Wednesday, February 13, 2008
According to an article in todays Wall Street Journal, credit unions -- nonprofit, mutual benefit, cooperative institutions owned by their members -- are becoming an unlikely hero for many Americans who are foreclosing on mortgage loans. It reports that credit unions did not invest as heavily as large investment companies in subprime loans that have shaken American banks. Since credit unions have not taken the same financial hits that the banks have, they are able to offer loans to borrowers that the banks will not take risks on. And because their mission is to benefit their members, not impersonal shareholders, they are likely more flexible in meeting their members' needs.