Wednesday, October 01, 2008

PCCU Fine For Now

I was just in Provident Central Credit Union at the Eureka Mall to make a deposit. With all the financial news of late, I figured I'd ask about home loans.

I asked the gal if she could set me up with a home loan. She said, "Sure. Do you really want one?". I asked her if the credit union wasn't having problems with all the banks falling apart over the mortgage fiasco. She said the credit union was fairly picky and didn't do "what they wanted us to do when everyone else was doing it...", or some such.

I asked who she meant by "they", thinking it must be the bigger banks. She said she was referring to all the people who wanted loans but couldn't afford them. They wouldn't loan money to them and so this banking crisis doesn't really affect them, or so she's saying.

Of course, she's just a customer service representative and might not be seeing the whole picture and maybe it will take a while for this Fannie and Freddie thing to roll down to the smaller banks and credit unions? Maybe they'll weather the storm as she suggests. I don't know.

Next time you go to your bank or credit union, ask about getting a home loan and see what they say. I actually felt pretty good hearing her say our credit union wasn't having any problems.


At 2:39 PM, Anonymous Anonymous said...

a bank would never tell you that they're doing bad. It's not in the script.
When word spreads that a bank is shaky people make a run on it.

At 3:38 PM, Blogger Fred said...

True, but she didn't seem at all concerned when I asked about a home loan. That said, as I mentioned earlier, she's just the window gal and might not know the going's on and concerns higher up the food chain.

Oh, I was going to go in and do the same a while later at the U.S. Bank in Henderson Center. Only reason I didn't was everybody looked like they were dealing with customers in there.

At 8:20 PM, Anonymous Anonymous said...

Provident did not make sub-prime mortgage loans. That's why Provident doesn't have the same problems now that many other lenders do.

The lenders that caused this financial crisis are the ones who went hog-wild, lending money to people who couldn't keep up with their mortgage payments.

By applying traditional prudent lending standards, Provident prevented itself from becoming part of the mortgage-industry instability that so many people are now worried about.

My understanding is that Coast Central also took the responsible path and is in good shape as a result.

At 11:48 AM, Anonymous exrepublican said...

i was denied a business loan at CCCU recently. they said that they have tightened up the standards to the point where people with good credit and income cant get loans. this was for an ESTABLISHED business.....

if they arent giving loans to established businesses, they arent giving money to new enterprises either.

also, the reason houses havent been selling for the last year and a half is due to a lack of lending. plenty of buyers want to buy houses, they just cant get mortgages. i hear the term "private money" being tossed around alot these days. luckily, we have a local industry that brings in lots of "private money" that can be used as capital investment.

At 3:38 PM, Anonymous Anonymous said...

My broker has a high opinion of Provident Credit Union and also of Coast Central Credit Union. He warned me away from WaMu (Washington Mutual) a month before WaMu tanked. So I tend to trust his judgment.


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