Hawthorne is Safe & Strong

We’ve had a lot of the news stories lately focusing on the troubles in the financial markets.

The stock market has been tumbling lower and many investors have lost money and confidence in the economy. We’ve had news reports on the mortgage “meltdowns” (subprime mortgage lending problems which Hawthorne Credit Union does not do).  These problem mortgages have affected the value of homes throughout the nation. There’s also news of solvency problems with Freddie Mac and Fannie Mae; the nation's primary providers of money to fund home mortgage loans.

All these factors and the recent failure of IndyMac Bank in Pasadena, CA, has some consumers concerned about their financial institutions. IndyMac Bank was a big player in the mortgage market and because of some of its practices it failed. Hawthorne members can rest assured knowing that Hawthorne is safe and secure:

 

  1. All deposits are insured by the NCUA (National Credit Union Administration)—the credit union version of the FDIC.  This federal protection offers $100,000 of insurance coverage.  In addition, years ago Hawthorne added an extra layer of insurance protection for our members’ deposits, up to $250,000 more than the standard coverage.  In total, our members have $350,000 of deposit account insurance protection.

 

  1. Hawthorne is well capitalized, which allows us a “cushion” that can absorb any potential losses for years to come. 

 

  1. Unlike some financial institutions, Hawthorne Credit Union has never participated in subprime mortgage lending.

 

  1. We offer mortgage products that are good for our members and the financial well-being of the credit union.  We have a wide range of mortgage and home equity loan products that are safe and sure to fit our members’ needs. 

 

  1. Hawthorne Credit Union is not limited in the availability of funds to help our members obtain mortgages. Freddie Mac and Fannie Mae are only two of the funding sources available.  We also use several corporate credit unions and even the Federal Reserve Bank of Chicago that will provide cash to us should we need it. 

 

  1. We’re a financial institution in good standing with our governing bodies. We operate in a financially safe and sound manner.

 

We appreciate your membership and welcome questions. Please feel free to contact us with your concerns at 630-369-4070.

 

Sincerely,

Carl Sorgatz

President