WASHINGTON (10/14/08)--An Illinois credit union CEO and Credit Union National Association (CUNA) President/CEO Dan Mica during a nationally broadcast television interview discussed credit unions’ financial strength and organizational structure. The seven-minute segment aired live last week on FOX Business TV. In the segment’s first half, Robert M. Palumbo, president/CEO of the $268 million-asset Dupage CU in Naperville, Ill., explained credit unions’ unique structure bolsters their financial strength and better returns for members. Palumbo said credit unions can offer lower rates on loans and higher rates on savings because “we are not-for-profit financial cooperatives--any profit goes back to the member” in the form of rates, service or fee structure.
Click to watch FOX Business TV video segment.
“Our whole culture is to serve members,” he said. Palumbo noted Dupage CU continues to lend money. “In fact, September was one of our best months for mortgage lending,” he said. The reporter at the credit union pitched the segment from Naperville back to Washington, where CUNA’s Mica reiterated Palumbo’s points. He said credit unions are part of the solution to the current economic upheaval, and paraphrased House Financial Services Committee Chairman Barney Frank (D-Mass.) that “if everyone acted like credit unions, we wouldn’t have this crisis.” Mica pointed out that credit unions continue to make home loans and provide capital to small businesses. To help more small businesses, the CUNA leader said the trade association wants Congress to raise statutory limits on credit union member business loans from 12.5% of assets to 25%. Credit union mortgage and member business loans combined have very low default rates, Mica told the television audience. Watch the video online on CUNA News Now