The stories are told almost daily on the evening news broadcasts. Another homeowner is facing eviction, having failed to make that ever increasing mortgage payment. Another brokerage firm is in trouble. Banks scrambling to dig out of the hole that was created by making real estate loans that may have, at the time, looked like a good decision. But now….
Perceptions continue to make an impact on the economy. Mortgage applications were down 2.9% in first two week in March, according to the Mortgage Banker's Association. Steve Agee, an economist with Oklahoma City University, who also is president and chief operating officer of Agee Energy and chairman of the Oklahoma Energy Resources Board, said a recent poll shows a curious disconnect. "A look at the results indicates most people don't feel worse off personally today than they did [last] May," Agee said. "But, when they were asked about the economy generally, their perception has changed dramatically."
Just over one-third of the respondents indicated in May 2007 that they believed businesses were headed into bad times. The most recent poll reflects that half of those surveyed felt that way, Agee said. "What is happening is people are sensing bad economic times, but they are projecting it onto others–not onto themselves."
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What about credit unions? What is happening at these commonly misunderstood financial institution? Compare the perceptions to the following:
Despite all the negative news coverage regarding foreclosures, devalued investments and their effect on liquidity and capital, the credit union industry is in great shape, said executives from two corporate credit unions located in areas with high foreclosure rates.
Two major differences between credit unions and banks give cooperatives the edge in today's financial marketplace: the credit union value system that places responsible stewardship over profit and a robust corporate system that provides a liquidity buffer for natural person credit unions (CU Times, March 12, 2008).
There is a value system that credit unions hold to. This value system places people above profits. This value system pledges that credit unions exist to serve the best interest of the members (who actually own the cooperative). This value system engenders a cultural environment where the needs of the members are intentionally discovered. Then those needs are met by providing specific services and/or products that will benefit the member.
CUNA CEO Dan Mica said at this year's Governmental Affairs Conference: "History has shown us that in economic trouble and uncertainty, credit unions grow. People look for safety, compassion, sanity and someone they can trust at times like these. Don't circle the wagons. Work with people. Make loans with logic, care and sound underwriting but make loans," he said. "Reach out to folks with toxic loans. You may not be able to help all, but the ones credit unions help will be members for life."
Credit unions provide education to their members. An informed, educated member makes better financial decisions. Programs have been developed. Cooperative partnerships have been formed to present the basics of financial fitness: budgeting, buying a vehicle, mortgage lending, understanding credit. Credit unions have invested in the success of the membership they serve.
Credit unions believe that people in every walk of life, in every community across the U.S. want to know that their financial institution can deliver on the following:
-How can you help me make money?
-How can you help me save money?
-How can you help me save time?
-How can you protect my personal assets?
Credit unions provide relevant, competitive products and services that answer these core questions. They deliver on their commitment every day in branches in grocery stores, in factories and in state-of-the-art facilities. They deliver through the professional efforts of a staff that is trained to exceed expectations. They deliver through sound business decisions that will provide corporate stability into the future.
Credit unions will be there tomorrow for people who believe that there is no other financial alternatives for them. Credit unions will be there tomorrow for people who have personal dreams that are unmet because they have not found a partner that will help them fulfill those dreams. Credit unions will be there tomorrow to help build wealth and a strong personal, financial legacy. Credit unions will be there tomorrow for people who are looking to have their real-life needs met in creative, thoughtful ways. Credit unions will be there tomorrow doing what they have been doing daily for nearly a century–delivering on the promise that they are People Helping People.
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