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Matz Encourages New York Credit Unions to Continue Putting “Principles Above Profits”

CUs’ History and Future are Linked at New York League’s 85th Annual Meeting

May 20, 2005, New York City – In the keynote address at the New York State Credit Union League’s 85th Annual Meeting – which was themed “Principles Above Profits” – NCUA Board Member Debbie Matz linked the proud history of New York credit unions with a promising future.

“Eighty-five years ago,” Matz began, “millions of hard-working people clearly had a need for affordable credit. The first New York credit unions, including Municipal Credit Union in New York City, filled the need for people who could not get loans from banks – people who had nowhere else to turn but to loan sharks who made profits from their pain.”

While Congress in 1920 was debating whether to allow women the right to vote, Matz noted, “New York credit unions welcomed women, immigrants, and minorities as voting members with equal rights. Credit union organizers embraced the philosophy that you still cherish today: regardless of a person’s gender, nationality, or income, each person is a valued member.”

“Much has changed since 1920,” Matz observed, “but the founding principles of credit unions remain. Today, I believe the need for credit unions is as strong as ever – because there are still millions of Americans who are not being served by insured financial institutions. These people are being preyed upon by modern-day loan sharks. Today they are known as payday lenders, check cashers, pawn shops, rent-to-own stores, or just plain predatory lenders.”

Matz commended New York League President Bill Mellin for organizing the 85th Annual Meeting with “a theme that is truly timeless: ‘Principles Above Profits.’ After 85 years, the principles upon which New York credit unions were founded have clearly stood the test of time.”

Matz shared best practices from New York credit unions using those principles to serve new generations of members. For instance:

• Bethpage Federal Credit Union is reaching the emerging Latino communities on Long Island. Staff and volunteers invest countless hours networking with Latino community leaders, donating time and money to 43 community groups. Because they took the time to understand the communities’ needs, when Bethpage opened a new branch, Latino residents were ready to move their business to the credit union – and these new members brought in millions of dollars of new business.

• Through an innovative consortium, four small credit unions in New York City (Lower East Side People’s, Union Settlement, Homesteaders, and Bushwick Co-op) are making business loans to new members who could not get commercial financing anywhere else.

• Credit unions large and small are providing Volunteer Income Tax Assistance to new members in underserved areas. At VITA sites hosted by credit unions, tax returns are prepared free of charge, filers receive all the refunds they are due, and their refunds are directly deposited into credit union accounts with no fees – eliminating their need for costly refund anticipation loans.

• As a result of Matz’s PALS workshop last October in Rochester, New York credit unions (led by The Summit FCU and ESL FCU) have raised $150 million to fund affordable mortgages in underserved areas. In addition, they pledged another $2 million for renters who need emergency loans to avoid losing heat, electricity, and other living necessities. Together these funds will change the lives of 9,000 families in underserved areas.

“New York credit unions are demonstrating each and every day that credit unions truly improve the lives of members – and you do this by putting ‘Principles Above Profits,’” Matz concluded. “As long as you stay true to the principles embedded in your heritage, you can overcome all of your current challenges and build an even more promising future.”

Board Member Matz’s latest presentations are posted at http://www.ncua.gov/news/speeches/speeches_matz.html

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A public service veteran of 25 years, Matz was named as a recess appointee to the NCUA Board in January 2002 and nominated to a seat on the Board on February 27, 2002. The U.S. Senate confirmed her on March 22, 2002. As part of the NCUA Board, Matz oversees the regulation of federal credit unions and the administration of the federal insurance fund covering approximately 9,000 credit unions in the U.S.

Matz is a member of three credit unions and resides in McLean, Va. with her husband and two children. Before her appointment to the NCUA Board, Matz was appointed by President Clinton as Deputy Assistant Secretary for Administration in the Department of Agriculture.