CUs Launch Mortgage Initiative

Patelco Credit Union, Star One Credit Union, and other Bay Area CUs have announced their participation in a new $1 billion nationwide mortgage lending initiative called Home Loan Payment Relief.The HLPR loan is a three-year adjustable-rate mortgage that will be offered to borrowers with household incomes at or below the median in their market at 1% below the national average for such loans, or about 4.5% currently, the credit unions said. The required downpayment will be no more than 3%, gifts or grants are permitted, and after three years the interest rate will adjust annually to market rates (with caps of 1% a year and 5% over the life of the loan), the credit unions said. The Bay Area CUs are among 61 around the United States that offer HLPR loans and have committed nearly $1 billion to the program, they said. They added that the commitment level is expected to grow to as much as $5 billion as CU participation grows.