Bank loan zone: Moving mortgages internally

By helping members refinance their mortgages with us, we’ve saved individuals as much as $15,000-or eight years’ price of payments-over the life span of the mortgage.

Bringing these types of mortgages internally starting in July 2012 also helped the credit union meet its objective of a loan-to-share ratio between 100 to 110 percent. Currently they’re at 108% loans to shares.

Note, this ratio is loans to savings on deposit, not to assets. We are able to exceed 100 % due to the fact that 15.38 percent in our assets are in reserves. We are able to loan these reserves out.

We’ve put $8.Six million in these loans on our books since July 2012. We are $23 million in assets.

While we still partner with $1 billion Connexus Credit Union, Wausau, Wis., to complete purchase money mortgages, in addition to loans for non-owner occupied rentals and vacation homes near disney, we thought we could bring these loans internally safely. A real support to us in this effort has been the Wisconsin Bank League’s compliance specialist program.