It is well known these days that loans, any kind of conventional loans, have become more difficult to obtain. (I emphasize conventional in order to distinguish from payday loans and the kind you get from the fellows who will do damage to your kneecaps if you miss payments. Those loans may still be easy to get). The self-employed -- those whose income is reflected in IRS forms 1099, rather than W-2 – receive particularly strict scrutiny from underwriters. And, within that group, Realtors® -- most of whom are independent contractors – face even greater underwriting skepticism. Even in good years, their income tends to be seasonal, and, over the long run, cyclical.

Wouldn't it be nice if there were an institutional lender who truly understood the nature of the real estate business and whose underwriting guidelines were reflective of that understanding? There is. It is called the Realtors® Federal Credit Union (RFCU). It is new; and it is a safe bet that many Realtor® members of the National Association of Realtors® (NAR) don't yet know much about it.

In May of 2007, Dale Stinton, the CEO of NAR announced the "Second Century Initiatives." These included a proposal to form a Realtors® Federal Credit Union. The proposal was enthusiastically received by the NAR Board of Directors. By November of 2008 a regulatory approval had been received and a charter was granted. Included in the mission statement of the RFCU is a commitment to "meeting the financial needs of members in a cost effective way that recognizes the unique savings, lending, and credit needs of people in the real estate profession including Realtors® who are self employed…" [my emphasis]

Membership in the RFCU is open to, among others, Realtors®, Realtor®-Associates, Member Boards and their employees, and members of the immediate families or household members of any of the above. When its opening was announced in May of 2009, the RFCU was the newest of any federal credit union, but already not the smallest. With an NAR membership of more than one million, the RFCU easily has the potential to become the largest of all federal credit unions. This, of course, increases the benefits potential for its members.

Like all credit unions, the RFCU won't just make loans. All members must have at least a minimum ($100) savings account, and it offers a full array of money market accounts and timed deposit certificates. Because it is a non-profit and wholly member-owned, its rates will always be attractive.

The RFCU is fully virtual. No funds are tied up in the ownership or rental of branch facilities. Yet it still provides its members, through cooperative arrangements, with the physical benefit of a wide-spread ATM network. Near-by locations are easily determined by using the website.

Realtors® interested in and/or wanting to join the Realtors® Federal Credit Union can simply go on line to realtorsfcu.org/. To join, a Realtor® must have his/her NAR identification (NRDS) number.

No, the RFCU isn't going to give a Realtor® a substantial loan if he or she hasn't closed an escrow in the past three years; but those who are still active will probably get a significantly better shake than they would from a traditional lending source.

Published: August 11, 2009

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Bob Hunt is a director of the National Association of Realtors and is author of the recently published book, "Real Estate the Ethical Way." A graduate of Princeton with a master's degree from UCLA in philosophy, Hunt has served as a U.S. Marine, Realtor association president in South Orange County, and director of the California Association of Realtors, and is an award-winning Realtor. Contact Bob at .