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Langley FCU Honored for Money-Saving Mortgage Program

Feb 20, 2013 by Lewis Wood

Langley Federal Credit Union has won the 1st Place award in the Louise Herring Award category for Philosophy in Action competition. The credit union's award-winning entry highlighted its Short Term Affordable Refinance mortgage program (STAR), which aids members with "underwater" homes, meaning more is money is owed on the home than it's worth.

Langley Federal Credit Union has won the 1st Place award in the Louise Herring Award category for Philosophy in Action competition. The award is named after Louise McCarren Herring, a credit union pioneer, who believed that the operational application of credit union philosophy helped better people's lives. This competition was sponsored by the Virginia Credit Union League and the Credit Union National Association (CUNA). It honors credit unions for their practical application of the “People-Helping-People” philosophy which is the hallmark of the credit union movement.

The credit union's award-winning entry highlighted its Short Term Affordable Refinance mortgage program (STAR), which aids members with "underwater" homes, meaning more is money is owed on the home than it's worth.

Homeowners whose mortgage balances exceeded current property values experienced deep frustration and anxiety finding refinance options in the Hampton Roads area. Lenders generally require some equity in the property – ideally about 20 percent – to extend a loan. This, and the fact many homeowners could not qualify for federal mortgage assistance, led the credit union to develop the STAR Mortgage program, a seven- to 15-year fixed low-rate mortgage, with a loan-to-value rate of 115 percent and no Private Mortgage Insurance (PMI) requirement.

"This is a unique product offering and one which we felt met a real need for many members in our community," says LFCU President/CEO Thomas Ryan. "A challenging housing market has left many homeowners without any real options in refinancing. The STAR Mortgage program targeted this specific need, offering our members an affordable option to address their concerns and reduce the uncertainty brought about by the slow housing recovery," concluded Ryan.

Ranked as one of the Top 100 largest credit unions in the country, Langley Federal Credit Union has over $1.7 billion in assets and serves more than 167,000 active members with 19 branches in Hampton Roads.

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