Mortgages with a Conscience
Credit unions have a remarkable opportunity in the mortgage market in 2008 and 2009. They avoided—for the most part—the questionable lending practices that led to the subprime disaster and threw the mortgage market into a state of panic. Brokers and real estate agents are looking for reliable sources of funds as the subprime crisis brought home the realities of funding sources that fell though at the last minute.
Members and potential members are also looking for dependable sources of funds and financial institutions they can trust. Some of your members have been mislead and confused about mortgages they didn’t understand and ultimately they couldn’t afford when the time came to refinance.
Credit unions will be able to throw a lifeline to some of these members with affordable mortgages.
State Employees'
Refinancing Subprime Loans » View details
State Employees Credit Union of Raleigh, North Carolina, $15.8 billion assets, identified members who were likely to have a subprime loan. They sent out 118,000 letters and refinanced $225 million of loans that were mostly from subprime mortgages. Many of the members could have qualified for conventional loans, why did they choose a subprime mortgage?Western
Trusted Adviser » View details
Western Credit Union offers a “Streamline Mortgage” program for members that costs $499 for everything—title search, closing costs, and appraisal. It is geared toward the smaller mortgage. It helps people who have subprime mortgages and some equity in their homes.
Documents
- The State of the Nation’s Housing 2008 – Joint Center for Housing
- Income and Tenure of Households Seeking Foreclosure Counseling: A Report from Recent Surveys – National Low Income Housing Coalition
- Interventions in Mortgage Default: Policies and Practices to Prevent Home Loss and Lower Costs – Freddie Mac
