Who can credit unions help the most in this time of economic transition? What one economist calls a “bifurcated” consumer economy.
If credit unions fail to serve members facing the difficulties described below, who will?
Housing At the Margins
From a Marketplace (link) report last week:
, , ,real estate data firm ATTOM reported that foreclosure activity — which includes default notices, auctions, and bank repossessions — was up 18% in August compared to a year ago. In fact, foreclosure activity on properties across the U.S. has been rising for the past six months.
It’s not up to pre-pandemic levels, but it does signal more trouble in the economy.
Home ownership is the single most important step to financial well being for the majority of Americans. Does your credit union have a program to help members who are having difficulty meeting their mortgage payments? What options do you offer?
Evictions
A related but different challenge are members facing eviction from rental properties when coping with job loss or other economic crisis.
A film from March 2025 talks about the many factors contributing to evictions. There are two trailers one for the longer movie, Evicting the American Dream (link).
The second three minute trailer focuses on evictions and the economic forces driving this process. (link) Most impotantly this short excerpt shows the impact on the consumer’s credit report as well as all those listed on the eviction notice, often all the family including children.
Credit unions were formed to provide an option for those on the margins of the economy supported by the participation from the whole community including those who are doing well.
When was the last time your credit union loaned to a member who had an eviction notice on their credit report? How do you identify and reach out to those whose paychecks are not enough, or maybe lost?
Should we just serve those doing well who easily fall within our rule bounded services or worry about proverbial “lost sheep?”