Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
NFCDCU Barrier to new charters too high
NEW YORK (1/7/09)--The newly chartered Georgia Family FCU in Atlanta is one of only a handful of credit unions chartered last year, a trend the National Federation of Community Development Credit Unions (NFCDCU) says it would like to change. “During the 1980s and ’90s, the National Credit Union Administration (NCUA) was especially active in chartering new credit unions across the nation,” said federation President/CEO Cliff Rosenthal. “Some of those institutions did not make it, but others have become some of the nation’s premier credit unions serving people of modest means. “In the past, communities could come together, develop a basic business plan, pool together their limited resources, and they could start a credit union,” Rosenthal said. “These days, it is virtually a requirement that organizing groups raise hundreds of thousands of dollars of start-up funds in order to satisfy NCUA requirements. We think the barrier to chartering has become too high.” Rosenthal said this is a major challenge, given the current economic downturn with a marked decrease in philanthropic activities. Georgia Family FCU was fortunate because in addition to pledged deposits from the proposed membership, it raised nearly $1 million in combined cash and in-kind donations to start up, with major funding from Atlanta-based Marcus Foundation, he added. The federation has seen an increased interest by groups seeking to organize their own community-controlled financial institutions. “Nearly 50% of our technical assistance is now being devoted to helping organizing groups across the nation, but the process is extremely difficult and time consuming,” Rosenthal said. He added that NCUA’s recent announcement that it would centralize the chartering process at its Alexandria, Va., headquarters, provides some hope. In 2008, the federation assisted these CDCU organizing groups:
* Casa de Maryland, Silver Springs, Md.; * Collaborative Support Programs, Clifton, N.J.; * East River Development Alliance (ERDA), Long Island City, Queens, N.Y.; * Express CU, Seattle; * Fondo Internacional para el Desarrollo de los Migrantes (FIDMI), Washington, D.C.; * Georgia Family FCU, Atlanta; * Haitian Evangelical CU (proposed), West Palm Beach County, Fla.; * Inspire FCU (proposed), Battle Creek, Mich.; * NCI Community CU, Houston, Texas; * Bergen County CU (proposed), Bergen County, N.J.; * Kalamzoo CDCU (proposed), Kalamazoo, Mich.; and * Pascua Yaqui Tribe, Tucson, Ariz.
Other Resources

RSS





print
News Now LiveWire
A recent report from @TransUnion says consumers born 1981 or later made up 27% of total auto-loan originations in 2014, up 16% from 2009.
17 hours ago
.@CUNA says new House bill is "further evidence" of lawmakers' interest in how @TheNCUA uses its funds from CUs. See News Now Monday.
1 day ago
.@MECreditUnions announces winner of @YoungFreeME #SoundOff contest. @Sassquatch_Band will play Old Port Festival in June @PDD_Downtown
13 hours ago
House Financial Services Com. to hold March 3 hearing to receive the semi-annual report of @CFPB Director Richard Cordray.
13 hours ago
Rep. Jeff Miller (R-Fla.) re-introduced bill to ease veterans' access to loans for #smallbusiness purposes from a #creditunion (HR 1133)
15 hours ago