Author: Committee on Banking and Currency

Publisher: Forgotten Books

Published: 2017-11-03

Total Pages: 54

ISBN-13: 9780260230843

Excerpt from Federal Credit Union Act Amendments and Voluntary Payroll Allotment: Hearing Before the Committee on Banking and Currency, House of Representatives, Ninetieth Congress, First Session on H. R. 6157, a Bill to Permit Federal Employees to Purchase Shares of Federal-or State-Chartered Credit Unions Federal credit unions, it is noted that credit unions have had little, if any, liquidity problems in the past. On the contrary, they seem to have been able to attract ample funds from customers and to borrow from one another and from banks for seasonal or unexpected needs. Thus, the need for authority to make investments in central credit unions would seem to depend upon the possibility of greater liquidity problems in the future. Accordingly, a careful study Of such problems might usefully precede legislative action on this point. The Board also questions the desirability of h.r. 6156, which would grant to all Federal credit unions authority to make long-term real estate loans. Such authority would represent a radical departure from the traditional operations of Federal credit unions that specialize in much shorter-term credit advances. Investment in long-term real estate loans requires considerable expertise in loan origination and servicing, and involves loans of comparatively large average size. The loans are not readily salable in the secondary market (especially conventional loans), and it is a time-consuming and difficult process to realize on the collateral for the loans in case of foreclosure. While it is true that some State-chartered credit unions can now make long term real estate loans, it appears questionable to the Board that this authority should be granted to credit unions that are chartered by the Federal Government. In this connection, the 1963 report of the President's Committee on Financial Institutions implicitly opposed such long-term lending by Federal credit unions, stating at pp. 30 - 31. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.