Therefore, they’ve tightened their underwriting criteria, alert to laws that they could be forced to buy them back if they sell bad or unsupportable loans to investors.
Credit unions never experienced the amount of losses that the banking institutions did. “I think something similar to 500 banks failed, but just about 150 credit unions did, ” Schenk said. “We weren’t saddled having a large amount of bad loans that the big banking institutions were. ”
That’s because, Schenk noted, credit unions operate in a way maybe perhaps not unlike a tiny standard bank. “We’re prone to tune in to your story, ” he stated.
Big banking institutions, by contrast, count on underwriting formulas and highly automated systems that are underwriting place a premium on turn-times. “We’re very likely to make an exclusion or modification according to your unique scenario, ” Schenk added.
Unlike big banks that curtailed their mortgage lending to comply with tighter financing limitations, credit unions never really had to fix for misbehavior.Continue reading