RSF Participates in Permaculture CU’s Earth-Friendly Lending

When Jeff Maul built his home in Santa Fe County, he approached his bank to convert his construction loan into a mortgage loan. They refused because they deemed his energy-efficient 800- square foot home “too unusual.” He approached other financial institutions without success. His friend suggested the Permaculture Credit Union (PCU), because it provides financing and services for socially responsible individuals building sustainable structures.

Through PCU, Jeff Maul was able to secure a fixed-rate first-time mortgage loan in a short amount of time. PCU’s mission is to pool the financial resources of people who live according to the ethics of permaculture—“care of the earth, care of people, and investment of surplus for the betterment of both.” PCU commits 65% of members’ deposits to its “sustainable mortgage program.” In order to help PCU obtain more liquidity to make loans under this program, RSF joined with two credit unions from New Mexico in an ongoing Loan Participation Agreement.

“I believe this is the first time that a credit union has reached outside the credit union movement for an agreement of this type. Mark Finser, RSF’s president and CEO, was very receptive to the evolution in lending that PCU was trying to create,” says President and CEO Donald Sarich. “We are grateful for RSF’s collaboration, which has enabled PCU to take another leap forward.”

Like Jeff Maul’s loan, all loans that RSF purchased (e.g., updating a home and landscaping with sustainable systems; remediation of property previously used as an illegal dumping ground; purchasing land for an organic flower farm) are home or land equity lines of credit for purposes aligned with both PCU’s and RSF’s missions.

“Our investors, with their intention of creating a more sustainable future and their confidence in RSF, are really the ones who have made this loan participation possible,” says Mark Finser. “I am grateful to them for seeing this through.”

For more information, please visit www.pcuonline.org. For more information about becoming an investor at RSF to support initiatives like PCU’s “sustainable mortgage program,” go to our “Social Investment Fund” page.

Wednesday, January 3rd, 2007