Credit Union is Financially Equipped and is Not Facing the Same Lending Challenges of Bigger Banks
OREM, Utah, Oct 06, 2008 (BUSINESS WIRE) -- Turmoil in Congress and on Wall Street has had minimal impact on Family First Federal Credit Union and its ability and willingness to make loans to its members.
The issues that are facing the big banks are not the same at the credit union level due to the strong saving habits of its members. Consumers have been led to believe that there is no money available for lending and the tightening of the requirements have made it impossible to be approved, even with good credit.
"Family First has not been out there buying mortgage-backed securities as investments or making bad subprime mortgage loans, but following conservative, sound lending practices," said Todd Hatfield, assistant vice president of mortgage development at Family First Federal Credit Union. "It has been pretty much business as usual for us, as we are welcoming first time home buyers and have been able to get them into a conventional loan with as low as five percent down."
Family First Federal Credit Union believes strongly in prudent lending in good times and in bad. With its strong liquidity, the credit union is looking for ways to better serve its members. With the tax rebates for first time home buyers, low interest rates and good home pricing, the credit union is encouraging its members to continue to invest in the real estate market.
Due to the credit union's conservative approach to lending, its underwriting policies have changed very little during this crisis. Hatfield added, "Many members believe that they now need to have 20 percent down for a new home purchase, but at Family First that is not necessarily true. We have always looked at a member's credit score, salary history and the borrower's ability to pay back the loan in the future. We are currently approving some first time home loans with as low as five percent down."
To get more information about Family First's Mortgage Services, please visit any of the seven branches throughout Utah County. Members can also stop by the Family First Home & Business Loan Center located at 1178 S. State St. in Orem and speak with any member of the mortgage services department. Additional information can be found on the web at www.familyfirstcu.com.
ABOUT FAMILY FIRST FEDERAL CREDIT UNION
Family First Federal Credit Union has been providing excellent financial services since 1947. Branches are located in American Fork, Pleasant Grove, Orem, Springville, Payson, Lindon, with a Home and Business Loan Center in Orem, and offers online services at www.familyfirstcu.com. The credit union provides various mortgage services including construction loans, mortgage Fixing your Credit and home equity options. Anyone who lives, works, or attends school in Utah County, or has a family member who does, is eligible for membership.
