In one of the signs of a possibly improving economy, California's second largest credit union is making more new mortgage loans as it continues to refinance existing loans.
Loan executives at The Golden 1 stressed that the volume is nothing like it was before the downturn, but is still more than it was in mid-2008.
"Now we might be averaging $25 million a month," said Curtis Dair, senior vice president for lending for the credit union, "whereas early in 2008 we might have been doing twice that. But it's coming back slowly."
The Golden 1 announced recently that it started offering FHA-guaranteed loans because, the executives said, the lower down payments required for FHA mortgages became more popular in the credit union's Sacramento community. Over 40% of the mortgage loans written in Sacramento County in May for FHA-guaranteed loans, executives said.
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