State Employees' Credit Union, Raleigh, N.C., late this week announced that it is eliminating appraisal fees for home equity lines of credit and closed-end second liens.
In its research, the credit union found that the cost of an appraisal is often a deterrent for members who are contemplating a refinance. State Employees estimates that the move will save its customers $1.2 million a year.
"We hope these recent changes will encourage members who are trapped in high interest rate loans to seek a better option at their credit union," said Spencer Scarboro, senior vice president of SECU's loan originations department.
State is the largest credit union mortgage originator in the U.S., according to figures compiled by MortgageStats.com.
Second lien production has fallen dramatically since the financial crash of late 2008 with volumes down by as much as 80%.
