Posted on October 1

We’ve all been hearing the latest news about the Federal guarantee of Fannie Mae and Freddie Mac, the two mammoth government-sponsored mortgage companies, and the closure of IndyMac Bank by the federal regulator. In light of this recent news, we wanted to provide you with information about the safety and soundness of NAPUS Federal Credit Union, how your funds are insured and where you can go to get additional information.

NAPUS FCU will continue to act responsibly on our members’ behalf and provide a stable place for your deposits with a good rate of return for you.

Q. Are my deposits safe at the credit union?

A. All credit unions adhere to state or federal licensing and regulation and operate in a safe and sound manner with their members’ best interest in mind. On average, credit unions have higher reserves than banks, so they are more financially sound. Credit unions are also member owned so they are not pressured into earning high profits for stockholders.

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In addition to strong regulatory guidelines, member deposits are insured. The National Credit Union Share Insurance Fund (NCUSIF) is the federal fund created by Congress in 1970 to insure member’s deposits in credit unions up to the $250,000 federal limit. Coverage may exceed $250,000 depending on the structure and type of account. Administered by the National Credit Union Administration, the NCUSIF is backed by the full faith and credit of the U.S. Government. The NCUSIF is in strong financial condition, with an equity ratio estimated at 1.24 percent for June 30, projected by year end to be 1.28 percent. To check out NCUA’s Insurance poster click here.

Q. What is the impact of the housing market on NAPUS FCU?

A. NAPUS FCU did not make any sub-prime mortgage loans and has followed the conservative lending policy approved by the Board of Directors.

• In fact at the end of the first quarter, nationwide credit union mortgage delinquencies stood at only 0.91%. In comparison, NAPUS FCU mortgage delinquencies were only 0.02%.
• Mortgage charge-offs during the first quarter for all credit unions nationwide were a miniscule 0.06%. NAPUS FCU’s mortgage charge-offs in the first quarter were 0.02%.
• More broadly, NAPUS FCU’s overall delinquency is lower than national averages. Credit union loan delinquencies remain low at 1.0% and NAPUS FCU’s is even lower at 0.45%.

In addition, NAPUS FCU does not have a portfolio of land development or construction loans. This increases our financial soundness.

Still have questions? Please ask. “You can count on us” is more than a slogan, it’s words you can live by.

Additional Information

The NCUSIF is administered by the National Credit Union Administration (NCUA), an agency of the federal government. To determine insurance coverage, see the NCUA’s insurance estimator at: webapps.ncua.gov/ins

For more information on federal share insurance, see the NCUA brochure “Your Insured Funds,” by clicking here.