LUBBOCK, Texas–A start-up credit union here has hosted its grand opening ceremony with NCUA Chairman Todd Harper appearing via Zoom.
Capital Federal Credit Union is now up and operating as it seeks to manifest Capital Mortgage Service's vision of making sure some of Lubbock's underserved communities have better access to financing and banking opportunities, according to LubbockOnline.
Royce Lewis, founder of Capital Mortgage Services, told LubbockOnline the idea to help launch a credit union came as he and his wife, Linda Lewis, wanted to pay employees of their Capital Mortgage Services directly into their bank accounts.
They found out a good number of their 130-plus employees – many Hispanic – didn’t have bank accounts, according to the report.
“Many of them were afraid of banks – afraid of establishment institutions,” Lewis was quoted as saying. “Some had had problems before with charges and were afraid they wouldn’t be able to keep enough in the account to keep them from getting substantial service charges.
Lewis, who started the company with Linda in Lubbock in 1986 after a career in banking, knew that meant a lot of his employees didn’t have a way to save money, get loans and other benefits of working with a financial institution, according to LubbockOnline.
“We began to explore the possibilities on how we could help them solve their problems,” Lewis told the news outlet. “I talked to several of the banks around and asked if I could negotiate a special deal. When they couldn’t, Linda and I decided that the best way was to create an entity that we had some control over so that we could offer a no-fee checking account service to the employees.”
New CU’s FOM, Reason for Being
The charter for the upstart Capital Federal Credit Union, one of the few de novos chartered in 2021, includes in its field of membership Capital Mortgage Services employees, the League of United Latin American Citizens (LULAC) – Lubbock Texas Council #263. and the Lubbock Boys and Girls Club.
“My reason for getting involved was to have our organization have the means to get mortgage loans, personal checking, savings accounts, auto financing,” Sam Gonzales, LULAC Council president, told LubbockOnline.
The credit union also wants to offer personal loans, online banking, mobile banking and debit cards, Mike Hensley, president/CEO of Capital Federal Credit Union, added in comments to LubbockOnline.
“Our members won’t have to go through all the hoops they might have to at another financial institution,” said Hensley.
‘Power of Diversity,’ Says Harper
NCUA’s Harper told the opening crowd of about 80 people, “Today also illustrates the power of diversity and fostering innovation. Many of the Hispanic and Latino communities in and around Lubbock are underserved areas that lack access to safe, fair and affordable financial services and products. This lack of access has prevented this growing community from making the most of the opportunity that our nation really provides. But your credit union’s organizers and supporters recognize this unmet need for local financial services and are creating a solution.”
The products and services provided by their credit union will allow the members to grow and start small businesses, allow them to purchase vehicles and allow them to build savings, Harper added.
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