Where Will the Litany of Woes Lead?
At a recent credit union meeting when I raised the subject of the NCUA’s recent proposal to permit credit unions to voluntarily prepay their assessments, earning zero percent interest with the agency, CEO heads were shaking. All in disbelief and all in response to the question, “Will your credit union be participating?”
According to the NCUA, it doesn’t have the authority to make them participate in a program like this. Yet the industry was asking to see something like the FDIC’s plan. But Sheila Bair can make her banks pay, and they have.
But what will ultimately be the role of Fannie Mae and Freddie Mac in the housing market and how will that impact your credit union’s ability to underwrite mortgages? Will a credit union solution arise? There are rumblings of this as the market has stabilized.
Used autos have been a popular option for cash-strapped, nervous consumers, but how will Japan’s earthquake affect that? Toyotas and Hondas have been known for their long life spans, but if the parts that previously were coming out of Japan are unavailable, what will that do to used auto lending? Should credit unions be making nice with the domestic dealerships?