Pentagon Federal Credit Union of Virginia, and North Island Credit Union, San Diego, this week signed a correspondent contract under which North Island will offer residential loans originated by the PenFed, one of the largest CU players in mortgage banking.
Under the deal, North Island has the option of serving as a wholesale partner for PenFed's mortgage products or may choose to retain a portion of the loan in its own mortgage portfolio. Both credit unions will actively market the program in California to North Island's customer base, and to residents living in the San Diego County area.
"Working collaboratively with PenFed allows North Island Credit Union to expand mortgage product offerings to its members, and do so in a more efficient manner by utilizing the scale provided by PenFed," said North Island CEO John Tippets. "That efficiency translates into a win for members with better pricing and terms on their mortgage loans."
Over the past few years, PenFed has increased its presence in numerous states through its wholly-owned subsidiary, PenFed Realty, which is a full-service real estate brokerage firm that offers comprehensive real estate services nationwide to both PenFed members and non-members alike.
PenFed is the nation's third-largest credit union with $15 billion in assets. North Island CU has $1.1 million in assets.
