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Cooperativa Latina, Nuestra Cooperativa

Cooperativa Latina, Nuestra Cooperativa. Lending 201: Mortgages And Beyond. 32nd NFCDCU Annual Meeting June 7, 2006 Oscar Saavedra, Branch Manager. Agenda. 1. What is the Latino Credit Union?. 2. Facts. 3. Latino Community. 4. Loan products and Latino needs. 5. Mortgage Program.

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Cooperativa Latina, Nuestra Cooperativa

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  1. Cooperativa Latina, Nuestra Cooperativa Latino Community Credit Union

  2. Lending 201: Mortgages And Beyond 32nd NFCDCU Annual Meeting June 7, 2006 Oscar Saavedra, Branch Manager

  3. Agenda 1. What is the Latino Credit Union? 2. Facts 3. Latino Community 4. Loan products and Latino needs 5. Mortgage Program Latino Community Credit Union

  4. What is LCCU? • Origin: First financial institution in NC focused on serving the Latino immigrant community. • Mission: To provide access to high quality, affordable financial services and education to integrate members into the U.S. financial system. • Staff: 100% bilingual and bicultural staff from Latin America, U.S. and Spain • Members: from five continents Latino Community Credit Union

  5. The Facts… 45,000 Members 75% unbanked 95% low-income $34 million in assets 5 branches In 3 years Latino Community Credit Union Latino Community Credit Union

  6. The Latino Community • Language Barrier • Education: 7th grade in average • Cash economy • Trust: No confidence in Financial Institutions • Credit History: None (not even in their country of origin) • Bad experiences: Victims of robberies and predatory lending Latino Community Credit Union

  7. Cash Culture Savings ITIN / SSN Progress to create wealth Financial Education Adapted Loan Products Mortgage Loan Bilingual / Bicultural Services Latino Community Credit Union

  8. The loan products Phase 1 Savings Phase 2 First Loan Phase 3 Mortgage LOAN PRODUCTS PROCESS STEPS Certified Acceptance Agent Accepted Accepted No PMI ITIN/ SSN Workshops Study Plan Credit counseling Workshops Study Plan Credit counseling House counseling Study Plan Credit counseling EDUCATION ADAPTED PRODUCT Credit Builder Secured Credit Card Personal Loan Car loan Unsecured Credit Card 90% LTV 95% LTV 100% LTV MEMBER LOAN PROCESS Learns the system Acquires Experience Gets a House Latino Community Credit Union

  9. Building a Credit History • Reported under the ITIN or SSN • Requires 100% collateral • For Secured Credit Card experience with a check card is required Credit Builder Secured Credit Card Latino Community Credit Union

  10. Consumer Loans What is different with LCCU? • Accept the ITIN • Charge same rate to all our members • Bilingual/ Bicultural Service • Accept Cash Income • Provide Financial Education • No credit history is required for car loans up to $10,000 or $500 for personal loans Latino Community Credit Union

  11. Mortgage Loans • LCCU offers all its products to all members, including those with ITIN, and at the same interest rate. • 2 year ARMs maximum 30 years. • 1% Origination Fee • LCCU does not require Private Mortgage Insurance (PMI) • LTV of 90%, 95% and 100%. • Provides Home Counseling to make the process as smooth as possible Latino Community Credit Union

  12. Loan Policy • Understand: • Where your member is coming from • Country of Origin • Experience • What kind of work the member does • What are their family relationships and concepts • Individuals with different approaches to same problems: “Character” Latino Community Credit Union

  13. Mortgages • $11,500,000 in mortgage loans • 220 homeowners since 2004 • 98% are Latinos • 90% are low income families and first time home buyers • Average loan size: $97,500 Latino Community Credit Union

  14. Cooperativa Latina, Nuestra Cooperativa Latino Community Credit Union

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