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Brown Co HfH's newest community partner

 

  

Brown County HfH Partners with SouthPoint Financial Credit Union

NEW ULM, Minn. – As the ever-changing mortgage regulations and practices field gets more complicated, Brown County Habitat for Humanity opted to stay ahead of an emerging trend among nationwide Habitat affiliates and sought out a community partner to aide in servicing their mortgages, as advised by their parent organization, Habitat for Humanity International.  They are pleased to announce that as of June 1 SouthPoint services their small mortgage portfolio.  Habitat maintains full ownership and control while SouthPoint collects payments on their behalf; this ensures continued compliance by the affiliate through a third party. 

SouthPoint’s Vice President of Retail Sales, Jay Gostonczik, says “SouthPoint Financial Credit Union’s vision of ‘doing the right thing for the right reason’ aligns well with Habitat for Humanity’s mission of bringing people together to build homes and communities.  We are very proud to partner with Habitat by providing administrative mortgage services and support, and to help grow our communities together.”

Habitat for Humanity’s model is such that homeowners are not only required to contribute sweat equity to the build or repair of their home, but also pay back an affordable mortgage or loan for construction costs.  Just like any mortgage with a traditional lender, Habitat collects monthly payments for a first mortgage and additional escrow funds for property taxes and homeowners insurance; this fits well with Habitat’s belief in “a hand up, not a hand out.”  Habitat for Humanity empowers low-income individuals and families to take control of their financial futures and create a lasting, long-term investment in their lives.

This move makes most sense for smaller affiliates with limited staffing, decreasing funds spent on overhead to service mortgages and increasing funds spent on actual programming. The Brown County Habitat Board of Directors is excited about this new venture with SouthPoint and its several county-wide branch offices.