Groton’s Charter Oak Federal Credit Union Tops Big Banks in 2010 Mortgage Transactions

Groton-based Charter Oak Federal Credit Union was named the top mortgage lender in 2010, topping large banks by providing more than $132 million in mortgages in New London and Windham Counties, according to data compiled by The Warren Group.

This is the first time a credit union in Eastern Connecticut has become the top mortgage lender.

“It was an amazing accomplishment,” Chief Executive Officer Brian Orenstein said.  “We’ve had a terrific year.”

Five years ago, the majority of the credit union’s business - 55 percent – was auto loans. Then Orenstein said the company recognized a decline in the auto industry, and introduced an “accelerator mortgage program” to allow borrowers to pay off large debts more quickly. The plan allows borrowers to refinance a 30-year mortgage, for instance, and make it an 8-year loan at an interest rate of 3.75 percent.

The plan worked. The Credit Union originated more than $132 million in mortgages throughout New London and Windham counties, with $115 million originated in New London County in 2010.

“They found a niche,” said John Bolduc, chief executive officer of the Norwich-based Eastern Connecticut Association of Realtors.

Credit unions are different from banks in that they operating under certain boundaries; in Charter Oak’s case, the boundaries are physical. The credit union functions as a bank but can only service people who live or work in New London or Windham counties.

The credit union has 11 branches including one at Fitch High School in Groton, and employs 170 people. It opened in 1939.

“We started off as a little lunch box organization,” Orenstein said. “We certainly have taken off during the last two years.”