CU's letter adds perspective on risk losses

MIAMI (5/28/08)--There are more than 8,000 credit unions in the U.S., and the vast majority did not make the types of subprime loans that account for problems in the mortgage market, according to a recent letter to the editor in the Miami Herald.

Lloyd Gill, executive vice president and chief operating officer, City County CU, Fort Lauderdale, Fla., wrote a letter to the editor, published Monday, recognizing that credit unions are helping borrowers refinance their subprime and exotic mortgages.

He wrote in response to a Miami Herald (May 18) article that noted losses by a Florida credit union related to a condominium project that went into foreclosure.

Gill, who also is the CUNA Lending Council vice chair, cited a study by the Credit Union National Association, which indicated that credit unions save consumers $6.3 billion per year. "If banks consider this an 'unfair advantage,' they are free to convert their bank to a credit union charter at any time," he wrote.

courtesy of cuna.org