CLEVELAND-There was Grace, and then came Mercy-but it all started with Rita.
Rita Haynes, CEO of Faith Community United CU here, will be recognized this week for her payday loan alternatives, second-chance auto loans, and efforts to prevent foreclosures with the National Credit Union Foundation's Herb Wegner Memorial Award for Individual Achievement. "I was very excited," said Haynes, a 50-year veteran at her credit union. "I'm thrilled that they would consider me to receive this award. I know what an esteemed honor it is. This is CUNA's highest honor."
As for why she was chosen, Haynes modestly told Credit Union Journal, "Well, I created some products that I feel were different."
Thirteen years ago, Faith Community became the first CU in the state of Ohio to be designated as a Community Development Financial Institution. At that time, the CU earned a $350,000 matching grant from the CDFI Fun to expand its technology and systems, and a $250,000 grant from Fannie Mae. Since then Faith Community has grown to 6,300 members from 2,589.
This growth is attributed to three programs initiated by Haynes, one of which is known as "Amazing Grace." This program features "Grace Loans, to help people that got caught up in payday lending," Haynes explained.
Grace Loans are short-term loans up to $500. After one year, members are eligible for the Amazing Grace Line of Credit, which permits two advances per month. More than 20,000 loans totaling more than $7 million have been given through the Amazing Grace Program. Two years ago, Haynes introduced the "Greater Grace Program" to help members with large debts from multiple payday lenders. Members consolidate all of the payday loans at the CU, then members have 24 months to repay.
The second product is known as "Mercy Mortgage."
"This is to help people who are about to lose their home due to foreclosure," Haynes said. "We refinance or help with the modification of their loan, or help them refinance their bills so they can pay their mortgage."
The third product is known as "Wheels," a loan to "help people who need a car to get to work and couldn't get an auto loan," Haynes said. In the Wheels program's first seven months, the CU wrote 21 loans helping borrowers keep their jobs. "All of these products have components to saving," Haynes stressed. "We also counsel them."
In the more than 1,000 of these three loan products that have been written, "we've only had three that have had problems," Haynes said. "And we hope to salvage them."
Two years ago, Haynes testified before the U.S. House Domestic Policy Subcommittee hearing on foreclosures, predatory mortgages and payday lending about the programs.
