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It’s big, it’s hot, and it’s all the rage–and chances are, you don’t offer it. What is it? The FHA loan. According to a 2007 study by the Government Accounting Office, 10% of home purchases in 2008 will be Federal Housing Administration loans, a number that will rise by 50% in 2009.

As a credit union, you may not feel compelled to offer FHA loans. So far, you may not be strongly affected by the mortgage lending crisis swirling about the country. Why? For the simple reason that you make loans to members the old fashioned way, with attention to the member’s ability to pay. Moreover, your members are still buying homes, refinancing them and making home improvements. They want mortgage loans. But even as an approved seller-servicer, the secondary market isn’t flush with buyers and the Fannie Mae or Freddie Mac seal of approval on your loans may not be enough to ensure they are purchased by the wary investors.

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