1. BUILDING A MORTGAGE POWERHOUSE
The CDCU Mortgage Center, LLC

2. Mortgage Market - The Early Years
Early 1900’s – Building and Loans
Mortgages – 50% down/due in 5 years
1930’s – Great Depression – New Deal
1934 – FHA is created
Insurance
Loan Standards
15-30 year loans with amortization

3. 1938 – Fannie Mae created to increase amount of money available for mortgages
Secondary Market
Minimum standards for lenders
Developed greater standardization for mortgages
Attracted capital from other sources
– Growth in post war economy
Creation of VA to provide homeownership to veterans
Deposits in the east and mortgage growth in the west and southwest

4. 1968 – Fannie Mae changed to privately financed dealing with conventional loans
Ginnie Mae will be publicly financed and deal with government loans (FHA/VA/USDA)
1970 Freddie Mac created to compete with Fannie Mae
Primarily conventional loans spurring growth of the private mortgage insurance industry

5. Early 1980s – Regulation Q eliminated
Growth of Money Market Funds
Disintermediation
30 year fixed rate loan now bad asset
Mortgage securitization finds new buyers
Pools tranched
IO/PO
Time/Duration
Credit

6. CDCU-97 Mortgage Program
Property types: 1-4 Family (incl. deed restricted) and Manufactured Housing
Fixed Rate Term: 20, 25, 30 Years
Maximum LTV: 97%; CLTV: 105%
Minimum Credit Score: 620
Debt‐to‐Income Ratios: Front‐end: 35%; Back‐end 45%
Post‐Closing Liquidity: 2 months
Primary Mortgage Insurance: Lender Exposure <=80% , but not less than 75% LTV
Loans to members who currently hold “Individual Tax Identification Numbers” (ITINs)

7. The CDCU Secondary Market
In 2016 the CDCU Mortgage Center introduced a Secondary Market specifically designed for the Low-to-Moderate Income Borrower. Participating credit unions have access to the CDCU-97 and the CDCU-ITIN Loan These loan programs were created based on the needs expressed by our Community Development partners

8. CDCU-97
FNMA Home Ready
Freddie HP Advantage
97% LTV
97% - 95% if manual UW or man home – 85% for 2-Fam - 75% for 3 to 4-Family
No Income Limits
Low Income Census Tract – No Income Limits apply - Earn a maximum of 100% AMI (Area Median Income)
High-minority census tract or designated disaster area - Earn a maximum of 80% of AMI with no location restriction
Borrower Annual Income cannot exceed 100% of AMI. Higher percentage allowed in designated "High-Cost" areas.
No income limits apply if the mortgaged premises are located in an "Underserved Area"
Minimum 620 FICO
620 with DU Approve – 680 for Manual UW
Minimum 620 FICO with LP Accept - Manual UW, 660
Secondary Financing and DPA Allowed
Only Affordable Seconds and DPAs meeting Fannie Mae requirements
Only Affordable Seconds and DPAs meeting Freddie Mac requirements

9. INCREASE YOUR EARNINGS
Approved Sellers have the option of adjusting the pricing on all loans sold to the CDCU Mortgage Center to earn a Servicing Released Premium (“SRP”).
For every 1/8th (0.125%) increase to the published rate, the Credit Union will earn ½% (0.50%) premium up to 1.5% of the loan amount
As an additional revenue source, Credit Unions can apply to retain Servicing Rights on all loans they sell to the CDCU Mortgage Center.
Approved Servicers will earn a 0.25% Servicing Fee paid monthly

10. Join these and other CDCU Credit Unions that have been approved, or are pending approval to do business with the CDCU Mortgage Center.

11. CONTACT US
If your organization would like to learn more about the CDCU Mortgage Center, or become an Approved Seller, please contact: