CU Pilot Opens 40-Year MortgageMarket
WASHINGTON - (05/12/05) -- Fannie Mae said a pilot program itoperated with 22 credit unions over the past 18 months was asuccess, leading the secondary mortgage market giant to agree tobuy the longer-term loans on a nationwide basis. Fannie said lastweek be stepping up its purchases of these loans, providing lenderswith an incentive to offer more of them. Thomas Lund, Fannie'sacting executive vice president of single-family businesses, toldexecutives at a mortgage banking conference last week that thecompany would be making the 40-year mortgage a standard product. Aformal lender announcement will be issued at the end of themonth.