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
FOR IMMEDIATE RELEASE
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
“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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