Freddie Mac Reaches Out to Credit Unions

Freddie Mac and Alaska USA FCU on Monday signed a deal making the $3 billion credit union the secondary mortgage market giant's first credit union correspondent. Under the agreement, Alaska USA FCU will aggregate mortgages from small and midsized credit unions for sale on the secondary market. Participating credit unions will be provided a one-quarter-point (25 basis points) premium for every closed mortgage loan under the program, according to Bob Cejka, spokesman for Alaska USA. "We've done this in the past on a regional basis, but never on a national basis," Mr. Cejka told the Credit Union Journal. "Because of our size, we have the ability to do this on a national basis." The announcement was made on Monday at the annual conference and expo for CUNA, which has a four-year-old alliance with Freddie Mac. Alaska USA's staff, which is experienced in the secondary mortgage market, will provide support and assistance to participating credit unions, many of which do not have the resources to conduct mortgage sales themselves. The program will allow smaller credit unions to sell their loans on the secondary market without having to add staff, build infrastructure or install costly technology. While Freddie Mac has conducted correspondent sales through banks and thrifts, Alaska USA is the first credit union to participate in the program.