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Mortgage Liquidity Solutions

Concerns

  • Diminishing sources of existing liquidity providers (corporate credit unions, other large financial institutions, GSEs, etc.)
  • Extremely uncertain future of Fannie Mae and Freddie Mac
  • Collapse of secondary markets for non-conforming mortgage product

Goal

Mortgage Liquidity Solutions, LLC (MLS) was formed by five industry-leading credit unions with the objective of facilitating sales of mortgage loans and providing warehouse lending solutions to the credit union network.

Result

The creation of a conduit for mortgage loan sales to the secondary market, with the company facilitating sales and loan participations in excess of $200 million in its first full year of operation. In addition, an operational mortgage warehouse providing funding to mortgage CUSO’s across the nation.

For more information, please contact:

Judy Sandberg
Mortgage Liquidity Solutions, LLC
judysandberg@gsgllc.com
800-915-1004 ext. 3416

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What is Mortgage Liquidity Solutions?

MLS was formed in July 2011 as a Credit Union Service Organization for the purpose of developing new solutions to support credit unions’ residential mortgage lending activities. MLS and its credit union owners see mortgage lending as a critical sector for the credit union industry. However, there are many factors that can negatively impact a credit union’s ability to serve its membership in the mortgage lending arena. The credit union owners of MLS are committed to using collaboration through the new CUSO to develop creative solutions that will allow credit unions to serve their membership in their goal of home ownership.

For more information, please contact:

Judy Sandberg
Mortgage Liquidity Solutions, LLC
judysandberg@gsgllc.com
800-915-1004 ext. 3416

Visit Our Website

Why Mortgage Liquidity Solutions?

MLS has chosen to focus its efforts on developing strategies which improve credit unions ability to sell their residential first mortgages in the secondary market. There is growing concern about the long-term viability and reliability of Fannie Mae and Freddie Mac given status under conservatorship. Several of the potential plans discussed for those entities do not seem to envision a place at the table for smaller originators like credit unions. Therefore, it was felt that energy needed to be devoted to looking into alternatives.

To achieve its goal of building expanded liquidity solutions, MLS has chosen to pursue three concurrent paths that will meet immediate needs within the industry and make progress toward its longer term goal: 1) Build a new model and provide warehouse funding for mortgage banking CUSOs and credit unions to facilitate the funding for sale of loans to the secondary market; 2) Explore strategies and complete sales of non-conforming residential mortgage loans currently held by credit unions in their portfolio; and 3) Complete sale(s) of residential mortgage loans using secondary market investors beyond the GSEs.

All of these strategies working in tandem, greatly expand and enhance the knowledge base regarding the current secondary market environment for residential mortgage product; develop a base level understanding about credit union underwriting and origination practices; develop a practical strategy to help credit unions manage interest rate risk; and produce practical, timely solutions for credit unions in the mortgage sector.

For more information, please contact:

Judy Sandberg
Mortgage Liquidity Solutions, LLC
judysandberg@gsgllc.com
800-915-1004 ext. 3416

Visit Our Website