Freddie, CUNA Ink 'Unprecedented' Pact

Freddie Mac, the Credit Union National Association, and CUNA Mutual Mortgage Corp. have announced an agreement that gives credit unions and their members "unprecedented access" to the secondary mortgage market and the latest mortgage technology.Under the agreement, qualified credit unions will have access to capital markets and portfolio management expertise, "simplified seasoned mortgage sale execution," a secondary market execution with only a single mortgage loan, and a private-label servicing option, the alliance members said. "The great thing about this alliance is that it marries Wall Street money to credit union philosophy," said Daniel A. Mica, CUNA's president and chief executive officer. "It will allow credit unions to use their mortgage portfolios to, in effect, access the capital markets. This is an enormous breakthrough at a time when mortgages have become the fastest-growing area of credit union lending."