Kasasa offers new twist on mortgage payment with BSI’s help

A new type of home loan is being rolled out by Kasasa with operational support from BSI Financial Services.

The turnkey product designed for community banks and credit unions is distinguished by what it calls a "Take-Back" option.

"With [the Take-Back option], you can withdraw the extra money paid over and above your scheduled mortgage payment," said Allen Price, a senior vice president at BSI Financial.

Borrowers must be current on their home loan and cannot withdraw more than one Take-Back at a time.

In addition, there will be a maximum balance determined by the individual financial institution. All Take-Back loans can be repaid anytime during the term of the loan and without penalty.

A mobile dashboard Kasasa designed with BSI's help allows borrowers to see how using Take-Back affects their outstanding balance, interest and repayment schedule.

First-lien, fixed-rate mortgages have made up a growing share of the assets on credit union balance sheets, according to the National Credit Union Administration's annual report.

Since the end of 2014, that percentage has grown to 22% from 18%, and more recent reports suggest the low rates and relative health of the housing market have amplified that trend.

Originations of single-family home loans are currently on track to near or exceed $3 trillion in 2020. The Mortgage Bankers Association estimates single-family originations will approach $3 trillion, and Fannie Mae forecasts that there could be as much at $3.4 trillion in volume. Mortgage originations haven't been this strong since 2003, according to Fannie Mae.