The 13.000-member, $103 million Cooperative Center FCU hasexpressed support for Richmond, Calif., to obtain and restructure some mortgages evenif the Bay Area town has to use eminent domain.

|

The city's council and mayor have approved the plan, whichremains in limbo in the face of California law governing splitvotes and the opposition of banks and other lenders andregulators.

|

The credit union in nearby Berkeley, Calif., contended in apress statement Tuesday that the goals of the program outweighedits risks.

|

“We believe that modifying heavily underwater mortgages to keepresidents in their homes, instead of foreclosing and kicking themout, has a tremendous benefit to the community, Cooperative CenterCU wrote in the statement.

|

“Whether these principal reduction modifications are achievedthrough the straight purchase or eminent domain of these loans atmarket value, Cooperative Center FCU intends to continue lending toits Richmond-based members,” the credit union said.

|

“And we plan to continue lending even if the big banks refuse tolend in Richmond, as they indicated they would do.”

|

The credit union was chartered in 1942 to serve the members of alocal food and grocery cooperative that has since gone out ofbusiness. It has also merged in two other nearby credit unions.

|

“Our members see the credit union as their primary financialinstitution. This inherently stable “core' membership has provideda solid foundation from which to build,” the CU said on itswebsite.

|

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.
NOT FOR REPRINT

© 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.