GENERAL INFORMATION

Common Questions you have asked and answers.

WHO WE ARE?

N.C.C.U.1 (National Central Church Underwriters) was founded on March 2, 1992. Developed as an in-house grant writer and/or credit services to our members & their vendor business, their member auxiliaries, to address general members of ecclesiastical concerns, their family members, and their vendors. N.C.C.U.1 is not part of any national credit union system. All payments made are deposited within the W.C.N.A.C. Department of Treasury account on behalf of the members and for general overall needs of the membership.

WHY WE DO WHAT WE DO?

For many within the ecclesiastical order and their integrated auxiliaries, funding are based upon the proper application of the sectarian order not a secular system of operation. The ten present rule (10%) or tithe system has diverse meaning in the operation or application. The sectarian order has (only) a first amendment right retain their system of operation, looked upon from within their system of belief, while protecting their sound system of funding. In short members funding members in accordance to their faith system of order and /or ecclesiastical order.

WHAT WITH THE UPFRONT DEPOSIT?

Just the core of Malachi Chapter 3 verse 10 provides "Bring ye all the tithe into the storehouse......saith the LORD of host.... (KJV). Your deposit go directly toward the development and funding of the membership and/or to ensure that the underline project(s) or request for grant (for a given project) is funded. In some cases, it may take longer than others. Unlike a secular system, sectarian system of funding do not have usury and the members indemnity of protection deposit is refunded upon the completion of the program, services, grant, or loan and membership. We require for new members to have 30% of the membership and/or the amount of bond (requested) in holding or deposits.

WHAT IF I AM NOT OF THE SECTARIAN ORDER?

If you are not a member of a sectarian order, you will NOT qualify to be a member of N.C.C.U. 1 Financial Services. We only offer membership funding in three area;

(a) Churches/Auxiliaries*,

(b) The Ecclesiastical Corporate Orders*, and

*Funding of these groups are sought either from in-house or outsourced, with limited to no usury.

What’s with N.C.C.U 1 Origination Fees?

An origination fee is an upfront fee charged by us for processing a new grant/loan membership application. It's members’ dues for putting the grant/loan in place. Origination fees are quoted as a percentage of the total loan, and they're generally between 0.5% and 1% on mortgage loans in the United States. Sometimes referred to as discount fees or points, particularly when they're equal 1% of the amount borrowed or grant, origination fees can cover a lot of services for the membership in addition to processing, including underwriting and funding.

How N.C.C.U 1 Origination Fee Works?

An origination fee is similar to any commission-based payment. A members would make $1,000 on a $100,000 loan/grant—or $2,000 on a $200,000 loan/grant—if it takes a 1% fee for originating that loan. The origination fee represents the primary way in which a lender gets paid for its initial services. Members with large grant/loan amounts are often able to negotiate lower origination fees because grantors tend to be willing to make concessions to earn their membership. Likewise, the origination fee sometimes represents a higher percentage of the grant/loan amount on less-expensive grant/loans because a $50,000 grant/loan can require the same amount of work from the members as a $500,000 grant/loan.

You can compare total mortgage fees from members easily by using a tool like a mortgage calculator. These fees are typically set in advance and they suddenly increase at closing. They should be listed on your closing disclosure. Whereas, our dues are upfront and has no closing for the grant award and 50% of the dues are toward protection of the account and grant award. A member is often better off paying a higher origination fee in exchange for a lower interest rate bond because the interest savings over time will exceed the origination fee.

Examples of Origination Fees;

The Initial Origination Deposit: is $100.00 to $800.00, Indemnity of Protection Deposit*: $500.00 or $500.00 per $100,000 request, State filing Fees: $75.00 per $100,000 approved and Debenture or Church Bond: $350.00. The range of deposit required are; $1,025.00 to $5,150.00 (or higher, based upon the amount of request). All funds are nonrefundable and once again the total is based upon the requested amount.

The government passed new laws following the financial crisis of 2008, limiting how lenders could be compensated. Public pressure provided an incentive for lenders to rein in the practices that had made them rich during the housing boom. Origination fees shrunk to an average of 1% or less.

KEY TAKEAWAYS

An origination fee is typically 0.5% to 30% of the grant/loan amount and is charged by N.C.C.U. 1 as compensation for processing a grant/loan application.
Origination fees are sometimes negotiable, but reducing them or avoiding them usually means paying a higher interest rate over the life of the grant/loan.
These fees are typically set in advance of taking the grant/loan. They shouldn't come as a surprise at the time of closing.

Certification Overview

We follow a similar system as for certification for the "Community Development Financial Institution" (C.D.F.I), but with a general ecclesiastical rules of application. We will in some cases, support and seek funding assistance, for Certification, which is a designation, given only by the C.D.F.I Fund to specialized organizations that provide financial services to low-income communities, and to people whom lack access to financing. C.D.F.Is include regulated institutions such as community development banks, credit unions, and non-regulated institutions like loan and venture capital funds. By building the capacity of a nationwide network of C.D.F.Is, the C.D.F.I Fund is another way to works to empower low-income and under-served people or communities to enter the financial mainstream.

Certified C.D.F.Is are eligible to apply for awards through a variety of programs offered by the C.D.F.I Fund. These awards enable C.D.F.Is to finance a wide range of activities—including mortgage lending for first-time home. buyers, flexible underwriting for community facilities, and commercial loans for businesses in low-income areas. Through varying strategies, each C.D.F.I contributes to the cultivation of a healthy and stable local economy. for more information go to their website at https://www.cdfifund.gov/.

Eligibility

To apply for CDFI Certification, your organization must submit an application to the CDFI Fund for review. The CDFI Certification Application must demonstrate that the applicant meets each of the following requirements:

Is a legal entity at the time of Certification application;

Has a primary mission of promoting community development;
Is a financing entity;
Primarily serves one or more target markets;
Provides development services in conjunction with its financing activities;
Maintains accountability to its defined target market; and
Is a non-government entity and not under the control of any government entity (Tribal governments excluded).

For more detailed information, please refer to the application resources found in the section below.