Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
SECU sees low rate of foreclosures
RALEIGH, N.C. (10/19/11)--North Carolina State Employees’ CU (SECU), which makes mortgage loans to members in all 100 North Carolina counties, continues to experience a low rate of mortgage foreclosures. While the incidence of foreclosure has increased, the $23 billion asset, Raleigh, N.C.-based credit union currently has a foreclosure rate of less than one half of 1% of total loans, or roughly one-tenth of the national foreclosure rate. The main reason for the good foreclosure rate is SECU’s “face-to-face” Mortgage Assistance Program (MAP), which helps keep members in their homes, said SECU.
Click to view larger image Click for larger view
SECU originates, services and “books” member mortgages. It has made the loans for more than 50 years, and manages about 100,000 individual mortgages with aggregate balances in excess of $11 billion. Also, the financial cooperative still uses direct, personal underwriting and does not risk-price mortgage loans. All qualifying members receive the same rate, regardless of credit score. Most mortgages are two-year adjustable rate loans providing manageable interest-rate risk for both the member-borrower and the credit union, said SECU. Launched in 2009, SECU’s MAP has helped more than 8,000 families remain in their homes when confronted by unexpected economic adversity. Members meet face to face with a senior credit union staffer to develop a workout plan to accommodate the member’s current financial situation. Options for workout plans include partial payments, loan extensions or modification/refinance. Historically, mortgage foreclosures have resulted from one of the five normal, life event “D-risks” of lending--death, disability, divorce, drug/alcohol dependency, or dis-employment. Most of the recent uptick in foreclosures at SECU is related to unexpected job loss in the current economy. “SECU’s low foreclosure rate is a direct result of the credit union working one-on-one with members to develop individual workout plans,” said Mark Coburn, senior vice president of loan servicing. “Foreclosure is always the worst choice for both borrower and lender. Meeting with members ‘face to face’ is at the heart of SECU’s Mortgage Assistance Program, and low foreclosures are a good measure of MAP’s success. “Who owns your mortgage can be of critical importance these days; SECU members know we’re local, we will listen, and we will work to help them overcome an unexpected economic shock,” he added.


RSS





print
News Now LiveWire
Which Children's Miracle Network Hospital is the winner of @CUDirect's 20 for 20 grand prize? Find out Tuesday.
3 minutes ago
Gas prices have fallen for a record 88 days in a row says @AAAnews via @washingtonpost http://t.co/c52VTdqHEB
2 hours ago
.@TheNCUA releases regulatory modernization initiative results (PDF link) http://t.co/pgLZe4aget
2 hours ago
#FinCEN seeks nominations of FIs, trade groups for membership on Bank Secrecy Act advisory group http://t.co/l5w58c277W
3 hours ago
MI pediatric dentist pledges $20K match to Hurley Children's Hospital if it wins @CUDirect's 20 for 20 http://t.co/Eq2nIPm6jo
4 hours ago