Boston Globe: When lender says no, turn to CUs
BOSTON (7/2/09)--Credit unions are a good alternative to traditional mortgage financing as credit markets overall have tightened up, the Boston Globe said in a Tuesday article.
Credit unions were listed as the No. 1 alternative of five options mentioned by the newspaper.
"Unlike banks and mortgage companies that sell their loans on the secondary market, many credit unions actually keep the loans they make in their own portfolio," the article said.
"The secondary money market purchases bundles of loans from lenders. These loans must meet specific guidelines such as those set by [the Federal Housing Administration], Freddie Mac and/or Fannie Mae. Once the primary lender sells the loan, the lender is now in the position to make another loan to a new borrower," the article said.
Credit unions that don't sell the loan on the secondary money market can set their own loan requirements, the article added.
More CU/System
News Now LiveWire
- Eddy Zai, a financier, was charged with 34 counts related to obtaining $16.7M in fraudulent loans from the defunct St. Paul Croatian FCU. - 7 hours ago
- The Texas Credit Union League is launching a new young credit union professionals initiative for CU employees under age 35. - 10 hours ago
- Reps. Ed Royce (R-Calif.), Carolyn McCarthy (D-N.Y.) will promote increased CU biz lending at Cap Hill press conf today http://t.co/5HwZxRoN - 13 hours ago
- In Va., State Corporation Commission adopted a parity reg that would give state-chartered CUs the power to pursue a low-income designation. - 1 day ago
- N.C. Rep Sue Myrick (R) announces she will not seek reelection http://t.co/AMXtABGn - 1 day ago
- See all our Tweets and sign up; News Now LiveWire on Twitter
