Almost a year after the failed Second Federal Loans and Savings was going to be auctioned off by the FDIC to potential predators and speculators, the partnership that rescued the bank held a community celebration alongside more than 100 residents this past Saturday, September 21, 2013. Governor Pat Quinn, Illinois State Attorney General Lisa Madigan, Cook County Commissioner Jesus Garcia, Alderman Ricardo Muñoz, and representatives from Self-Help Federal Credit Union, the National Credit Union Administration, and Wintrust Financial joined The Resurrection Project (TRP) to announce the rebirth of Second Federal as a credit union.

“Today we’re celebrating the resurrection of an institution that has a proud legacy of serving immigrant communities for more than 100 years,” said Raul Raymundo, CEO of TRP and emcee for the event. “We rescued this bank together so that we can keep existing mortgage holders in their homes and so that it can continue to offer vital financial services to our communities.”
Local media, including ABC-7, WGN-9, Extra Newspaper, and CAN-TV, were also on hand to celebrate and cover this unique victory for the community.
“We’re celebrating what can be achieved when we work together,” said Governor Quinn, who emphasized the ongoing importance of public and private partnerships working together to achieve new victories for the community.
When Second Federal Savings and Loan failed in 2012, the FDIC planned to auction the bank’s assets, including $161 million in deposits and 1,100 mortgage notes with a face value of $141 million. TRP and Self-Help Federal Credit Union, fearing that the auction of 1,100 mortgage notes would have exposed homeowners to increased foreclosure risks, forged a unique alliance to rescue the bank. The partnership worked with the FDIC to secure the $141 million in mortgage loans before working directly with Wintrust Financial, which had previously acquired the $161 million in deposits. Wintrust supported the rescue of Second Federal by agreeing to sell the assets back to the TRP/Self-Help partnership.
“This was a resurrection, a rebirth, of an important financial institution for this community,” said Attorney General Madigan.

Second Federal, now operating as a community development credit union, has already begun offering new mortgage loans and new financial products tailored to the needs of its immigrant communities. This includes a $465 loan to DREAM students to cover the costs of applying for the federal government’s Deferred Action for Childhood Arrivals (DACA) program. A DACA student, Nallely Silva, spoke at the event about the importance of such a loan.
“The DACA loan,” she said, “will help students who think they can’t apply to this important program because they don’t have the application fee in hand. DACA is the first step toward other opportunities like financial aid for college. It’s the first step toward fulfilling the dreams of DREAM students.”
Second Federal is also working to preserve the dreams of people who already have mortgages. As part of the partnership, TRP staff is working with Second Federal mortgage holders who are struggling with their payments. One family, Zenaida and Sixto Zarco, ran into difficulties when Sixto fell ill and had to stop working. They fell behind on their payments and were risking foreclosure. But by working with TRP and Second Federal, they received the assistance they needed to get back on track. They shared their story at the press event.
“Second Federal told me about The Resurrection Project,” Zenaida told the audience, “and how they had a program to help people who’d lost their job make their mortgage payments. The process was fast and, in three weeks, we got the help we needed to get up to date on our payments.”
At the conclusion of the press conference, the dignitaries and guests onstage released more than 100 balloons into the air to symbolize the rising of the community’s dreams. Mariachis struck up the music as the balloons made their ascent into the sky to the cheers and applause of all participants.
Saturday’s celebration included children’s games and activities, live music and cultural performances, free giveaways, and free food and treats from local vendors. The vibrant atmosphere was a promising sign of things to come for the resurrected credit union and its continued focus on serving its communities. The Resurrection Project and Self-Help Federal Credit Union both look forward to continuing to work with Second Federal to financially strengthen Chicago’s Southwest Side and, together, create healthy communities.

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