The $22 billion State Employees' Credit Union has begun to prepare for what it expects may be a significant increase in the number of members seeking mortgage loan modifications.
The credit union is renewing the Mortgage Assistance Program that it launched in January 2009 to help members who may face job losses because of state budget cuts in North Carolina. The original MAP program helped 7,000 members and kept the credit union's default rate on mortgage loans to below twenty basis points as of fall of 2010.
"SECU's Mortgage Assistance Program has been successful in keeping members faced with job and income loss in their homes, and the credit union is positioned to help a second round of program participants. Unusual economic times call for unusual actions and SECU, instead of walking away, will continue to move forward and provide as much assistance as possible," said Mark Coburn, senior vice president of loan servicing at SECU.
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In an unrelated announcement, in order to further help members with mortgages, SECU announced that it would absorb the costs of property appraisals on home equity loans and closed-end second mortgages after determining that the cost of the appraisal was often a disincentive to members moving forward with loan applications.
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