Beginning in April State Employees’ Credit Union (SECU) announced a variety of mortgage products aimed at helping members who have become victims of subprime mortgage practices. The Credit Union also mailed letters to members offering assistance to those who may have been negatively affected by these loans, and developed a Mortgage Loan Tool Kit outlining action steps for members to protect their home and credit history. SECU is beginning to see the positive changes of these efforts, as over 200 families in North Carolina have already realized substantial savings by refinancing their subprime loans. The refinanced mortgage balances already exceed $30 million after just three months!

New products developed by SECU include a 5-year Adjustable Rate Mortgage that provides members with the payment stability and budget certainty needed to rebound from financial hardships, while eliminating the skyrocketing rate increases of a subprime mortgage. Another recently introduced SECU product is an AllSavers Mortgage which offers a fixed rate of interest plus an opportunity for members to build for the future of their families via a high yield Share Term Certificate tied to the loan.

SECU member Dorothy Evans recently took advantage of the opportunity to refinance with the Credit Union and comments, "The opportunity to refinance out of a subprime mortgage was a miracle!" Ms. Evans has no family in the area and several children to care for. Her mortgage payment had continually risen over the past several years and was set up without taxes and insurance included in the payment, forcing Ms. Evans to use her tax refund each year to pay her tax and insurance bills. As Ms. Evans notes, "I wasn’t able to breathe and worried that I would have to find a new place to live." A co-worker told Ms. Evans to talk with SECU, as the credit union was reaching out to help members just like her. Dorothy visited SECU’s Butner location and walked out not only able to breathe, but saving more than $600 a month on her house payment, which now includes taxes and insurance! Ms. Evans says, "I am thankful for SECU – the credit union listened to my situation and helped me get my life back."

Phil Greer, Senior Vice President of Loan Administration, adds, "State Employees’ Credit Union is committed to providing viable solutions to predatory subprime loans. Subprime lending and foreclosure aren’t some intangible obscure statistics --- real people are being affected on a daily basis. Scenarios such as Ms. Evans’ exist throughout North Carolina and our goal is to help these members regain their financial independence. So far, we’re estimating savings from refinances at over $1.5 million per year and we’re just getting underway with these programs. Putting that amount of money back in the pockets of our members can really make a difference."