As members continue to get squeezed by a tightening economy and the mortgage loan mess, the Credit
Union is responding by lowering the interest rates on our adjustable rate mortgages and expanding
our fixed rate mortgage program.
Subprime Mortgage Loans
If you have been reading the paper or listening to the news lately, you are aware that many financial institutions continue to write off large losses related to
subprime loans. Are you wondering how your Credit Union is doing in this environment? You should take comfort in knowing that SECU is in great financial shape!
Here are a few reasons why:
We have never put members in "exploding rate" or "interest only" subprime loans! We don't make loans members can't afford to repay! That wouldn't be
the right thing to do! It also wouldn't make any financial sense!
Our loan losses of less than one tenth of one percent of outstanding loans are 5 times lower than the national average for credit unions! The dollar amount of foreclosed properties
owned by SECU is also less than one tenth of one percent. Losses midway through the first six months of the fiscal year (through December) are actually lower than the same period last year,
so delinquency rates of around one quarter of one percent are extremely low. In fact, 99.74% of member loans are paid on time!
We continue to reach out to members by providing a toolkit and a loan extension program to help members avoid foreclosure. We want to help those folks who are trapped in subprime loans
by providing consumer friendly mortgage products.
The bulk of member dollars on deposit are invested in two things - loans to members and temporary investments that earn income for the membership. Our member loan portfolio is strong and
performing well and today all of our temporary investments are in U.S. Treasury securities backed by the full faith and taxing power of the U.S. Government. U.S. Treasury securities are
the safest, most liquid investments in the world. We have never owned any of the subprime asset-backed or mortgage-backed securities or collateralized debt obligations that are causing so
many problems for other financial institutions today.
Your deposits are protected by federal deposit insurance the Credit Union has maintained for over 20 years. Insurance is provided through the National Credit Share Insurance Fund (a federal agency).
Many independent professionals review our internal controls, the accuracy of our financial information and our compliance with laws, rules, and regulations. We get high marks from these auditors and
examiners. Your Credit Union is a clean, transparent, "what-you-see-is-what-you-get" organization!
We will continue to be guided by our philosophy to "Do the Right Thing". It is our responsibility as a not-for-profit cooperative to improve the lives of our member-owners -- you! We
will not place you in products that are not in your best interest. We will continue to work hard to maintain your trust by offering fair products and services at fair prices. Your Credit Union is well
positioned to meet current and future market challenges. You can take comfort in our financial safety and soundness. You see, there really is a difference!
