NCUA News Release

Reach Out to Those Who Do Not Yet Own Their First Home, Says Matz

Board Member Sees Financial Literacy as Key

March 17, 2003, Orlando, Fla. – National Credit Union Administration (NCUA) Board Member Deborah Matz, addressing the annual conference of the American Credit Union Mortgage Association, told attendees that minority members represent marketing opportunities for credit union mortgages.

“While more than 70 percent of white households own their home,” said Matz, “fewer than half of Hispanic and African-American households are homeowners. These populations, therefore, provide a new market for credit union services. To really expand into mortgage lending, credit unions need to reach out to those who do not yet own their first home,” Matz said.

Matz noted that first-time homebuyers “must have the resources and the know-how – if they don’t understand money, credit or budgeting, they cannot be financially successful and will never become homeowners. That’s where credit unions come in. Financial literacy is the first step on the road to homeownership and no one does financial literacy training as well credit unions.”

In addition to being a worthy thing to do, Matz said, “Financial education and affordable mortgage programs entice people to join your credit union.” She pointed out that such programs are “a great opportunity for credit unions to expand their markets and they are something all credit unions should be doing.”

“It’s a win-win situation,” said Matz, “Credit unions that help the first-time homebuyers will discover a new market for reasonably priced mortgages as well as other services. It’s the smart thing to do because homeowners have assets, making them better credit union borrowers in the future.”

A 23-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 deposits of more than 80 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.