Credit unions may find themselves increasingly playing the role of landlord, according to a recent Federal Reserve policy statement and a property management firm that serves credit unions.
The Fed released a policy statement April 5 clarifying its position on the rental of residential real estate owned properties. The Fed doesn't have authority over credit unions on the matter, but credit unions may be interested to know the paper ominously stated that "with mortgage delinquency rates remaining stubbornly high, the continued inflow of new real estate owned properties–expected to be millions more over the coming years–will continue to weigh on house prices for some time."
Brent Taggart, senior vice president of client relations for the West Valley, Utah-based Green River Capital, said he thinks his credit union business will grow. The asset management firm currently has four credit union clients through a partnership with the $2.9 billion Mountain America Credit Union. Taggart said that while some housing markets in Arizona, Florida and California have rebounded, others have yet to hit rock bottom.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
