NCUA News Release

NCUA Charters California Credit Union

Faith Based Federal Credit Union is first federal credit union chartered in southern California since 1997.

March 7, 2003, Alexandria, Va. – The National Credit Union Administration (NCUA) has issued a charter for Faith Based Federal Credit Union in Oceanside, Calif. People residing, working, worshiping or attending school in Oceanside will be eligible for membership in the new credit union.

NCUA staff facilitated the Faith Based Federal Credit Union charter, working with organizers to ensure the credit union would satisfy NCUA’s safety and soundness requirements and be able to serve its members. As a federal credit union, Faith Based will be insured by NCUA, offering each of its members up to $100,000 in coverage backed by the full faith and credit of the U.S. government.

“Government has never signed up the first credit union member, nor has it made the first credit union loan. Credit unions serve their members. However, at NCUA we can be and should be an agent of access and opportunity to that service. We were pleased to grant this new federal credit union charter to serve this low-income community because there is a real need for access to lower-cost financial services,” said NCUA Chairman Dennis Dollar. “I commend the organizers for their commitment to bring this new charter to fruition, and I certainly wish them the best of success as they reach out to serve their community with affordable financial services.”

Faith Based Federal Credit Union qualifies as a low-income designated credit union, which entitles it to receive low-interest loans through NCUA’s Community Development Revolving Loan Fund, accept non-member deposits and receive free technical assistance from NCUA. To receive the special designation, Faith Based demonstrated the median household income of the community is less than 80 percent of the national household income.

Credit unions are not-for-profit financial institutions owned and operated by their members. Credit unions provide a safe place to save and borrow at reasonable rates. A volunteer board elected by members manages each credit union. Credit unions exist to serve their member-owners and are often able to offer favorable rates on savings and loans. To join a credit union, a person must be eligible for membership. Members of each credit union share a “common bond” such as being employed by the same company, belonging to the same organization or church or living in the same community.

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 deposits of more than 80 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.