Trades, CUs Hope for Market Recovery

WASHINGTON — Credit unions generally applauded the government takeover last week of Fannie Mae and Freddie Mac as a move that could alleviate the credit crunch in the housing market and provide lower interest rates. But one credit union president says the action won’t cure the bigger ills facing the mortgage market.

Seattle-based Boeing Employees’ Credit Union opined, “It’s business as usual for credit unions. Fallout from the collapse of the subprime markets has created the single best opportunity for credit unions to claim their rightful place as their members’ mortgage provider of choice. Members, as a result of what’s happened, are looking for trustworthy, reliable lenders that offer affordable sustainable financing. That’s a credit union. Credit unions, in turn, need affordable, reliable access to the secondary markets. That has, and will continue to be, Fannie Mae and Freddie Mac.”