PORTLAND, Ore.- Portland Teachers CU (PTCU) considers its recently announced partnership with Portland Mortgage Company a natural. Portland Teachers CU, founded in 1932 and one of the state's oldest CUs, holds claim as the largest CU in Oregon, with assets exceeding $1.1 billion and more than 136,000 members. Portland Mortgage Company (PMC) is Oregon's oldest, independent, local mortgage banking firm that has closed, year-to-date, more than $255 million in product. The relationship between PTCU and PMC originally began in March 2000 with an agreement to provide "jumbo" loan products (more than $275,000) to PTCU members. This newest service agreement with the mortgage company, which went into effect Aug. 6, 2001, will provide more competitive pricing for loan products. PTCU president/CEO Cliff Dias explains: "Because PMC has more than just PTCU loans, they have a competitive advantage when it come to pricing. "Portland Teachers Credit Union," said Dias, "has been around for a long time and we've always done our best to meet the needs of our members. This way (through the services agreement), we can offer more competitive pricing on fixed rate, conventional and jumbo loan products. It also allows us to provide additional resources to meet member demand for first mortgage loan products." One of the CU's "very popular" loan portfolio products, "Just for Starters," is geared toward the first-time home buyer and offers 100% financing, a fixed interest rate for the first five years and the option to finance up to 2% of closing costs. Another popular mortgage program is their Flex-ARM plan. This plan, said Dias, is "an adjustable rate mortgage, with the introductory rate fixed for the first two years, allowing members to save money with low monthly payments. The Flex-ARM loan can be used to purchase a new home or refinance an existing home." Dias, PTCU president since 1997, added, "We have been proactive in developing products for our members that make it easy to get into a home. For some loan products we reduce or eliminate loan origination fees, and don't require mortgage insurance." Dias cited another program specifically designed for members who are teachers employed by their largest SEG. "Our Homeroom% Home Loan is a pilot program designed for teachers and administrators who have been with the Portland Public School district fewer than five years. No down payment is required, and homes purchased within the Portland Public School District boundaries are eligible for an additional interest rate discount." He added that this particular loan program "can even include a `silent second' loan that is interest-free to allow new homeowners a little extra money at a time when most people can really use it." The advantages of the services agreement with PMC are already evident. "During the first week we were able to offer rates on conventional fixed rate mortgages that were one-half point lower than they would have been without this agreement," Dias said. Ronald A. Rudy, CMB, president of Portland Mortgage Company, and Dias have been friends for some years and had discussed this possible agreement for nearly five years. He concurs with Dias' assessment of the potential success for this special agreement. "We will consider the agreement – I like to call it `a strategic agreement' – a success if it provides a value-added product and partnership, an enhanced mortgage product, and improves the pricing offered to the credit union members." And he has no doubt they'll achieve these goals. PMC does not have any mortgage loan agreements with banks. They intend to focus heavily on this CU partnership. "We'll do all we can to make sure loans in our partnership are marketed in the secondary market," said Rudy. PMC has built a solid successful reputation in the Portland area, which was one of the many reasons Dias said they created the alliance. The mortgage company, which Rudy founded in 1983, has three branches, including the main office, in the Portland-metro area, with a total of 38 on staff. Eighteen are loan officers. So what's the CU's potential growth goal with the added agreement? Dias responded, "Our goal is to grow our portfolio of these exclusive products. Currently only 2,500 of our members have a first mortgage loan with us, so there is a lot of upside potential." The alliance with PMC just might create the partnership required for the CU to reach its goal. [email protected]