Since the last time I wrote, many banks have failed, some have been bought out, and the mortgage fallout continues across the country. It appears this crisis is spreading across the globe.
Otero Federal Credit Union wants to make sure our membership knows that we run our institution in a conservative manner. We will continue to serve our members in the 4 county southern New Mexico area in this way. OFCU is not involved with any sub-prime mortgages. OFCU lends money to its members in a traditional, principled way. We will continue to help our members help themselves. We are still lending money to the local community. Bring in your non-OFCU loan and get 1% cash back, up to $200 through the end of December.
OFCU is a safe and sound credit union, with a net worth of 13.8%, almost double what the National Credit Union Administration considers a well capitalized institution. Our member accounts are federally insured by the NCUA up to $250,000, IRA's are insured up to $250,000 as well.
OFCU is honored to serve its members. We will continue to operate YOUR institution in a conservative way. OFCU will continue to provide you with the products and services you need to improve your financial situation.
Remember, OFCU wants your business, and we will be here for many years to come. OFCU, we're ready when you are!
Greg
2 comments:
Doesn't OFCU have a mortgage dept?? Wouldn't OFCU also be affected by the mortgage crisis? Why all the cover-up? Let's be honest. Mortgage lending is not in the perview of a normal credit union operations. this agressive financing by OFCU in non-credit union areas has bothered the local conventional banks and some conventional credit union members. Hope you don't get burned.
Thank you very much for your response. I am glad to respond to your questions.
The current financial crisis has been triggered by high default rates on sub-prime and adjustable rate mortgages. OFCU does not participate in sub-prime mortgages or adjustable rate mortgages. OFCU's current mortgage delinquency rate is 0%(zero), including home equity loans. OFCU saves its member hundreds if not thousands of dollars on every mortgage it does over that of other mortgage providers by way of reduced fees at closing. Credit Unions have done mortgage lending since 1977, and OFCU has been doing mortgage lending since 1994.
The basic purpose of credit unions is to encourage savings while promoting prudent borrowing for reasons such as a big purchase (home, auto), an emergency, or for educational needs. From their origins, credit unions were unique depository institutions created not for profit, but to serve their members. OFCU 's members themselves exercise democratic control of the credit union by attending and participating in regular membership meetings and by electing the board of directors. The board appoints a supervisory committee to act as independent "watchdogs" of the credit union. Each member is entitled to one vote, regardless of the number of shares owned, and no member may vote by proxy. The board of directors has responsibility for directing and controlling the affairs of the credit union and providing effective management of the credit union's operations.
I hope this addresses your concerns about OFCU's mortgage lending, feel free to call me at anytime. OFCU's statement of financial condition is readily available for viewing at any of our locations.
Gregory Shaver
VP of Marketing
Otero FCU
(505) 443-7070
gshaver@oterofcu.org
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