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HR 3606 (CARD Act 21-day rule fix) signed into law by president, as was the homebuyer tax credit extension
Scam warning: Kennedy Space Center FCU members being targeted via phony text messages by ID thieves in Florida. http://ow.ly/zWCE
Financial Stability Improvement Act markup, which began today, will continue after Vets. day, Hse. Fin. Svcs. Chair Barney Frank says.
In Mon NN: 24 SE Wisc. CUs will now have control of $71.5M in loans and lender-owned homes after Central States Mtge went into receivership.
Detroit Edison Credit Union and NuUnion Credit Union announce their intent to merge http://tinyurl.com/y8bslvg
Dow Jones, USA Today: CUs a friend to those in credit crunch
NEW YORK (8/22/07)--If you need someone to help you get through a financial hardship, or to finance your new home, you might want to turn to your local credit union.
That's the message being reported this week by three media major media outlets. USA Today, Dow Jones and MarketWatch have published articles purporting some of the things credit unions can offer their members, compared to banks and other major lenders.
Bill Hampel, chief economist of the Credit Union National Association, was interviewed for the Dow Jones article, where he commented on the difference between credit union loans and loans from other financial institutions.
Knowing that interest rates on mortgages are continually rising and underwriting standards remain tough, he suggested that consumers looking to finance a home should seek out a credit union. Unlike banks, credit unions' portfolios aren't sold to investors, which make them a more economical option.
"A credit union considering a mortgage loan application doesn't have as many things to worry about as a mortgage banker that has to sell that to a secondary mortgage market," Hampel said in the article.
Borrowers should also expect to obtain a loan more easily at a credit union than from other lenders. Credit unions don't offer subprime loans, which have been known to lead some borrowers into debt, and they rarely grant loans requiring small amounts of documentation. And if borrowers are struggling, credit unions usually notice and can help them before it's too late, Hampel said.
Besides loans, the article also discussed what people should do with the money they've saved for a home before they actually buy it. Some suggestions included certificates of deposit, and USA Today personal finance columnist Sandra Block noted that credit unions offer a similar product, a share certificate. The writer encouraged savers to look into the certificates at their local credit unions to find good rates.
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