State Financial Network, Inc Participates in FDIC’s National Bankers Call

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State Financial Network recently participated in a national banker’s call hosted by the FDIC Division of Depositor and Consumer Protection. New specific disclosures and rules for mortgage loan servicers and additional procedures for consumer protection were reviewed. The Dodd-Frank Act targeting wrongful actions in the mortgage industry has set the changes in motion.

Lawsuits, investigations and studies indicate that servicing blunders and outright misconduct are too common — and difficult for homeowners to resolve. Credit unions have steered clear of industry damaging events such as the National Mortgage Settlement ( The agreement with federal and state law enforcement agencies, in which the largest mortgage servicers, agreed to refund $21.5 billion to consumers who were seriously harmed by deceptive servicing practices. Deceptive practices such as, failing to record mortgage payments as they were received resulting in unwarranted late fees and worse.

Many homeowners who have tried to correct what seem to be simple accounting mistakes say that the servicers -- often, an arm of a major bank -- are unable or unwilling to help them resolve even the most basic problems. The automated system prizes efficiency over customer service “Every time I would call I get a different person," is an all too common refrain.

Some credit unions outsource mortgage loan servicing to large banking entities, leaving their members in a precarious situation. State Financial Network offers credit union clients a solution to the dilemma of loan servicing. David Park Servicing Manager of State Financial Network ( says, “In mortgage loan servicing a critical mass is necessary to be efficient. We provide loan servicing for our credit union partners that may not have efficiencies of scale to service mortgage loans in house. Importantly, since State Financial Network is owned by a credit union, the loans are serviced meeting, what Park describes as ‘credit union care quality standards.”

Credit unions can turn to State Financial Network to ensure their members are not faced with problems common to the mortgage loan servicing industry. State Financial Network earned recognition from Freddie Mac as an ‘Outstanding Mortgage Servicer’. Park reflects, “I have had many credit union partners, and credit union members, remark that it is refreshing to work with people that are so responsive. We are not so big that members seeking answers get the runaround”.

“Trust and responsiveness in mortgage servicing may explain, in part, the growth State Financial Network, Inc. is experiencing,“ according to David MacMillan, Vice President.

Formed in 1986 as a wholly owned subsidiary of Franklin Mint Federal Credit Union
(FMFCU), SFN is a Credit Union Service Organization (CUSO) with a mortgage loan-servicing portfolio in excess of $700 million. Offering a full array of mortgage lending products, The National Association of Credit Union Service Organizations has previously recognized SFN as “CUSO of the Year” for providing outstanding service to credit unions and their members. SFN is a licensed mortgage banking company and is approved to do business in the secondary mortgage market with Fannie Mae, Freddie Mac and the Federal Housing Administration.

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David MacMillan
State Financial Network, Inc.
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