MADISON, Wis. — CUNA Mutual Group has launched its new mortgage payment protection product for credit unions and their members.
The company said Wednesday that the new product covers mortgage payments in the event of a borrower's death, disability or involuntary unemployment.
"Credit unions that offer it are leveraging a comprehensive insurance and training program that protects members' home mortgages," CUNA Mutual said in a prepared statement.
Chris Arenz, director of mortgage payment protection for CUNA Mutual Group, said the U.S. Census Bureau has identified summer as peak moving season, which is why the company timed the release for the week of the solstice.
This time of year is when new mortgages, mortgage refinancing and protection for these investments are likely to be top-of-mind for many Americans, CUNA Mutual noted.
"When we talk to families about their financial concerns, it is clear the ability to keep up on vital payments — such as their home mortgage — is top of mind," said Arenz. "When the unexpected happens, they want to know that they can stay in their home without draining their savings, putting their credit score at risk, or compromising their long-term financial health. Mortgage payment protection provides yet another compelling reason for people to rely on their credit union for home financing needs."
CUNA Mutual said research has shown nearly 60% of Americans say they are not prepared for financial emergencies, more than 30% (74 million people) say they have no emergency savings, and, six in 10 households report experiencing financial shock in recent years.
"Our mortgage protection product is one example of how we're investing in new and innovative ways to support credit unions for the future," Arenz said. "We are able to provide additional protection for members while also helping to mitigate risk for credit unions' lending programs."
Phased Rollout
CUNA Mutual said the new product leverages the Mortgagebot POS processing system and allows credit unions to offer quotes and enroll members during lending events.
The company has begun a phased rollout of the new product with credit unions in select markets across the country and plans to broaden availability through 2016. The company offers the product with complimentary systems training for loan officers and other users.
