EAU CLAIRE, Wis. — Royal Credit Union adopted a pro-active approach to the subprime and adjustable rate mortgage loan problems that may arise in the service area of Chippewa Valley.

RCU created a Home Loan Hotline at 715-833-8220 or 1-800-341-9911 ext. 8220 that's available to answer questions from worried homeowners. "We are encouraging RCU Members and non-members to contact us if they have any questions about their home loan," said Linda Marincel, RCU Home Loan Manager. "We want to create a place for them to turn to before they get into trouble. We will help to create a solution that will work for them." The RCU Web site is www.rcu.org.

"Although RCU has been careful as a lender to not create borrowing issues for our members, we realize that there are people in the Chippewa Valley who may find themselves in trouble with predatory, or subprime loans," stated Mark Willer, RCU's chief operating officer. That 'B-Paper', 'near-prime', or 'second chance' lending is a general term that refers to the practice of making loans to borrowers who do not qualify for market interest rates because of problems with their credit history, said Willer. "Subprime lenders also attract those who have a great credit history by enticing them with very low interest rates and other 'to-good-to-be-true' offers," he added.