Secondary Mortgage Project Debuts ForCDCUs
NEW YORK - (03/04/05) -- The National Federation of CDCUssaid Thursday it is partnering with PHH Mortgage and CU Partners tocreate a secondary market for CDCU mortgages. Cliff Rosenthal,director of the Federation, told The Credit Union Journal the goalof the project, named the CDCU Mortgage Center, is to give CDCUsand other credit unions another option for selling their mortgages.The Federation plans to begin buying non-conforming mortgages inlow-income communities in the second half of the year for eventualresale to investors. Rosenthal said the project differs from aneight-year-old secondary market project by Self-Help CU, which buysmostly nonconforming bank mortgages. The project was enabled by a$1 million grant from the Treasury's CDFI Fund.