Lending

Credit unions and banks would be encouraged to make small loans to low-income consumers by the creation of a fund to help them recover the majority of a lost loan, under a bill introduced today by Sen. Herb Kohl (D-Wis.).

Credit unions already working the U.S. Government's Home Affordable Modification Program will likely face additional paperwork from proposed program changes, but will lack the volume of loans for those changes to have much of an impact.

As many financial institutions have stepped away from lending, First Credit Union is letting potential borrowers know that there is an alternative with its $50 million loan-a-thon.

The $98 million Greater New Orleans Federal Credit Union has announced the roll out of a program designed to help members avoid having to use payday lenders.

Credit unions with mortgage loans that were fraudulently sold by a since failed mortgage firm face possible dire regulatory consequences if Fannie Mae does not return a significant amount of their lost money, suggested NCUA Board Chairman Debbie Matz.

Saying that "lending limits should be regulatory, not statutory," NCUA Chairman Debbie Matz wrote a senior Treasury Department official to raise or eliminate the statutory limit on member business loans.