RALEIGH, N.C. & MEMPHIS, Tenn. — When credit unions make acommitment to offer home loans and ramp up efforts to help memberstrapped in resetting adjustable-rate mortgages granted by otherfinancial institutions, they are doing no less than what theFederal Credit Union Act demands they do. So says Jim Blaine,president/CEO of State Employees' Credit Union of North Carolina,the Tar Heel State's largest.

True to form, SECU created two new mortgage products to helpsuch members with a five-year ARM and an All Savers Mortgage. TheARM loan provides members with the payment stability needed torebound from financial hardships and allows those recovering fromsubprime mortgage problems to budget with more certainty. It allowsfor 100% financing up to $400,000 with a maximum term of 20 years.The rate is subject to change only every five years, but will notchange more than 1.5% each increment and has a maximum increaselimit of 4.5% over the life of the loan.

The All Savers Mortgage provides a fixed rate of interest plusan opportunity to establish a substantial savings account. Themortgage features 100% financing, a 15-year term and a maximum loanamount of $400,000. Once the loan amount is established, anadditional 10% is financed to open a share-term certificate with arate equal to the mortgage loan. Dividends for the STC arecompounded monthly and remain in the STC account until it isclosed. Funds are released to the member upon the earliest of thefollowing: 10 years after the loan origination; payoff of themortgage; or when the mortgage balance is reduced below the amountof the STC balance. Members may then use the funds for educationexpenses, home improvements, to pay down the remaining mortgage–oras a nest egg for retirement.