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Saturday October 29th, 2011

1029 2011 Credit and Home Equity Union (CHEU), Savings, Home Equities and Loans (SHEL) or simply Home Equity Cooperatives (HEC)?

Back in 2008 I spent a whole year marketing SwapRent to the credit union industry in addition to marketing the new cash flow sharing concept empowered by SwapRent to the state, local county and city governments as well as their housing authorities. Recently through some visionary CU professionals’ efforts we may get to refocus the efforts to launch FARJHO program through the credit union industry channel again.

The natural question that would arise next is that what generic name should we give to those organizations that offer the FARJHO program to consumers on a non-profit cooperative concept. Should it be called a “Credit and Home Equity Union” (CHEU), “Savings, Home Equities and Loans” (SHEL) or simply a “Home Equity Cooperatives” (HEC)? Of course the current technological peer-to-peer matching operations at http://www.farjho.com could be easily farmed out and be extended to service this new industry. It could be called a CUSO (Credit Union Service Organization) or more accurately a CHEUSO (Credit and Home Equity Union Service Organization), a SHELSO (Savings, Home Equities and Loans Service Organization) or a HECSO (Home Equity Cooperative Service Organization)?

The reason why that the term “Credit” is still preferably involved in the new name is to reflect the BPB (Borrow Pool Buy) member level financing that is unique in the new FARJHO structure instead of the conventional PBB (Pool Borrow Buy) way of property level financing in the conventional SEM (Shared Equity Mortgage), SAM (Shared Appreciation Mortgage) or all other equity sharing schemes as have ever been practiced in the US, UK, Australia or any other parts of the world to date.

So, should it be called a CHEU, a SHEL or a HEC? Please feel free to give us some feedback on your preferences for the new names. Thanks.

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