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HarborOne Credit Union in Brockton, Massachusetts is a case study of an organization that can be a market power locally and be socially responsible at the same time. The $1.6 billion asset organization made 39 Credit Union Home Loan Payment Relief (HLPR) loans for $8.9 million in 2005, the year the program was launched. The average annual income of these applicants was $51,396. This program allows credit unions to offer low-cost mortgages to borrowers who earn no more than 100% of the median income in their geographic areas, with a higher limit for “high cost” areas.
State chartered credit unions in Massachusetts are required to comply with the Community Reinvestment Act along with the banks. This is the only state that has this requirement for state or federally chartered credit unions.
“We received four outstanding CRA rankings based on HMDA data, serving ethnic and minorities,” said Leo MacNeil, SVP marketing and CRA officer. “HarborOne is CRA driven and makes it part of its strategic imperative.”
HarborOne is also first in market share in mortgages in Brockton, a city of about 100,000. The organization is able to maintain its market dominance by having lower closing costs for special programs and 12 mortgage originators, according to MacNeil. “In July of 2008 we had closed $138 million year-to-date in mortgages, so when other lenders are cutting back, we are still making mortgages.”
“We did the research; we have the highest favorable rating of any local financial institution,” he said. “We have the highest quality service. Good community service has a payback.
An example of this community service is “Buy Brockton,” a consortium of local lenders who have put up $35 million to finance properties that have been foreclosed at a lower rate and closing costs so that people can buy houses in the city of Brockton. HarborOne put up $10 million. The homes were moderately priced from $180,000 to $300,000.
When HarborOne moved their headquarters from downtown Brockton, they turned their former headquarters into a multi-cultural center with classrooms. They gave courses on personal finances, credit and first time home buyers.
State chartered credit unions in Massachusetts are required to comply with the Community Reinvestment Act along with the banks. This is the only state that has this requirement for state or federally chartered credit unions.
“We received four outstanding CRA rankings based on HMDA data, serving ethnic and minorities,” said Leo MacNeil, SVP marketing and CRA officer. “HarborOne is CRA driven and makes it part of its strategic imperative.”
HarborOne is also first in market share in mortgages in Brockton, a city of about 100,000. The organization is able to maintain its market dominance by having lower closing costs for special programs and 12 mortgage originators, according to MacNeil. “In July of 2008 we had closed $138 million year-to-date in mortgages, so when other lenders are cutting back, we are still making mortgages.”
“We did the research; we have the highest favorable rating of any local financial institution,” he said. “We have the highest quality service. Good community service has a payback.
An example of this community service is “Buy Brockton,” a consortium of local lenders who have put up $35 million to finance properties that have been foreclosed at a lower rate and closing costs so that people can buy houses in the city of Brockton. HarborOne put up $10 million. The homes were moderately priced from $180,000 to $300,000.
When HarborOne moved their headquarters from downtown Brockton, they turned their former headquarters into a multi-cultural center with classrooms. They gave courses on personal finances, credit and first time home buyers.
