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Be counted in Chicago
Are you planning to attend NAFCU’s 43rd Annual Conference & Exhibition in Chicago, July 20–24? There are many reasons why you should, but I’d like to focus on one: We want to hear what’s on your mind.
Now that might sound a bit strange. You might expect me to tout the fact that this year’s annual conference is in beautiful downtown Chicago at the Navy Pier; that speakers include Hall-of-Famer and former NFL coach Mike Ditka and acclaimed documentary host Bill Kurtis; or maybe the fact that this year’s entertainment comes in the form of a special afternoon Chicago Cubs ballgame at Wrigley Field.
Those are all good reasons to go. But with 2010 proving to be such a pivotal year for credit unions, it is important you attend so that your opinions, viewpoints and ideas about the challenges and opportunities facing our industry can be counted.
I’ve been attending NAFCU’s annual conference every year for over 20 years, and each time, I have been amazed by the quality of the speakers, the range of educational offerings, the unique product opportunities and the scenic settings where they take place. But more than anything else, I have always found the peer-to-peer discussion about what’s happening in our industry invaluable.
Everyone has issues that are of pressing interest. For me, there are four: 1) the economy; 2) the corporate credit union situation; 3) National Credit Union Share Insurance Fund assessments; and 4) potential strategic defaults by “under-water” homeowners. I’m looking forward to hearing what my peers have to say on these and other subjects in Chicago. In the meantime, I thought I would use my remaining column space to provide some “food for thought” about the ones I identified:
The economy: The economy appears to be on the mend, but exactly how long it will take to recover remains uncertain. Of course, uncertainty often leads to inaction –– the byproduct of taking a “wait-and-see” approach. This is understandable. Credit unions want to insulate themselves from any unforeseen risk. At the same time, we must remember our mission of serving the financial needs of our members. Even with this economic downturn, a great many credit union members remain financially viable. Credit unions must continue to serve these members’ needs.
Corporate credit unions: Obviously, none of us knows what the corporate system will look like once the dust settles, but a couple of things are certain: First, there will be significant costs for natural person credit unions in the form of future assessments for the corporate stabilization fund. Second, despite these assessments, our industry will continue to be successful. Thankfully, the creation of the Corporate Stabilization Fund, separate from the NCUSIF, provides the NCUA time to work through the problems in an orderly manner and enables our industry to absorb the costs over several years.
National Credit Union Share Insurance Fund assessments: Many credit unions are struggling more than ever and the NCUA needs to be aware of what is happening “on the ground” so our industry’s difficulties are not exacerbated. As a result, NAFCU continues to urge the agency to use every means at its disposal to spread out the cost of these assessments as permitted under the law.
Strategic defaults: For the first time in history, credit unions are contending with strategic defaults –– cases where homeowners have the ability to pay a mortgage but do not because their home’s value is worth significantly less than what is owed. Fortunately, a great many credit union members will continue to honor their financial obligations. For the remainder, credit unions can be proactive by reminding these members that strategic default will damage their credit, impair their ability to buy another home in the future and hurt their fellow members.
Even with these concerns, there are plenty of opportunities for credit unions. A few things I’m looking forward to asking my peers: How can credit unions best maximize the benefits of the new members we’re seeing from dissatisfied bank customers? How can we serve lower-income members who are aspiring to become homeowners? And perhaps most importantly, how can we carry the lessons of sound financial management into the future?
The bottom line: NAFCU’s annual conference provides a unique opportunity to gain and offer insights into the issues and opportunities that matter the most to you. And that won’t just benefit you and your credit union; it will benefit all of us.
Looking forward to seeing you in Chicago!
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