Some places in the U.S. still have vibrant housing markets and the 69,000-member, $1.6 billion Technology Credit Union has launched a program designed to help members cope with it in the Silicon Valley.
The San Jose, Calif., credit union has launched a program that offers pre-approvals for home loans and a Quick Close Guarantee for those who qualify. The credit union has pledged that if it does not close a buyer's purchase loan within 10 business days, the buyer will receive a $500 gift card.
"The market looks very different than it did just a year ago," said Steve Donahue, vice president of mortgage origination for Tech CU. "Today, it's critical that home buyers move as quickly as possible once they've found a home to buy. We can help them with this because of our local decision-making and approval process. A Tech CU mortgage can be approved within days not weeks, ensuring the buyer can close escrow on time."
Joe Anzalone, the credit union’s chief banking officer, added, "There has been a lot of money sitting on the sidelines for the last few years that is now starting to flow back into real estate, particularly as consumer confidence improves.
"People are feeling better about future economic growth and job security in Silicon Valley. All of this impacts how people invest, especially when it comes to real estate. It's a good sign for everyone.”
Technology Credit Union is also still in the midst of converting to a mutual bank charter and is awaiting NCUA's approval of conversion materials it will send to its members.