North Carolina SECU Signs on to Mortgage Protection Principles

RALEIGH, N.C. – State Employees CU has become the first credit union to sign on to a new set of principles aimed at protecting mortgage borrowers from predatory lenders. The Mortgage Protection Principles, introduced yesterday by state Treasurer Richard Moore and officials in Florida, Kentucky and New York, are aimed at protecting families from being stuck in loans they can’t afford. The principles include: matching borrowers with appropriate, fair and affordable loans for which they qualify; verifying the borrower’s ability to repay; not incentivizing employees or brokers to place borrowers into higher-cost loans; clearly disclosing all broker compensation; providing borrowers with fixed-rate options when offering adjustable-rate products; not charging prepayment fees or penalties on subprime loans; and conducting criminal background checks on all brokers. Also signing on to the principles is the Center for Responsible Lending, an affiliate of Self-Help CU.