The economic crisis plus new mortgage opportunities for credit unions has given "real validity" to state leagues forming regional compacts such as the newly-minted League of Southeastern Credit Unions, Guy M. Hood, the president/CEO of the soon-to-be consolidated Florida Credit Union League said Friday.
Speaking out following formal member approval this week of the new LSCU combining the Florida and Alabama leagues, Hood said CUs across the two states now see the timing and economic advantages of consolidating into a single unit with a prospect more leagues in the South or Southwest might eventually join up.
"We made the right decision," said Hood suggesting that "if we do this right and the model works" leagues in say Texas or Mississippi might want to affiliate though leaders in both states say they are not considering such a move now.
We're not trying to create a master league of the Southeast," said Hood, "but we think," LSCU set to be formally operative by yearend can be a trendsetter. LSCU is slated to be incorporated in Birmingham, the Alabama League's headquarters, but its new CEO and main operations base are likely to be in Tallahassee.
On mortgages, Hood said the LSCU structure conceivably could give CUs in the two states "some excellent growth opportunities to serve as low cost loan originators" if the government moves ahead to gain direct control over Fannie Mae and Freddie Mac.