Terri Fowlkes, director of the CDCU Mortgage Center, said about one-third of Federation-member credit unions offer mortgage loans to their members, and only about half of those CUs are actively promoting and originating loans. "Many credit unions aren't doing mortgage loans and need to be. Others are offering the product but need help. While we have partnerships with other companies that offer mortgage insurance and servicing, our new partnership with CU Members Mortgage is targeted to help those of our members who aren't yet providing mortgages as well as those that are and want to enhance their mortgage product and service offering," she said. Fowlkes had several requisites for the mortgage provider she was looking to partner with–a company that had a national scope, came with high recommendations from other credit union organizations, could provide servicing, had several products and options, and had a program for people with less than stellar credit.

CU Members Mortgage fit the bill. The company originates annually more than $3 billion in FHA, VA, conventional and single close construction loans. Its portfolio is $10 billion. In addition, CU Members Mortgage began offering reverse mortgages in September 2006, and in 2005 it launched a dedicated subprime department called CU Solutions to assist members with less-than-perfect credit.

"CU Members Mortgage's goals matched the CDCU Mortgage Center's goals," said Linda Clampitt, senior vice president of CU Members Mortgage. "We'd like to see credit union mortgage lending go from the current 2% to 10%, it's that simple. We know if we're going to move that percentage up, we're going to have to come up with affordable housing solutions."

Partnership talks between the CDCU Mortgage Center and CU Members Mortgage began prior to the American Credit Union Mortgage Association's annual meeting in June and continued during the event.

Although the partnership was only about two months old at press time, two Federation-member CUs had already signed contracts with CU Members Mortgage. Fowlkes said another half dozen CUs were in the process of getting their board's approvals.

The Federation is encouraging member CUs that sign contracts with CU Member Mortgage to attend a two-day mortgage lending seminar in Chicago being held Dec. 11-12. The seminar will offer two tracks–Mortgage Lending A to Z for CUs just starting out in mortgage lending; and Mortgage Lending: Beyond the Basics, for CUs that want to gain additional mortgage lending-related skills and information. –[email protected]