Lending

As the recession continues and the commercial real estate marketplace sours, more credit unions will unfortunately have to foreclose on commercial real estate properties secured by defaulted member business loans.

Everett Credit Union, in partnership with Credit Union Student Choice, recently grabbed the attention of more than 200 student and parents at a college planning seminar it held.

Credit Union Liquidity Services LLC, previously known as Texans Commercial Capital, has been awarded more than $40 million in a suit involving a defaulted Illinois property loan, according to Texans Credit Union.

Some large banks, defined as those with assets greater than $20 billion, have reported easing their commercial loan terms to businesses, the latest Federal Reserve Board senior bank officer survey revealed.

The strong relationships credit unions forge with their members may be enough to protect them from the most severe impacts of having large numbers of home owners walk away from their mortgages, credit union economists and executives say.

For fiscal year 2011, the SBA's proposed budget of $994 million aims to bolster the agency's 7(a) loan program and extend revolving lines of credit, commercial real estate loans and term loans.