A newly formed nonprofit coalition headquartered in Washington, D.C. called the Fair Mortgage Collaborative (FMC) has been launched by lenders and homeowner advocacy groups to ensure “fair and safe” lending is available to consumers seeking mortgages.
FMC is supported by the Ford Foundation, and the group says it is the first national campaign of its kind aiming to restore consumer confidence in mortgage lending in the wake of a foreclosure crisis that was fueled by predatory lending abuses. FMC certifies that its lending members meet five standards of conduct that are safe, fair and free of predatory lending.
Lending organizations, including Boeing Employees’ Credit Union (BECU)/Prime Alliance Solutions, Federation of Community Development Credit Unions, Federation of Appalachian Housing Enterprises Inc., Mortgage Grader, Clearinghouse CDFI, and ShoreBank Corporation are among those electing to become certified and offer mortgages that meet FMC’s standards. The coalition also includes loan counseling networks, such as NeighborWorks America, and secondary market intermediaries, such as Neighborhood Housing Services of America, as well as other homeownership and community organizations like Center for Responsible Lending, Neighborhood Housing Services of Chicago, and Wall Street Without Walls.

FMC says its coast-to-coast network of 21 certified members provide mortgages totaling $520 million per year. The nonprofit group said it expects that amount to double within the first year of the program as the demand for mortgages that are certified as fair, safe, and non-predatory takes hold.
The Fair Mortgage Collaborative explained that its certification process is based on five core standards: the lender must work for the good of the customer; no steering; absolutely no predatory loans; non-standard loans must demonstrate compensating customer benefit; and rules and standards must be kept current for new loan types.
Boeing Employees’ Credit Union EVP Joseph Brancucci commented, “Mortgage lending practices that have taken place over the past several years have eroded consumer confidence in mortgage lenders. For BECU and Prime Alliance Solutions, we strive to make as many members as possible homeowners; however, it is equally important that it’s with a mortgage that meets their needs and allows them to stay in their home. We fully support the rigorous certification process that is required to participate in the Fair Mortgage Collaborative and national awareness of quality lending standards.”