NAFCU announces alliance with Fannie Mae

SEATTLE- NAFCU has entered into a new alliance with Fannie Mae to help NAFCU-member credit unions expand their ability to offer affordable mortgage financing and manage their interest rate, liquidity and credit risks, NAFCU President and CEO Fred Becker announced at the opening session of the trade group’s Annual Conference. The partnership will provide savings to participating credit unions performing mortgage lending. NAFCU members will be able to choose from special pricing in the secondary market for fixed-rate mortgages – including biweeklies; access to Desktop Underwriter, Fannie Mae’s cutting-edge technology for underwriting loans; educational and training support on how to expand access to the secondary market; the ability to offer a wide range of mortgage products, including fixed- and adjustable-rate mortgages, and mortgage loans up to 100% loan-to-value; and access to Fannie Mae representatives to help them take advantage of secondary market opportunities. The agreement will also allow streamlined review and approval for NAFCU members not already Fannie Mae-approved lenders and Fannie Mae will analyze member portfolios for possible sale into the secondary market. In a press release, Jeffery Hayward, Fannie Mae’s senior vice president for single-family business, said, “Credit unions and Fannie Mae share a similar mission – to bring affordable credit to families all across the United States.” “NAFCU has designed this new initiative to anticipate our members’ need to adjust loan portfolios in the coming year,” Becker said. “With interest rates at a 40-year low, many credit union members have been refinancing their homes, and that has resulted in some credit unions holding a large number of fixed-rate mortgages. Interest rates will no doubt rise again in the future, and we want to ensure that credit unions choosing to do so will have the ability to readily sell to the secondary market.”