Credit unions and banks now hold 1 million homes as home loan delinquencies exceed 10%, according to CUNA Mutual Group President/CEO Jeff Post.
In a speech to the inaugural convention of the League of Southeastern Credit Unions, Post said CUs should expect more "torpedoes in the water" and difficult times ahead. "This isn't going to be a bounce-back economy," he added.
Still, CUs that use the current environment to find ways to save money and work together to improve their performance will reap the benefits when the economy improves, he said.
In another speech at the LSCU meeting, Robert Hayes, chief of Florida's credit union regulation unit, said some CUs are failing to do due diligence on loan applications and urged his audience to be more tough-minded on loan modifications.