Lending

NAFCU's Tun Wai and CUNA's Steve Rick both understand why credit unions are booking more mortgages: secondary market prices are deeply discounted, and consumer loans not only bring credit risk, demand for them is low, too.

While credit unions continue to tout having more money to lend, some still prefer to deal with existing businesses with positive cash flows and tangible assets.

Delinquencies among eight installment-loan categories increased to 3.23% of all accounts during the first quarter from 3.22% in the last three months of 2008, the American Bankers Association reported today.

Despite some criticisms of the SBA's new America Recovery Capital program, Dupaco Community Credit Union said it believes the loans will bring much-needed assistance to members.

While the SBA expected a new program offering deferred payments and no fees to be in huge demand, only $4.6 million loans have been funded since the recovery effort was launched on June 15.

The prospect of big loan demand from state employees resulting from Illinois' current budget crisis has one credit union prepared with revised procedures "so we don't waste a lot of staff time with inactive accounts."