VIENNA, Va.--(BUSINESS WIRE)--Navy Federal Credit Union announced today a new round of marketing of its 5/5 Adjustable Rate Mortgage (ARM) product to large institutional investors. This new ARM product is pooled into Fannie Mae mortgage-backed securities (MBS).
“Fannie Mae has a tremendous reach, and we feel this is a fantastic opportunity for institutional investors,” said Pete Amstutz, assistant vice president, Secondary Marketing, Navy Federal. “Our members, men and women serving in the military, veterans and their families are some of the best borrowers of any financial institution. We feel it’s a win-win for our members and for investors.”
Since 2015, the Navy Federal 5/5 ARM loan volume has grown by 11 percent and is expected to trend upward. And, since January, Navy Federal has issued over $900 million 5/5 ARMs into Freddie Mac and Fannie Mae MBS.
“We’re proud to partner with Navy Federal,” said Desmond Smith, senior vice president, Customer Delivery Executive at Fannie Mae. “We share a common goal of providing access to creditworthy borrowers with products that are embraced by large institutional investors.”
The decision to sell some of these loans allows members the continued benefit of lower rates while still receiving award-winning member service.
“This product shows investors the government-sponsored enterprises are stepping up their presence in the mortgage market outside of the traditional 15-year and 30-year fixed-rate mortgage,” Amstutz said. “It also enhances Navy Federal's range of liquidity alternatives so we can always remain focused on our members, no matter which direction interest rates are moving.”
“This further emphasizes Navy Federal’s commitment to the 5/5 ARM mortgage product that our members love,” Amstutz said. “We are encouraged that it will continue to be one of our most popular mortgage products.”
About Navy Federal Credit Union: Navy Federal Credit Union is the world’s largest credit union, with more than $86 billion in assets, more than 7 million members, 306 branches and a workforce of over 15,000 employees worldwide. The credit union serves all Department of Defense and Coast Guard Active Duty, veterans, civilian and contractor personnel, and their families. For additional information about Navy Federal, visit navyfederal.org.