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Hood Encourages Partnerships to Facilitate Homeownership for the Underserved

March 19, 2008, Alexandria, Va. - National Credit Union Administration (NCUA) Vice Chairman Rodney E. Hood addressed the National Federation of Community Development Credit Unions (NFCDCU) Mortgage Lending Seminar at the Center for Responsible Lending in Durham, N.C., yesterday. The 2-day seminar focused on providing mortgage lending strategies to credit unions, housing organizations, non-profits, housing industry professionals and mortgage industry professionals.

Mr. Hood commended the audience of credit union and housing professionals for their role in cultivating an environment that is a catalyst for collaboration and reinvention of the credit union industry during the current economic upheaval. He went on to stress the importance of homeownership as key to building sustainable wealth and creating strong, viable communities.

Recent turmoil in the mortgage and credit markets has caused aftershocks throughout the economy, which are now being manifested by slower growth and a dramatic drop in consumer spending. While Hood was pleased to note that credit unions have not been part of the subprime mortgage debacle plaguing the financial markets, he did stress the importance of continuing to be part of the solution. 

“You can do this through your commitment to serving the underserved and making capital accessible and affordable,” Vice Chairman Hood said. “With average net worth above 11.54 percent, America’s federally insured credit unions are positioned to once again demonstrate the credit union philosophy of “people helping people” by making capital available to those who need it most, when they need it most.”

Vice Chairman Hood emphasized that credit unions can be assisted in their effort to increase homeownership by partnering with organizations such as Federal Home Loan Banks, HUD and NeighborWorks America in order to attain guarantees that will ultimately help keep more underserved Americans in homes. “Such partnerships are necessary to make capital not only affordable but also available, particularly among the underserved,” said Hood.

In closing, Mr. Hood thanked the Federation for their continued service and dedication to underserved communities across the country.

The National Credit Union Administration 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, also operates and manages the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of nearly 87 million account holders in all federal credit unions and the majority of state-chartered credit unions.

-NCUA-