Investigating the Lack of Co-op Lenders in Laguna Woods

Title: Lack of Competition for Co-op Mortgages in Laguna Woods Hurting Senior Borrowers

In a recent investigation, it was revealed that Laguna Woods co-op borrowers are facing limited options when it comes to obtaining mortgages, ultimately hurting senior residents in the community. Despite claims from Laguna Woods officials that there is no lack of competition among lenders, the reality paints a different picture.

For the past decade, National Cooperative Bank (NCB) has been the primary lender for co-op mortgages in Laguna Woods, funding a staggering 99.4% of all institutional co-op mortgages in the area. While other lenders have made a few loans here and there, the majority of borrowers have been left with no choice but to turn to NCB for financing.

The issue lies in the restrictions imposed by the Laguna Woods cooperative, which require lenders to agree to certain terms and conditions, including prioritizing debts owed to the cooperative in case of default. This has deterred many lenders from participating, leaving NCB as the sole option for borrowers.

Despite claims that co-op shareholders do not typically have mortgages, evidence suggests otherwise. Several borrowers have taken out loans, including deeds of trust, to finance their homes. The lack of competition in the mortgage market has left many borrowers feeling trapped and unable to explore other financing options.

As the situation continues to unfold, it is clear that more needs to be done to address the lack of competition for co-op mortgages in Laguna Woods. Senior borrowers deserve access to a variety of lenders and loan options to ensure they are getting the best possible terms for their homes. Stay tuned for next week’s report on how limited loan options are impacting Laguna Woods borrowers.