SECU Reports One Of Lowest Mortgage Delinquencies In U.S.
State Employees Credit Union here last year had one of the lowest mortgage delinquency rates in
SECU was the only credit union that cracked the top 20 lowest overdues for lenders in the country, according to
Its rate of 1.8% delinquencies on 46,059 loans serviced ranked it 10th in the country in 2001. That's less than half
The numbers get better farther out, according to Mortgagestats.com (delinquencies refer to 30 days or more
The Factors In Success
Phillip Greer, senior vice president of loan administration for the 145-branch credit union, attributed its performance
Automatic payments are a big help in keeping loans current, he said, noting many members have automatic payroll
Handling overdues on the branch level, rather than from headquarters, is another key ingredient, according to Greer.
Another good preventive measure comes at the beginning of the process. "We like to think we do a good job
Greer said the credit union's FOM of teachers and state government workers weathered last year's recession fairly
Last year, SECU more than doubled total originations, its portfolio grew by $700 million, and its first mortgages
For the past 15 years, SECU has been able to keep costs down on many mortgages by offering them to its members
It has been able to do that on loans with a higher than 80% loan-to-value ratio (where the borrower puts less than
Secondary market outlets like Freddie Mac and Fannie Mae require the borrower to buy mortgage insurance on any
In other mortgage news at SECU, it has introduced a loan modification program, meaning its 900,000 members will
Instead, for a total cost of 75 basis points, they will be able to modify the terms of their existing note, eliminating
While State Employees has the largest mortgage portfolio, Navy Federal Credit Union of Merrifield, Va. remains the
Mortgage Volume Doubles
Last year, Navy produced a stunning $4-billion in mortgages, including both firsts and seconds, while holding a
Last year, the overall mortgage market also doubled, from $1 trillion to $2 trillion, according to Mortgagestats.com,
Navy's volume ranked it 63rd in the country last year, according to Mortgagestats.com, while SECU was 80th.
According to the National Credit Union Administration, real estate lending (firsts and seconds) in the industry rose to
In recent years, mortgage and home equity lending has overhauled new and used auto lending as the top asset in