Credit Unions Doing What CUs Meant to Do

RALEIGH, N.C. & MEMPHIS, Tenn. — When credit unions make a commitment to offer home loans and ramp up efforts to help members trapped in resetting adjustable-rate mortgages granted by other financial institutions, they are doing no less than what the Federal Credit Union Act demands they do. So says Jim Blaine, president/CEO of State Employees’ Credit Union of North Carolina, the Tar Heel State’s largest.

True to form, SECU created two new mortgage products to help such members with a five-year ARM and an All Savers Mortgage. The ARM loan provides members with the payment stability needed to rebound from financial hardships and allows those recovering from subprime mortgage problems to budget with more certainty. It allows for 100% financing up to $400,000 with a maximum term of 20 years. The rate is subject to change only every five years, but will not change more than 1.5% each increment and has a maximum increase limit of 4.5% over the life of the loan.