LAS VEGAS–While some CUs are reporting strong volume in HARP loans, others say they’ve seen little activity at all.
A good case in point is the $483-million Clark County CU here, where CEO Wayne Tew said CCCU has seen “virtually no” HARP activity.
“We offer the program, but 125% loan to value doesn’t help a lot of people right now,” he explained. “It works better for areas that did not have as much of a bust as we did in Las Vegas.”
Donna Bland, CEO of $7.9-billion The Golden 1 CU, Sacramento, Calif., noted that to qualify for HARP or HARP 2.0, a loan must have been originally sold to Fannie Mae, not a portfolio loan.
“We have some loans in that category and we reached out to those members to advise them they can take advantage of the program,” she said. “We have had some members take advantage, but not a significant amount. There is not a lot of information out there, and my understanding is the program has only benefited one-third of the consumers it had expected to.
“We want to help our members manage their finances and reduce their payment, so we would like to process more of these,” Bland added.
Similarly, Vince Salinas, chief credit officer for $3.8-billion Patelco CU, Pleasanton, Calif., said it has booked “some” HARP loans, adding, “It is difficult to say why we have not done more.”
'Not Much Interest’
Patelco has a “mature” membership base, meaning many still have equity and therefore have been able to refinance conventionally, Salinas assessed.
“It has been a benefit for the 10% that have had to use HARP,” Salinas said. “Some of those had to take a different job that does not pay as well due to the economy. They are making their payments and have good credit scores, but maybe their ratios are not as good. Those people we want to help by lowering their payment.”
Teresa Halleck, CEO of $5.7-billion San Diego County CU, reported SDCCU has “proactively offered” the HARP 2.0 program to members who appear to be eligible. “However, there has not been much interest,” she said.