A story about US Central Credit Union, experiencing substantial losses based on home loans and related bonds, has been reported by Bloomberg News (5 February 2008). For our part, UNFCU only practices prudent and responsible mortgage lending and investment management to benefit our membership. UNFCU is not impacted by the reported losses at US Central Credit Union, a corporate credit union which serves the credit union industry.
UNFCU has not experienced any material increase in delinquent loans. Regulated and routinely examined by the National Credit Union Administration (NCUA), an agency of the United States government, we recently received the highest rating for Asset Quality. In addition, our current Net Worth of over $250 million, or 9.8% of assets; is well in excess of any regulatory minimum requirements.
UNFCU has not been adversely impacted by the recent events in the subprime mortgage arena and we continue to strongly support our members by making mortgage loans available to qualified borrowers.
Further, UNFCU does not expect any credit losses or asset write downs related to our investment activities in mortgage backed securities. We do, however, anticipate continued moderate weakening in the security prices of some of the financial services related companies we currently hold. This is not expected to have any material impact on our financial condition.
UNFCU is a member-owned, not-for-profit financial cooperative and as such, ensuring safety and soundness is always of paramount consideration.
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