Subprime Lending – Not the PSECU Way – A Message from PSECU’s President
With all the negative press going around lately about subprime lending, I thought members might appreciate a few words on the credit union’s financial situation.
First, PSECU has never made subprime loans. We approve the majority of our members’ loan applications (consumer and real estate) but if a loan doesn’t make sense for the credit union and especially the member, it won’t be approved. We don’t believe it’s ever in our members’ best interests to put them into loans they can’t afford.
Second, PSECU’s investments are limited by the state and federal credit union laws and regulations. With very few exceptions, PSECU is restricted to investments that carry some form of federal insurance or backing. PSECU does not hold and has not held investments which contained subprime mortgages.
Finally, PSECU’s financial records and operations are examined annually by the State Department of Banking and the National Credit Union Administration. We are also audited each year by our internal and external auditors. As you can see in the financial reports that we post each month on our Web site, PSECU holds more than $250 million in reserves for its operations. For our asset size, that level of reserves makes PSECU one of the strongest financial institutions in the state.
Sincerely,
Gregory A. Smith
President