Real Solutions - A National Credit Union Foundation Program

The current economic environment has had major impact on American families and the credit unions that serve them. Each quarter 250,000 families are losing their homes to foreclosure. Countless others have voluntarily surrendered collateral in an attempt to save their homes. Unemployment is high many areas also causing rising delinquency within credit unions.

On another note, the failure of more than one major banking institution has consumers looking for a safer alternative. Many are turning to credit unions as a place they can trust.

Given this, we want to ask you:

Why is this true for your shop? We’d love to hear from you in the comments.

88% of Americans drive to work. Access to affordable and reliable used cars is a real need for low-wealth families trying to get ahead. Non-prime (thin file or low score) borrowers often turn to high cost loan providers such as buy-here pay-here stores to purchase cars. Oftentimes, these cars are of poor quality and cost far more than their book value.

Credit unions should lend to more non-prime borrowers because…

On Monday, April 6, an advertorial appeared in the New York Times titled “Power to the People: Cooperatives Spread the Benefits.” The feature goes a long way in making the case (domestically and internationally) for the cooperative business model. Further, it shines a bright light on the future of cooperatives and the power of cooperatives to change lives.

Ohio’s credit unions are celebrating 75 years of service this year. And the mission — of providing individuals, families, and entire communities with economic stability through the dignity of financial empowerment — remains the same as it was when credit unions were founded. This philosophy distinguishes Ohio’s 414 credit unions from other financial service providers and inspires loyalty from more than 2.6 million members.

“Our REAL Solutions credit unions continually comment to us that all the information they receive at our partner meetings and webinars is invaluable in evaluating and implementing programs to serve the low wealth community. In addition, they thoroughly enjoy meeting new people from around the state. The networking opportunities have helped establish new friendships and a tremendous support group.”

Do your members use payday lenders? If you think not, odds are you are wrong. Somewhere between 10% and 20% of credit union members opt to do at least some of their business with payday lenders. Why?

Perhaps it’s the fear of being turned down, knowing they may have credit issues. Perhaps your hours and location aren’t convenient when members need a loan. But more likely, it’s because you don’t have the right product—a small-dollar-value, short-term cash loan that can be accessed quickly and conveniently.

While at the GAC, we asked credit unions, “How are you helping people through this broken economy?”

The first answer came from Bucky Sebastian, CEO of Tampa, Florida’s $2 billion GTE Federal Credit Union. GTE FCU is going above and beyond the call to help members avoid foreclosures and stay in homes that they own.

Here’s how:

When the dust clears from our economic calamity, what will we learn? What business models will emerge from the carnage inflicted by greed, lack of oversight, and profit maximization driven by Wall Street? According to Strategy & Business Magazine, the cooperative business model is being re-examined and gaining prominence as a viable alternative.

Community Development Financial Institutions (let’s call them CDFIs) were created to provide financial services like checking, savings, and loans to people who might otherwise go overlooked.

» Click through to learn why we’re in the ‘golden era’ for CDFI funding.

CUNA’s Governmental Affairs Conference is in full effect and, given the times, promises to be one of the most interesting yet.
» Click here to see what we’re up to.

I ran across this call for help, posted by Phillip Bush – Fellow at Enterprise Community Partners – on the Community Development Banking listserve this morning…
» Click through to read the email

Immigrants come to the United States for many reasons, most seeking a chance for a better life for their families and children. This past century of credit union service to the nation parallels an era of immigrant growth that continues today.

While membership growth and market share are slowing, serving immigrant populations answers both philosophical and business needs for credit unions.

Click through to read more and access our free whitepaper.

Low-income Americans pay as much as $11 billion in fees every year to unregulated, for-profit financial services companies.

Listen to this Issues in Depth Call with Steve Delfin and Lois Kitsch to learn how responsible financial institutions are fighting back and lightening the load for American families.

Watch the gray bar as the podcast loads. Once loaded, click the pink button to play.

Is your credit union interested in setting up a VITA site for the community? Learn how they work, who to partner with, and how they save CU members and others money during tax time.

NCUF’s Steve Bosack interviews Jim Drogue, Vice President of Credit Union Development at the Wisconsin Credit Union League about Volunteer Income Tax Assistance sites.

Watch the gray bar as the podcast loads. Once loaded, click the pink button to play.

If you haven’t read this report released by Filene Institute, I suggest you do. In fact, I’m looking for comments on the question raised in this research report.

The researchers, Stuart Hart and Monica Touesnard from Cornell University, have provided us with sustainability initiatives that credit unions and other financial institutions have implemented that have and could “simultaneously benefit members, their communities, and credit unions’ bottom lines.”