ANAHEIM, Calif. (11/16/11)--With hundreds of thousands of consumers nationwide already having transferred their financial accounts to credit unions from banks as a result of the Bank Transfer Day movement, some believe consumers now will pay more attention to credit unions as viable mortgage lenders.
"We know millions of Americans are pleased with the service and rates offered at many of our nation's leading credit union home lenders," said Bob McKay, chairman of the American Credit Union Mortgage Association (ACUMA) (PRNewswire–USNewswire Nov. 11).
The revised Home Affordable Refinance Program Refinance Program (HARP) overhaul recently announced by President Barack Obama--and known as HARP 2--pertains to existing loans currently held by Fannie Mae and Freddie Mac, and could add to opportunities for credit unions, said ACUMA.
Although details of HARP 2 will not be released for a few weeks, rumored changes include expanding HARP to home-loan borrowers who are more than 25% underwater. Also, there could possibly be some type of government waiver of underwriting violations on loans made to high-risk borrowers--which would attract private lenders who are worried about involvement with HARP-sponsored loans.
"Credit unions have stayed the course, conducted their business affairs truly in the best interest of their members, even when the temptation of huge profits were being reported by many other lenders," McKay said. "The reward for maintaining our high level of professionalism and trust may now expand our ability to serve many more homeowners for refinance and purchase money loans in the future."