Credit Unions have become a viable alternative for real estate financing. Whether you bank at a big bank, with a local lender, or already know the incredible advantages of a credit union, the odds are good that the next time you are looking for a mortgage you will at least consider your local credit union over a “conventional” lender. According to a New York Times report, credit unions will surpass $100 billion in loan originations before the end of 2012 – a record for this type of institution. And the credit unions are giving credit where credit is due, smugly “thanking” big banks for “being annoying to consumers and forcing people to seek out other alternatives,” as Bob Dorsa, the president of the American Credit Union Mortgage Association in Las Vegas, put it.
Interestingly, however, most credit unions do not see this current trend as something that is likely to be long-lived. “Historically, when rates go up and refi goes down, our share and origination volume drops,” observed Dorsa. He added that credit unions are presently working hard to maintain a presence “in front of Realtors” in order to avoid falling off buyers’ radars when lending trends change. Some credit unions are also attempting to appear more “modern” by dropping the term “credit union” from their names (apparently consumers find the words “antiquated”) and loosening up membership requirements so that just about any individual in a community can join.
It is also interesting to note the credit unions did not get caught up in the scandalous wave of securitization that has caused many home owners to lose their homes. Credit unions have also historically been a safe place to bank and they typically have loan committees as aopposed to automated approval systems that will not consider special or unique circumstances.
I have had many clients receive loans from crediut unions when they could not get them from a conventional lender. May be worth a look!!!
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