by Ulises Silva
When concerned neighbors committed $30,000 to establish The Resurrection Project in 1990, even they couldn’t have imagined that, 23 years later, the organization would be part of a unique partnership to rescue a local bank—and potentially the thousands of people the bank had served.
But that’s exactly what happened when Second Federal Savings (SFS) was being liquidated by the FDIC.
The Resurrection Project and our partners were concerned that the thousands of predominantly-immigrant families served by the failed bank would be negatively affected. When the FDIC was prepared to auction off nearly 1,100 SFS mortgages to speculators and investors, we feared it would prompt a fresh wave of foreclosures throughout Chicago’s southwest side, which had already been hit hard by the foreclosure crisis. So TRP, its supporters, and its partner, Self-Help Credit Union, took action. Together, we worked to acquire SFS’ assets and loan portfolio. Our plan was to continue serving SFS’ predominantly-immigrant customers, help underwater homeowners adjust their mortgages, and provide innovative, immigrant-friendly financial services and products.
As of February 1, 2013, those plans became reality. Self-Help Credit Union and The Resurrection Project completed the transaction, and Second Federal Savings is now operating as the state’s largest community development credit union under the Self-Help service umbrella. Over the next few months, Self-Help will merge SFS’ computer systems and technology into their own. We’re also creating new financial products specifically tailored to the needs of the immigrant communities in our service area.
In fact, the new credit union has already launched its first financial product, the Deferred Action of Childhood Arrivals (DACA) loan. DREAMer students can use this loan to apply for deferred action at a very low interest rate—and begin building their credit.
Another product on the horizon is a cash-based loan system for families who primarily use cash for all their transactions and bill payments.
For The Resurrection Project, the acquisition of SFS means immediate relief to families who may have faced difficult challenges, and a chance to help thousands of more people in Little Village and Back of the Yards—two of the neighborhoods we serve. But rescuing SFS can have an even greater impact well beyond the southwest side of Chicago.
“What this new venture allows,” says TRP CEO Raul Raymundo, “is a chance not just to help area families, but the entire state of Illinois. Every family we serve with effective financial products incrementally increases the financial health of an entire community. That means more people will have more money to purchase goods throughout the city and state. And every foreclosure we prevent not only saves local government thousands in processing and maintenance costs, it preserves a source of tax revenue and community wealth. As you add all these up, we see approximately $144.5 million put back into the local economy.”
There are more exciting plans and announcements on the horizon. But the uniqueness of the present situation can’t be underestimated. Self-Help, with its extensive track record of working in disadvantaged communities, has brought an effective working-class-friendly business model to Chicago that will help our communities throughout the southwest side of Chicago. And TRP is in a unique position, as a local community development organization founded by concerned neighbors, to provide guidance to a credit union and help create innovative financial services that will elevate our communities.
Who could have imagined that?

Return to Nueva Vida March 2013 here!