News and Articles
NTFCU partners with Citibank on CITI’s ATM Community Network
Neighborhood Trust FCU was invited, together with a handful of other community-oriented financial institutions to participate in this pilot, which will provide surcharge-free access to CITIBANK branch ATMs to all our members countrywide.
This is definitely a recognition by Citibank for all the work NTFCU is doing for the Upper Manhattan community, and the winners are definitely our members!
August 1st, 2016| alternative lending, financial inclusion, financial services, Unbanked, underbanked
New-home sales exploded in April: What it means for buyers, sellers
May 25th,
By Lisa Kiplinger, USA TODAY
The spring home-buying season has definitely sprung. Sales of new homes soared 16.6% in April, blowing away economists’ expectations for a rise of 1.8%, the Commerce Department announced Tuesday. It’s a huge turnaround from March when sales dipped for the third straight month. Steve Udelson, president of real estate brokerage Owners.com, breaks down what it all means.
Q: What do you think of today’s new-home sales data?
A: Sales of new homes increased in April to the highest level in eight years and jumped 16.6% to a seasonally adjusted annual rate of 619,000. This signals a healthy real estate market, especially coming on the heels of an increase in existing home sales announced last week. With continued job growth and low mortgage rates, the demand for housing is solid. From a regional perspective, sales in the South and Northeast climbed, and sales improved in the West as well. In addition, the Midwest set a fast pace for existing home sales as reported last week. Taken together, this is all good news for the housing market.
Q: What are your observations about sales so far this year?
A: While the early start of the year was a bit slower than usual, the spring real estate market has heated up and is on a steady incline. It’s a strong market from an inventory perspective as well. Buyer demand is exceptionally high in the mid-priced market but a bit softer than usual in the very low and very high ends of the market. I project that a solid spring real estate season will continue well into the summer.
Q: What are your thoughts on the effects of a possible interest rate increase by the Fed in June?
A: There is no doubt interest rates can impact the real estate market and mortgage rates. However, we saw very modest changes during the first interest rate increase last year and anticipate the same this time around. That said, if interest rates go back up to more normal levels, we can expect this will have a bigger impact on mortgage rates and create more pressure from an affordability standpoint. But keep in mind — the Fed has repeatedly said that it will approach any rate increases very incrementally. My advice to buyers is to shop smart and look for opportunities to save on closing costs or take advantage of commission rebates being offered by many brokerages.
Q: Any advice for buyers right about now?
A: Buyers should do their homework and get smart and informed about the home-buying process as the first step. It’s no surprise that potential home buyers are using online tools to narrow down their home search and identify their “dream” homes, learn about the market in certain neighborhoods and understand key facts like a home’s price history. And because this helps buyers be more self-reliant, they can save money on commissions they’d typically have paid to a real estate agent. This can make a big difference when buying a home, which is usually the biggest purchase someone will make in their lifetime.
Q: Any advice for sellers right now?
A: Sellers can save money by doing more of the work on their own, too. Sellers can put together their own listings, figure out how to set the price and sometimes even handle the showings. Getting the asking price right is absolutely key. Too high and the listing will go stale, but too low ends up leaving money on the table. Also, keep in mind that the first few weeks a house is listed on the market are the busiest, and often if a house has no offers on it during this time period, the owner may need to re-evaluate the price. It’s also important to get high-quality, professional pictures of a home posted online with the listing the first time around. Keep the home as clean and staged as it is in those pictures for visits from potential buyers.
Neighborhood Trust FCU launches a Home Lending Campaign
At Neighborhood Trust FCU we are always looking to offer good financial alternatives to our community members. In a recent analysis, we found out that 33% of our current lending borrowers thought that they could not qualify for a loan before coming to our credit union. The reasons why they thought that were many: some are self-employees; their initial FICO Scores were low; the closing fees requested by other financial institutions were very high, among the most mentioned.
Given that the current market rates are very low, we want to help our members to take advantage of it on their purchase of a new home and extend this opportunity to those who need to refinance their current mortgages. We are offering the lowest closing costs in our community and as usual, we offer financial counseling that will help our members to be “loan ready”.
We invite our members to take the stress out of home buying or home refinancing and contact us so we can help them to make a well-informed decision.
May 19th, 2016| alternative lending, financial counseling, home lending, mortgages
Many New Yorkers Lack Bank Accounts and Emergency Savings, Says New Report
September 29, 2015
Sheila Anne Feeney
Feeling poor? Don’t feel like the Lone Ranger!
More than half of New Yorkers lack adequate savings for an emergency, and 1.14 million don’t have bank accounts or are “under banked,” according to a report by the city’s Department of Consumer Affairs.
About 360,000 households–11.7% of all homes–in New York City lack a savings or checking account–surpassing the national figure of 7.7% according to the study. Another 780,000 city households, meanwhile are “under banked:”While these families may have a bank account, they still rely on check cashers, money orders, pawnshops, prepaid cards and remittances to do handle their money.
People in the Bronx–where 43% of children live below the poverty line–are the most likely to be without an account or under banked.
In the borough 21.8% of households have no bank account and 66.6% report inadequate savings for an emergency. While the number of unbanked households in the city decreased slightly between 2011 and 2013, the number of under-banked households increased from 22.4% to 25.1%.
The findings–obtained by the Urban Institute, which was commissioned by consumer affairs–are important, Julie Menin, the department’s commissioner, explained in a statement.
“Having and using a bank account helps families save money and guard against unexpected financial emergencies,” she said.
The findings didn’t surprise trucking manager Shawn Gray, 40, who lives in the Fordham area of the Bronx. Gray has a bank account, but he can’t use it because “it’s in overdraft,” to the tune of $211.
Rather than helping provide economic security, his bank account generates fees that do violence to the already thin financial margin in which he lives.: “It’s the fees! They kept charging me $35 (in overdraft fees) for stuff debited from my account that cost only $9 or $10,” he said.
He uses money orders–paying about $2 for each one–to pay his rent and other bills. “The fees shouldn’t be so harsh,” Gray complained.
“The poorest people pay the highest fees: It’s very expensive to be poor,” said Rosa Franco, director of lending at the Neighborhood Trust Federal Credit Union, which serves Washington Heights, West Harlem and Inwood.
Many people–especially undocumented workers, the very poor and ex-offenders–feel they can’t open a checking or savings account for several reasons. They don’t trust banks, lack the money for a minimum balance or fear the fees generated by not managing a checking or savings account correctly, Franco noted.
But people without bank accounts have trouble establishing credit. That means they don’t qualify for conventional loans should they have an emergency, “so if they need a loan, they use predatory lenders like loan sharks: The interest can be 500% a year,” dooming them to seemingly eternal debt–and worse.
The Neighborhood Trust, which also is a site to apply for ID NYC cards, conducts free financial literacy seminars and gives prospective customers free introductory accounts upon seminar completion. But, she noted, many are unaware of the affordable fee structures and benefits of credit union membership because “as nonprofits, we don’t have enough resources to do marketing.”
People like Anthony Charles, a 49-year-old porter from New Lots, Brooklyn, would be an ideal credit union customer.
“I can’t afford a bank account!” lamented Charles, who explained he doesn’t have a bank account, a credit card or a debit card because his salary–about $1,260 a month–disappears the second he gets it into money orders for rent and other expenses. “Everybody wants to use everybody. There’s more work, more work, more work–but no money,” he said.
The report’s findings “will serve as a driving force behind our future work as we create targeted programs for key neighborhoods and build toward a more equitable city, a cornerstone of Mayor de Blasio’s One NYC,” Menin said.
The IDNYC is at Neighborhood Trust FCU!
The IDNYC program launched in 2015 providing New York City residents with the opportunity to get a free identification card. In year two of IDNYC, the card will continue to be free and there will be expanded benefits. Elected officials, administration leaders, and community members will come together on January 4 to celebrate this new year and help launch municipal ID cards for NYCHA residents.
We are hosting the IDNYC program since its launch in 2015 providing New York City residents with the opportunity to get a free identification card. IDNYC provides access to City services and cultural institutions, numerous discounts, and gives the peace of mind that comes from having recognized identification. Communities, who are some of the most vulnerable and can have challenges in obtaining government IDs, such as homeless people, young people, seniors, immigrants, and LGBTQ people, now have the ability to get an IDNYC at enrollment sites across the five boroughs.
Remember, the IDNYC can be used to become a member at Neighborhood Trust FCU. Take a look here to learn more to obtain your IDNYC and let your friends and loved ones about it!
January 15th, 2015| City of New York, Unbanked, underbanked
Small Business Loan Success Story: Blue Peach Media’s Collaboration With Neighborhood Trust Federal Credit Union
TONY ARMSTRONG
September 19, 2014
You can trust that we maintain strict editorial integrity in our writing and assessments; however, we receive compensation when you click on links to products from our partners and get approved. Here’s how we make money.
When repercussions from the events of Sept. 11, 2001, eventually spelled the end of the production company for which Gavin Grace worked, he wanted to continue to put his carefully honed skills to good use. After nearly a decade of shooting and editing video footage as well as creating graphics and animations, Grace had his sights set on starting his own production company.
There was only one problem: Grace lacked the capital necessary for a full-scale launch of his business. Without this funding, Grace knew it’d be impossible to fulfill his dream of running his own business.
Looking for a backer
Because Grace didn’t have access to credit through his bank, he had to do some digging to find the money that his fledgling company, Blue Peach Media, so desperately needed.
Although his business was still in its infancy, Grace had already managed to land several clients for whom he was regularly producing work. His services were becoming increasingly sought after, making it that much more important to secure funding as quickly as possible.
Despite Blue Peach Media’s sunny outlook, many banks and credit unions continued to reject Grace’s loan requests. Eventually, he turned to a smaller financial institution, New York’s Neighborhood Trust Federal Credit Union, for funding, hoping that they might listen to his story.
Much to Grace’s delight, the credit union was more than willing to hear him out.
“We serve those people who are not given loans by traditional banks,” says Rosa Franco, director of lending at Neighborhood Trust.
“If a borrower doesn’t have access to a traditional bank, we welcome them,” she adds. “We review all types of loans. We don’t approve all, but we look at each one.”
How Neighborhood Trust helped
Once Grace got Neighborhood Trust’s attention, it didn’t take long to get the ball rolling.
Neighborhood Trust “recognized the potential of my company and arranged a line of credit, which allowed me to meet overhead as I pursued new business,” says Grace.
“Neighborhood Trust enabled me to meet the upfront expenses of producing work,” he adds. “I’d been awarded a couple of video projects by the Army, and I needed to meet travel expenses, crew expenses, and overhead in order to produce the work.”
Upon meeting Grace, Franco was optimistic about Blue Peach Media’s potential and was especially impressed by Grace’s ability to secure partnerships with a varied cast of clients.
“I knew that he had a lot of potentials,” says Franco. Her only concern was that Grace didn’t have enough experience dealing with the intricacies of a company’s finances.
Grace’s collaboration with Neighborhood Trust and its team of financial advisors quickly put those concerns to rest. The credit union set Grace up with the team to complete a business plan, and eventually issued two lines of credit worth a total of $50,000. Neighborhood Trust also helped Grace become a certified contractor for the state of New York, thus helping him expand his growing customer base.
Franco cites Neighborhood Trust’s commitment to actively engaging with business owners to establish strong business models as a major reason for the rewarding partnership between Grace and the credit union.
“We don’t only provide the funding; we want to be partners with these entrepreneurs,” Franco adds.
Tips for small business owners
Despite Blue Peach Media’s recent success, Grace is quick to admit that he learned a lot in the process.
“There is a lot of juggling of hats for a small business owner,” Grace says. “My goal is to focus more of my time on marketing and sales whenever possible. If I had any tips, that would be one. Another is to have a good bookkeeper and accountant.”
Franco echoes Grace’s advice, recommending that business owners invest in resources to help them further develop their companies. Working with a financial advisor, for instance, can go a long way toward making sure that your company is financially secure, Franco says.
Looking ahead
Just last year, Neighborhood Trust issued another line of credit to Blue Peach Media, which its owner says will help him and his colleagues stay busy through the rest of the year.
Thanks to the successful collaboration between Neighborhood Trust and Blue Peach Media, Grace and the company are currently working on their third U.S. Army video and hope to sign more private clients in the coming months.
September 20th, 2014| Small Business loans, Small Business Technical Assistance