PHOENIX - The ailing economy is tough enough on most Americans. But for a segment of the Hispanic population – those working in the housing industry –the economy and a crackdown on immigration are making it even more difficult to get by, report a number of CUs that serve Hispanic markets.
The home building bust has eliminated many construction jobs, the CUs reported, and they are seeing some Hispanic members employed in the industry are struggling to find work. Moreover, making things worse is the attention many states are placing on immigration laws, which is preventing many Hispanic members without proper identification from finding new jobs or getting loans. Below, credit unions share how they are responding to these conditions.
WHEN FREEDOM ISN’T A GOOD THING: LOSS OF CONSTRUCTION JOBS HITS HARD
PHOENIX–The concern at Desert Schools FCU is around Hispanic members having the “freedom” to find new jobs if they lose their positions in home construction.
“I don’t know how fair it is to say that the economy has impacted Hispanics more than any other group, but I would say it’s impacted that first generation immigrant community more, more than Anglicized Hispanics here who have assimilated,” said Jason Meyers, director of marketing and public relations. “Really, across the board, the immigrant population has a harder time because they are under the radar and there is a sense of fear that they are going to be reported and sent back to their country of origin. I think they have a harder time than most because they don’t have the same freedom as others.”
While the $3.1-billion Desert Schools has seen a slight increase in delinquencies, it’s taking a “back to basics” approach with members via education and advice designed to keep them financially healthy, Meyers said. “This strategy crosses over to our Hispanic members who are hungry for information. We remind all our members to pay themselves first by saving a little each week and we warn them about the dangers of mortgage fraud and other scams.”
SOME MEMBERS CLOSING ACCOUNTS AS UNEMPLOYMENT TAKES ITS TOLL
COLUMBUS, Ohio–Hispanics who’ve lost their jobs in home construction don’t have many employment options in the state capital here.
“They are looking at jobs in restaurants, but there are so many people right now seeking work in that field...I’ve heard members complain about the situation and some have closed accounts because they’re moving back to their home country,” said Maria Gonzalez, Latino business development officer for Western CU.
The pressure to identify illegal immigrants has also increased in the Buckeye State, Gonzalez said, with police conducting immigration raids and stopping people on the highway to check identification.
REGIONAL MARKET ALLOWS LATINO CU & ITS MEMBERS TO KEEP MOVING AHEAD
DURHAM, N.C.–Luis Pastor, president and CEO of the $67-million Latino Community Credit Union in Durham, N.C., attributes his more optimistic view of the economy’s impact on Hispanics to the fact home building has not dropped off in this state and housing prices have not fallen.
“The housing market is stable here,” said Pastor, although he cautions there is still “uncertainty. Unemployment is certainly higher, and that’s not just in the Latino community. The economy is affecting our members, but it’s not as bad a situation as in other parts of the country.”
Pastor said members who have lost jobs in construction still have opportunities with other home builders due to steady business in that sector.
WHY CUS SHOULD STILL REACH OUT TO LATINOS DESPITE IMMIGRATION ISSUES
DES MOINES, Iowa–Credit unions’ supporting Hispanics through the difficult economy will not only help the Latino community, but their growth objectives as well, reminds Warren Morrow, CEO of Coopera Consulting, which specializes in working with CUs to reach out to new markets, particularly Latin Americans.
“Many credit unions, even in the face of the increased immigration debate, have stood fast on their strategies,” said Morrow. “They recognize that most of these immigrants, even those undocumented, have families that are documented, are in mixed families, or are on their way to becoming documented. It’s the broken immigration system that keeps them in limbo for years. Credit unions that understand those dynamics and have made Hispanics part of their strategic growth plan will benefit. No matter what happens with immigration or the economy, Hispanics are going to continue to be a driving growth force for credit unions.”
FOUNDERS FCU TRIES TO WORK WITH HISPANIC MEMBERS IN NEED OF HELP
LANCASTER, S.C.–In South Carolina the immigration debate isn’t quite as heated as in Phoenix (see related story), the housing market has experienced a slowdown rather than a bust, and the impact on Hispanics employed in the home building industry hasn’t been as dramatic as out west, explained Geri Rucker, regional vice president at the $1.5-billion Founders Federal.
To help members, the CU is doing loan extensions, alternate payments, “you name it,” Rucker said. “We’re working with them as best we can.” The CU’s Lancaster Square branch’s member service reps are bilingual and often bicultural. “Our Hispanic members feel very comfortable coming into this branch to talk about the issues they’re facing,” she said.
Like many of her colleagues across the U.S., Rucker is more concerned about the immigration crackdown in the state than a slow economy. “The greater financial impact on our Hispanic membership is caused by restrictions from the DMV, along with state and local immigration enforcement,” she said. “The inability to renew a driver’s license, obtain car insurance, and receive primary residence tax rates are a greater impact to the wallets of our Hispanic members...They have to save longer for their cars, buy cheaper cars, or go the unsecured loan route.”
As far as having extra money to send home to families in Latin America, that hasn’t changed. Remittances this year are at the same levels as 2007, according to Rucker and the other CUs included in this report. (c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com
