Homeownership continues to be a primary avenue for low-income people to build wealth and stabilize their communities. As such, our CDCU Mortgage Center, LLC provides CDCUs with the tools, resources and education they need to structure new or expand existing mortgage lending programs to serve their members responsibly. Through our CDCU Secondary Market, the Federation also provides member CDCUs with a pipeline to sell mortgage loans and replenish their loan capital to create additional impact in their communities.
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About the CDCU Mortgage Center, LLC
In February, 2005, the Federation launched the CDCU Mortgage Center, LLC to expand mortgage finance options for credit unions serving low-income communities. The CDCU Mortgage Center, LLC has begun working with two of the industry’s leading mortgage service providers, CU Partners Motgage Services and CU Members Mortgage, to bring their leading edge technologies and secondary market investors to the Federation’s members.
The goal of this initiative is to bring a platform of mortgage services and products even closer to the smallest community development credit unions and help their staff to feel comfortable offering housing finance assistance to low-income communities.
For additional information, contact Alice Greenwald, Director of Community Development Investments, at: agreenwald@cdcu.coop, or (800) 437-8711 x221.
CDCU Secondary Market
As 2005 drew to a close, the Federation‘s CDCU Secondary Market went live with the purchase of loans to immigrant first-time homebuyers. Throughout the past several years, the Federation has worked to expand the number of credit unions that are eligible to sell loans to the CDCU Mortgage Center, including purchases from the Federation’s Community Development Partners -- larger “mainstream” credit unions that serve low-income members. Eventually, the Federation hopes to be able to extend its secondary market to other credit unions seeking to expand their activity in low-income areas.
Seed capital for the CDCU Secondary Market came from the CDFI Fund, with additional investments from the Federation’s Community Development Investment Program. The CDCU Secondary Market will replenish its capital by raising debt from social investors, and by selling packages of seasoned loans to outside investors. The Federation is also exploring opportunities to securitize mortgage loans, in collaboration with other community lenders.
To learn how to sell your mortgage loans to the CDCU Secondary Market, and for purchase paramenters, please click here.
HUD Approved Credit Union Housing Counseling Program
As a HUD-approved National Housing Counseling Intermediary, the Federation is committed to expanding the capacity of credit unions to provide accurate, timely and consistent guidance to members. Our national Credit Union Housing Counseling Program has three primary goals:
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Connect credit unions with HUD-certified housing counseling services in their communities: Most credit union members do not hold a mortgage with their credit union. But faced with trouble, they often turn to their credit union for help and advice. Credit unions that are not professionally trained and certified in foreclosure intervention or loss mitigation cannot counsel these members, but they can provide educational information and accurate referrals to certified counseling and social service agencies.
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Expand the number and capacity of HUD-certified credit union housing counseling agencies: Fourteen credit unions and affiliated non-profits currently provide HUD-certified counseling services.
For a complete list of these certified credit union counseling agencies, click here.
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Increase the capacity of all credit unions to deliver accurate information and appropriate referrals to help members achieve financial stability: The Federation's Credit Union Housing Counseling Clearinghouse provides up-to-date tools, tips, information, materials and useful links to help credit unions better serve their members in these tough economic times.
For more information about the Federation's HUD Approved Credit Union Housing Counseling Program, contact Terry Ratigan.
