Management Quality

Matt Egan, CNN Business, in a May 12, 2020 article on cnn.com, writes: “The savings rate in the United States climbed from 8% in February to 13.1% in March. That was the highest savings rate since November 1981. And given the disastrous economic news, the savings rate will likely go even higher when April statistics are released.”

Ennie Lim, in a May 22, 2020 article on benefitnews.com writes: “Americans are in a tough spot. They'll likely have a harder time getting the extra cash they need. And right now, access to affordable credit is crucial for many, as 1 in 5 American households has (sic) lost income due to the pandemic, and unemployment offices are overwhelmed with claims. It may take weeks before applications are processed, and cash is distributed.”

In a recent bulletin, Loran Jackson NCCO, REGULATORY COMPLIANCE COUNSEL, NAFCU, described the qualities credit union Credit Risk Review Systems should have.

“…on May 8, NCUA signed on to a statement on credit risk review systems. This statement presents principles for establishing a system of independent, ongoing credit risk review in accordance with safety and soundness standards. “

In a May 2020 article, on bloomberg news, John Gittelsohn writes: “Delinquencies on U.S. home loans surged by 1.6 million in April, the biggest one-month gain ever, as soaring job losses fueled a 90% jump in missed payments and government programs offered penalty-free delays.”

Imani Moise, in a recent article on reuters.com, writes, “The number of U.S. borrowers seeking help on mortgages, credit cards and auto loans jumped between March and April in the economic fallout from the coronavirus pandemic, a TransUnion (TRU.N) study released on Wednesday showed.”

In a May 15, 2020, article on newsweek.com, Eddy Rodriguez writes: “More than half of Americans who have taken money out of their retirement savings accounts did so to cover basic expenses during the coronavirus pandemic.” Consumers need all the help they can get from their financial institutions. For many credit unions, this will require new or modified services.

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