Home » CU Mortgage Services partners with Des Moines FHLB
CU Mortgage Services partners with Des Moines FHLB
April 2, 2015
NEW BRIGHTON, Minn. (4/3/15)--CU Mortgage Services Inc., a business unit of CU Companies, has partnered with the Federal Home Loan Bank (FHLB) of Des Moines.
The partnership allows CU Mortgage to service more types of loan products.
FHLB Des Moines has nearly 1,200 member-owners in Iowa, Minnesota, Missouri, North Dakota, and South Dakota who rely on the bank to provide reliable short-term and long-term, attractively priced funding solutions. Now, the credit unions and community banks in those areas that work with CU Mortgage as their mortgage lending solution can have their FHLB loans serviced by CU Mortgage.
"Our servicing plays a significant role in the mortgage lending process due to our reputation and culture," said Brad Crandall, CU Companies CEO. "We were built on the foundation of personalized service and servicing FHLB loans is right in line with that purpose."
Through this partnership, CU Mortgage will offer servicing on its Original MPF and MPF Xtra Products. Original MPF allows for the sharing of credit risk and and provides clients the opportunity to receive a fixed fee for taking on a credit enhancement obligation. MPF Xtra dffers low-cost options for fixed-rate, conforming loans.
The partnership allows CU Mortgage owners and partners to access FHLB products while placing the servicing of loans in the hands of a trusted mortgage resource. To have CU Mortgage servicing FHLB loans allows those credit unions and community banks to focus even more on serving their marketplaces, rather than addressing regulation standards.
The partnership will also be integrated with CU Mortgage's contract processing underwriting services. After a credit union or community bank originates the loan, CU Mortgage handles the processing and/or underwriting portions in accordance to secondary market guidelines. After approval, CU Mortgage prepares the closing package in the name of the lender, who closes the loan which then flows smoothly into the servicing department.
"Adding the processing and underwriting pieces to the equation removes challenges for our credit unions and community banks so they can focus on providing more loans to their borrowers," said Crandall. "It guarantees investor guidelines are met and delivers a turn-key solution as our experienced staff will keep the loan flowing, whether it's FHLB or another program type."