April 2, 2007


Comments

 
 
 
  • You raise good issue - just wonder how to regulatory environment will change regarding subprime?
    Anonymous
     
     
     
  • For smaller CUs not able to lend, partnering with a reputable, independent mortgage firm will allow Members the opportunity to seek out sound advice and guidance in this turbulent market. With access to those sub-prime lenders still originating loans, these qualified brokers can provide great synergy with Members. As Mr. Howard notes, control of the process is important. Thus if structuring an arrangement with an outside vendor the CU needs to do its due diligence properly.
    Dana Korosi
     
     
     
  • Good practical advice in light of difficulties at New Century Financial Corp and other lenders. Since 68% percent of FICUs offer mortgage loans and those loans represent a relatively small 2% of the total mortgage market, CUs should not avoid this segment, rather ensure these loans are prudently underwritten and clearly understood by borrowers. CUs should also hold out during the early part of spring training to avoid calisthenics. -Frank Howard
    Frank Howard
     
     
     
  • Sub-prime lending when done with complete knowledge of the sub-prime market is and has always been very profitable. The NCUA has stated they feel sub-prime lending is good for credit unions, they just don''t feel it should be out sourced to a third party originator and the credit unions give up control.
    Frank Mercer
     
     
     
  • This is a no-brainer to me. Credit unions SHOULD be in this market. The regulatory environment in credit unions certainly means that there''s less of a chance for subprimes to self-destruct than they way they have with Wall Street footing the bill. Moreover, the people who need subprimes are the people credit unions are SUPPOSED to be serving anyway. Whether we acutally are is another question.
    Anonymous
     
     
     
  • Great insight, love all of the comments.
    Pauline
     
     
     
 
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