Credit Unions Getting Aggressive with Mortgages

Credit unions have a history of being very active in the auto loans and home equity lines of credit markets. It has been a very profitable niche for them for quite a while. In the current mortgage market, more credit unions are beginning to market their ability to do first mortgages.

As far as membership rules, many credit unions have relaxed their restrictions, making it easier for family to join, rather than just employees of a particular company or members of a labor union. There are also regional credit unions, allowing anyone living or doing business in that area to join. One credit union in Florida offers membership to:

The following individuals are eligible for membership at CCCU:

• Anyone who lives or works in Broward, Palm Beach, Miami-Dade, Monroe, Martin, St. Lucie, Indian River, Brevard, Osceola, Orange, Seminole, Collier, Lee, Hendry, Glades, Charlotte, Sarasota, DeSoto, Highlands or Okeechobee County, Florida
• Licensed professionals and their employees
• Family members of existing members
Employees of numerous select employee groups.
As you can see, there are a whole lot of people eligible to join just based on residence, and they expand it more by professions and employers. Along with this membership expansion, the same credit union states:

We offer:

• New, longer term (Ask for details)
• Fixed rate mortgages
• Adjustable rate mortgages
• First-time homebuyer programs
• "Less than perfect credit" loans
• Home equity loans
• Low down payment loans
• Jumbo loans

Problems in the mortgage industry and the over-reaction of many lenders have opened the door to credit unions. They have become aggressive because they have decided it’s a good use of their assets.