New Way to Help Protect U.S. Homeowners

CUNA Mutual Group (founded in 1935) recently launched new mortgage payment protection product for credit unions and their members. This new product covers mortgage payments in the event of a borrower’s death, disability, or involuntary unemployment. Credit unions that offer it are leveraging a comprehensive insurance and training program that protects members’ home mortgages.

The launch comes just in time for summer, which is peak moving season according to the U.S. Census Bureau. It’s also the time of year when new mortgages, mortgage refinancing, and protection for these investments are likely to be top-of-mind for many Americans. Especially for the 45 million who move from one home to another every year. Mortgage payment protection gives credit unions a new way to support members and homeowners who may be less prepared than ever for emergency expenses.

When the Unexpected Happens

“When we talk to families about their financial concerns, it’s clear that the ability to keep up on vital payments (like their home mortgages) is top of mind,” said Chris Arenz, director of mortgage payment protection, CUNA Mutual Group. “When the unexpected happens, they want to know that they can stay in their home without draining their savings, putting their credit score at risk, or compromising their long-term financial health. Mortgage payment protection provides yet another compelling reason for people to rely on their credit union for home financing needs.”

Today, nearly 60 percent of Americans say they’re not prepared for financial emergencies. More than 30 percent (74 million people) say they have no emergency savings. And 6 in 10 households report experiencing financial shock in recent years.

“Our mortgage protection product is one example of how we’re investing in new and innovative ways to support credit unions for the future,” Arenz added. “We are able to provide additional protection for members while also helping to mitigate risk for credit unions’ lending programs.”

The new product leverages the MortgagebotPOS^™ processing system and provides a seamless experience for quoting and enrolling members when originating loans. CUNA Mutual Group has begun a phased rollout of the new product with credit unions in select markets across the country and plans to broaden availability through 2016. The company offers the product with complimentary systems training for loan officers and other users. More information is available for credit unions at CUNAMutual.com/MPP.

It Protects Credit Unions as Well as Borrowers

Mortgage protection safeguards credit union mortgage loan portfolios by helping prevent loan defaults, delinquencies, and foreclosures. It also generates member-friendly non-interest income by allowing credit unions to offer the right protection to fit members' needs.

Another benefit for credit unions is it helps set the stage for a discussion with members about their financial needs. It can also result in the opportunity to cross-sell additional credit union services such as checking and home equity lines of credit.

Mortgage payment protection is a unique and voluntary insurance offering designed to cover mortgage payments during a critical period following the occurrence of a borrower’s death, disability, or involuntary unemployment.

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Author bio: Brian Kline has been investing in real estate for more than 30 years and writing about real estate investing for seven years. He also draws upon 25 plus years of business experience including 12 years as a manager at Boeing Aircraft Company. Brian currently lives at Lake Cushman, Washington. A vacation destination, a few short miles from a national forest in the Olympic Mountains with the Pacific Ocean a couple of miles in the opposite direction.