July 14, 2003


  • I don't like blanket comments as you made in the last paragraph. Most credit unions ALM strategies will be fine with mortgage loans even at todays low interest rate. The ones that have issues should be selling more of their loans, not stop originating mortgages. Without mortgage loans, credit unions would have serious trouble from both fee income and more importantly member retention. The mortgage has been shown to be the key driver in a member considering the credit union their PFI, if we encourage them to stop originating loans, we are asking them to let their members go down the street to banks and potentially lose their entire relationship. Simple comments like you made in this article can do damage for several months to come when directors and CEO look at this as advice as to how to run their credit union. I thought you were more responsible than that!