National Credit Union Administration
1775 Duke Street
Alexandria, VA 22314-3428
Phone: (703) 518-6330
Web Address: http://www.ncua.gov/

Matz Encourages Credit Unions to Help Close America’s Growing Homeownership Gap

NCUA Board Member says “Homeownership is no longer the American dream;
it has become a mirage for millions of low-income families”

Shiloh of Alexandria offers hope that even the smallest
credit unions can offer affordable mortgages

Sept. 30, 2004, Alexandria, Va. – “I hope news of this partnership spreads throughout the entire credit union community,” said NCUA Board Member Debbie Matz at a press conference announcing a partnership that will enable the tiny Shiloh of Alexandria Federal Credit Union to offer a full range of affordable mortgages.

“This sends an important message,” Matz pointed out. “Even the smallest credit unions can offer mortgages with low down payments, below-market interest rates, and discounted closing costs, when they seek creative and civic-minded partners.”

Matz emphasized that by making more affordable mortgages, “Credit unions and their mortgage partners can help close America’s growing homeownership gap. While the national homeownership rate is a record 70%, the homeownership rate for low-to-moderate families has fallen to a lower level than in 1978: only 56%. Closing this gap would open the door of homeownership for more than 2.5 million families – and more than 5 million children would grow up in more stable homes.”

Citing research from the Neighborhood Reinvestment Corp., for which she serves as Vice Chair, Matz explained that “children of homeowners are less likely to experience behavioral problems, more likely to excel in school, and more likely to own their own homes when they grow up.”

Unfortunately, today, Matz observed, “For millions of hard-working people across the nation, homeownership is no longer the American dream; it has become a mirage. It’s a vision that’s always out of reach. Many renters are struggling to get closer, but never seem to get there. The longer they work to save for a down payment, the less they can afford to take on monthly mortgage payments.”

The reason: “Housing prices are rising through the roof. Over the last four years, housing prices have risen three times faster than income. That’s why so many low-to-moderate income families are struggling to afford their own homes.”

Shiloh of Alexandria FCU will target its affordable mortgage programs to help low-income and minority families – including those living in public housing – afford their first homes.

Many partners will help the credit union leverage its $1 million in assets to fund more mortgage loans. Organizations supporting Shiloh’s initiative include: the City of Alexandria, the Alexandria Redevelopment and Housing Authority, CU National Mortgage, Prime Alliance, NCUA, the National Association of Federal Credit Unions, the National Credit Union Foundation, the National Federation of Community Development Credit Unions, First Home Alliance, and Fannie Mae.

Matz, who also serves as the NCUA Board’s liaison to Fannie Mae and Freddie Mac, suggested that “this type of public/private partnership could serve as a model for credit unions across America. Working together, credit unions and their mortgage partners – with support from dedicated federal and local officials – can make homeownership attainable for millions of hard-working families.”

Recommended by Senate Democratic Leader Tom Daschle (D-SD), Matz was named as a recess appointee to the NCUA Board in January 2002 and nominated to a seat on the Board on February 27, 2002. The U.S. Senate confirmed her on March 22, 2002. As part of the NCUA Board, Ms. Matz oversees the regulation of federal credit unions and the administration of the federal insurance fund covering approximately 9,500 credit unions in the U.S.

A public service veteran of nearly 25 years, 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.