The Mortgage Crisis Loan has been designed for members with existing CoVantage loans that are struggling with payments, but have sufficient income and are willing to sit down with a loan officer to have loan restructured.

Loans are restructured depending on member’s situation. As long as member’s credit report remains reasonable, loans can be set up on interest-only basis for some period or loans extended until member gets back on good footing.

Target Market

Those members that have CoVantage loans and are struggling with payments due to a financial crisis, but have sufficient income and are willing to sit down with a loan officer to have loan restructured.

Marketing Strategy

• Word-of-mouth
• Website and newsletter information
• Referrals by loan officers and collection staff when signs of distress appear

• As of 12/31/09, CoVantage had 4,265 in-house mortgages totaling $265,189,305 of which only 50 loans (1%) are 30 days or more past due totaling $2,658,870
• There are 435 secondary market mortgage loans totaling $50,318,580 of which only one loan is 30 days past due and another loan is 60 days past due totaling $132,920
• CoVantage has restructured 24 mortgage loans by reducing interest rates, giving longer terms, and providing additional financing outside of policy to make the mortgage more affordable. Only three of these loans are over 30 days past due and none are over 60 days.
• CoVantage had a total of 22 foreclosures or deeds in lieu of foreclosure in 2009.

Member Benefits

In normal times, these members would have put their homes up for sale, sold them and paid off their debts. Under this program, members with sufficient income can remain in their homes and manage their payments. The loans that ended up in foreclosure included deceased members, moves to a nursing home, lost jobs, moves to another city for a job or unemployment.

Vendors/Systems/Technology Used

No special technology required