Loan Purchase Parameters
Loan Purchase Process
The CDCU Mortgage Center Secondary Market Program was established to purchase affordable mortgage loans from member credit unions to assist you with liquidity and provide you the opportunity to originate additional affordable mortgage loans for your members.
As a member of the Federation, you can sell both conforming and non-conforming mortgage loans directly to the Mortgage Center for cash. Participation in the Program is ideal for your credit union if:
• You hold conforming and non-conforming mortgage loans on your balance sheet
• You are interested in increasing available lending dollars for low- and moderate-income borrowers
The CDCU Mortgage Center will purchase seasoned, performing, first lien, one-to-four family and condominium mortgage loans, manufactured home loans and coop loans. Fully amortizing fixed-rate and adjustable rate mortgage loans are eligible for purchase. Your credit union, or a designated and approved loan servicer, will maintain servicing on all loans sold to the CDCU Mortgage Center. Specific purchase parameters apply for each loan type.
The process to sell loans to the CDCU Mortgage Center is easy:
1. You complete the CDCU Mortgage Center Application to Sell Mortgage Loans to the CDCU Secondary Market and are approved to sell loans.
2. You complete an Excel spreadsheet, which will be provided to you, with specified borrower and loan information on loans meeting our purchase criteria.
3. The CDCU Mortgage Center will analyze loan characteristics, performance, etc. and select loans for file review.
4. You send copies of loan files selected for review to the CDCU Mortgage Center who will conduct a pre-purchase documentation file review of the selected loans.
5. The CDCU Mortgage Center makes an offer on selected loans and determines pricing.
6. You enter into a Loan Purchase and Servicing Agreement with the CDCU Mortgage Center, LLC.
7. You forward the Mortgage Note, Security Agreement and Assignment of sold loans to The CDCU Mortgage Center.
8. The CDCU Mortgage Center will wire proceeds from purchased loans to your designated account.
9. You provide the CDCU Mortgage Center with monthly loan activity reports and interest and principal payments.
To get started, and for additional information, contact Onika Lewis at olewis@cdcu.coop or (800) 437-8711 x210.
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Secondary Market Lender Application Form
