Costco ends mortgage program membership perk
The changes took effect at the beginning of the month
Costco is no longer offering a mortgage program for its members.
According to the wholesale retailer, the changes took effect on Sunday, May 1.
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"Members with questions regarding their current mortgage application and loan should contact the lender they have been working with," the company wrote, adding a list of lenders and phone numbers.
Costco was affiliated with eight lenders, including Box Home Loans, CrossCountry Mortgage, Lending.com, Mutual of Omaha Mortgage, NASB, NBKC Bank, Real Genius and Strong Home Mortgage.
Shoppers make their way through Costco in Idaho Falls, Idaho during its opening day on Friday, August 14, 2020. (John Roark/The Idaho Post-Register via AP / AP Newsroom)
A request for comment from Costco was not immediately returned.
Costco was not a lender and did not have a direct role in the mortgage process, according to Eat This, Not That!, but offered a cap on lender fees linked to the loan transaction.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| COST | COSTCO WHOLESALE CORP. | 711.25 | -3.94 | -0.55% |
| WMT | WALMART INC. | 59.27 | -0.38 | -0.64% |
Another big-box store, Walmart, struck a deal with Lenders One Cooperative in March.
Lenders One is leasing space in Walmart stores to sell mortgage products and services.
"Members can benefit by operating "store-in-store" branch locations, offering mortgage solutions including purchase, refinance and home equity lines to customers. We now have three locations under lease with many more opportunities to come," Lenders One wrote in a release.
"I could not be happier with the direction the cooperative is headed," Justin Demola, president of Lenders One, said in a statement. "I am proud of the work the team has done to get L1 Credit, LOLA and the Walmart opportunity across the finish line; we are already seeing the tremendous value these solutions are creating for our members."
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"It is our mission to help members improve their profitability and better compete against larger, well-funded mortgage lenders, and I am excited to release new and innovative solutions to accomplish that mission," he added.