Bridges to the Underserved: Credit Union Partnerships

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Bridges to the Underserved Credit Union
Partnerships

• Americas Credit Union Conference
• New York City July 2, 2008

Cliff Rosenthal, President/CEO National
Federation of Community Development Credit Unions
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Welcome to Our Home Town!
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Todays Presentation

• Introduction to CDCUs and the Federation
• DVD
• Bridges to the Underserved CU Partnerships
• Emerging Partnerships
• Discussion / Q A

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Meet the Federation

• Founded 1974
• Status 501c3 charitable organization
• 225 member CDCUs 50 Community Development
  Partners
• NYC Financial District (Headquarters)
• Madison, Colorado Springs, Washington DC
• Winner of National Credit Union Foundation Wegner
  Awards (1992, 2005)

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Our MissionHelp CUs do More to Serve the
Underserved

• Develop and promote
• Products
• Programs
• Partnerships
• to help credit unions reach more underserved
  people more effectively

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What We Do

• Capital for CDCUs deposits, secondary capital
• Education and Training CDCU Institute
• Advocacy NCUA, Treasury Dept. (CDFI Fund)
• Research and documentation
• CDCU Mortgage Center, LLC
• Secondary Market to purchase loans
• Home Ownership counseling
• Special outreach programs to reach the
  Underserved
• Disability Outreach Network
• Latino CU Network
• Faith-based CU network
• Youth Credit Union project

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Who We Are CDCUs

• A CDCU is a credit union that
• has a specific mission to serve low-income
  people, neighborhoods, and communities
• May be any charter type (state or federal
  community or employment-based, etc.)
• Usually designated low-income by NCUA or state
• If designated, powers include
• non-member deposits
• secondary capital
• Not limited to 12.25 re Member Business Lending
  

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Who We Are Community Development Partners

• CDPartners are credit unions that have
  demonstrated their commitment to expanding
  service to low-income communities through --
• Expanding their membership and presence in
  low-income areas
• Partnerships with local CDCUs
• Participation in public and private initiatives
  to serve low-income (e.g., affordable housing)
• Partnership with the Federation

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Community Development Partners Program

• Current membership 49 Credit Unions
• Total assets 80 billion
• Total membership 8 million
• Half of all CUs with more than 3 billion in
  assets

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Community Development Partners

• America First FCU UT
• Andrews FCU MD
• Anheuser-Busch Emp. CU MO
• Arrowhead CU CA
• Bay FCU CA
• Bethpage FCU - NY
• Boeing Employees CU WA
• Capital Commcations FCU - NY
• Charter Oak FCU CT
• Cincinnati Central CU OH
• Community Educators CU FL
• District Govt Emp. FCU DC
• Finance Center FCU - IN
• GTE FCU - FL
• Houston Muni.Emp. FCU TX
• Hughes FCU AZ
• IBM Metro Emp. FCU NY
• LA DOTD FCU LA
• Liberty Savings FCU NJ

• North Jersey FCU NJ
• SchoolsFirst FCU CA
• Paragon FCU - NJ
• Patelco CU CA
• SCE FCU CA
• Seattle Metropolitan CU - WA
• State Employees CU NC
• State Employees FCU NY
• Suffolk FCU NY
• Suncoast Schools FCU FL
• Sunmark FCU NY
• TC FCU MI
• Texas Dow Employees CU - TX
• The Summit FCU NY
• Treasury Department FCU DC
• Tremont CU Braintree, MA
• Truliant FCU NC
• Ukrainian FCU NY
• UN FCU - NY

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Time for a Movie! Bridges to the
UnderservedCredit Union Partnerships

• Featuring
• The San Francisco Bridge/APPLE Consortium (SFBAC)

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Emerging Partnerships

• East Palo Alto
• Community Trust CU branch
• Supporters Patelco CU, Stanford FCU, Addison
  Avenue FCU
• Santa Ana SchoolsFirst FCU/Comunidad Latina FCU
• Deposits from other CUs
• Back-office financial support from OCTFCU

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Partnerships are Critical forNew CU Charters!

• Four new FCUs in U.S. in 2007-08 (100 200 new
  banks a year!)
• Average time to charter 3 years or more!
• Emerging CUs
• Seattle/Kings County, WA
• Battle Creek, MI
• Bergen County, NJ
• Houston, TX
• Atlanta, GA

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National Initiatives

• CU Development Corps
• Development Exchange
• CU Breakthrough
• Financial Collaboration CDCU Secondary Market

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CU Development Corps Development Exchange

• Federation alliance with CU Development Educators
  network
• One-week exchanges between CDCUs and mainstream
  CUs
• Advise CDCUs on marketing, operations,
  compliance, etc.
• CU Dev.Ex. members to learn issues of
  development first-hand

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2008 Development Exchanges

• Lower East Side Peoples FCU / Philadelphia FCU
• Triumph Baptist FCU /AEA FCU
• Vernon-Commerce CU /Self-reliance Ukrainian
  American FCU
• NRS CDFCU/ Washington State Employees CU

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CU Breakthrough, Inc.

• Consulting services
• market research
• FOM studies
• Management and board training
• Assessment of products and services
• Strategic planning serving low-income markets
• Business planning and grant writing
• Organizing and start-up assistance
• Our teams Experienced practitioners from CDCUs,
  CD Partners, and others
• Discounts for CDCUs and Community Development
  Partners

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A New Secondary Market for Affordable Home
LendingCDCU Mortgage Center, LLC

• Purchase CU loans for affordable housing
• Loans without ready secondary market (e.g.,
  Immigrant (ITIN) manufactured housing co-ops)
• Help prevent foreclosure

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Conclusion Why CU Partnerships?

• Reaching the underserved is a big, hard job.
• CDCUs cant do it alone.
• Mainstream credit unions cant do it alone.
• Combine size/scale/sophistication of large CUs
  with market knowledge of CDCUs
• Partnerships are good politics
• Cooperation is who we are.

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Join Us!

• Become a
• Community Development Partner

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Please Visit Us!
National Federation of Community Development
Credit Unions 116 John Street, 33rd Floor New
York, New York 10038 www.cdcu.coop crosenthal_at_cdc
u.coop 800-437-8711