The 1.7 million member, $24 billion State Employees' Credit Union has sold roughly $2 billion in mortgage loans into the secondary market in the 10 years it has been making mortgage loans and it announced this month that none have been returned for poor underwriting.
The two government sponsored entities, Fannie Mae and Freddie Mac, will return or “hand back” mortgage loans that they had previously purchased if they are found to have underwriting problems.
The Raleigh, N.C., credit union stopped writing loans for sale to the secondary market sometime in 2008 in favor of offering two-year adjustable rate mortgages and similar products for its own portfolio. Overall, the CU has made a total of $18 billion in mortgage loans over 10 years.
“SECU’s low mortgage delinquency ratios have always been the best gauge for our organization to confirm the high quality underwriting by our financial services officers,” said Spencer Scarboro, SECU's senior vice president of loan origination.
“The credit union’s 60-day ratio of 2.04%, which recognizes the National Credit Union Administration’s current recommended statement for troubled debt restructurings, is indicative of stellar underwriting,” Scarboro said.
“When our high underwriting standards are combined with SECU’s Mortgage Assistance Program, designed to keep members in their homes, as well as the use of volunteer regional loan review committees, there is a high probability of success for SECU mortgage holders which translates into success for all SECU member-owners.”