Three Credit Unions Receive $1.25M Deposit From CUNA Mutual Group

Posted by Orb Staff on July 10, 2012 No Comments
Categories : Residential Mortgage

11948_dollar_circle Three Credit Unions Receive $1.25M Deposit From CUNA Mutual Group Three community development credit unions in California have received an interest-free, $1.25 million deposit from Madison, Wis.-based CUNA Mutual Group to stimulate development in their underserved areas.

The zero-interest deposits to credit unions from CUNA Mutual Group are part of the California Department of Insurance's California Organized Investment Network (COIN). The COIN program allocates $2 million annually in tax credits to support $10 million in community development investments. Under the COIN tax credit program, investors invest a minimum of $50,000 as equity or a zero-interest loan with a Community Development Financial Institution for 60 months; in exchange, the investor receives a state tax credit. After 60 months, the loans are repaid.

The three credit unions – Northeast Community FCU in San Francisco; Faith Based FCU in Oceanside; and the California operations of Self-Help FCU, an affiliate of North Carolina-based Self-Help Credit Union – each received one or two deposits of $250,000 and have the discretion about where to spend the investments in their areas to encourage community development.

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