The Credit Union Journal's recent Mortgage Mess coverage (CU Journal, Nov. 26) is not only amusing, but a joke as well as an insult to anyone of average intelligence.
Wescom Credit Union reports more than $9 million in losses and attributes it to their membership. CalState 9 is in conservatorship and no doubt attributes that to its membership. Huron River CU and Norlarco CU must have similiar complaints.
When are these credit unions going to step up to the plate and accept responsibility for underwriting poorly performing loans? When are these credit unions going to accept responsibility for chasing rates and chasing fees in capturing and cornering the sub-prime market? There are several billion-dollar credit unions that are not bleeding red ink. Are there members different from Wescom CU's members? No. The only difference is Wescom strayed from the traditional credit union business model just like CalState 9 and all the other bleeders.
Glendale Area Schools Federal Credit Union never entered the incompetent sub-prime real estate lending circus. And while Countrywide and Wescom among others are deep in foreclosures, GASFCU has none.
When will credit union management and directors accept responsibility for their gross incompetence? When will credit union member-shareholders unite in a collective class-action lawsuit and sue these credit unions for wasting the members' equity, engaging in corporate waste and gross incompetence? If these pseudo-credit unions were banks the stockholders would have fired them.
These credit unions are making the rest of us look bad.
Stuart Perlitsh, CEO
Glendale Area Schools FCU
LETTERS TO THE EDITOR
Credit Union Journal encourages reader feedback. Letters to the Editor can be sent to Managing Editor Lisa Freeman at lfreeman<at>cujournal.com. Letters can also be faxed to 561-832-2939 or submitted online at www.cujournal.com. (c) 2007 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com