Whats the advantage of a credit union?
One major factor that lends stability is that credit unions are owned by their members, while banks are owned by their shareholders. A borrower under a mortgage is usually pretty safe, unless the mortgage has an adjustable rate or a balloon provision. Think of it this way. You have your house, and they are entitled to nothing more than a payment every month. It’s not like a demand note that can be called at any time. As long as you can perform, you are in good shape. (Whatever the institution, its mortgages will generally remain intact. They will simply be sold to other holders.
You can also get some financial info directly from the NCUA. smackfu, what I’ve heard (anecdotally) is that very often if a credit union is getting into trouble, they get acquired by another CU well before it hits the NCUA. It’s my understanding that most credit unions hold their mortgages and other loans locally, although of course YMMV and you should ask if you’re curious. In general, there’s not the same crazy profit pressure because credit unions don’t issue stock and are overseen by board of directors (boards of directors?) who are both members and volunteers. The basic concept of the credit union is impressively democratic IMHO. If you have an account, you’re required to keep a small amount in a savings account, representing your share of ownership. Plus you get to vote for the board of directors. Some credit unions have big crazy annual meetings for the membership, too. I work for a credit union, but this is my personal opinion,
