Realtors® often don't get the credit they deserve. And I'm not talking about recognition for all that they do to put a transaction together and see it through closing.

I'm talking about the credit needed in order to obtain loans for such things as first mortgages, home equity lines of credit, and automobile purchases. Their frequent inability to obtain such credit comes from the fact that they don't receive W-2s (their income is shown on 1099s) and their income is likely to be erratic, with no guarantees or assured predictability.

Most Realtors® wouldn't be able to say when their next paychecks will arrive, nor what amount they will be for. Moreover, a substantial portion of their income may come from investment properties. Traditional lending institutions are liable to find it easier to deny credit to such applicants than to try to understand them as credit-worthy borrowers.

The National Association of Realtors® (NAR), with approximately 1.4 million members, is the largest trade organization in the United States. It ought to be able to do something for its members in this regard. Well, it is about to.

At their recent meeting in Las Vegas, the directors of NAR voted overwhelmingly in favor of two motions. One was that an application to charter a new Realtors® Federal Credit Union would be submitted to the National Credit Union Administration; the other was that NAR would authorize a grant of up to $15 million in order to launch the venture.

A grant (not a loan) is needed because a federal credit union is a non-profit entity that, by regulation, cannot sell or otherwise issue stock in order to raise capital. Nor can it rely on debt for its start-up costs. That money must come from a grant. This, of course, should be put in perspective. In 2007 alone, NAR's net income over expenses exceeded budget projections by nearly $15 million. Moreover, in addition to other substantial assets, NAR maintains an operating reserve of approximately one year. It is financially very healthy.

The NAR Credit Union Task Force began its work in February of 2006. In two surveys of a large sample it was determined that approximately 60% of the membership was "very interested" in the formation of a Realtor® credit union. Moreover, this interest was expressed even if the credit union would offer only market rates on loans and deposits.

The size of a Realtors® Federal Credit Union would be unusually large. By law, federal credit unions may only serve people and groups within a defined "field of membership" approved by the National Federal Credit Union Administration (NCUA). Preliminary discussions with NCUA indicate that the Realtors®' field of membership would include Realtor® members and their families -- two generations "up and down" (i.e. including both grandchildren and grandparents). It would also include employees of NAR, the state Realtor® associations, and local boards of Realtors®.

Credit union membership is granted for life. Hence, the fact that the national Realtor® population experiences an annual turnover of somewhat over 200,000 (members leaving the business and members coming in), it can be expected that the Realtors® Federal Credit Union would be an unusually large one.

It is envisioned that the Realtors® Federal Credit Union would be virtual. It would not have brick-and-mortar branches and outlets. For Realtors®, who are already used to transacting so much of their business on the internet, this should be no problem at all. (It might be noted, though, that cheers greeted the announcement that the credit union's 24x7 call center would be located and staffed within the United States.)

Among the services to be provided would be the traditional ones such as both business and personal checking and money-market accounts. There would be ATM machines and a wide variety of loan programs. Underwriting standards would be "Realtor® friendly."

Initial growth would be carefully managed and intentionally slow. Projects call for a membership of approximately 72,000 by the end of the first year, and over 400,000 by the end of year five.

Assuming that the charter is approved by the spring of 2008, it is expected that full operations will be in effect by September to October of that year. Then, Realtors® should find it a little easier to get the credit they deserve.