flanagan at rochester.rr.
04-26-2002, 04:48 PM
Hi --
I need some help on developing mortgage products that don't use PMI.
I'm currently working with a small community development credit union. In
the last 18 months, we've begun offering mortgages to our membership
through a partnership with a very large and established credit union in
town. This partnership allows us to work with our members one-on-one,
addressing credit issues etc, originate loans and then the larger credit
union processes, underwrites and closes the mortgage in our name. They
also service the loan, although we step in at the first sign of a late
payment. After closing, the larger credit union purchases 75% of the
mortgage, and we hold the remaining 25%. This arrangement has been
wonderful - it allows us to serve more members with our limited capital
base plus leverages our limited staff capacity by using their "back-office"
experience of underwriting, processing, closing and servicing.
The two credit unions worked together to design the product so we could
reach our lower-income membership base. The product does require PMI for
loans over 80% LTV. Recently, we've been doing some market research on
mortgages in our area and have found some lenders are offering an
affordable mortgage product with no PMI. We'd like our product to be more
competitive in the market place and were wondering about these types of
products. Is anyone on this list familiar with non-PMI mortgages? Do you
know any credit unions that offer them?
Any thoughts or ideas would be greatly appreciated.
Eileen Flanagan
+++++++++++++++++++++++++++++++++
Eileen M. Flanagan
Chief Innovator
Community Development Consulting
21 Ericsson Street
Rochester, NY 14610
716-461-8360 (voice)
716-473-5287 (fax)
flanagan@rochester.rr.com (email)
+++++++++++++++++++++++++++++++++
This post transferred from the cdb-l mailing list
I need some help on developing mortgage products that don't use PMI.
I'm currently working with a small community development credit union. In
the last 18 months, we've begun offering mortgages to our membership
through a partnership with a very large and established credit union in
town. This partnership allows us to work with our members one-on-one,
addressing credit issues etc, originate loans and then the larger credit
union processes, underwrites and closes the mortgage in our name. They
also service the loan, although we step in at the first sign of a late
payment. After closing, the larger credit union purchases 75% of the
mortgage, and we hold the remaining 25%. This arrangement has been
wonderful - it allows us to serve more members with our limited capital
base plus leverages our limited staff capacity by using their "back-office"
experience of underwriting, processing, closing and servicing.
The two credit unions worked together to design the product so we could
reach our lower-income membership base. The product does require PMI for
loans over 80% LTV. Recently, we've been doing some market research on
mortgages in our area and have found some lenders are offering an
affordable mortgage product with no PMI. We'd like our product to be more
competitive in the market place and were wondering about these types of
products. Is anyone on this list familiar with non-PMI mortgages? Do you
know any credit unions that offer them?
Any thoughts or ideas would be greatly appreciated.
Eileen Flanagan
+++++++++++++++++++++++++++++++++
Eileen M. Flanagan
Chief Innovator
Community Development Consulting
21 Ericsson Street
Rochester, NY 14610
716-461-8360 (voice)
716-473-5287 (fax)
flanagan@rochester.rr.com (email)
+++++++++++++++++++++++++++++++++
This post transferred from the cdb-l mailing list