Landmark Credit Union

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					Landmark Credit Union
2775 S. Moorland Rd.
New Berlin, WI 53151
(262) 796-4500, ext. 3820
(262) 796-5180 (Fax)

Patricia K. Ransom
Vice President, Marketing

June 5, 2007

        Landmark pledges $10 million to new

             Rescue Refi home loan program

       Landmark Credit Union is introducing a new Rescue Refi home loan

program targeting homeowners who are victims of rapidly increasing interest rates

on their sub-prime home loans. “One cannot open a newspaper these days without

seeing articles about people in trouble because they got a „sub-prime‟ home loan a

while back,” said Betty Feierstein, Vice President of Mortgage Lending at


       Sub-prime lenders often set these loans up with very low payments,

sometimes even below the monthly cost, so the total balance on the loan goes up

each month! Sub-prime loans are given to people who may not qualify for a

conventional loan for one of many reasons.
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         Interest rates on sub-prime loans may start low, but they re-adjust after an

initial period, then re-pricing as often as weekly! Rates increase quickly, making

the monthly payments also go up fast, until the homeowner can no longer afford

their home.

         “Often sub-prime lenders charge a high prepayment penalty if they sell the

home or refinance elsewhere,” said Feierstein. “One member that Landmark was

able to help had to pay a $10,000 penalty - and they were still much better off with

the Landmark Rescue Program,” she added.

         Landmark‟s new Rescue Refinance home loan is a non-convertible 5-year

ARM (Adjustable Rate Mortgage). It is currently at 6.375% on loans with loan-to-

value under 90% and good credit. Additional rates and terms are available on

loans with loan-to-value ratios up to 105% and lower credit scores.

         For example, on a $150,000 5-year ARM, with 20% equity, a rate of

6.375% and APR of 7.192%, the monthly payment is $935.80, based on a 30-year

amortization. Rate caps are 1% annually after the first 5 years and 6% for the life

of the loan. Closing costs include Landmark's standard $495 flat closing fee, $375

application fee and .50 point.

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         “We are delighted to commit $10 million to this new way to help people

out of a bad situation by utilizing a Landmark service,” said Ron Kase, Landmark

President. “As a not-for-profit cooperative, we look for ways to return income to

our members,” he added. According to a recent Membership Benefits Report from

the Economics and Statistics Department of the Credit Union National

Association (CUNA), because credit unions charge less for loans, pay more on

savings and charge fewer and lower fees, statewide, 2.1 million credit union

members saved $157 million last year ($80 million in lower interest rate loans,

$32 million in higher deposit rates and $45 million in lower and fewer fees.)

         Specifically, during 2006, Landmark member households saved more than

$372 per year, with high-use member households saving $1,140 during the year!

Landmark‟s 123,604 members saved a grand total of $24.2 million! The

Membership Benefits Report is a customized analysis of Landmark Credit Union

membership benefits compared to other types of financial institutions in the

Southeastern Wisconsin market area.

         Landmark Credit Union serves southeastern Wisconsin with 11 offices and

is the largest credit union in the state.

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