Could Mortgage Lending Again Be the Key to Credit Union Financial Success

During the past week, the ten year treasury yield has fallen almost 40 basis points to approximately 3.70%. This decline has rekindled the refinancing market so much so that Fannie Mae published a revised 2004 mortgage origination forecast of $2.4 trillion- which would be the third highest total ever.

 
 

During the past week, the ten year treasury yield has fallen almost 40 basis points to approximately 3.70%. This decline has rekindled the refinancing market so much so that Fannie Mae published a revised 2004 mortgage origination forecast of $2.4 trillion- which would be the third highest total ever.

But can credit unions continue to participate and benefit from this demand when much of the refinancing as well has purchase mortgage volume has traditionally been in long-term fixed-rate product?

Two observers believe that it is not only possible, but also in credit union’s and the member’s interest that credit unions become more active in booking first mortgages. How? By using a variety of adjustable rate product and removing unnecessary fee and underwriting obstacles to refinancing.

Alan Greenspan in his address at the CUNA GAC in late February made two noteworthy statements about the mortgage financing market today:

  1. Calculations by market analysts . . . suggest that the cost of the benefits conferred by fixed-rate mortgages can range from 0.5 percent to 1.2 percent, raising homeowners’ after-tax mortgage payments by several thousand dollars. and,
  2. American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage.
 

 

 

March 15, 2004


Comments

 
 
 
  • VERY INTERESTING, WE ARE THINKING THE SAME THING. PROTECT YOUR MEMBERS INVESTMENTS IN OUR CU AND MAKE THEIR DREAMS AND THEIR NEIGHBORS DDREAMS COME TRUE ALSO.
    Anonymous
     
     
     
  • VERY INTERESTING, WE ARE THINKING THE SAME THING. PROTECT YOUR MEMBERS INVESTMENTS IN OUR CU AND MAKE THEIR DREAMS AND THEIR NEIGHBORS DDREAMS COME TRUE ALSO.
    Anonymous
     
     
     
  • VERY INTERESTING, WE ARE THINKING THE SAME THING. PROTECT YOUR MEMBERS INVESTMENTS IN OUR CU AND MAKE THEIR DREAMS AND THEIR NEIGHBORS DDREAMS COME TRUE ALSO.
    Anonymous