CU Mortgage Services, Inc., partners with Federal Home Loan Bank

NEW BRIGHTON, MN (April 1, 2015) – CU Mortgage Services, Inc., a business unit of CU Companies, is proud to announce a partnership with the Federal Home Loan Bank of Des Moines. The partnership allows CU Mortgage to service more types of loan products and will go into effect April 1, 2015.

FHLB Des Moines has nearly 1,200 member-owners in Iowa, Minnesota, Missouri, North Dakota, and South Dakota who rely on the Bank to provide reliable short-term and long-term, attractively priced funding solutions. Now, the credit unions and community banks in those areas that work with CU Mortgage as their mortgage lending solution can have their FHLB loans serviced by CU Mortgage.

“Our servicing plays a significant role in the mortgage lending process due to our reputation and culture,” said Brad Crandall, CU Companies CEO. “We were built on the foundation of personalized service and servicing FHLB loans is right in line with that purpose.

Through this partnership, CU Mortgage will offer servicing on the following specific Mortgage Partnership Finance® (MPF®) products to its owners and partners:

  • Original MPF™: Allows for the sharing of credit risk and has the opportunity to receive a fixed fee for taking on the Credit Enhancement Obligation.
  • MPF Xtra®:Offers low-cost options for fixed-rate, conforming loans.

This is an important partnership for the owners and partners of CU Mortgage because it allows them to continue to offer FHLB products while placing the servicing of those loans in the hands of their trusted mortgage resource. To have CU Mortgage servicing FHLB loans allows those credit unions and community banks to focus even more on serving their marketplaces, rather than addressing regulation standards.

This partnership ties nicely into CU Mortgage’s contract processing underwriting services as well. The credit union or community bank originates the loan, the experts at CU Mortgage then can handle the processing and/or underwriting portions in accordance to secondary market guidelines. After approval, CU Mortgage prepares the closing package in the name of the lender who closes the loan which then flows smoothly into the servicing department.

“Adding the processing and underwriting pieces to the equation removes challenges for our credit unions and community banks so they can focus on providing more loans to their borrowers,” said Crandall. “It guarantees investor guidelines are met and delivers a turn-key solution as our experienced staff will keep the loan flowing, whether it’s FHLB or another program type.”


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