LAS VEGAS — Taking account of what he called the growing "mess in mortgages," Jim Blaine, the president/CEO of State Employees' Credit Unioin, speaking before CU directors Wednesday plugged his CU's own ARM product as a profitable vehicle that greatly serves members' needs.
In remarks to nearly 1,990 directors at the opening session of the National Directors Convention, the head of the Raleigh, N.C. CU said State Employees "has not had a single loss" on its ARM program and it is proving a valued product in the current environment.
"Now you tell me whether you would make 6-7% on these loans to first time home buyers or 4% at the corporate?" asked Blaine in describing the product as retaining those important "warm and fuzzy" characteristics.
Recommended For You
In his speech Blaine also urged CU directors to take a far more serious look at payday products citing the CU's own "Salary Advance" loans, which are doing well profitwise and are also "warm and fuzzy".
He also acknowledged that with tight margins these are indeed tough times for CUs and so there is realism today when one says CUs are "really non-profit".
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
