Actors Have Their Own Credit Union

Since it's Oscars week, a story in today's New York Daily News is especially timely. Actors Federal Credit Union in New York City focuses on the needs of--you guessed it--actors.

The credit union's first mortgage borrower was "Law & Order" star Jerry Orbach, who died in 2004. When he got a loan for a West Side brownstone in 1967, he had a role in "The Fantasticks," which became the longest-running off-Broadway show ever.

One credit union loan officer named Paul Cole is a former actor. When making a home loan, Cole doesn't just consider a potential borrower's credit history. He really knows his members:

"When a would-be borrower's main source of income is a play, Cole checks ticket sales, reads reviews and tunes into industry buzz to assess its chances for a continued run."

The story explains why this credit union is so focused on these thespians:

Because it's a credit union, it's a nonprofit owned by its members. Deposits fund the mortgages. It keeps its $35 million mortgage portfolio, rather than reselling the loans to investors, the common practice which contributed to the subprime mortgage mess.

Cole also explains his prudent due-diligence in making mortgage loans:

"We are determined to make our members homeowners, but we're not a charity," he said. "We must also protect our assets."

Click here for the complete story. That's a wrap!

Wall Street Journal: Credit Unions Offer Lifeline On Mortgages

"When it looked like Candido Rodrigues would lose his home, he was rescued by an unexpected source: a credit union."

That's the opening sentence of the a story which appeared in the Feb. 13 edition of the Wall Street Journal.

It's a story about how credit unions are helping Americans like me get unstuck from the subprime mortgage muck. After years of record profits, banks--and their investors--now are stinging from losses and reluctant to accept additional risk. "Credit unions to the rescue," exclaims the Journal:

"Unlike big lenders, credit unions didn't suffer heavy losses in recent months because they never made risky subprime loans.

The story says many credit unions continue to refinance subprime loans and offer banking products no longer available from other lenders, including five-year adjustable-rate mortgages. And why do credit unions do this?

"Credit unions," says Allen Fishbein, director of housing and credit policy for the Consumer Federation of America, "offer more personalized service" than banks, which "can make the difference between people getting approved and refinanced out of a loan."

Candido Rodrigues is one happy guy--like me! You can read more at the Wall Street Journal website.

Credit Union Erases Frustration to Get Home Deal Done

Is quality service and commitment to the consumer becoming so rare that it's considered "old-fashioned?"

The headline of a recent New York Daily News story proclaimed, "Old-fashioned credit unions are gaining popularity with homebuyers." It tells about how more New Yorkers are turning to credit unions for quality home loans and service.

In this story, Municipal Credit Union in lower Manhattan helped Onika Shepherd and her family move into a home of their own. Onika obviously was thrilled about the credit union and her loan officer:

"When I was frustrated, he was the person who showed me how to get a deal done. That's how it's supposed to be in a credit union."

My credit union continuously evolves to provide the financial products and services I require for my speedy, modern and hectic lifestyle. But the outstanding service never changes. So in a way, I guess I'm old-fashioned, too.

Click here and read the complete story.

Philly Credit Unions Help Folks Turnaround Subprime Mistakes

Two Philadelphia credit unions are offering services to help consumers who have made mistakes by signing onto subprime home loans, reports the Oct. 12 Philadelphia Business Journal.

Freedom Credit Union, a $338 million asset, Warminster, Pa.-based credit union, and Philadelphia Federal Credit Union, a $547 million asset, Philadelphia-based institution are offering a lifeline to those embroiled in subprime woes with loan refinancing options.

See how credit unions helped member Pam Watson in the story, Low home loan default rates at credit unions reflect homespun lending habits.

Mortgage haven: Credit unions

With recent subprime mortagage news leaving many seeking solid ground, some are pointing to credit unions as a "haven." But don't take my word for it.

In Friday's edition of the economics website thestreet.com, reporter Nat Worden said "Credit Unions a Haven in Mortgage Storm."

For those pondering a new mortgage, a home-equity loan, a car loan or some other form of borrowing at an uncertain time like this, federal credit unions may offer a credible alternative.

And his reasoning...

Unlike other lenders that have now run into trouble with widespread defaults, credit unions hold the majority of the loans they make in their portfolio, rather than sell them off into the secondary market. This structure gives them a greater incentive to attract keep their members satisfied -- and solvent -- in the long term.

Glean more from his wisdom here.