Tehachapi News

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Ridgecrest-based AltaOne Federal Credit Union — with its local branch inside Albertsons Market — is riding out the global economic blowout pretty well, and it's no accident.

“We never got involved in the mortgages where we did the negative ams [amortizations] and the adjustable rates,” said Member Services Manager Brian Johnson, the branch manager at Albertsons. “Our loans were always safe and secure…Today we don't have a single mortgage loan in foreclosure. Not one.”

The financial institution has not been completely bypassed by the economic downturn, however, mortgage defaults at other banks have created a ripple effect.

“We have been affected,” Johnson said. “In other places, there were people whose loans doubled. Their mortgage is the first check they write. Then they default on their auto loans, credit cards and personal loans.

“It's a direct impact from the mortgage industry.”

Johnson, speaking to the Tehachapi News Oct. 21 with AltaOne Business Development Director, Western Region, Ian Anderson, expressed confidence in the economy.

“In time we will recover,” Johnson said. “We believe the economy will be stronger than ever in a year to two years. We have not backed off on lending and have not tightened requirements.”

He said they were writing mortgage loans “every day” with no restrictions.
“A lot of places have cracked down, requiring a certain credit score and equity. We are still using our standard guidelines. Some require 700 credit score or higher. We can go 600 and lower.”

Johnson said that in recent years, banks financed Freddie Mac- and Fanny Mae-backed loans of 100, 110 and 120 percent. Now, he said, those banks are making 95 percent loans with new guidelines on conventional 10-, 15-, 20- and 30-year fixed contracts.

AltaOne, as a federal credit union, has the advantage of being member-owned.

“We don't have fees or points,” Johnson said. “No closing costs that are not imposed by a third-party vendor. We make money on the interest. We underwrite and fund all our own mortgage loans.”

That profit is put back into the credit union to lend again - not to pay stockholders.
AltaOne services and manages its own loans, he said.

Anderson said that AltaOne is a Small Business Administration lender.

“We have an online application process,” he said.
And, when appropriate, “We have instant approval,” Johnson said.

AltaOne started in 1947 on the China Lake base as the China Lake Naval Weapons Center Credit Union and attained its new name about six years ago to reflect its growing service area in Kern County. The branch in Tehachapi has been open for a year and a half. 

In addition to the corporate headquarters in Ridgecrest, other branches are in Bishop, Lone Pine, Mammoth, Boron, Lake Isabella, Kernville, California City and Mojave.

To be a member, one needs to live, work, worship or attend school in the community charter areas. It has a half billion dollars in assets, Johnson said, there are almost 55,000 members.

“We would love to get a free-standing branch in Tehachapi,” Anderson told participants at the Main Street organized Shop Talk business development seminar on Oct. 22. “And grow with you guys.”

He said the company handles business loans, business deposit accounts, financial planning, personal deposit accounts, auto, truck and toy loans, home loans, personal loans unsecured up to $100,000, secured lines of credit, business term loans, equipment and construction loans.

Anderson said the company's community activities include employers group educational session and financial literacy programs for students.

“We have a community educational specialist who teaches financial literacy,” Anderson said. “In April we are partnering with Tehachapi High School in “The Game of Life” — we give them a budget and they have figure out their rent, bills, utilities and how to manage them.

Anderson said AltaOne will provide a certified substitute teacher who can come out on a “dead day” to present the financial literacy program.

AltaOne in Tehachapi is at 775 South Tucker Road inside Albertsons. Call (661) 823-9942 or visit www.AltaOne.org.