VIENNA, Va.–Navy Federal Credit Union announced it is partnering with Freddie Mac to offer a 5/5 adjustable-rate mortgage to large institutional investors.
According to Navy Federal, the 5/5 ARM has a “history of growth and stability” with the credit union, and plans to grow the product moving forward.
“This is the first time a product popular among credit unions and securitized by Freddie Mac is being marketed to large institutional investors with the direct intent of establishing a new and liquid market,” Pete Amstutz, Navy Federal’s assistant vice president, secondary marketing, said in a statement. “This is a unique opportunity both for us at the credit union and for investors, because it comes from some of the best borrowers of any financial institution: the military and their families.”
According to Amstutz, the 5/5 ARM is aimed at lenders that know and understand their borrowers and borrowers’ credit quality.
“Navy Federal has a reputation for having some of the lowest mortgage interest rates and we know our members very well – the combination is a natural fit,” Amstutz said.