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Credit Unions Leading the Charge
for Economic Recovery
"Not for profit, not for charity, but for service."
A credit union officer used these words during the financial hardship of the 1930s to describe credit unions' mission of helping members meet their financial needs. Credit unions remain true to that purpose today. The credit union philosophy of "people helping people" means you can rely on your credit union through good times and bad. But it's during dark times such as those we're experiencing now that the philosophy shines brightest.
Credit unions across the nation will be leading the way toward an economic recovery. Access Across America is a credit union initiative that seeks to build on current credit union efforts to facilitate economic empowerment for people from all walks of life. It partners with key federal government departments and agencies to aid communities across the U.S. with the resources and technical assistance to provide financial services, affordable housing and economic development opportunities.
The Building Blocks
Sensible real estate lending. In general, credit unions avoided most of the risky mortgage lending practices that contributed to the foreclosure crisis that the housing market is experiencing.* Instead, credit unions sought ways to make homeownership more affordable to people of limited means, such as the Home Loan Payment Relief, or HLPR loan. Recently, the National Credit Union Administration (NCUA) unveiled the Credit Union Homeowners Affordability Relief Program (CU HARP). Through the program, the NCUA and individual credit unions will work together to assist struggling homeowners.
Robust business lending. The American Recovery and Reinvestment Act (stimulus bill) that President Obama signed in February raises the limit on the portion of certain loans that the Small Business Administration (SBA) can guarantee. This will allow some credit unions to lend more money to businesses. Chaco is a SBA leader.
Financial education. Credit unions have long understood the importance of financial literacy. A 2006 NCUA survey indicates 60% of credit unions offer financial counseling that specifically incorporates financial education while another 42% have dedicated financial literacy programs for their members.** Chaco Credit Union promotes financial literacy through Dave Ramsey's Financial Peace University. Dave teaches how to save money, live on a budget, communicate about money, eliminate debt, find bargains and experience the joy of giving. Financial Peace University is a life-changing program that will give you the tools to make the right decisions with your money. You'll be empowered with the practical skills and confidence needed to achieve your financial goals and experience true financial peace. for more information visit www.daveramsey.com/fpu.
A Positive Partnership
You can be proud to be a member-owner of your credit union. With the support of you and your fellow members, we're helping to lead the way out of the current financial storm and into brighter days ahead.
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