CBS News reports that sales of new homes collapsed last month, sinking 33 percent to the lowest level on record as potential buyers stopped shopping for homes once they could no longer get government incentives. The Commerce Department says new home sales fell in May from a month earlier to a seasonally adjusted annual sales pace of 300,000. That was the slowest sales pace on records dating back to 1963. It indicates that buyers left the market as federal tax credits of up to $8,000 expired at the end of April. Economists surveyed by Thomson...

While many point to signs of an economic recovery, member perceptions and actions (lack of demand for new loans) point to continued economic challenges. Originations of 1st mortgages are down 44% from Q1 09 and home equity/2nd mortgage originations are off 22%. New vehicle lending is almost non-existent with this portfolio down 12% over the past year and 7% YTD. Business lending (MBLs) appears to be strong, but this data is subject to downward revisions.

Financial troubles in Europe should keep interest rates low for the next few months, thus mortgage rate resets will not turn into payment shocks triggering a new round of defaults. Despite promising reports of increased economic activity, I am not convinced a solid and sustainable recovery is underway. While 2009 was a difficult year for members and CUs, the first half of 2010 is equally challenging and uncertainty has not diminished. Over the next six months, we see employment reports as a wildcard. Due to some hard budget realities, we can...

This economy has been rough for everyone. However, those who belong to a credit union have found the option beneficial. There are a lot of people who prefer to go to a credit union to do their banking over a traditional bank. The reasons are simple and easy to understand. It cost less to bank at a credit union than a traditional bank. Credit unions have fewer services available to their customers because that is the way the law is written, though some argue that for most individuals they would not never be able to tell the difference because the...

By the simple way that money is created, the human mind is repelled. Every time we take a loan from a bank we make ourselves debtors who are deeper and deeper in debt, paying interests and finance fees.

Credit unions should leave no sacred cows in the field, and one of these that needs to be set free is the credit union tax exemption. Yes, it should be preserved but that depends upon the cost. The benefit should not be taken lightly or given up without a fight but it can’t be a line in the sand either. The tax-exempt status of credit unions could prove to be more of bane than a boon; it cannot stymie progress. Credit unions should never back away from what they need to succeed, such as risk-based capital, alternative capital, member business...

Credit unions have fared relatively well in this recession. There are many reasons for this, including fields of membership. Despite some conversions to community charters and creating organizations solely for the sake of garnering members, credit unions generally still know their members. Knowing your members allows credit unions to make better decisions with respect to loans, product offerings and marketing, among other things. FOMs not only provide the credit union a profile of the membership, but the member is more likely to share an affinity...

There are many board members who’ve been serving on their boards for multiple decades. That historical knowledge is useful to a point but if most or all of your credit union board has 30 years in, it’s time to shake things up. The best reason for getting new blood on the board is that the credit union board where each member has served a lengthy tenure is not likely to be representative of your membership, and if it is, you’ve got even bigger problems. The best way to accomplish shuffle the deck is not by setting term limits but actually...

What does “credit union” mean? Other than those in the industry, polls have shown time and again, very few have any clue. Yet, the basic idea of a bank is understood by anyone over the age of six. Credit unions need to get over the idea of marketing themselves as different. If no one knows what you are, no one knows why you’re different; it’s irrelevant. Being a credit union is a great thing to be, but marketing your credit union as such is a waste of time. Drop the “credit union” from your marketing. Not necessarily from your branding...

Here is an interesting video I found on youtube about the differences between banks and credit unions.