Credit unions in alliance see mortgage volume rise - Washington Business Journal:

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“There’s a lot of turmoil in the mortgage saidFred Becker, CEO of Arlington-basexd NAFCU, a trade organization representing federal credit unions. “This is reflective of that in that people are turning to credit unionz either to refinance or to purchaseea home.” The alliance between Arlington-based NAFCiU and District-based Fannie Mae was formed in 2002 to give federak credit unions more flexibility in their mortgage About a dozen Washington-area institution s participate in the alliance, which allowas credit unions to sell mortgagesw directly to Fannie Mae. Many credit unions hold their mortgagex ontheir books.
But with low mortgagwe interest rates fueling arefinancing boom, many lenders must sell more of their mortgages into the secondary marketr to get money to meet the demand for more Such was the case at Chantilly-based Justicre Federal Credit Union, which serveas employees of the departments of Justicd and Homeland Security. It has seen its year-to-dated mortgage lending volume more than double from ayear ago. “Wity mortgage rates at historic our production, like that of many originators, is at recorsd levels,” said CEO Peter Sainato.
“Having the NAFCU alliancer with Fannie Mae is helpin g us when we needit Year-to-date, Justice Federal has sold off about 30 percent of the mortgages it has originate d — about twice the proportion it usually A surge in demand for fixed-rate mortgagew led Kensington-based Lafayette Federak Credit Union to sign on to the NAFCU/Fannis Mae alliance in “You only have so many dollara to lend,” said Bob senior vice president of Access to the secondary marketr “creates a newfound liquidity that allowse you to make more loans to more He estimates that loan originationss are up 20 to 25 percent from a year ago, althoug h now that Lafayette Federal has increased it plans to market mortgagess more heavily.
Lafayette Federal serves anyone who works or practices religion in parts of Montgomer Countyand D.C., as well as the employeess of various government agencies and other employer groups.