WASHINGTON — Federally insured credit unions are financially “strong and healthy,” despite an increase in delinquency among real estate loans reflecting the current state of the economy, NCUA Board Chairman JoAnn Johnson told lawmakers Thursday.
Johnson said that overall assets of these credit unions increased by $39 billion during the first quarter of 2008 to an all-time-high of $792.18 billion.
Although overall loan delinquency declined by .2%, delinquent real estate loans increased by .3% during the first quarter, Johnson said in testimony before the Senate Banking Committee.
Johnson, who testified on a panel with several other regulators of financial institutions, said among real estate loans the largest area of concern is in Home Equity Lines of Credit. Delinquency rates on those loans increased from .80% to .96%, between Dec. 31, 2007 and March 31.
She said the overall picture is strong because these credit unions “have effectively implemented guidance by NCUA related to real estate lending and have positioned the industry to weather this current economic downturn.”
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:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 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.
