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DESERET FIRST CREDIT UNION HALTS EXTENDING CREDIT TO LOAN OFFICERS
Deseret First Credit Union has halted lending for loan officers due to credit volatility. I contacted the Deseret Credit Union Loan Operations Department at 801-456-7950 and spoke with Consumer Loan Officer Spencer. And have confirmed Deseret Credit Union has suspended extending credit and financing to NMLS-licensed mortgage loan originators and realtors. No other professionals besides those in the mortgage and real estate industries are affected by not qualifying and getting approved for credit cards, auto loans, consumer loans, second mortgages, mortgages, installment loans, and other types of financing. Spencer said the suspension of extending financing to loan officers and realtors order came from upper management and the board of directors. The suspension of extending credit to loan officers and real estate agents will be in effect until the credit markets drop substantially. If you are a commissioned loan officer or realtor, I recommend checking the latest news updates or contacting any bank or credit union directly for the most current information. They may be able to provide you with details about the situation and any potential implications for borrowers and loan officers. According to Deseret First Credit Union Loan Officer Spencer, Deseret First Credit Union has suspended extending credit to all loan officers and real estate agents on commission wage earners since August 2022. I heard about Deseret First Credit Union suspending extending credit to mortgage loan originators and real estate agents through Gustan Cho, President and CEO of Lending Network, LLC and partner of Gustan Cho Associates Mortgage Group. I had multiple associates and colleagues, including myself, verify this matter. Is this something that will continue in the coming weeks and months? Is this a sign of another 2008 financial crisis? Many commissioned mortgage and real estate wage earners have been filing for forbearance requests at an alarming rate from late 2022 into 2023. This is a wake up call of the 2008 financial crisis when banks and credit unions unions halted extending business credit lines of credit in August 2008 prior to the real estate and credit collapse. Stay tuned. I will post updated on this topic in the coming days.
Here is an informative article on understanding forbearance published on Gustan Cho Associates.
https://gustancho.com/understanding-forbearance/
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To address concerns regarding credit instability, Deseret First Credit Union (DFCU) has recently suspended its extension of loans to loan officers. This step is intended to reduce risks in a volatile economy, where such risks may not be easily predictable. In relation to this decision, there are certain implications for loan officers who have relied upon the company for financial support.
Reasons Behind the Decision; The primary reasons behind this decision include:
Economic Uncertainty: Variations within economies and financial markets can make borrowing more dangerous.
Credit Volatility: More cautious lending strategies have been adopted because of worries about unstable credit conditions.
Loan Officers’ Implications: Following this adjustment, these financial experts will have to consider other options in their industry. These alternatives may involve:
Other Financial Institutions: Trying other banks or credit unions which offer loans similar or equal to those provided by DFCU.
Personal Financial Adjustments: Making changes on personal finances that would accommodate lack of additional credits from DFCU.
What’s Next? If you are affected by it then take following steps: Look into Other Lenders: Research on different lenders who might have comparable loan products as well as services with credit unions or banks you know about.
Analyse Personal Finances: Evaluate your own financial situation so that you can identify areas where adjustments should be made in order not be adversely affected by these changes.
For more information about what they do and what has changed recently at Deseret First Credit Union check out their website or read some articles/posts at Gustan Cho Associates, platforms where people talk about these things sometimes come up too so keep an eye open for them!
By making moves like this one here today Deseret First CU emphasizes how important it is always stay informed when dealing with money matters but also remain flexible enough adapt accordingly whenever necessary especially during times when there are lots of shifts happening around us economically!
Resources:
Gustan Cho Associates https://www.gustancho.com
GCA Mortgage Group https://www.gcamortgage.com
Preferred Mortgage Rates https://www.preferredmortgagerates.com
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