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HARP 2.0 Opens The news of Federal Housing Finance Agency's HARP 2.0 has finally arrived. CU Companies announced last November of the series of changes to the Home Affordable Refinance Program (HARP). Because Fannie Mae's Desktop Underwriter would not be updated until March 2012, CU Companies MORTGAGE simply accepted applications and conducted manual underwrites. That meant that members could get approved but wouldn't be able to lock their rate...until now. The HARP 2.0 is open and we are able to lock and close these loans. The members that previously contacted us about this program have already been notified. As we move forward, please note the following aspects of this type of loan:
CU Mortgage is accepting applications on 30-year fixed loans ONLY at this time. Borrowers must use the blank application (provided on our web site at http://www.cucompanies.com/mortgage/apply-now) as the online version cannot be used and submitted for this program. Please fax the completed application to Jason Groth at 651-789-7932. For CU Mortgage users, it is important to note that the HARP 2.0 loans will be completed using our Retail channel. Because of the complexity and risk involved with this program, the Retail platform places any potential for buy-back on us, rather than our owner and partner credit unions. Users of the CU Mortgage Correspondent Lending channel may take advantage of this program with eligible loans having no Mortgage Insurance and up to 125 percent loan-to-value. At this time, however, we cannot accept HARP loans through the Correspondent Lending channel that are over 125 percent loan-to-value. We anticipate having an outlet for those loans within the next 30 days. With questions, please contact CU Companies MORTGAGE Production Manager, Jason Groth, at 651-787-9550 or jgroth@cucompanies.com.
CU Companies Rides Momentum of Correspondent Lending After five months into its fiscal year, CU Companies is reporting positive results in year-to-date earnings. The organization points to structuring ancillary services around its core service of mortgage lending to place it in a position of health, despite the slow economic recovery. "We've always had the mindset of looking for ways to build economies of scale," said Brad Crandall, CU Companies CEO. "As a CUSO, that initially meant having multiple organizations come together to provide one service for all. Today that also means providing additional services that leverage our mortgage expertise." Crandall points to the organization's new secondary market solution, Correspondent Lending, as CU Companies internal way it is building economies of scale and generating such overall success. "We've been doing retail mortgage lending for nearly 25 years," he said. "We saw adding this new way of funding mortgages as a means to better manage the ebbs and flows of the industry while providing a solution for a growing need." This type of service-underwriting then purchasing the closed loan from the lender-isn't new to the mortgage industry. In fact, recent announcements have been made about the exiting of other correspondent lenders. Another mid-western lender was acquired by a mutual bank. Yet another is having their credit rating cut. "We haven't experienced the hardships our competitors feel thanks to our structure-which flows into our service philosophy," said Crandall. "When you are born from cooperation, your future actions follow that way of thinking; and the reports we get from our owners and partners prove that's just the kind of service they need." Crandall states that the field crew is hearing from users that they certainly appreciate their competitive pricing. What helps them stand out, however, is the personal service. The internal structure is such that the user always speaks to the same duo-lending team. The internal standard is such that the borrower will not be back solicited-the lender maintains their position. Additionally, there are no excessive hold times, no overlays, a faster-than-average turnaround time, and the opportunity to speak directly with an underwriter. "While remaining true to our core competencies and to our ethical standards and values, we will continue to recognize opportunity and grasp it so that we continually bring the right financial solutions together no matter the economic climate," said Crandall. CU Companies, CU Mortgage Adds Two More Partners New Brighton, MN (September 20, 2011) - CU Mortgage, a business unit within CU Companies, has recently added two more credit unions as partners. CU Mortgage offers a newer program titled Correspondent which provides a secondary market option to credit unions for funding mortgages. Both credit unions partnered as a means to pass on a better deal to their memberships. Cook Area Credit Union opened in 1939 and is based out of Cook, Minn. The credit union is $23 million in assets and serves nearly 3000 members. www.cookareacu.org Richfield Bloomington Credit Union has three branch locations in Richfield and Bloomington, Minn. After 50 years, the credit union is $231 million in assets and serves more than 16,000 members. www.rbcu.org "The Correspondent program has had a great start. Just as we intended, it is meeting the needs of credit unions of all types and sizes," said Brad Crandall, CU Companies CEO. "It's exciting to be able to offer an efficiency and profitability solution to credit unions."
NCUA Proposes Rule Affecting CUSOs The National Credit Union Administration (NCUA) board issued a proposal to require credit union service organizations (CUSOs) to file their yearly financial reports directly to the NCUA. Financials would also need to be forwarded to appropriate state supervisors. Any CUSO subsidiary would also have to comply with the regulation if it is adopted as a final rule. NCUA is headed down a path toward the direct regulation of CUSOs. The proposed Amendment to the CUSO Regulation, which has now been published in the Federal Register, is the first step. The National Association of Credit Union Service Organizations (NACUSO) has issued its Comment Letter to the NCUA on the proposed CUSO regulations. CU Companies submitted its own comment letter recently as well. "CU Companies is an avid supporter of the credit union industry," said Brad Crandall, CU Companies CEO. "We believe in reasonable regulation which ensures the safety and soundness of the industry. Regulation that does not provide complete value; however, is not something which we defend." Both comment letters clearly articulate why additional costly, burdensome regulation is not necessary. The NCUA currently has the authority to inspect the financials and records of some CUSOs, but that authority is not universal. The majority of financial information on CUSOs is provided to the NCUA by natural person credit unions that obtain services from the CUSOs. "Within the credit union industry loan demand is weak, net interest margins and income levels are low," said Crandall. "CUSOs are more important than ever in helping the industry provide valuable products and services to credit union members, and much needed income to their credit union owners." CU Companies Reduces Its Business Units Announced recently, CU Auto will be moving forward as a stand-alone business rather than as a component of CU Companies. Brad Crandall, CU Companies CEO, stated that the organization fully supports CU Auto and believes the auto resource, which will continue to work directly with credit unions and their members, is complementary to credit union products and services. The decision came after a year-long review of the business unit. The management team and board of directors determined that while buying a vehicle can be a life event, it isn't as substantial as buying a home, running a business, or preparing for retirement. The decision was based upon the future sustainability of CU Companies which success filters to its owner and partner credit unions. "We want to always be in a viable position that supports credit union growth plans," said Crandall. "Asking CU Auto to continue on their own, supports our role of being an efficiently-run organization that is focused on our core competencies." CU Companies will continue to co-host the spring and fall auto sales. However, credit unions utilizing CU Auto are asked to remove any materials which include CU Companies and CU Auto. Information containing CU Auto solely, however, may remain. While the transition has already begun, credit unions may see CU Auto in overall CU Companies materials. This will continue until those materials have been depleted, as a cost-saving measure. With communications questions, credit unions may contact LeAnn Achtenberg, CU Companies Marketing Manager at LAchtenberg@cucompanies.com. CU Companies, CU Mortgage Signs Three Wisconsin Credit Unions CU Companies is pleased to announce three recent CU Mortgage partners from Wisconsin. Two credit unions have partnered for Correspondent services and one credit union has partnered for Retail services. CU Mortgage is a business unit of CU Companies providing credit unions with multiple participation levels: The Correspondent program gives credit unions a secondary market option for funding mortgages; the Retail program allows credit unions the opportunity to deliver a full-service mortgage department to their membership. Fort Community Credit Union, has four branch locations with its main branch located in Fort Atkinson, Wisc. The $156 million credit union is celebrating 71 years of serving its members, which has grown to more than 15,500. Fort Community Credit Union is excited to have another funding option for its mortgages, allowing them to give their members a better deal. www.fortcommunity.com Tower Credit Union, originally named "Pail and Can Credit Union"-for the employees of the American Can Company-now serves members out of three locations including a local high school. Tower Credit Union is a $47 million credit union that now looks to CU Mortgage for competitive rates and, more importantly, high service standards. www.towercu.com Franciscan Skemp Credit Union, serving the healthcare industry, is a $20 million credit union that has had unique initial locations including a utility closet in the main hospital building to a former priest's bedroom. Today they are housed in a full-service location in La Crosse, Wisc. Franciscan Skemp Credit Union is excited to work with CU Mortgage to be able to now offer mortgage options-and an easy online application-to their field of membership. www.franciscanskempcu.com "We are excited to be chosen by these credit unions to deliver not only new options to their members, but more economic options to the credit union as a whole," said Brad Crandall, CU Companies CEO. "We are proud to partner with credit unions to resolve their business challenges and to do it with high service standards."
CU Member Business Assists Credit Unions in Growing Membership, Expanding Services CU Member Business Lending, Inc. (CUMBI) has been a component of CU Companies for seven years. Since then, its portfolio balance has grown to over $54 million, serving 22 credit unions. And, it's continuing to grow. "We're an ideal one-stop shop for business lending," said Tony Lillie, CUMBI Chief Credit Officer. "Any credit union that's involved in this kind of business knows there is much more to it than simply booking a loan. Business lending is a great benefit to the credit union members but you certainly can't enter it lightly." CUMBI is reaching out to more and more credit unions, even those beyond the Minnesota borders. Its users are citing the fact that with CUMBI, they have a complete business lending department. CUMBI works with those credit unions who meet the NCUA regulatory requirements to engage in a MBL program. With over 100 years of combined experience in commercial lending, CUMBI provides detailed credit analysis, underwriting, documentation, servicing, collections, payment processing and tickler tracking, just to name a few of the services. "At a global level we pay attention to the market and to credit union competition so we can advise accordingly and at the individual level we get behind the numbers to best understand the story," said Lillie. "Our services and experience puts credit unions in a position of confidence with their membership, their Board of Directors, and with their examiners." Presently, an expanding area for CUMBI is file and portfolio auditing and third party report engagement and review. The auditing function can be tailored to each credit union's needs. Some are requesting a sampling review of credits for the accuracy of risk ratings while others are asking for a complete review of their entire portfolio. The third party report engagement process is meant to assist credit unions in meeting the NCUA regulations requiring independence of appraisal ordering, environmental site assessment ordering, and other third party engagements from that of the lending function. CUMBI maintains approved appraiser lists, approved environmental professionals lists, approved outside legal counsel, and other professionals. There is no credit limit with CUMBI. Whether it's hundreds or millions Lillie reports his team examines each loan equally. In doing so, he believes CUMBI strengthens the credit union's understanding of the credit while meeting the member's needs. Meticulous reviews allow the credit union to better advise their member, uncovering findings that may not have otherwise been noticed and leaving everyone better positioned for success. Lillie states that the inclusion or expansion of the MBL function helps alleviate many of the negative issues facing the credit union industry today: Loan growth - where consumer lending is flat or declining, quality commercial loans are available; ROA - commercial loans often have returns in excess of 3.5 percent; Portfolio turnover - the average amortization period for a commercial loan is 17 years versus 7 years for a consumer loan. CU Companies Introduces Correspondent Lending CU Companies announces the launch of its new mortgage channel, Correspondent Lending. The program gives credit unions a secondary market option for funding mortgages with a unique benefit of helping partner credit unions maintain their primary financial institution position. "Our Correspondent Lending program is a solution that promotes loyalty," said Brad Crandall, CU Companies Chief Executive Officer. "We won't back-solicit our partners' members with financial services their credit union already provides. That's a unique feature that we won't compromise." CU Companies is a multi-owned credit union service organization that has been providing a retail mortgage lending channel for over 25 years. Over that time the servicing portfolio has grown to more than $1 billion in loans. The Correspondent Lending program is an expansion on CU Companies' original mortgage program. It allows the credit union to generate more revenue by giving them more control over the lending process. The credit union originates, processes, and closes the loan. CU Companies then underwrites and purchases the closed loan. An experienced single point of contact for all loan questions from submission to closing is readily available to assist in getting the loan properly closed and funded efficiently. "Our mortgage department is not only noted for their great service, we have a team with vast lending experience," said Crandall. "We're a one-stop shop. If someone has a question about Title, we can answer it. If someone has a question about post closing, we can answer it. Any scenario our partners have, we can help." The Correspondent Lending program also offers a robust website that streamlines the loan process, direct access to on-site underwriters, and tools and technological resources to ensure an efficient loan process. Currently, the program is offered to credit unions in Illinois, Iowa, Minnesota, North Dakota, South Dakota, and Wisconsin. To learn more, go to www.cucompanies.com/correspondent-lending or call a Correspondent Account Executive at 651-631-3111. Welcome LeAnn Achtenberg! CU Companies announces the addition of LeAnn Achtenberg as the Marketing Manager. Achtenberg will have the key responsibilities of creating and leading marketing strategy to grow CU Companies' six business units: Mortgage, Realty, Title, Investments, Member Business, and Auto. "LeAnn has a wealth of experience in marketing and communications and we're thrilled to have her on board during this exciting time for CU Companies," said Brad Crandall, President of CU Companies. "Her knowledge of marketing, strong relationships in the credit union industry, and leadership skills will be great assets to CU Companies as well as its owners and partners." Achtenberg carries 15 years of credit union and marketing experience stemming from local, state, and national levels in both professional and volunteer capacities. Prior to CU Companies, she worked in lead marketing roles for two Minnesota credit unions. Initially, Achtenberg started her career at the state level working on marketing and advertising for the North Dakota Credit Union League and then the Kansas Credit Union Association. As a volunteer, Achtenberg served on the National Youth Involvement Board from 1997 to 2004 in the capacities of Regional Coordinator, Secretary, Media Manager, and finally as Chair from 2002 to 2004. She also served on the Minnesota Family Involvement Council for 10 years, recently retiring as Chair. Her current volunteer role is as NorthCountry Cooperative Federal Credit Union's Supervisory Committee Chair. 13th Annual Golf Tournament was a great success! A total of 130 golfers participated in CU Companies' 13th annual golf tournament held at Bunker Hills Golf Course in Coon Rapids, Minn. The tournament raised $1,600 which is the largest amount raised in tournament history. All proceeds go to support cancer research at the American Cancer Society. Even with it being the hottest day in 23 years, the CU Companies' team reports that it was a great success with 27 credit unions and 17 sponsors participating. The tournament began with a luncheon, ended with an awards dinner and provided opportunities for networking and golf contests. Tournament Sponsors
Credit Union Participants
CU Companies Welcomes Minnesota Power Employees Credit Union MPECU signs contract with the CU Mortgage business unit New Brighton, MN (June 17, 2011) - CU Companies is pleased to announce that Minnesota Power Employees Credit Union has partnered with the company for mortgage services (CU Mortgage) which includes online loan origination, processing, and servicing. The credit union pointed to CU Companies' high service standards, loan process efficiency and proven experience managing risk as the key reasons they selected the company as a partner in their mortgage program...click here to read the full article
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