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Federation has record year with CDCUs
NEW YORK (1/23/09)--Despite troubled economic times, the National Federation of Community Development Credit Unions broke records in 2008 for raising and renewing capital, increasing investment in community development credit unions (CDCUs), and purchasing affordable mortgages to free up loan capital in distressed markets.
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As a federally certified Community Development Financial Institution (CDFI) Intermediary, the federation raised millions in funds to support the growth and expansion of CDCUs--credit unions with a primary mission of providing sustainable and affordable financial services to low-income and underserved communities. The Community Development Investment Program closed 2008 with more than $46.2 million in assets under management--including commitments--and 24% growth in its investment portfolios. The portfolios now total more than $36.2 million in investments outstanding and committed to CDCUs. In spite of the rapid growth and the current economic climate, the federation’s investments have been sustainable, and all investments in the federation's portfolio continue to perform, the federation said. The Community Development Investment Program in 2007 launched a capital campaign to raise $25 million within three years. The additional capital allows the federation to increase its investments in CDCUs. Since announcing its goal, the program has raised more than $19 million in additional capital. Other 2008 federation campaign highlights:
* Total assets under management--including commitments--rose 27.2% to $46.2 million from $36.3 million; * Additional capital of $9.6 million was raised from eight investors, four of them new to the federation--Annie E. Casey Foundation, Deutsche Bank, Unitarian Universalist Congregation of Shelter Rock, and United Nations FCU, New York. * A record $17.8 million was invested in CDCUs in 2008, including $7.8 million in new investments, $5.3 million in renewed investments, and 43 mortgages totaling $4.7 million purchased, increasing the mortgage portfolio to $6.1 million; and * The federation's Community Development Relief and Rebuilding Fund (Hurricanes Katrina and Rita), totaling $926,000, was fully disbursed and provided supplemental grants to CDCUs in the Gulf regions, including ASI FCU, Harahan, La.; Coastal Waters FCU, Mobile, Ala.; Hope Community CU, Jackson, Miss.; Total Community Action FCU, New Orleans; and University of New Orleans FCU. * As of the third quarter of 2008, CDCUs increased loans to their members by more than 7%.
With a recent commitment from HSBC Bank to invest an additional $700,000 in CDCUs through the Community Development Investment Program, the federation will continue its partnerships with its current investors and establish new relationships to increase investments in CDCUs.
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