Lansing, Mich., Oct. 14, 2010 – The Michigan Credit Union League Board of Directors today announced its endorsement of Rick Snyder for governor, citing his understanding of financial institutions and his balanced policies regarding the role of state government in the financial sector. The credit union trade association hails Snyder as the candidate who understands the importance of the financial services industry for strengthening Michigan’s economy.
“As some lawmakers advocate concepts such as a state-owned bank and a two-year moratorium on foreclosures, credit union leaders, who represent main street financial institutions, believe that Michigan’s next governor should carefully limit the role of government in the financial sector,” MCUL & Affiliates CEO David Adams said. “Michigan’s credit unions and other lenders have been battered by economic conditions and additional government regulations. They are finding it difficult to lend in this environment. Our next governor will need to help all main street financial institutions get stronger in order to unfreeze credit markets. Rick Snyder has the leadership skills and market understanding to achieve that.
“Congress has passed sweeping reforms for Wall Street lenders, but little has been done to help main street lenders like credit unions do what they do best – lend and serve. Many things are necessary to bring Michigan’s economy back and to create jobs. Access to capital from local lenders is one of the most important factors for a revitalized Michigan economy.”
As some financial institutions are voluntarily halting home foreclosures to ensure proper procedures and consumer protections are being followed, some lawmakers have called for a blanket legislative moratorium on foreclosures. Some have even suggested a 2-year halt to foreclosures. The MCUL believes that such a moratorium would have a chilling effect on Michigan’s economy and hurt credit unions and other lenders that are struggling to control mortgage-lending related losses stemming from Michigan’s high unemployment rate and struggling housing market.
Credit unions, not-for-profit cooperatives owned by their members, have been lending during this economic crisis while other lenders have not been able to do the same. According to data from the MCUL, during the past 12 months ending June 30, 2010, credit unions’ total loans were up by 1.2 percent while Michigan banks’ total loans went down by 12 percent in the second quarter. During the same period, virtually all types of credit union lending were on the rise. Small business loans were up by more than 17 percent while Michigan banks’ business loans were down 5.7 percent in the first half of 2010.
As main street credit unions continue to serve their members and communities, the MCUL believes that Michigan needs a governor who understands the important role local lenders such as credit unions play in strengthening our economy by making credit available to consumers and small businesses. This needs to be done without unnecessary government regulations and policies that would serve to further restrict access to credit by adding to lenders’ costs and restricting their ability to grow their loans and deposits.
About the Michigan Credit Union League & Affiliates
Organized in 1934, the Michigan Credit Union League is a trade association representing 311 credit unions statewide. Based in Lansing, the MCUL offers credit unions assistance in the areas of regulatory compliance, legislative advocacy, media advocacy and operational information. For more information, visit www.mcul.org and follow us on Twitter at www.twitter.com/MICreditUnions.