Presented by Credit Union National Assn. (CUNA), Washington, DC/October, 2008
Credit unions as a whole are healthy, with strong balance sheets.
• Credit unions are well capitalized. Their overall capital-to-asset ratio stands at a very solid 11% (compared
to 10% for banks). In dollars, that’s a capital cushion of $90 billion.
• Credit union mortgage delinquencies at mid-year stood at only 0.7%. First mortgage charge-offs were a
• More broadly, credit union loan delinquencies have edged up, but still are at a very low 1.0%.
Credit unions have steered clear of the subprime mess. We’re still lending responsibly.
• In the first eight months of 2008, mortgages at credit unions grew faster than all other loans. This at a time
when mortgage losses have forced other lenders to scale back or close their doors entirely.
• Why? For one thing, credit unions operate more conservatively and tend to hold more of their mortgage
loans (about 70% in fact) in portfolio rather than sell on the secondary market.
• Secondly, credit unions are member-owned and not-for-profit cooperatives. We exist to serve our members,
not profit from them. Unlike the banks and brokers, we’re not out to force loans on our members just to make
a quick buck.
• Today 56% of credit unions offer first mortgages, and 90% of the nation’s 90 million credit union members
belong to one of the credit unions that offer first mortgage loans.
• To the extent credit unions have been impacted by the subprime debacle, it’s primarily as “collateral dam-
age”—members having trouble making payments on other loans because of subprime mortgage they’ve got-
ten elsewhere, or because some members are losing their jobs in today’s down economy.
• But credit unions went into this with very strong balance sheets, and will still be in very strong shape when
Credit unions are a safe harbor for consumer savings.
• Savings at credit unions so far this year have grown nearly 6%. In today’s economy, consumers are in-