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INewsweekI CDCUs are ethical subprime lenders
NEW YORK (11/19/08)--Community development credit unions (CDCUs) are "ethical subprime lenders" that can help refute the argument that subprime lending is to blame for the economy's problems, says this week's Newsweek (Nov. 24). The article notes that "even amid the worst housing crisis since the 1930s, many of these [community development] institutions sport healthy payback packages. They haven't bankrupted their customers or their shareholders. Nor have they rushed to Washington begging for bailouts." Cliff Rosenthal, CEO of the National Federation of Community Development Credit Unions, told Newsweek that the federation's 200 CDCU members, serving primarily low-income communities, have a delinquency rate of about 3.1% of assets, compared with the national delinquency rate on subprime loans of 18.7%. The article outlines as examples of lenders who "put into practice the types of bromides that financial-service companies like to use in their advertising" three credit unions and features interviews with their CEOs. Interviewed are: Linda Levy, CEO at Lower East Side People's FCU, New York; Rita Haynes, CEO at Faith Community United CU, Cleveland; and Ed Jacob, manager/CEO of Northside Community FCU, Chicago. For the full article, use the link.
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