Credit Union National Association, or CUNA, and mortgage giant Freddie Mac have beefed up their alliance to help credit unions compete for mortgage business, the two institutions said today.
Freddie Mac said the renewed alliance, effective through Sept. 1, 2007, will help credit unions compete for mortgage business through superior access to the secondary mortgage market and technology.
The improved alliance streamlines products and improves execution on items CUNA members need to compete in the full-service market, the companies said. Additionally, Freddie Mac created a special account management team for credit unions to help them become more competitive originators and more effective interest risk managers.
The alliance will provide credit unions access to secondary market execution with as little as a single mortgage loan, the companies said. Other advantages include implementation and transaction fee discounts for Web-based Mortgagebot with Loan Prospector business-to-consumer Web site and a private label servicing option.
“The alliance provides credit unions with much-needed flexibility,” said Wes Millar, CUNA’s senior vice president of strategic services, in a statement. “Through Freddie Mac, credit unions will have affordable lending solutions to meet the needs of low- to moderate-income borrowers as well as a variety of products that meet their members’ needs in the changing economic climate.”
“The alliance renewal with CUNA underscores our long-standing commitment to credit unions and their members,” said Iliana Ghanem, vice president for community lending at Freddie Mac.
Ghanem said the offering provides credit unions with tools they need to build and enhance their mortgage business, strengthen their member outreach, and ultimately put more of their members into homes.
The Freddie Mac/CUNA agreement also provides participating credit unions with technological advantages, using Freddie Mac’s Loan Prospector automated underwriting service and a Mortgagebot with Loan Prospector business-to-consumer Web site for online mortgage lending.
It also provides additional mortgage product options, including flexibility for construction to permanent mortgages and others that complement a wide variety of mortgages available through Freddie Mac’s Single-Family Seller/Servicer Guide.
Finally, it provides assistance and training on Freddie Mac affordable mortgage lending products, including Freddie Mac’s Home Possibles mortgage suite, and other low-down-payment mortgages, which are designed to help low- and moderate-income borrowers.
CUNA serves more than 90 percent of America’s 9,000 credit unions, which are owned by nearly 87 million consumer members. Credit unions are not-for-profit cooperatives providing affordable financial services to people from all walks of life.
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