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blessedinnyc -> RE: Credit unions & the credit mess. (9/26/2008 5:23:09 PM)
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quote:
ORIGINAL: mrtigger
As I'm sure you well know, a number of banks have failed due to the mortgage/credit mess.
Are credit unions also failling because of the same issues that are hurting banks?? Or are credit union not being affected much by this?
Thanks in advance.
I've done a little bit of reading on this, and my understanding is that credit unions were generally a bit more conservative while writing mortgages. Many banks took a lot of risks to try and increase shareholder returns. Credit unions generally lend within a specific community, so at the very least, if you live in a community without a lot of foreclosures, your credit union should be safer.
As a reminder, Credit Unions have something similar to the FDIC- the National Credit Union Share Insurance Fund. Deposits insured by the NCUSIF (most credit union deposits are insured) are backed by the full faith and credit of the federal government, up to $100K.
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