CU Companies reported this week that its servicing departmenthas noticed a steady trend of decreasing delinquency loansoccurring in the last six months within its entire mortgageportfolio, and is touting the trend as an indicator that economicrecovery is under way.

The New Brighton, Minn., mortgage CUSO's portfolio includes loans from its correspondent lending and retail lending programs, which are available tocredit unions in Illinois, Iowa, Minnesota, Missouri, North Dakota,South Dakota and Wisconsin, the company said.

“In May, our delinquency ratio was the lowest it has been since2008, coming in at 1.68%,” said Kathleen Nystrom, loan servicingmanager for CU Companies. “While these numbers can also beattributed to the fact that our portfolio continues to grow, ourborrowers seem to be in a better place financially. We have seenfewer loans being referred to foreclosure and more workout plansbeing successfully completed.”

Nystrom encourages credit unions affiliated with CU Companies tocontinue working with the CUSO and borrowers when hardships ariseby considering workout plans, modifications and short sales whenneeded.

“Our loss mitigation division within the servicing departmentremains diligent in their efforts,” Nystrom said. “When an accountbecomes past due, we attempt to gain contact every three days. Inaddition, letters are sent out informing borrowers of their optionsand encouraging them to reach out to us.”

The key, she said, is communication.

“We want both the borrower and our owner or partner tounderstand where the borrower is in the process and what needs tohappen to move forward,” she added. “We'd love to see this trendcontinue, as it's important to us to see the borrowers we work withsucceed.”

CUCompanieswas founded in 1987 by three Minnesota credit unions. The CUSO hasexpanded over the years to include four subsidiaries that providetitle, realty, investments and member business services.

Through CU Companies correspondent lending program,participating credit unions originate, process and close loans.Then CU Companies underwrites and purchases the closed loan.

Credit unions have access to a website designed to streamlinethe loan process, direct access to onsite underwriters, and toolsand technological resources to ensure an efficient loan process,according to CU Companies.