Friday, October 25, 2013

Credit Unions as Stealth CRE Lenders

An article in talks about the growth of credit unions as commercial real estate (CRE) lenders.

The article cites the expansion of CRE lending at NASA Federal Credit Union. According to Andy Stafford, director of Commercial Real Estate at NASA Federal Credit Union, commercial real estate lending at NASA Federal Credit Union is expected to increase by 30 percent to 35 percent in 2013.

The article notes that these loans are not micro transactions; but rather loans ranging in size from $1 million to more than $20 million.

The use of a credit union service organization makes it possible for the credit union to finance larger commercial real estate loans by partnering with other credit unions.

But should we as a society be providing taxpayer subsidized loans to fund commercial real estate projects?

Read the article.


  1. NASA FCU showing signs of being next telesis.
    There is no reason why NASA should be conducting business this way.
    If they want to originate cre and other business loans, that's their prerogative but they should change to a bank charter and do it legally.
    Then, a regulator that knows how to evaluate the credit can determine if Doug all man is the next grace mayo.

    1. 1. What signs is NASA showing of being the next Telesis?
      2. It is legal for CUs to originate business loans, even large ones.
      3. This is the bank industry's plan: Split us up into small and large CUs, tax the large ones, and let the small ones languish into oblivion which equals no more CU industry. Anyone who doesn't see this is fooling themselves.

    2. Its legal so it must be ok.
      No one is trying to split credit unions between big and small.
      We have done it ourselves.
      And YOU are kidding yourself if you dont know it.
      Or youre cuna.
      CU Not Accountable.
      Even ncua knows.
      Office of small credit unions.
      OnES for cus over 10B.
      Liquidity rule for credit unions with assets greater than $250m and below.
      wake up.

  2. But in order to change to a bank charter, it cannot be mutually-owned. There are no provisions for mutually-owned banks to get FDIC insurance.

    Ok, get the legislation passed bankers!!!!

    1. ?
      What do you call the insurance that a mutual savings bank has?
      FDIC insures deposits of mutual savings banks.

    2. A mutual savings bank is not a bank. Washington Mutual did not have the same powers as Bank of America. If credit unions go to a "bank" charter and pay "bank" taxes, then full powers of a "bank" must be there.

    3. In order for a credit union to change to a bank charter it MUST be mutually owned. Not sure what the number is today, but last time I counted there were over 600 mutual savings institutions. They all have FDIC insurance. No legislation needed. But what disturbs me more than the error of your statement is that I continually see and year incorrect information spouted by cu people. I know you believe what you're being told by your trade association(s) but you're basically paying them to lie to you. They know they are lying to you but have decided it's worth it to use you to spread disinformation. Are you really okay with that? Wake up!

    4. You may think everyone is "braindead." Some of us actually read the laws for banks and mutual savings banks. The powers for both are not the same. If so, then there would be one set of banking powers with multiple options for ownership. That is not the case.

    5. If you were as informed as you think, then you would know a cu can convert to a mutual savings bank which would give it much more powers and the ability to raise capital with permission from members via a vote.
      If their business then evolves in a way that theyd be better served with a commercial bank charter they can.
      Dont confuse the word bank. There mutuals and commercial. Both pay federal tax and have more powers than credit unions.
      Credit unions are figuring out that theyre stuck with no relief in exchange for no fed tax.

  3. And my response to your article - So what? Is that "tax subsidy" going to a small group wealthy individuals. Not hardly. If credit unions can make CRE loans at a lower cost passed on to their members, so what? Is the government going to make better use of the money? Really? So what...



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