Credit unions were granted non-profit, tax-exempt status in order to serve persons of “modest means,” but recently released Home Mortgage Disclosure Act data is calling that mission into question.
According to the report,
- Of the 11,775 mortgages originated by Oregon credit unions last year, less than one percent – 96 mortgages - went to low-income borrowers - less than one percent. 14 percent went to moderate income; 53 percent went to middle income; 32 percent went to upper income.
- Oregon credit unions made 18 mortgage loans on homes of $1 million or more. OnPoint Community Credit Union, the state’s largest credit union, made four mortgage loans on homes of $1 million or more.
- Oregon’s five largest credit unions averaged only one percent of their mortgage originations to low-income individuals.
- There were seven Oregon credit unions that originated loans to ONLY upper income individuals.
Read the report.
Just for comparison:
ReplyDeleteWhat was the % approved vs applied?
What is the comparison for banks?
"There are lies, damned lies and statistics"
- Mark Twain
Credit unions are chartered to make small loans to people of small means thru small local institutions. For this, they receive a exemption from federal tax on income.
ReplyDeleteCongress, 1934.
Banks pay taxes and make MORE loans to low income peeps.
NOW you can use your Mark Twain quote.