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Hampel tells NYT that CUs Listen to Mortgage Borrowers' Stories
Tuesday, March 15, 2016 6:45 AM

Credit unions, with their flexible and responsible mortgage practices, are good resources for borrowers who need more options for mortgages, reported The New York Times, which included comments from Bill Hampel, Credit Union National Association chief economist and chief policy officer.

The March 11 article detailed the alternatives for borrowers who want a lower down payment or smaller mortgage insurance payment. “Then there are the thousands of credit unions across the country that have a little more leeway in offering low-down-payment loans without insurance, largely because they keep their loans on their own books,” the Times said.

“They can listen to the story of the borrower,” Hampel told the Times. “That doesn’t mean they make riskier loans, but they can balance loan requirements off one another. If they are weak in one category but strong in another, the credit union can still make the loan."

The article also featured the work of CommunityAmerica Credit Union in Lenexa, Kansas. It offers programs such as 10 percent down using one loan without mortgage insurance, or borrowers can take an initial mortgage for 80 percent of the purchase price and a second loan for up to 15 percent.

“We are going to run the scenarios,” said Carrie O’Connor, chief lending officer. “You need to look at each individual situation and evaluate it.”