CHICAGO (9/23/13)--A Chicago savings and loan that was shuttered in 2011 has been reborn as a credit union to serve predominately low-income Hispanic communities on the city's southwest side.
The Second FCU, which re-opened Sunday with a press conference and cultural program, is the result of a collaboration between Chicago's The Resurrection Project (TRP), which works to revitalize the area, and Self-Help CU, which operates in North Carolina and Los Angeles. This is Self-Help's first involvement in the Midwest and the first time a credit union has acquired a community bank and resurrected it (Community Media Workshop Sept. 20).
The unique arrangement was made after the Los Angeles-based Self-Help FCU and TRP bought Second Federal Savings & Loan last year. The S&L's assets had been sold to Wintrust Financial Corp. but Wintrust did not want its mortgages. Instead, the mortgages were spun off to TRP and Self-Help, and later Wintrust decided to sell the assets to TRP.
Rudy Medina, a former branch manager at the S&L, will serve as Second FCU's president/CEO.
The failed thrift had focused on the low-income Hispanic market and made home loans to undocumented immigrants who lacked Social Security numbers but had taxpayer-identification cards. Most of the borrowers used cash to make their monthly payments.
TRP said it is dedicated to preventing foreclosures and community deterioration, driving out predatory lenders and providing financial services for residents through the new credit union.