Credit Union Journal recently published an interesting article about how Colorado Springs, CO based Ent Federal Credit Union is working with Members Trust to provide its customers access to reverse mortgages. By working with Members Trust, Ent is able to earn fee income from the reverse mortgage transaction while Members Trust earns an underwriting fee.
According to the article, Members Trust also provides servicing for Ent’s reverse mortgage borrowers because the company currently holds the loans on its books. "It’s very hard to sell them now. We hope within the next few weeks we can sell them to Fannie Mae," said Jon Paukovich, VP of mortgage lending for Ent,
Members Trust is an interesting company. Chartered by the Office of Thrift Supervision, Tampa-based Members Trust is a CUSO owned by over 45 credit unions that provides trust and investment services to members across the country, as well as reverse mortgage products to 10 credit unions.
For Ent, the unique mortgage provides a "nice fee income." But the reason it offers reverse mortgages is for the "valuable service" to senior members and to further separate itself from banks, Paukovich said. "While reverse mortgages are heavily regulated, individuals can be preyed upon by unscrupulous brokers. The credit union provides members with a safe environment to conduct a transaction in which there isn’t a lot of skepticism and misunderstanding."