No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
Is Arizona Federal facing the same challenges as other financial institutions you’ve been hearing about?
Most of the financial institutions making headlines recently are institutions that participated in what are commonly described as “sub-prime” or “alternative” mortgage products. These products were designed to extend credit to borrowers who were in many cases unable to obtain financing through traditional mortgage products. To lenders, these products offered considerable reward – at an equally considerable level of risk. Many institutions decided that the risk was worth taking. However, when the loans began to reset in terms of both interest rate and payment, more consumers struggled to make their payments and those potential risks became real financial losses. These unmet financial obligations then contributed to declining home values as the supply of homes, due to foreclosure, outpaced demand. Of course the demand lessened because lenders would not supply the loans to assist these same marginal borrowers. With the over-supply of housing, wage and income opportunities were lost in the real estate market. And the downward spiral began.
At Arizona Federal, we choose to not directly participate in these mortgage products, and thus we aren’t facing the same type of risks as other financial institutions. Our loan portfolio is a solid mix of traditional equity products, vehicle loans and personal/credit card loans. However, that doesn’t mean that we are not facing challenges in today’s economy. A small percentage of our members are facing financial difficulties brought on by mortgage loans they obtained elsewhere. Combine this with rising fuel prices, wage or job loss, falling home values and/or other economic forces, and this same group of members have been unable to fulfill their financial obligations related to car loans, credit card balances and equity loans. As a result, Arizona Federal has incurred increased loan losses which have caused short-term losses for the first half of 2008.
As a member, be confident in our financial strength and the fact that Arizona Federal is here to stay. We have multiple layers of protection that ensure the safety and soundness of Arizona Federal.
With that said, we continue to strive to earn your trust in all that we say and do. We provide convenience through our 29 branches, more than 5,000 shared branching locations and a network of over 57,000 surcharge-free ATMs. Additionally, we offer online banking, TT24 and a full suite of services through our call center with extended hours. And, perhaps most importantly, we create and provide measurable financial value through services such as affordable rates, free IDSafeChoice, financial education and student loans. By virtue of our members’ use of Arizona Federal services we are able to leverage the not-for-profit cooperative structure of our credit union to make a truly significant impact on our members' financial lives.
For more Arizona Federal information please read our 2007 Annual Report and President’s Message. Visit the Press Room for information about credit union performance.
Sincerely,
Ron Westad
President/CEO
Arizona Federal - The credit union for the way you define service.
@llecs wrote:My last two opened CCs are NAtional City and Wachovia. So, let's hope neither.
I had 2 WF cards in DMP so I hope its not WF. Chase would be okay. BofA would really be bad.
wmarat wrote:I am affraid that NC will be allowed to go down, unless, WF or USBank decide to get some piece of it.