Matz Challenges D.C.-Area Credit Unions to Serve as Nation’s Model
April 13, 2004, Arlington, Va. – National Credit Union Administration
(NCUA) Board Member Debbie Matz last night challenged credit union leaders
from the Washington, D.C. area to “reach everyone in this diverse
community and become the standard by which other credit unions are judged.”
Speaking to 130 members of the Metropolitan Area Credit Union Management
Association (MACUMA), Matz said “D.C.-area credit unions, by virtue
of your location in and around the nation’s capital, have a unique
opportunity to serve as models for all of America’s credit unions.
This requires developing innovative programs and outreach efforts so
you can serve people from all walks of life – young people, single
mothers, members of the military, small business owners, senior citizens,
renters, and other people with low-to-moderate incomes, including immigrants
from every nation in the world.”
As federal lawmakers examine credit unions’ tax exemption, Matz
pointed out, “the urgency to reach everyone in this diverse community
has never been greater. When you reach out and help more people in the
national capital area – especially those who are not served by
other insured financial institutions – you give lawmakers more
reasons to preserve your tax exemption.”
Matz told inspiring success stories from D.C.-area credit unions that
are offering services to attract new members who are not served by other
institutions. For example:
• Shiloh of Alexandria Federal Credit Union,
with just $1 million in assets, offers small short-term loans to provide
emergency cash and
relief for victims of predatory lenders. These no-fee loans have
been used to pay off high-rate payday loans, last-minute tuition, and
medical
bills for members with no health insurance.
• Navy Federal Credit Union offers a “Moderate Income Auto
Loan Program” for applicants who would not qualify for loans under
Navy Federal’s traditional policies. Interest rates are 2% above
the credit union’s standard auto loan rates, but far less than
these borrowers would pay elsewhere. Only 1.6% of these loans have
been charged off, and more than 60% of these members have earned
rate reductions
by making prompt payments for two years.
• District Government Employees FCU offers the
International Remittance Network (IRnet) as a low-cost lifeline for
immigrants to support family
members in their home countries. This service saves consumers 30-50%
off of wire transfers at for-profit outlets. Under certain conditions,
NCUA permits federal credit unions to provide wire transfers to everyone
in their field of membership, including non-members. Matz said this
is especially significant in the D.C. area because nearly 20% of the
residents
are immigrants.
• Apple FCU provides hands-on youth financial
literacy training by opening student-run branches in 16 high schools.
These branches have
over 200 student employees and 1,600 active student accounts, with
65% checking account penetration. Students are gaining valuable work
experience
and money management skills.
Matz also congratulated three MACUMA-member credit unions – Andrews
FCU, HEW FCU, and Lafayette FCU – for stepping up and gaining NCUA
approval to offer their services to all or most of D.C.’s underserved
areas.
“Reaching new members with innovative services is not only the
right thing to do,” Matz concluded. “It’s also good
business and can preserve credit unions’ tax exemption.”
A 24-year public service veteran, Matz is a member of three credit unions
and resides in McLean, Va. with her husband and two children. Before
her appointment to the NCUA Board, Matz was appointed by President Clinton
as Deputy Assistant Secretary for Administration in the Department of
Agriculture.
The National Credit Union Administration, governed by a three-member
board appointed by the President and confirmed by the Senate, is the
independent federal agency that regulates, charters and supervises federal
credit unions. NCUA, with the backing of the full faith and credit of
the U.S. government, operates and manages the National Credit Union Share
Insurance Fund, insuring the savings of more than 80 million account
holders in all federal credit unions and the overwhelming majority of
state-chartered credit unions.
|
