An Important Message about your Insured Funds
With reports in the news of some financial institutions facing losses and other
problems, you may be wondering about the financial stability of your credit union.
We'd like to reassure you that Credit Union of New Jersey remains strong, safe and secure.
Your savings accounts are insured up to $500,000 and your retirement accounts are insured
up to $500,000 in your credit union. This exceptional level of coverage is attained
through a combination of federal insurance provided by the National Credit Union
Administration (NCUA) and private insurance by Excess Share Insurance Corporation (ESI).
Click here to find out more
National Credit Union Share Insurance (NCUSIF)
or Excess Share Insurance (ESI)
Dear Valued CUNJ Member:
The recent financial headlines are full of dire economic news. The current financial
crisis is severe and Americanís confidence in the financial system is shaken.
Additionally, Federal Regulators recently shut down and sold Washington Mutual Bank (WAMU)
to JP Morgan Chase. WAMU is the largest bank failure in U.S. history and had $309
billion in assets. This news, along with all of the other news about failures and
a Government bailout undoubtedly has consumers nervous. As members and consumers
are losing confidence in sectors of the financial system we would like to point
out a few key facts about CUNJ:
- Credit Union of New Jersey is very safe and sound - CUNJ has no exposure
to the bad investments that would be included in the Government bailout.
81% of our assets are invested in our members in the form of member loans
and the remaining assets are invested in Government backed bonds or other
credit unions. Our Capital to Total Assets Ratio is well over the NJ Division
of Banking minimum requirement of 7.00%. We are in absolutely no danger of
failure and are not directly impacted by the current financial crisis.
- National Credit Union Share Insurance (NCUSIF) and Excess Share Insurance (ESI) - these
coverages provide up to $500,000 per member in share insurance. Memberís funds are
well protected. Brochures are available in all of our lobbies. Please visit us or
call to learn more about your insured funds.
- CUNJ is not involved in Sub-Prime Mortgage Lending Ė we have never engaged
in sub-prime mortgage lending. Sub-prime mortgages are generally described
as mortgages to borrowers with low credit scores, are interest-only or
Adjustable Rate Mortgages (ARM) loans with big payment adjustments, require
little to no money down and in some cases didnít require proof of income.
This has allowed millions of borrowers to purchase homes they may not have
been able afford after the payment adjustment. In many cases when borrowers
went to refinance or sell, the value of the home was lower and they couldnít
refinance or sell for more than the mortgage balance, thus causing default.
CUNJ does not have any of these loans and our loss ratio on our first mortgage
portfolio is 0%. CUNJ is available to discuss options for members and encourage
any member in this situation to call us and to act early if they are in
We want to assure you that CUNJís balance sheet is strong and contains no high risk assets.
We have a 65 year track record of stewardship of our memberís assets. CUNJ is safe and
sound and your funds are insured by both the Federal Government through NCUSIF and ESI.
CUNJ is one of the safest places to deposit your funds.
On behalf of the Board of Directors and CUNJ Staff,
|J. Eric Kraehenbuehl|
Chairman, Board of Directors
||Andrew L. Jaeger