HOUSTON –As it sets out on an aggressive path to pull out of a $2.3 billion second quarter loss, Fannie Mae said it is willing to have discussions with third parties, including credit unions, on the sale of properties in bulk transactions.
"We are open to any and every conversation" regarding real estate loan recovery, said Lori Cockrell, senior business manager at Fannie, in response to an attendee's question on whether credit unions can be involved in some of the transactions. Cockrell spoke at the African American CU Coalition's annual meeting this weekend.
Even though some credit unions in Florida, California and other states are grappling with real estate loan descends, Cockrell said, for the most part, the industry's conservative lending record has provided a buffer. She believes there is still ample opportunity for credit unions citing a stat that 90% of members have their mortgages originated outside of their credit union.
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"You may say, 'well, our members aren't experiencing foreclosures.' The truth is you really don't know because they don't have their mortgages with you," Cockrell said.
Fannie has already linked up with $302 million Self-Help CU in a program that would allow families in hard hit communities to reside in foreclosed properties on a rent-to-own basis, Cockrell said. Fannie also continues to refinance "underwater" borrowers as well as provide up to $10 billion for state agencies and others to work with first-time home buyers.
On Friday, Fannie reported a $2.3 billion loss in the second quarter this year. The government sponsored enterprise has lost nearly $2.3 trillion in originating capacity since January 2007.
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