With Fannie and Freddie Changes Afoot, Maryland CU Prepares
The 44,000-member, $540 million National Institutes of Health Federal Credit Union, headquartered in Rockville, Md., has been working to prepare its housing finance program for whatever the federal government may choose to do with the two giant mortgage entities Fannie Mae and Freddie Mac. “Nobody knows exactly what might happen, but we know we want to be in a position to offer our members mortgage loans so we need to be ready,” said NIHFCU CEO Juli Anne Callis.
Callis, a former executive with Keypoint Financial Services, a mortgage CUSO wholly owned by the Keypoint Credit Union in Santa Clara, Calif., is fully committed to credit union mortgage lending and to building a very solid housing finance program.
“These are people who are looking ahead and realizing they want to retire soon and saying, 'Man, I need to pay down this mortgage,’” Callis said. “A 15-year fixed-rate product lets them do that,” she added.
This sort of mortgage offering fits into what may be a trend in housing finance: consumers seeking to take advantage of very low mortgage interest rates to either pay off houses more quickly or at least dig more deeply into their mortgage principal.