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CU Members Mortgage Offers New Servicing Option for Credit Unions
DALLAS, TX (September 16, 2014) — CU Members Mortgage, a division of Colonial Savings, F.A., launched a new mortgage servicing option for credit unions called CU Members Mortgage Direct Express at the ACUMA Annual Conference today. Direct Express leverages a co-issue secondary market execution and features a full bifurcation of reps and warranties. Colonial Savings is one of the select few servicers in the country approved with both GSEs and the Federal Home Loan Bank’s Mortgage Partnership Finance ® (MPF®) Program to offer it.
The new program offers credit unions the ability to continue selling direct to Secondary Market Investors Fannie Mae, Freddie Mac, and/or the MPF Program so they can control and set their own pricing while removing the servicing risk. As loan originations slow and regulatory compliance becomes more costly, the program can provide the credit union with direct seller/servicer capability, while providing best-in-class servicing. The credit union is solely responsible for origination representations and warranties, while CU Members Mortgage is responsible for servicing representations and warranties per the servicing guidelines set by the Secondary Market Investor.
The Direct Express program offers great benefits to credit unions by enabling them to:
- Capitalize the value of the mortgage servicing asset (MSR) upfront rather than over the life of the loan (mitigates prepayment risk).
- Eliminates the cost and liability associated with retaining servicing representations and warranties.
- Works directly with the investor on quality control activities and when a loan is demanded for repurchase as a result of an origination error or eligibility issue..
- Entrust their members with an award-winning, best-in-class servicer who protects their member relationship.
- Work with a partner who is approved with Fannie Mae, Freddie Mac, and the MPF Program.
- One of five Servicers who achieved the 4 STAR designation for the year ended 2013.
- Deliver FHA/VA products through the MPF Program.
“This is a great option for Credit Unions and adds immediate income to the bottom line,” explained CU Members Mortgage Senior Vice-President Linda Clampitt. “This new program offers servicing in a compliant and profitable manner that protects the credit union’s relationship with their member. It’s a program that Credit Unions can’t afford to pass up.”
To qualify the Credit Union must currently be an approved direct seller/servicer with Fannie Mae and/or Freddie Mac, or participate with the MPF Program. Additionally, Credit Unions must be eligible for full bifurcation approval from the investors. Investors may also have additional requirements related to minimum volume opportunity. To receive more information, or to discuss in further details contact CU Members Mortgage Senior Vice-President Linda Clampitt at lindacl@homeloancu.com or 800-607-3474 ext. 3225.
About CU Members Mortgage
Founded in 1982 as a division of Colonial Savings, a federally chartered thrift, Dallas-based CU Members Mortgage provides comprehensive mortgage services to more than 1,000 credit unions, CUSOs, and leagues nationwide. CU Members Mortgage originates more than $1 Billion in FHA, VA, and conventional loans each year. With a portfolio of $23 Billion, Colonial is one of the largest servicers of mortgage loans in the United States. Advanced technology, including a dedicated website with an online mortgage application that delivers a confirmation in minutes, makes CU Members Mortgage one of the industry’s leading resources for mortgage services. The company is privately held and has offices located nationwide. For more information, visit www.cumembers.com.