Credit Unions See Hundreds of Thousand of New Members and Accounts...Could Home Loan Transfers Be Next? |
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By: Acuma.org Posted: 2011-11-13 20:38:48 |
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ANAHEIM, Calif., Nov. 11, 2011 -- Since the 2008 housing crash as the nation's homeowners have struggled with home values and loans, America's Credit Unions have quietly and consistently gained share in the home loan market. While much of those gains have been realized in refinance loans, America's Credit Unions prepare to exhibit to the National Association of Realtors® Convention this week. Will Realtors® pay more attention to Credit Unions as viable mortgage lenders in the wake to millions of consumers transferring their funds from banks to Credit Unions?
CU Trade group President Bill Cheney stated "since Sept. 29 – the day Bank of America announced its now-rescinded monthly $5 debit card fee – average estimated Credit Union membership increases nationally were around 20,000 new members each day. On Saturday Nov 5 (Bank Transfer Day), consumers doubled the pace," he added. "We know millions of American's are pleased with the service and rates offered at many of our nation's leading Credit Union Home Lenders," said Bob McKay, Chairman of the American Credit Union Mortgage Association (ACUMA). Adding to new opportunities for Credit Unions is the revised Home Affordable Refinance Program (HARP) overhaul announced by President Obama during his recent trip to Nevada and California pertaining to existing loans currently held by Fannie Mae and Freddie Mac. Details of the HARP 2 plan as it is now known, will be released in the coming weeks, but among the rumored changes are: expanding HARP to borrowers who are more than 25 percent underwater, increasing the 125% LTV HARP threshold currently in place, and possibly some form of government waiver of underwriting violations on loans made to high-risk borrowers. This last feature would be an inducement to private lenders who are skittish about involvement with HARP-sponsored loans. "Credit Unions have stayed the course, conducted their business affairs truly in the best interest of their members even when the temptation of huge profits were being reported by many other lenders and the reward for maintaining our high level of professionalism and trust may now expand our ability to serve many more homeowners for refinance AND purchase money loans in the future," continued McKay. This also happens to be the message America's Credit Unions will deliver while exhibiting at the Realtors Convention in Anaheim beginning Nov 11. About ACUMA The American Credit Union Mortgage Association is a non-profit credit union trade organization dedicated exclusively to credit union mortgage lending. Its member organizations comprise 300 federal and state chartered credit unions and CUSOs, mortgage insurance companies, secondary market investors, investment banking firms and mortgage banking-related technology companies. |
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