Economic Environment Update

Dear Member:

During these difficult economic conditions with rapid changes in financial and employment markets the Chicago Municipal Employees Credit Union (CMECU), as a true financial partner with respect to its valued members, would like to keep you informed, protected and updated on any changes.

CMECU has never been out to make a quick dollar on anybody. We take our member deposits and lend them out to our members at the best rates that we can, but still give our savers a fair return on their money. We haven’t been involved in any risky mortgage lending. The money we’re lending out is your money, it’s my money, and we make sure that we lend it out as safely as possible. Our current delinquency and loss rates aren’t any greater than they have been in the last year or even five years.

How safe are your accounts? Chicago Municipal Employees Credit Union is Federally Insured. National Credit Union Administration (NCUA) insurance is backed by the full faith and credit of the U.S Government, just like the FDIC. NCUA insures accounts up to $250,000, and IRA accounts are insured separately up to $250,000.

CMECU remains strong and we will continue being strong. Being a credit union member has its privileges. It means that you’re an owner of your financial institution. You get to vote for your Board of Directors. Being a part of a not-for-profit institution also has its privileges. As a not-for-profit, we don’t have to look for maximum return and therefore don’t have to take on maximum risk. We remain conservative with our lending policies as well as our investment strategies. Being safe and giving back a conservative return to our members is more important than being able to pay higher dividends and taking on riskier loans or riskier investments. Rest assured that your deposits are safe and will remain safe at CMECU.

As far as temporary financial difficulties are concerned — we are here to help you. We recently established a skip-a-payment promotion for all consumer loans-(No Real Estate, Credit Cards or Student Loans) — This allows all eligible members to skip a payment twice per year (but not in consecutive months) by paying a $35 fee and filling out the application. We have solutions for hardship cases like unemployment, military deployment, or similar situations. Ask a credit union representative for details and application. We’ll soon announce dates of credit and financial counseling sessions.

If changes should happen regarding your employment — it’s very important for everyone to understand how important communication is. Please inform us as soon as possible and stay in touch with the credit union. Closing your credit union account(s) isn’t a solution; by loosing your CMECU privileges you might make your situation more difficult. We have alternatives to offer before your loan(s) becomes past due. We have suggestions to help protect your credit score. We have alternatives to offer if your automatic payroll deposit should stop. So remember, if your employment status changes, or if you have serious indications there will be a decrease in your income, or if your address or phone number changed; please call and let us know. We want to help you!!

Thank you
Chicago Municipal Employees Credit Union
Management