CU Today - "Analysis suggests CUs pulled back on home equity lending during crisis"

Description

CU Today, a credit union industry trade publication, published an analysis of "Credit Unions during the Crisis: Did They Provide Liquidity?" (Maskara & Neymotin, Applied Economics Letters, 2019). The article reports on the paper's finding that, after controlling for selection bias, credit unions did not extend home equity lines of credit (HELOCs) any more than other depository institutions in areas experiencing housing price declines during the 2008 financial crisis — challenging the conventional narrative that credit unions provided liquidity to consumers when banks pulled back. The analysis featured in the article was contributed by Keith Leggett, former Senior Vice President and Senior Economist at the American Bankers Association (ABA).