiliate of Self-Help CU.
Ex-CU Now One Step Closer To Stock Offering
WAYCROSS, Ga.-Atlantic Coast Federal, a former credit union, yesterday said it has been approved by the Office of Thrift Supervision to complete the second step of its two-step stock offering by selling the remaining 63.8% of the banking company to the public. The company, known until November 2000 as Atlantic Coast FCU, plans to raise up to $280 million with the sale of as many as 15.2 million shares. The former credit union, chartered in 1939 to serve employees of Atlantic Coast Railroad, sold a minority stake to the public in 2004. The offering is being underwritten by Stifel, Nicolaus & Co.. The credit union-convert now holds $890 million in assets; almost triple its size when it converted from a credit union.
Arrest In 10-Year-Old Murder Case
WASHINGTON-Police have arrested a suspect in the slaying of an unarmed security guard inside D.C. Teachers FCU a decade ago. Police said John Williams, now 52, entered the credit union on July 17, 1997, planning to rob it, but was confronted by the Wells Fargo guard. Williams allegedly shot the 36-year-old guard multiple times before fleeing without any money. Williams was arrested in nearby Beltsville, Md., without a struggle.
WesCom Acquires Great American
PASADENA, Calif.-Credit union giant Wescom CU said it has agreed to merge with Great American CU, San Diego. Great American CU was wounded by its investments in subprime auto loans through Centrix Financial. The $57-million Great American eked out $312,000 in net income for the first six months of this year, after losing $1.5 million last year.
The CU, chartered in 1928 by postal workers, has nine branches in the San Diego area. Wescom, with almost $4-billion in assets, has 51 branches in southern California, including five in the San Diego area. Wescom won the bidding for Great American among six credit unions. The merger is one of several pending among billion-dollar credit unions: with CommunityAmerica acquiring Midwest United CU; Meriwest CU acquiring Golden Bay CU; Western FCU acquiring Toyota FCU; and SAFE CU acquiring Capital Power CU.
$15K Donated To College
NORWICH, Conn.-Core Plus FCU said it granted $15,000 to Three Rivers Community College, which will help fund the college's Workforce Education and Training Fund. The funds will be matched by the state of Connecticut. The college and credit union also plan to develop a paid internship program to train students who want a career in financial services.
Corrections & Clarifications
The logo for First Financial Federal Credit Union, Wall, N.J., a participant in the Credit Union Journal's Day in the Life project Oct. 15, appeared incorrectly. It appears correctly, below.
