WASHINGTON — Federally insured credit unions are financially “strong and healthy,” despite an increase in delinquency among real estate loans reflecting the current state of the economy, NCUA Board Chairman JoAnn Johnson told lawmakers Thursday.
Johnson said that overall assets of these credit unions increased by $39 billion during the first quarter of 2008 to an all-time-high of $792.18 billion.
Although overall loan delinquency declined by .2%, delinquent real estate loans increased by .3% during the first quarter, Johnson said in testimony before the Senate Banking Committee.
Johnson, who testified on a panel with several other regulators of financial institutions, said among real estate loans the largest area of concern is in Home Equity Lines of Credit. Delinquency rates on those loans increased from .80% to .96%, between Dec. 31, 2007 and March 31.
She said the overall picture is strong because these credit unions “have effectively implemented guidance by NCUA related to real estate lending and have positioned the industry to weather this current economic downturn.”
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