Business Loans, More Auxiliary Groups Next Goals for REALTORS FCU
o Departure of CEO Tom Glatt came as a surprise to some in the industry.
o The $15 million seed grant provided by the National Association of REALTORS has been put to good use, the CU said.
In late 2007, the National Association of REALTORS, a Chicago-based group representing 1.2 million commercial and residential Realtors, voted in favor of setting up a federally chartered credit union. At the time, NAR's board approved $10 million to get the cooperative up and running with an additional $5 million available over the next five years. The idea to have its own CU didn't spring up overnight. Prior to the vote, NAR spent nearly two years conducting feasibility research including communicating with members on their interest in joining.
With a new charter issued by the NCUA in November 2008, the CU opened for business in May 2009 marking a milestone as the industry's first virtual-only CU. That $15 million capital grant was distributed in two installments of $10 million and $5 million in 2009. A query on whether the group would be providing any additional grant money was not answered.
According to NCUA Call Report data, RFCU earned slightly more than $800,000 from interest income, investments and other sources. Pannier said like most CUs, its goal is to invest primarily in quality loans to its members.
"Excess liquidity is also used to purchase loan participations from other credit unions and investments in agency bonds and other securities. All of these assets contribute to our interest income. We also generate fee and other service related noninterest income," Pannier said.