Two credit unions, NASA Federal Credit Union and Navy Federal Credit Union, are offering members mortgages without requiring any down payment or mortgage insurance.
No money down mortgages were among the types of housing finance loans blamed for causing the housing finance crisis in 2007. Such mortgages would seem to run counter to the prevailing trend in housing finance regulation, which seeks to make sure participants in all parts of the lending process have a stake in the loan.
But executives from both credit unions defended offering the loans, maintaining that a mixture of underwriting standards and member relationships protected them from losses on the loans.
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