CUNA Mutual Mortgage evaluating FHLB's secondary market product

MADISON, Wis. – CUNA Mutual Mortgage is talking with the Federal Home Loan Bank of Chicago to access the bank’s Mortgage Partnership Finance secondary market program. CUNA Mutual Mortgage Senior VP and Chief Operating Officer Dan Rotert said the company was “discussing the program with FHLB to see how it fits in with our product suite. We are interested in offering credit unions the most robust products we can, and if FHLB can assist us in that, we’re going to speak with them and pursue discussions.” In 2001, CUNA Mutual Mortgage originated $1.9 billion in mortgages, and as of Sept. 2002, it had originated $1.7 billion. Rotert said the company expects to come in between $2.1 -$2.5 billion by the end of 2002. CUNA Mutual Mortgage does not portfolio any of its mortgage loans. It sells all the mortgage loans it originates on the secondary market, primarily to Freddie Mac. Rotert did not comment on the specifics of FHLB’s secondary market product that attracted CUNA Mutual Mortgage to it or what differentiates it from Freddie Mac’s. He said, though that “CUNA Mutual Mortgage needs to make sure our secondary market partners offer all the options credit unions we do business with need.” Rotert stressed that CUNA Mutual Mortgage has not reached any agreement yet with FHLB, but “we are looking at their program and evaluating it.” CUNA Mutual Mortgage has active partnerships with about 600 credit unions.