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NCUA Vice Chairman Hood Praises Credit Unions for Strengthening Economy and Making the American Dream a Reality

September 27, 2006, Alexandria, VA – National Credit Union Administration (NCUA) Vice Chairman Rodney E. Hood addressed the Fall Meeting of the Alliance of Credit Unions this past weekend in Montreal, Canada. During his speech, the Vice Chairman praised credit unions for stimulating economic growth and for empowering their members to own homes and create small businesses.

“I am very proud that credit unions are playing a vital role in America’s economic growth,” said Vice Chairman Hood. “As your regulator, I will do my best to ensure that credit unions continue to provide affordable access to credit and capital.” Hood cited the Bush Administration’s policies in growing the American economy at a 4.2 percent annual rate over the first half of this year, which is faster than any other major industrialized country. Productivity in America has also grown at 2.4 percent over the past four quarters, stimulating GDP growth, higher wages, and greater profits. Hood commended the President for his support for credit unions' tax exempt status.

“A true sign of a strong economy is that more Americans are going to work everyday,” said the Vice Chairman also noting that more than 1.7 million jobs have been created over the past 12 months, and more than 5 million jobs have been created since August 2003, while the unemployment rate is 4.7 percent – below the average of each of the past three decades. “Small businesses create two out of every three new jobs and nearly half of America's overall employment. The Administration is clearly committed to the success of small businesses by lessening the tax burden, allowing workers access to quality and affordable Health Savings Accounts, and fostering a regulatory environment that allows entrepreneurship to thrive. I encourage credit unions to continue providing innovative member business lending products which help entrepreneurs establish viable businesses that create jobs and sustain local communities.”

Hood also praised credit unions for furthering homeownership through continued growth in mortgage lending, while emphasizing the fact that first and second mortgages and home equity loans have collectively increased nearly 6.5 percent in the second quarter of 2006. “Today homeownership is at an all time high across America,” said Hood. “More Americans than ever before, particularly in minority and low income communities, have become homeowners. This rise in homeownership can be largely attributed to credit unions providing affordable mortgage products and pre-purchased counseling.”

Vice Chairman ended his remarks by thanking the Alliance of Credit Unions for its dedication to the credit union system, and its over 85 million members, and encouraged the audience to continue empowering, " more Americans to achieve the American Dream" and continue the most "tremendous economic growth our nation has experienced in years".

The National Credit Union Administration is the independent federal agency that charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates and manages the National Credit Union Share Insurance Fund, insuring the savings of over 85 million account holders in all federal credit unions and the majority of state-chartered credit unions.