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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I remember a couple of people asking about Penfeds solidity compared to other banks and CU's. Got an email from their chairman today, thought I'd share.
"No doubt you’ve seen and read about the many problems currently plaguing much of the financial services industry. I’ve received more than a few e-mails from members who are concerned about where Pentagon Federal stands in today’s environment. I’m happy to report that, unlike many of the financial institutions in the news recently, your credit union does not hold any collateralized mortgage obligations (CMOs), nor do we have any subprime mortgages in our portfolio. It's important to point out that recent bank, thrift, and mortgage company troubles all involve a history of subprime lending.
At Pentagon Federal, we take great pride in the fact that our history of prudent lending standards has kept us out of the subprime fray. Our loss rates are half those of our peers in the credit union industry and a tiny fraction of those in the financial services industry as a whole. In addition, our mortgage portfolio is excellent and we are monitored by federal government regulators.
Simply put, we have none of those huge losses you’ve been reading about to pass on to our members. Other financial institutions may experience difficulties, but our careful lending practices have kept us clear of the kinds of risks that have landed some banks in crisis. Because of our lending standards and careful internal financial controls, today's economic troubles are likely to have a negligible impact on the rates you pay on Pentagon Federal loans or the yields you receive on our savings/share products.
Additionally, your Pentagon Federal deposits are insured to at least $100,000 -- backed by the full faith and credit of the United States government. Both traditional and Roth Individual Retirement Accounts (IRAs) are similarly insured to at least $250,000.
We realize some of our members may be suffering through these troubled economic times. Hard times usually mean job losses and other cutbacks that certainly affect at least some Pentagon Federal Credit Union members. Despite a national trend toward higher loan delinquencies and losses, rest assured that Pentagon Federal remains an industry standout for low delinquencies and losses.
And despite all you've heard about hard times for mortgage lenders, Pentagon Federal continues to have a very strong mortgage business. We have plenty of mortgages to choose from. In fact, our 5/5 ARM is one of the best mortgage deals out there for homeowners who may be facing dramatic increases as their current ARMs' adjustment periods end. Our products are actually helping our members stave off the effects of rising rates and a down mortgage market.
If you have more specific questions about Pentagon Federal Credit Union’s financial well-being, please visit the "About Us" section of PenFed.org under "Publications," you can find copies of our last seven Annual Reports, which detail what the credit union has been doing to ensure its profitability and continued financial excellence for our membership as well as detailed financial analyses of the credit union’s deposits and loans.
We appreciate the trust you place in Pentagon Federal Credit Union. It’s loyal members like you who have allowed us to remain one of the strongest and safest credit unions in the world. We look forward to serving you in the future with the same sound practices that you have come to expect from us."
"No doubt you’ve seen and read about the many problems currently plaguing much of the financial services industry. I’ve received more than a few e-mails from members who are concerned about where Pentagon Federal stands in today’s environment. I’m happy to report that, unlike many of the financial institutions in the news recently, your credit union does not hold any collateralized mortgage obligations (CMOs), nor do we have any subprime mortgages in our portfolio. It's important to point out that recent bank, thrift, and mortgage company troubles all involve a history of subprime lending.
At Pentagon Federal, we take great pride in the fact that our history of prudent lending standards has kept us out of the subprime fray. Our loss rates are half those of our peers in the credit union industry and a tiny fraction of those in the financial services industry as a whole. In addition, our mortgage portfolio is excellent and we are monitored by federal government regulators.
Simply put, we have none of those huge losses you’ve been reading about to pass on to our members. Other financial institutions may experience difficulties, but our careful lending practices have kept us clear of the kinds of risks that have landed some banks in crisis. Because of our lending standards and careful internal financial controls, today's economic troubles are likely to have a negligible impact on the rates you pay on Pentagon Federal loans or the yields you receive on our savings/share products.
Additionally, your Pentagon Federal deposits are insured to at least $100,000 -- backed by the full faith and credit of the United States government. Both traditional and Roth Individual Retirement Accounts (IRAs) are similarly insured to at least $250,000.
We realize some of our members may be suffering through these troubled economic times. Hard times usually mean job losses and other cutbacks that certainly affect at least some Pentagon Federal Credit Union members. Despite a national trend toward higher loan delinquencies and losses, rest assured that Pentagon Federal remains an industry standout for low delinquencies and losses.
And despite all you've heard about hard times for mortgage lenders, Pentagon Federal continues to have a very strong mortgage business. We have plenty of mortgages to choose from. In fact, our 5/5 ARM is one of the best mortgage deals out there for homeowners who may be facing dramatic increases as their current ARMs' adjustment periods end. Our products are actually helping our members stave off the effects of rising rates and a down mortgage market.
If you have more specific questions about Pentagon Federal Credit Union’s financial well-being, please visit the "About Us" section of PenFed.org under "Publications," you can find copies of our last seven Annual Reports, which detail what the credit union has been doing to ensure its profitability and continued financial excellence for our membership as well as detailed financial analyses of the credit union’s deposits and loans.
We appreciate the trust you place in Pentagon Federal Credit Union. It’s loyal members like you who have allowed us to remain one of the strongest and safest credit unions in the world. We look forward to serving you in the future with the same sound practices that you have come to expect from us."
