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Rescue Refinance

Credit Union :CoVantage Credit Union
Assets :$739,816,000
Address :723 Sixth Avenue | Antigo, WI 54409
Open / Closed End :Closed

Loan Underwriting Qualifications :

Rescue Refinance is designed for any member, or eligible non-member, who is in danger of losing their home to foreclosure.

Rates, Fees, and Terms :

  • Up to 90% LTV without PMI if necessary. If member qualifies for PMI it is required.
  • May be used with Rescue Refinance Plus resulting in first and second mortgages up to 110% LTV
  • Debt to income ratio of 38% of gross income or with a strong cosigner
  • Risk Based Pricing applies
  • A 10/1 ARM is used
  • Automatic transfer of mortgage payments is required
  • Mandatory Escrow Account with automatic transfer
  • Credit Committee approval is required

Target Market :

Members, and eligible non-members, in danger of losing their homes to foreclosures due to a family crisis or an extreme rate increase from an Adjustable Rate Mortgage (ARM).

Marketing Strategy

  • Word-of-mouth
  • Referrals by loan officers or collection staff when signs of distress appear
  • Community awareness events are held in all markets to explain the program. Loan officers available immediately following the event to talk with potential applicants, answer questions and start loan application on the spot.

Program Results/Statistics :

As of 12/31/12, 80 loans totaling $8.5 million have been completed under this program. Program has had very low delinquency. Many in the program would have lost their home to foreclosure if not for the credit union’s Rescue Refinance Mortgage.

Additional Information :

Vendors/Systems/Technology Used

No special technology is required.