WASHINGTON — Credit unions could capture a bigger portion of the historically large market for distressed properties if they could consistently approve mortgage applications in less than 30 days, according to a mortgage finance executive.
Thomas Popik, a research partner with Campbell Research, told CU mortgage executives attending ACUMA's Regional Workshop that REO and distressed property sales take between 30-35% of the overall market, compared to between 1%-2% in more normal times. In short sales, in particular, Popik told the meeting that mortgage servicers are requiring 30-day turnaround times on seller financing that force many deals to fail.
"If credit unions could shorten those times because they control the underwriting process and timelines, they could obtain a significant market advantage in the REO market," Popik told the group.
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