WASHINGTON — Credit unions report a slew of reactions ranging from panic to a lack of concern to the news that the massive $700 billion bailout proposal has been rejected by the House of Representatives.
Reactions seem to depend on whether the CUs keep their loans or sell them on the secondary market.
The head of one credit union trade association said he has already gotten an email asking, "What are the alternatives to Fannie Mae and Freddie Mac?"
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But Jim Moore of Ent Federal Credit Union said the Colorado-based credit union is not concerned because so few of its loans are sold on the secondary market. Moore, a senior vice president with Ent, said that, although the credit union's loans are conforming, not more than $25 million of a total portfolio of $898 million has been sold to the secondary market in the last five years.
As of June, of the nation's 8,136 credit unions, 926 credit unions sold first mortgages into the secondary market, according to data provided by Callahan and Associates.
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