January 8, 2009.

“We’re just a loan machine, and we don’t work for nobody but you…” OK, while the song wasn’t the greatest, nor the sentiment exactly right, this was one of my first thoughts when I realized that we - you and PA - originated record mortgage volumes in December, in all of 2008 and throughout the first two weeks of 2009. While you may not know the exact figures, you certainly have a sense this is not a typical refinance boom. During the month of December, Prime Alliance credit unions originated almost 32,000 loans, or 33 percent more than any other month in our history of lending together. Last year we opened more than 218,000 loans for an estimated $45 billion!

Our highest priority is supporting your efforts to put more members in homes more affordably. Throughout the year and especially during the past four weeks we’ve been monitoring system performance to ensure Prime Alliance is available when your members and your credit union are ready to originate. We’re pleased to report we’ve seen virtually no degradation in uptime, response or availability. We took major infrastructure steps more than 18 months ago that enable us to scale rapidly. These efforts are paying off daily as loan volumes grow to unprecedented levels. We think this refinance wave will grow to become the largest in the past three decades.

That’s right. The largest in three decades. Mortgage rates are at 37 year lows, a result of government actions to unfreeze credit markets and to stimulate the economy. We believe it is possible rates will decline further, enabling a significant percentage of existing mortgage holders to lock-in long-term fixed rate financing, an opportunity many have never had before or may ever see again. Thinking a few months ahead and assuming consumer confidence improves with the new Administration and the promised fiscal stimulus package, these historically low rates could spark a purchase-money boom as well. Prime Alliance has been saying for more than 12 months it’s a great time to buy a home. We’re also bullish on the opportunity to lend to first-time homebuyers.

So, while it’s true we’re a loan machine, it’s also true Prime Alliance is much more. Through our consulting and education services we’re able to help you with strategies and tactics to improve your lending performance. Real Estate Services helps you forge relationships with your local real estate community. Prime Valuation makes the process of determining collateral value at the time of origination and throughout the life of your loans easy and compliant. Prime Alliance Loan Servicing manages your portfolio for the long-term, ensuring compliance and enhancing asset quality. And everything we do is supported by some of the best minds in credit union mortgage lending. It takes much more than technology to be a loan machine.

Here’s where the song lyrics get it right: we don’t work for nobody but you. We’ve believed since our founding in 2000 that credit unions are best when credit unions work together. We’re proving that now, as one of the only segments in the mortgage industry that is growing and thriving amidst some of the most traumatic market conditions most of us will ever experience. As always, thank you for your continued support. We’re looking forward to working with you in what we believe will be the biggest years in the history of mortgage lending.