NEW YORK — The current struggling economy has begun to bring losses to community development credit unions, according their primary industry trade association.
Stressing that his organization had not yet had time to conduct a through analysis, Clifford Rosenthal, CEO of the National Federation of Community Development Credit Unions said that it appeared that 25% of its members had begun to see losses from the economic downturn.
"Based on mid year and third quarter data that we have seen it looks like most of our member credit union have been seeing collateral damage," Rosenthal explained. "Auto loans, other sorts of loans have been the leading problem."
Rosenthal said that CDCUs have seen relatively little damage from mortgage loans, in part because they offered relatively few of them and because they generally did not offer subprime loans.
He also noted that the Federation is definitely seeing a geographic pattern to the problems, with CDCUs in California and Florida showing up first.
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