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Hood addresses Colorado CU Real Estate Network
ALEXANDRIA, Va. (7/1/09)--Credit unions should seize the opportunity to engage in responsible mortgage lending, said National Credit Union Administration Vice Chairman Rodney Hood while addressing the Colorado Credit Union Real Estate Network (CUREN) in Denver Tuesday. “Although credit unions did not cause the mortgage debacle that has hurt the American economy, they certainly can be part of the solution,” Hood said. “Mortgage lending creates an excellent
National Credit Union Administration Vice Chairman Rodney Hood addressed the Colorado Credit Union Real Estate Network in Denver Tuesday. From left are: Tracy Yeager, Aventa CU mortgage director; Guy Goodenow, Public Service CU mortgage director; Hood; Stacy Campbell, Coors FCU vice president of mortgage lending; Chris Myklebust, Colorado state commissioner of financial services; Lonnie Burkholder, Air Academy FCU vice president of mortgage lending; Joe Dillon, CMG mortgage insurance senior vice president; Shannon Van Sickler, Bellco FCU director of mortgage lending; and Jon Paukovich, Ent FCU mortgage president. (Photo provided by the National Credit Union Administration)
opportunity for credit unions in the Rocky Mountain states to differentiate themselves from financial services providers.” Credit unions should pursue partnerships with results-oriented non-profit organizations that can provide resources for training outreach efforts--such as the Neighborhood Reinvestment Corp., the HOPE NOW Alliance and Operation Hope, he said. Hood also underscored the necessity for proactive risk strategies. From July 1, 2007 to June 30, 2009, financial institutions filed 62,084 Suspicious Activity Reports (SARs) regarding mortgage fraud. Credit unions filed 541 SARs during the same period--a 176% increase over the prior year. “It is also imperative to manage interest-rate risks because credit union shares grew 7.7% last year to $68.1 billion,” he said. The growth is concentrated in short-term certificates and is being used to fund long-term assets. Long-term assets to total assets are 23.2% and first mortgages comprise more than 30% of total loans, Hood said. Credit unions also have seen an uptick in real estate loan delinquencies to 119 basis points in 2008, from 67 basis points in 2007. First mortgage delinquencies jumped to 76 points from 28 points, Hood said. “We must focus efforts on helping refinance mortgages and use other tools to assist homeowners,” Hood added. “To the degree your balance sheets and risk tolerance levels allow, I encourage you to modify expensive mortgage loans and help homeowners keep their homes.”
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