Fannie Mae Exec Praises CUs For Closing Costs Vs. Banks
Credit unions may be at a disadvantage to other mortgage lenders when it comes to experience or convenience, but not when it comes to cost controls. Daniel Mudd, chief operating office for Fannie Mae, said average credit union costs for closing a mortgage loan are almost half that of all other lenders, $883 compared for credit unions, compared to $1,689 for other lenders. And some credit unions are able to close mortgages for as little as $354, Mudd said during remarks to NAFCU's Congressional Caucus. Mudd said the secondary mortgage market giant has been growing its business and the mortgage business for credit unions through its two-year-old alliance with NAFCU. The alliance has helped facilitate lending, as well as new innovations, such as a 40-year mortgage, which was developed through Fannie's CU Advisory Council, and is being adopted by growing numbers of credit unions. Fannie, said Mudd, has also extended its partnership for its online mortgage underwriting tool with credit union mortgage lender Prime Alliance through 2011. Prime Alliance, a Tukwila, Wash., CUSO, does business with as many as 600 credit unions.