A North Carolina credit union has funded more than $5 million in reverse mortgages since launching its own private-label product in August, the lender announced today.
Raleigh-based State Employees’ Credit Union has closed 50 reverse mortgages, according to a company statement. SECU offers its own reverse mortgage that is not insured by the Federal Housing Administration. The loan, available to homeowners at least 62 years old, features a fixed rate with a simple accrual method, a 1% origination fee, and does not require mortgage insurance or monthly servicing fees.
The mortgage product was developed in consultation with the North Carolina Housing Finance Agency, North Carolina Commissioner of Banks, North Carolina AARP, the North Carolina Retired Governmental Employees Association, and counseling group Resources for Seniors.
Phil Greer, senior vice president of SECU’s loan administration, stated that after extensive research of the standard reverse mortgage products, the credit union developed a loan “resulting in more funds being made available to our members for their day-to-day living expenses.”
SECU is a non-profit financial cooperative serving 1.5 million members through 223 branch offices.
