Costco Ends Mortgage Program Membership Benefit
Costco no longer offers a mortgage program to its members.
According to the wholesaler, the changes went into effect on Sunday, May 1.
“Members with questions regarding their current mortgage application and loan should contact the lender they worked 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.
A request for comment from Costco was not immediately returned.
Costco was not a lender and did not play a direct role in the mortgage process, according to Eat This, Not That!, but offered a cap on lender fees related to the loan transaction.
Another big box store, Walmart, reached an agreement with Lenders One Cooperative in March.
Lenders One rents space in Walmart stores to sell mortgage products and services.
“Members can benefit from operating ‘store-to-store’ branches, providing customers with mortgage solutions including purchase, refinance and home equity lines. We now have three locations under lease with many more opportunities to come,” Lenders One wrote in a statement.
“I couldn’t be happier with the direction the co-op is taking,” Justin Demola, president of Lenders One, said in a statement. “I’m proud of the work the team has done to bring L1 Credit, LOLA and the Walmart opportunity to the finish line; we are already seeing the tremendous value these solutions create for our members.
“Our mission is to help members improve their profitability and better compete with larger, well-funded mortgage lenders, and I’m excited to release new, innovative solutions to accomplish that mission,” he added.