Expanding access to affordable homeownership is an essential element of financial independence for low- and moderate-income people and core to Inclusiv’s mission. Credit unions have long played an important role in homeownership financing and counseling as part of their historic commitment to serving people of modest means. Inclusiv’s homeownership initiatives aim to increase community development credit unions’ recognition as a source of responsible mortgage financing and to expand credit unions’ capacity as mortgage lenders and providers of accurate and consistent homeownership counseling.
Launched in 2005, Inclusiv/Mortgage established a secondary market for member credit unions’ mortgage loans to low- and moderate-income members. As of Dec 2019, Inclusiv's mortgage portfolio is comprised of almost $16 million in affordable home mortgages originated by 21 community development credit unions across the country.
Inclusiv/Mortgage is a Secondary Market Program that purchases conforming and non-conforming affordable first lien mortgage loans from our member credit unions. By creating a pipeline for CDCUs to sell their mortgages, Inclusiv/Mortgage replenishes credit unions’ capital, enabling CDCUs to magnify their impact in their communities. Inclusiv/Mortgage helps CDCUs recycle capital in their communities, freeing up funds for additional lending. In 2016, Inclusiv/Mortgage launched a new initiative to dramatically increase the volume of loans purchased, providing an alternative to the predatory practices targeted at the minority, immigrant and low-income communities across the country, enabling our member credit unions to provide quality residential mortgage services to the communities they serve.
The FLOW Program
Under this program the credit union originates, processes, underwrites and closes loans using the guidelines developed by Inclusiv/Mortgage. The intention of the credit union is to sell the loan directly to us after they have funded. The process usually takes less than 48‐hours ‐ Under the FLOW Program we allow manual underwriting for borrowers with credit scores down to 620. (Industry standard is 680) – We also allow Alternative Credit to be developed on a case‐by‐case basis ‐ The Flagship product available through the FLOW Program is the American Dream Loan. This is a mortgage for borrowers with an ITIN number.
The BULK Program
We still purchase Bulk Loans from credit unions that have the need. While we have tightened up the guidelines a bit we have also streamlined the process allowing our members to get a price quote early in the process.
For smaller credit unions who do not have the ability to obtain a Freddie Mac approval, Inclusiv/Mortgage can act as aggregator to facilitate the sale of either Bulk or Flow loans directly to the GSE.
How to Apply
Inclusiv/Mortgage accepts applications from member credit unions interested in selling qualifying mortgages on an ongoing basis. Staff assess a credit union’s prior mortgage lending performance and then work with the credit union to identify qualifying mortgage loans.
Inclusiv/Mortgage performs analysis of the mortgage loans being considered for purchase and determines pricing based on the origination note rate, the current market rate and perceived risk of the mortgage loan pool.
For more information, please contact Inclusiv/Mortgage at firstname.lastname@example.org.