Spring 2012 - Cooperative Federal

Commonwealth
Spring 2012|#97
Grappling with the Mortgage
Crisis: Part I
Over the past three years, the Obama administration has
announced various initiatives to help alleviate the ongoing
mortgage crisis plaguing millions of United States homeowners.
On February 9, newspaper headlines trumpeted a new
program, a $25 billion deal coordinated by the federal
Housing and Urban Development agency and attorneys
general of every state except Oklahoma.
They negotiated with five major banks, including Citigroup,
Wells Fargo, and Bank of America, for a financial package
intended to benefit homeowners. In turn, there was settlement of
a robo-signing lawsuit against the banks. Robo-signing refers
to rushing through a mortgage foreclosure without adequate
research into a property’s title. In Florida, for example, one
company processed thousands of foreclosures in a couple of
days, making a mockery of the principle that title inquiry must
be done properly before beginning a foreclosure action.
Continued on Page 6
Celebrating 30 Years of Finance
for the People
This year, Cooperative Federal is celebrating a major milestone:
our 30th Anniversary. Syracuse Cooperative Federal Credit
Union was recognized and insured by the National Credit
Union Administration (NCUA) on February 18th, 1982, as
Charter #23865. The credit union opened to its members and
issued its first shares on April 3, 1982.
The opening followed a nine-month effort. Organizers reached
out to individuals and groups, gathering pledges of support for
the proposed credit union. With $30 contributed for expenses
by a local group of activists, the organizers were able to
obtain pledges of $100,000 from neighborhood residents.
Continued on Page 6
Recopliación de la
Reunión Anual.
Cooperative
Federal no ha
escapado ileso a la recesión. Pero
estamos surgiendo más fuertes
para continuar con nuestra misión
de desarrollo económico local y
servir a los más necesitados. Ese fue el mensaje que nosotros
socios escucharon en nuestra Reunión Anual de Socios y
Cena, que se celebró en el Southwest Community Center,
el 11 de Marzo del 2012 (con traducción simultánea al
español disponible). El Informe Anual 2011, que se puede
ver en línea en www.coopfed.org/annualreport2011, da
una descripción detallada acerca de la posición financiera
de Cooperative Federal, así como nuestro impacto en la
comunidad.
Además, los socios en la Reunión Anual participaron en
las elecciones de nuestra Junta de Directiva y Comité de
Crédito. Tres nuevos socios de la Junta fueron elegidos:
Heather Engelman (se reincorpora a la Junta después de un
periodo de 1 año), Stasya Panova Erickson, y Raúl García
de Castillo. Socios de la Junta Frank Cetera y Peter Scheibe
también fueron reelegidos, al igual que los socios del Comité
de Crédito, Frank Forward y Lanny Freshman, y del Comité
de Crédito alternativo Meagan Weatherby.
Al final de la reunión, los socios se unieron para una deliciosa
cena servida por David Thomas Catering (de Thomas’ Soul
Food Kitchen), Strong Hearts Café, y Tunura’s Homemade
Specialities.
Además, los socios tuvieron la oportunidad de ver la
expansión de la oficina de Southwest, ahora en curso!
Consulte la página el numero 3 de este boletín para las
fotos del progresso de la expansión.
Continua en la pagina 7
Cooperative Federal • Tel: (315) 471-1116 • www.cooperativefederal.org • [email protected]
Eastside Office & Mailing Address • 723 Westcott Street • Syracuse, NY 13210
Southwest Office • Southwest Community Center • 401 South Avenue • Syracuse, NY 13204
1 Salina Street • Syracuse, NY 13208
Commonwealth #97
Northside Office • Assisi Center • 800Page
North
Spring 2012
Recap: 2012 Annual Membership Meeting & Dinner
Cooperative Federal has not escaped the recession unscathed.
But we are emerging stronger and continuing our mission of local
economic development and serving the underserved. That was the
message members heard at our 2012 Annual Meeting, held
at the Southwest Community Center on March 11. The Annual
Report (available at www.coopfed.org/annualreport2011)
gives extensive detail about our credit union’s financial position,
as well as our community impact. Here are a few highlights
reviewed at the Annual Meeting:
Over the past three years we have been hurt by three factors:
historically low interest rates in our loan portfolio, which is
dominated by adjustable rate mortgages and credit lines;
special assessments to “bail out” the corporate credit union
system (that is, the network of “wholesale” credit unions which
serve other credit unions); and a decrease of about 60%
in our grant income. We did not break even for the year in
2009, 2010 or 2011. However, the losses have decreased
substantially each year and the last four months of 2011 saw
a return to net profitability, which we are on track to continue
for 2012.
Cooperative Federal is a certified Community Development
Financial Institution (CDFI), chartered to serve the financially
underserved in our community and contribute to local economic
growth. In spite of the financial
tailspin of these last few years, we
have continued to meet that mission.
Nearly 60% of our outstanding loans
are home mortgages, and 93% of
purchase mortgages originated in
2011 were to first-time homebuyers. We
have continued to provide credit for small
local businesses, enabling them to expand
and create jobs. We also continue to provide
top-notch financial education programs, including the Falcons’
Trust Youth Credit Union Program at Fowler High School. At the
Annual Meeting we met Jackson Nguyen, 17, who trained as
a teller in the Fowler program and now has his first real job,
working after school at the Coop Fed Northside branch.
This e-newsletter includes 2 success stories from members who
changed their lives for the better with the help of Coop Fed.
More stories are included in the Annual Report.
Continuing to meet our mission has involved some pain. The
worst of it was the decision to eliminate 7 staff positions in
2009-2010. Staff members reported that there have been
other “tightening-ups,” too. Members have probably noticed
an increase in the
Continued on Page 5
“Step Up” Your
Income Potential
These are difficult times for many of
us. Jobs are hard to find.
Are you looking to start or grow your business this Spring? Nourish your
ideas with expert advice at these free workshops.
Creating a Winning Marketing Strategy (2 Part Seminar)
Thur. 5/3 and 5/10, 6 to 8 pm at the Liverpool Public Library (310 Tulip Street)
Instructor: Regina Drumm, Owner of Drumm Marketing & Communications LLC
Credit Building for Entrepreneurs
Thu. 6/7, 6 to 8 pm at the SW Economic Business Resource Center (119 South Ave.)
Instructors: Thom Dellwo & Kira Crawford, Cooperative Federal Financial Counselors
Build a Business: From Ideas to Realities
Tue. 6/12, 6 to 8 pm at the SW Economic Business Resource Center (119 South Ave.)
Instructor: Ron Ehrenreich, Cooperative Federal CEO and Co-Founder
Opportunities for Minority & Women-Owned Businesses
Wed. 6/20, 6 to 8 pm at the Assisi Center (800 North Salina Street)
Instructor: Greg Knipe, Cooperative Federal Lending Manager & Business Advisor
Organizing the Small Business Owner
Tues. 5/29, 6:30 to 8:30 pm at the South Side Innovation Center (2610 S. Salina St.)
Instructor: Lisa DeVeau, Owner of Completely Organized, Inc.
Advance Registration Required. Contact Regina at (315) 708-2070 or regina.
[email protected]. Please let us know if you have a disability and
need accommodations. We will do our best to meet your needs.
Commonwealth #97
Page 2
Do you have skills that you could use
to earn a living? Have you thought
about self-employment? Some of
our members have used their skills to
become self-employed at painting,
window cleaning, carpentry, house
cleaning, lawn mowing, snow shoveling,
gardening, office cleaning, child care
and baby-sitting.
Even if we find work, it can be hard
to cover our expenses until we get
a paycheck or two. We may have
to pay for a uniform, works shoes,
tools, licensing or certification,
transportation, and childcare –
sometimes weeks before we earn
enough to pay for these.
Cooperative Federal may be able to
help.
We have a special Step Up Loan to
help Syracuse residents get started
to step up your income. These are
low-cost, short-term loans of $2,500
or less, with waivers for New Account
and New Loan fees.
Continued on Page 5
Spring 2012
Behind the Scenes of the Southwest Office Expansion
It’s finally happening!! The long-anticipated renovation and expansion of our office in the
Southwest Community Center is underway, and approaching the home stretch. The new office
will have an enlarged lobby, a private space for opening accounts and member service
consultations, a lending and advising office, and a conference room. It will even have a
separate entrance to South Avenue, and big, beautiful windows to let the sun shine in.
Conference
Room
Members got a “sneak peak” at the renovation during our Annual Meeting. If you missed it,
here are some photos. (PS - Stay tuned for info about a Grand Reopening ceremony.) -Eds.
Lending &
Advising
Office
South Ave.
Entrance
Front Entrance and window
to Lending and Advising Office
Teller Counter
and doorway to MSR Office
New Accounts/
MSR Office
Lobby
Teller
Counter
Investing in our Capacity with
the Gifford ADVANS Program
Better Directions: Financial
Security Has No Age Limits
Cooperative Federal is pleased and gratified to have been
selected to participate in ADVANS, Advancing and Developing
the Value and Assets of Non-Profits in Syracuse, a Gifford
Foundation Initiative to Build Community Capacity. Cooperative
Federal was selected to take part in a one year program from
2010-2011 and then was selected by the Gifford Foundation
again to be part of a three year program from 2011-2014.
Did you know that nearly one third of older adults in the United
States live in poverty, according to the National Council on
Aging? That’s more than 13 million people, struggling to escape
or avoid economic crises -- from rising housing and health care
costs, to poor nutrition, to unemployment and debt.
The Gifford Foundation stated, in announcing the second award,
an appreciation for the value and impact our credit union
has had on the financially underserved in Syracuse. ADVANS
provides Cooperative Federal with a nonprofit development
consultant who is working with us over the 4 total years of the
initiative, as well as a combined grant of $105,000 to be used
for building and strengthening our organizational structure.
The key concept in the ADVANS process is “Capacity Building,”
strengthening the organizational platform which supports
and sustains the mission and programs of our credit union.
The key image is the sturdy table with table top representing
our programs and services and the four legs representing
Administrative Systems, Financial Resources, Board Governance
and Management.
Working with our consultant, we developed a detailed
assessment of the credit union and a series of work plans with
consistent follow-up and monitoring designed to strengthen the
four table legs. The ADVANS team consists of Christina Sauve,
Meagan Weatherby and Ron Ehrenreich from management
and Louise Poindexter, Frank Cetera and Peter Scheibe from
the Board of Directors. Staff has been actively involved and the
Commonwealth #97
Cooperative Federal is banding together with community credit
unions, elder service agencies, and advocacy groups from
around the country to help low-income, older adults achieve
financial security. Funded by Atlantic Philanthropies, this
initiative is helmed by the National Federation of Community
Development Credit Unions and the National Council on Aging,
which in turn are supporting local programs in 8 regions. Here
in Syracuse, Cooperative Federal is working with Catholic
Charities of Onondaga County to help seniors in our community
reduce debt, increase savings, and build or re-build household
assets. Some of the free services we are offering include...
• Financial Education Classes
• Individual Housing, Budget, and Credit Counseling
• Benefits Counseling
• Credit Builder Club
• Direct Deposit and Automatic Savings
• Matching Grants
• Debt Consolidation and Refinance
... and more. If you (or someone you know) are age 55 or older
and struggling to make ends meet, call us today. We can also
bring free workshops and on-site counseling to senior centers
and other community groups serving this population. Contact
Thom Dellwo at 473-0217 or [email protected].
Continued on Page 6
Page 3
-Meagan Weatherby,
Program Sustainability & Outreach Coordinator
Spring 2012
Check Out our 2011 Annual Report
Cooperative Federal isn’t just your run-of-the-mill financial institution. We are a non-profit, financial service cooperative that exists
to foster financial strength and economic justice in Syracuse neighborhoods. Our Annual Report reflects this special mission,
showing not only our financial performance but our community impacts. Here are 2 of the member testimonials you’ll find in
Cooperative Federal’s 2011 Annual Report, which you can view online at www.coopfed.org/annualreport2011, or pick up in one
of our offices. (Do you want to share your success story? Send an email to [email protected].)
-Eds.
“A Whole Life Change”
Pathways to Homeownership
Tom and Kathryn Argiro bought a
house in July 2011, a sweet home
on a quiet street in Syracuse’s
Eastwood neighborhood. Two
years earlier that would have
been unthinkable. They had a
credit history that reflected what
Tom calls “several years of bad
decision-making.” Things started
to change almost by chance.
“It just started with a flyer I
saw at the Credit Union about
a match for every dollar we
Tom & Kathryn received
saved,” Tom says. “I thought that $11,500 in matching grants
was a great deal.”
The Matched Savings Program at Cooperative Federal was
just the beginning for the Argiros. Kathryn recounts how
Cooperative Federal “helped us with a debt consolidation
loan to pay off what was on our credit report.” Consolidating
the debt and making regular payments on that loan
improved their credit and helped them become eligible for
a mortgage. Credit union staff also introduced Tom and
Kathryn to Home HeadQuarters, where they took two classes
on homeownership. “We didn’t know what we were doing;
we never bought a house before. So they were actually very
informative, very useful.”
Between the money they saved up on their own and the
matching grants for which they now qualified, they came
to the mortgage closing with a $16,500 down: $11,500 in
matching funds from Cooperative Federal, and $5,000 in
their own savings—above and beyond the minimum savings
goals for the Matched Savings Program. “With only $5,000
of our own money on an $80,000 house, we still walked
in with 20% equity,” says Tom. “It was really nice.”
The Argiros now have a lovely home to call their own, but
Kathryn says this process has been about more than that.
“It’s a whole life change. We just wanted to get ourselves
together. It’s been all positive.”
And they can’t say enough about how Cooperative Federal
helped them. “Everyone at the credit union was so helpful,
they really were. Our credit was a mess when we started
doing this. They walked us through step by step, what we
needed to do to build everything back up and make this
happen. And everyone was wonderful.”
Now, whenever Tom hears a co-worker complaining about
their bank, he tells them to join a credit union.
Commonwealth #97
A Taste for Success
Small Business Development
Christiana Semabia is building
the local economy on both sides
of the Atlantic. She opened
Bluetree Studios, a fair trade
importer, to create a market for
basket weavers she had met in
Ghana as a college student. She
says she started by renting a
stall at the Regional Market “off
and on, just as a part time sort
of thing.”
Things really started to take
off when her family and friends
encouraged her to sell her Christiana found a support
system for her small business
homemade, West African Style
peanut brittle alongside the baskets.
At first, she was hesitant. “It seemed like a huge leap making
a food product,” she recalls. But now her Better Brittle has
become the focus of the business. In addition to the Regional
Market, she sells directly to over 80 shops across New York-including many cafés, wineries, and speciality shops around
Syracuse and the Finger Lakes--and even a few in Vermont
and Massachusetts.
Better Brittle has gone on to receive a 2011 SBA “Small
Business Excellence Award” and to be featured in Edible
Finger Lakes Magazine. In January 2012 Better Brittle
gained national recognition when it was selected by Saveur
Magazine for the prestigious Saveur 100.
Today, you can find Christiana’s baskets and brittle in her
new shop at 558 Westcott Street.
Cooperative Federal has partnered with Bluetree Studios
at each step of its expansion. After getting a basic business
checking account, and a line of credit that “helped us bridge
that gap” while building a wholesale business, Christiana
opened a Small Business Matched Savings Account to earn
a dollar-for-dollar matching grant. Then in 2011, she took
out what she calls a “proper business loan” to help open
the store. Along the way, she also tapped into technical
assistance through the South Side Innovation Center and
Small Potatoes, a boutique sales and marketing firm.
With each step forward, Christiana got not only capital but
“a support system. I have really appreciated the credit
union…because it’s more like a partnership. You can trust
that people are interested in your success, as much as
you are. It makes me feel good about where I’m borrowing
from, where I’m paying interest.”
- Success Stories written by Barbara Kobritz, Outreach Volunteer
Page 4
Spring 2012
Step Up, Continued
Member Organization Spotlight:
Call Thom Dellwo at 315-473-0217 or Kira Crawford at 315473-0211 to learn more or to get started.
Cooperative Federal has over 40 Field of Membership (FOM)
organizations. Volunteers, members, and employees of these
groups can join our credit union regardless of where they live or
work. In this edition, the spotlight is on our newest FOM group:
The Alchemical Nursery.
Step Up borrowers will also participate in free one-on-one
financial advising that can help in creating a budget, building
or repairing your credit, starting an emergency savings fund,
or working toward your other financial goals.
Loan Capital for the Step Up loans has been provided by the
-Ron Ehrenreich, Treasurer/CEO
Gifford Foundation.
Annual Meeting, Continued
personal checking fee from $25/year to $3/month. With
interest income reduced by market forces, this service now
has to pay for itself. Plans are underway to diversify the loan
portfolio and include more credit cards to balance the home
mortgages and provide a more dependable stream of interest
income.
Staff continues to bring us innovative products. We are switching
our Courtesy Call program for overdrafts to a Courtesy Pay
program, which member can utilize if they “Opt In.” Members
will still have to pay the service fee of $25 to cover the
expenses incurred by the credit union when a charge doesn’t
clear. But this new system will benefit members by protecting
them against the “bounced” payment and giving them 30 days
to deposit the needed funds, a great improvement on the old
“next day by noon” policy. Plus, it will benefit the credit union’s
bottom line by eliminating all those phone calls.
The Annual Meeting is also the time when members elect the
Board of Directors and the Credit Committee. Newly elected
Board Members include Heather Engelman (rejoining the
board after a 1 year break), Stasya Panova Erickson, and
Raul Garcia de Castillo. Frank Cetera and Peter Scheibe were
also reelected. Frank Forward and Lanny Freshman were
reelected to the Credit Committee, and Meagan Weatherby
was reelected as a Credit Committee Alternate.
Before sitting down to a delicious dinner and desserts catered
by David Thomas Catering (Thomas’s Soul Food Kitchen), Strong
Hearts Café, and Tunura’s Homemade Specialties, members
got another special treat: the chance to tour the expansion (still
under construction) of our Southwest branch. For years we have
operated out of little more than a closet inside the Southwest
Community Center. The expansion quadruples the space from
200 square feet to 800 square feet. The new space is actually
a “bump-out” from the existing building, so it will not cost the
Community Center any of its interior space. See also “Behind
the Scenes” on page 3.
Alchemical Nursery
The Alchemical Nursery is a relatively new arrival to the
Syracuse progressive scene, having operated on the city’s west
side since 2009. They describe themselves as an “organization
committed to regenerative lifestyles utilizing the principles
of permaculture, the Intentional Communities movement,
Ecovillage living, and Mutual Aid activity.” Their vision includes
the eventual development of an urban ecovillage in Syracuse,
and continued research and development of a decentralized
urban land trust.
“The name refers to our vision
of nurturing (Nursery) the
transformation (Alchemy) of
our communities,” explains
Frank Cetera, the group’s
Graphic by Elizabeth Slate
Co-Founder and Board
President. “And the logo [shown at right] is that
of the Ouroboros snake eating its own tail symbolizing rebirth
and the cyclical nature of transformation, combined with the
lightning bolt and its impetus of acting (or striking) now!”
The group’s website, www.alchemicalnursery.org, is a portal
about regenerative lifestyles such as community place-making
and perennial food landscaping. Members use the web space
to exchange information and learn via blogs, listservs, feature
articles, RSS news feeds, and an events calendar.
The Alchemical Nursery works with other like-minded groups
in the Central New York/Finger Lakes area. They currently
partner with the Finger Lakes Permaculture Institute to teach
Community Training in Ecological Design in Syracuse. The
training lasts for 10 weeks during which time participants
design a local site using permaculture landscape principles and
design. Alchemical is also currently implementing a 2/10th
acre free-pick edible food forest garden on the grounds of the
Rahma Health Clinic at 3100 South Salina St.
The folks at The Alchemical Nursery recognize the limits to
the capitalist economic model, based on consumption and
disposability. Like Coop Fed, they are working toward a
sustainable future that is healthier for people and earth alike.
We are happy to have them in our fold and to offer financial
services to their members. - Barbara Kobritz, Outreach Volunteer
Special thanks to the all of the members who pitched in to make
the meeting run smoothly, and especially to Jorge Cáceres for
providing simultaneous translation in Spanish.
Members of Cooperative Federal have everything to be proud
of. We have a staff that can’t be beat, prudent management
that has kept us in business through the worst of the economic
downturn, well-managed growth, and, above all, we are living
up to our mission, making a real difference in real people’s
lives and in the economic future of our hometown.
Commonwealth #97
- Barbara Kobritz, Outreach Volunteer
Page 5
Could you use $9,500 to
buy your first home?
Find out if you qualify for up to $9,500 in “matching
grants” through our Homebuyer Matched Savings
Program.
Call Kira Crawford at (315) 473-0211
Spring 2012
Mortgage Crisis, Continued
ADVANS, Continued
Yes, $25 billion sounds impressive.
Other facets of the deal seem to be
equally impressive: help for two million
homeowners, forgiveness of $17 billion
in mortgage principal, standards that will
govern banks’ conduct during foreclosure
proceedings, allocation of $2.7 billion
for legal advice and other supports for
homeowners fighting to keep their homes.
whole Board has participated in several trainings. Our valuable
consultant is Maria Fibiger from Three Dog Consulting. One of
the primary benefits of this grant is that it has allowed the
credit union the time and resources to work on organizational
structure, much needed by many organizations as they grow,
and an area often left on the to do list.
Yet, various analysts soon looked at the deal and found it
sorely lacking. Checks for $2,000 to be distributed to 7,500
homeowners wronged during foreclosure proceedings?
Unfortunately, $2,000 doesn’t go very far. Spending $17 billion
to write down mortgage principal? Several financial analysts
pointed out that millions of homeowners around the country
are “under water,” meaning they owe more than their house is
worth. The grand total is roughly $700 billion, leading one to
conclude that $17 billion represents a modest beginning.
Cooperative Federal is one of six community groups picked by
the Gifford Foundation for the 2011-2014 grants. Our partners
are Home HeadQuarters, McMahon/Ryan Child Advocacy
Site, Interfaith Works of Central New York, the Samaritan
Center and Community Action partnership of Madison county.
In addition to our internal work we will be meeting several
times a year with all the organizations to share ideas and
experiences.
Cooperative Federal is greatly appreciative of the Gifford
Foundation for selecting us to be part of this worthwhile
endeavor.
-Peter Scheibe, Board Vice President
continued below
Vote for Common Cents!
Is it possible to acknowledge these issues and move on? Is it
reasonable to simply conclude that HUD and the attorneys
general struck the best deal they could after months of complex
negotiations?
In a word, no. The problems I’ve discussed so far deal largely
with dollar amounts. There’s a more fundamental issue at hand.
What are the prospects for homeowners to access the benefits
promised by the $25 billion package?
The initial details are scary. The banks have six to nine months
to determine homeowners’ eligibility, three years to respond to
their concerns. Betty Smith finds out she’s eligible for mortgage
assistance. How does she initiate the process? What does she
do if she can’t get answers to basic questions?
These are key questions. Over the past four years, thousands
of homeowners from around the USA have reported that
they made dozens of phone calls regarding a mortgage
modification and still couldn’t reach a bank representative
able to work with them.
Indeed, over a year and a half ago, the Obama administration
announced a $40 billion initiative to help solve the mortgage
crisis. After the program’s first year, HUD officials said $2
billion had been spent. They offered several explanations for
the shortfall, including the fact that mortgage modifications
had happened much more slowly than anticipated.
It’s worthwhile to ask who was supposed to monitor the earlier
initiative and who’s going to monitor the package announced
on February 9. Without accountability and enforcement, the
$25 billion deal will have little bang for its bucks.
In the next issue of Commonwealth, I will delve into other
aspects of the package and also address a contentious issue.
What role should the government play in helping homeowners
with mortgage modifications? Why is such assistance so
controversial?
-Carl Mellor, Volunteer Columnist
Commonwealth #97
Choose local nonprofits to receive cash awards.
Get a ballot at www.coopfed.org/commoncents
30th Anniversary, Continued
The Syracuse Real Food Cooperative provided support for the
fledgling credit union: a shared part-time staff person and a
5’ by 6’ space under solar panels on the back porch. Lending
policy was developed with input from a series of membership
meetings. Lending started on October 1, 1982.
The activists that founded our credit union had learned
community organizing skills through the civil rights movement,
the feminist movement, the opposition to the Vietnam War,
and other social justice movements. Particularly concerned
with “divesting” from businesses that supported the Apartheid
system of racial oppression in South Africa, they envisioned the
credit union meeting unmet financial needs of the community,
and directing the use of savings in positive ways. This meant
investing in homeownership, microenterprise, and cooperatives
and serving people that were marginalized by for-profit
banks, such as women, people of color, the LGBTQ community,
cooperatives and non-profits, very small and home-based
businesses, part-time workers (including activists, artists, and
musicians), and other people of modest means.
In addition, the founders insisted that the credit union should be
sound, fiscally responsible and accountable. Such a credit union
would, they hoped, help build a foundation for a communitybased economy and gain a measure of independence from a
distant and unresponsive global economy.
Three decades later, this vision continues to guide us. We
have deployed nearly $100 million in loans in Syracuse
neighborhoods, helping to create a better future for us all. And
though we surely face challenges -- some old, and some new
-- we have never stopped “building the road as we travel.”
Help us celebrate all that we have accomplished, and all of the
work that lies ahead! Save the date for our 30th Anniversary
Bash: September 22nd, 2012 at the Rosamond Gifford Zoo.
Page 6
-Ron Ehrenreich, Treasurer/CEO and Co-Founder
Spring 2012
¿Usted necesita “dinero rápido”? Algunas compañías, que
comúnmente se encuentran en Internet, ofrecen Préstamos de
Día de Pago -- pero las tasas que cobran, son tan altos que en
realidad son ilegales en el estado de Nueva York! (Es por eso
que sólo se puede obtener en línea.) Mucha gente que usa los
Préstamos de Día de Pago terminan en un ciclo interminable
de cargos y sobre cargos. los honorarios se acumulan en la
parte superior de las tasas.
Hay una manera más segura de cubrir sus necesidades de
dinero a corto plazo en efectivo. Cooperative Federal otorga
préstamos pequeños, para emergencias, y líneas de crédito,
y tiene normas flexibles de calificación de crédito.Y NUNCA
cobramos más del 18% APR (en comparación con el 400%
o más, para los Préstamos de Día de Pago en línea!). Llame
Patricia al (315) 473-0212.
El sueño de propiedad de vivienda?
Con Cooperative Federal, compradores de casa por primera
vez pueden ganar hasta 9,500 dólares en subsidios de
asistencia para el pago inicial, a través del Programa de
Cuenta de Ahorros para Dueños. La inscripción está abierta!
Llame a Susan en (315) 473-0231 para más detalles.
Al presentar el “Step Up”
Fondo de Préstamos.
Cooperative Federal se ha asociado
con la Fundación Gifford, para
presentar el Fondo Step Up de
Préstamos, un especial iniciativa de
micro-préstamos, diseñada para
ayudar a los solicitantes de empleo
y los empresarios “intensificar” su
potencial de ingresos. Junto con el
asesoramiento financiero gratuito,
los participantes pueden solicitar
hasta $2,500, para ayudar con los gastos, tales como la
entrenamiento, certificación, seguros, equipos, herramientas,
uniformes y trajes profesionales, marketing y promoción, y
capital de trabajo. Llame al (315) 473-0291 o envio un correo
electrónico a [email protected], para más detalles.
Talleres para la microempresa.
¿Está pensando en iniciar o hacer crecer su propio negocio?
Nutre tus ideas con el asesoramiento de expertos en estos
talleres gratuitos, patrocinado por Cooperative Federal con
fondos de Empire State Development. Consulte la página
el numero 2 de este boletín para el horario de clases. Las
clases se imparten en Inglés, pero si usted está interesado en
la educación, asesoría, o préstamos de negocios en español,
por favor llame (315) 473-0291.
Mejores Direcciones: Nunca se es
demasiado viejo para la independencia
financiera!
Nuestra cooperativa de crédito también está trabajando
Commonwealth #97
Add Solar Panels
 Update Windows  Repair Siding  Clean Gutters
Tenga cuidado con los prestamistas
depredadores!
Big Plans for this Spring?
Tackle your to-do list with a HELOC or
Home Improvement Loan. Call 473-0244.
 Landscaping
Ojo, Continua
 Paint  Build Raised Garden Beds  Buy a Shed 
con la National Federation of Community Development
Credit Unions, National Council on Aging, Catholic Charities
of Onondaga County, y otros socios locales y nacionales en
un nuevo programa para ayudar a aumentar la seguridad
económica de bajos ingresos, en mayores adultos. Si usted
tiene 55 años o más, y está luchando a fin de mes, usted
puede calificar para obtener asesoría gratuita y la asistencia
financiera especial. Llame a Karina en (315) 473-0274.
Promoviendo nuestra capacidad.
Cooperative Federal se complace de haber sido seleccionados
por la Fundación Gifford para participar en “ADVANS”:
Impulsar y desarrollar el valor y los activos, de organizaciones
no lucrativas, en Syracuse. Al anunciar la donación, la Fundación
Gifford eligió Cooperative Federal para el valor y el impacto
que nuestra cooperativa de crédito ha tenido en los barrios de
bajos recursos en Syracuse.
La subvención viene con un premio de $105,000 dólares,
que se utilizarán para la construcción y el fortalecimiento de
nuestra estructura organizativa, así como un consultor, María
Fibiger de Three Dog Consulting, quien trabajará con nosotros
por un total de cuatro años. Uno de los principales beneficios
de esta subvención, es que ha permitido a la cooperativa de
crédito el tiempo y recursos para trabajar en la estructura
organizativa, muy necesaria por muchas organizaciones a
medida que crecen, y un área a menudo a la izquierda en la
lista de tareas.
Cooperative Federal está muy agradecido de la Fundación
Gifford por habernos elegido para ser parte de este esfuerzo
que vale la pena.
Bienvenido, Alchemical Nursery.
Estamos orgullosos de dar la bienvenida a The Alchemical
Nursery a las filas de nuestro campo + 40 de las organizaciones
de membresía. The Alchemical Nursery es relativamente
nuevo en la escena progresiva de Syracuse, después de
haber operado en el lado oeste de la ciudad desde 2009.
Ellos se describen como una “organización comprometida con
el desarrollo de estilos de vida regenerativos utilizando los
principios del sistema natural de agricultura, el movimiento de
comunidades intencionales, ecoaldeas, de vida y la actividad
de Ayuda Mutua.”
La gente de The Alchemical Nursery reconoce los límites
del modelo económico capitalista, basado en el consumo y
desechabilidad. Al igual que Cooperative Federal, están
trabajando hacia un futuro sostenible, que es más saludable
para las personas y la tierra por igual. Estamos muy contentos
de tenerlos en nuestro campo ofrecer servicios financieros a
sus socios.
Page 7
-Traduccio por Joyce Figueroa y Patricia Farfan-Cáceres
Spring 2012
Beware of Predatory Lending! Five Things You Should Know...
1. What is predatory lending?
Predatory lending refers to deceptive or abusive practices
used by lenders when negotiating loans with borrowers. These
practices include misleading borrowers with incorrect information,
not supplying borrowers with adequate explanations of terms
and conditions, unjustly charging borrowers high interest rates
or fees, or simply hassling borrowers and pressuring them to
accept unfavorable conditions.
2. Why should I care?
Predatory lenders often target borrowers that have less than
perfect credit, and that are especially vulnerable because
of their lack of experience in negotiating loans. Women
and communities of color are often targeted by predatory
lenders, so borrowers should be on the lookout for lenders that
aggressively target these populations.
Predatory lenders will often overlook your ability to pay off
a loan, especially in cases where a loan is backed by other
collateral (such as a car or a house) or where the borrower has
authorized the lender to debit the funds from the borrower’s
checking account (which is especially common with Payday
Loans). If you fail to pay off your loan on time, lenders can
repossess the property or take payments and fees from your
account. Often, borrowers aren’t clearly informed about that
recourse. For these reasons, always be prepared and informed
before entering into a loan agreement. Remember, if you can’t
make your payments on time, you risk losing your property,
hurting your credit, and getting yourself deeper into debt and
possibly facing bankruptcy.
3. What should I look out for?
The most common types of predatory loans are Payday Loans,
short-term, “fast cash” that is supposed to be repaid from your
next paycheck. While the fees charged by these lenders may
seem manageable, they translate to enormous interest rates -often 400% or more! -- especially if you do not repay the loan
within 1 or 2 weeks. The rates charged on Payday Loans are so
high that they are actually illegal in New York State. That’s why
you can only find them on the internet.
The rule of thumb to remember before entering into a loan
agreement is: If it sounds too good to be true, it probably
is. Don’t forget that for-profit
lenders are looking out for
their best interest, not yours.
Always shop around and
make sure you choose the
best option for your specific
circumstances. Also, don’t
let anyone convince you that
your financial circumstances
will improve enough in
the near future to make it
possible for you to make
higher payments. Make sure you know how much your payments
will be now AND in the future, and take into consideration the
penalties associated with early and late payments.
4. How can I protect myself?
To avoid being a victim of predatory lending, to begin with,
you should familiarize yourself with the following:
• Don’t be fooled by the teaser introductory rates, on credit
cards, mortgage offers, or other types of loans. Make sure
you know what payments will be like once the introductory
rate changes, and don’t agree to the loan unless you know
can make those payments.
• Understand what the principal is and how it relates to
interest payments.
• Understand the possible penalties associated with loan
repayment, including early repayment penalties.
• Avoid Payday Loans! Talk to your credit union about
emergency loans or lines of credit that can help with
urgent expenses or temporary cash-flow problems.
Finally, do not trust what a lender says -- make sure you have
everything in writing. You should always have the contract
signed by the lender in front of you and make sure you get an
exact copy of the agreement with the lender’s signature.
5. What if I’ve already been a victim?
If you have a predatory loan, talk to Cooperative Federal
about counseling, consolidation, and refinance. Call the
Education & Advising department at 476-1451.
Credit Card Blues
 No Balance Transfer Fees
 No Teaser Rates
 Support our local economy
Rates as low as
7
.20%APR*
Call 473-0242 or visit www.coopfed.org/creditcard
*Annual Percentage Rate. The APR is a Variable Rate and is based on Credit Score.
-Amy Bonilla, Community Development Volunteer
Holiday Closings
Tues. May 1 - International Workers’ Day
Mon. May 28 - Memorial Day
Wed. July 4 - Independence Day
Save the Date!
Our 30th Anniversary Celebration will be
9/22/12 at the Rosamond Gifford Zoo.
Dinner, Dancing, Silent Auction
Syracuse Cooperative Federal Credit Union - Established 1982
Our mission is to rebuild the local economy in ways that foster justice, serve people and communities that are
underserved by for-profit financial institutions, and responsibly manage our members’ aggregate assets.
Federally insured by NCUA
Commonwealth #97
Page 8
Spring 2012