Lending

WASHINGTON – CUNA has been adding details in recent days to a plan that would provide relief to troubled credit unions in a handful of the worst real estate markets by buying up distressed mortgages at a discount and infusing cash into those needy credit unions.

FLINT, Mich. – Officials at Dort FCU are winnowing down a pile of 100 applications they have received for two home foreclosures they are giving away in the credit union’s Home for the Holidays Contest.

WASHINGTON – Mortgage application soared last week by the largest amount on record as the government’s latest rescue bid pushed rates significantly lower, providing a new stimulus to credit unions and other lenders just when they need it.

TALLAHASSEE, Fla. – Gov. Charlie Crist joined credit union and banking leaders yesterday in introducing a voluntary 45-day halt to home foreclosures.

RALEIGH, N.C. – State Employees CU announced yesterday it is partnering with the North Carolina Housing Finance Agency to provide 0% construction financing for affordable housing projects for people with disabilities and special needs.

ST. PETERSBURG, Fla.-One card usage not expected to decline is that of debit cards, said Tom Gandre, chief debit officer for PSCU Financial Services in St. Petersburg, Fla.

PORTLAND, Ore.-More credit unions chose to hold onto their credit card portfolios rather than sell them off in the third quarter of this year compared to the same time last year, according to an analysis of card portfolio trends by AssetExchange.

ORLANDO, Fla.-Its home market often shows up in news reports as Ground Zero for the meltdown in mortgage lending, yet one credit union lender here is sounding a tone as sunny as the weather.

DALLAS-It's the most wonderful time of the year, but credit card usage is expected to be somewhat less "wonderful" than usual, so CU Journal asked cards experts what credit unions can expect this holiday season- and what they can do about it.

ORLANDO, Fla.-For Dale Frankhouse, the harsh reality of the mortgage market is all around him. As director of lending with Sun FCU in Maumee, Ohio, he confronts the reality every day of a home market with more than 3,200 homes in foreclosure.

NEW YORK-As the mortgage industry begins modifying troubled loans in greater numbers, early rounds of modifications are coming in for performance reviews. A handful of analysts and academics who have studied which types of loan modifications work have found that some of the most common changes-reducing or freezing the interest rate and allowing missed payments to be rolled into the balance-often fail to prevent the borrower from defaulting again. These are, of course, high risk loans by definition. But one aspect of some modifications points to why the default issue can rearise so quickly. The addition of arrears and fees to loan balances can actually increase monthly payments, a situation that leaves strapped borrowers no better off from a monthly cash-flow perspective. (Not all lenders charge fees on modifications. Bank of America Corp., for example, waives fees on the Countrywide Financial Corp. loans it is modifying under an agreement with state attorneys general.)

ORLANDO, Fla.-A year ago Travis FCU was charging off approximately $1 million a month. Today charge-offs have hit $3.5 million a month.

NEW YORK – As the mortgage industry begins modifying troubled loans in greater numbers, early rounds of modifications are coming in for performance reviews.

McLEAN, Va. – Freddie Mac said next year it plans to eliminate or lower the up-front fees it charges lenders on the largest loans it guarantees.

ORLANDO, Fla. - Brett Christensen offered these ingredients as necessary for the "recipe" for lending success, but stressed he does not rank them in importance as most credit unions would.

ORLANDO, Fla. - Brett Christensen offered these tips for D and E Lending:

ORLANDO, Fla. - There is no "magic pill" when it comes to building that elusive sales culture, but for many credit unions there are a couple of bitter pilles to swallow - they are not organized correctly to make loans, and the people they have in place to sell loans don't have what it takes to do so.