The 4.3 million-member, $54 billion Navy Federal Credit Union said it continues to see its housing finance programs grow steadily this year.
In an update designed to capitalize on consumer interest in 100% financed loans, the credit union reports that it originated more mortgage loans in than ever in March 2013 when it posted $1.3 billion for the month and $3.2 billion for the first quarter of this year, double last year's record pace.
Navy also defended its Home Buyers Choice housing finance program that offers 100% financed loans with no requirement for private mortgage insurance.
“Home Buyers Choice has been consistent for us, well before and during the downed market, and is primed for the upswing,” said Jack Gaffney, executive vice president of lending.
“The partnership we have with our members is vital in fitting them into a product that helps get them safely, securely, and affordably into their home,” Gaffney said.
Currently, 53% of the credit union’s purchase volume are first-time homebuyers who generally don’t have the cash reserves to make large down payments.
“Overall, our default rate is lower than the national average,” added Gaffney. The big credit union said it is highly disciplined in all its lending practices and always ensures the member is in a position to perform well on the loan.