First Heritage Financial

What First Heritage Financial does

First Heritage Financial, doing business as First Heritage Mortgage Services, is a Pennsylvania-based Credit Union Service Organization (CUSO) founded in 1996 and structured as a jointly-owned entity of six credit unions: American Heritage Federal Credit Union (founder), Service 1st Federal Credit Union, Erie Federal Credit Union, People First Federal Credit Union, Sun East Federal Credit Union, and Lebanon Federal Credit Union. The company provides a turnkey first-mortgage program that allows partner credit unions of every asset level to offer competitive mortgage products to their members without building in-house mortgage infrastructure, including originations, processing, underwriting, closing, post-closing servicing, and loan sale or portfolio retention.

Its core product surface comprises conventional, FHA, VA, USDA, PHFA, Construction-to-Permanent, Adjustable Rate Mortgage, Home Improvement, and Jumbo loans, plus the proprietary First Heritage MortgageMatch™ platform that enables credit unions to buy and sell mortgage loans and portfolios among partners. The technology stack consists of a web-based mortgage application platform with co-branded partner portals and integrated servicing technology that supports payment processing, escrows, compliance, and member communications under each credit union's brand. NMLS licensing (#506371) spans 32 states.

The company makes money through a hybrid model combining managed-services revenue from its $2.1 billion mortgage servicing portfolio (handling payments, escrows, and compliance), professional-services fees for loan processing, underwriting, and closing delivered in the credit union's name, transaction fees on secondary-market and MortgageMatch participations, and retail direct-to-consumer lending through a small in-house mortgage team in the Pennsylvania market. As of February 2024 it serviced over $2.1 billion in mortgage loans for 80–100+ partner credit unions whose combined assets exceed $10 billion, and reported over $624 million in closed loan production for 2021. The go-to-market is predominantly B2B channel-partner (credit unions), supplemented by a co-branded self-serve online application channel and inside-sales phone support, with annual Users Conferences and NACUSO/CUNA industry forums used for partner development.

Name

First Heritage Financial

Legal name

First Heritage Financial, LLC

Website

https://firstheritage.org

Company type

Private

Founded year

1996

Operating status

Operating

Headcount range

11–50 employees

Short description

First Heritage Financial, operating as First Heritage Mortgage Services, is a credit union-owned CUSO founded in 1996 that provides turnkey first-mortgage origination, processing, underwriting, closing, and servicing programs to 100+ partner credit unions across 32 states.

Ownership category

akta.pro rank

Product category

Mortgage Services / Credit Union CUSO

NAICS

Mortgage and Nonmortgage Loan Brokers (522310)

SIC

Mortgage Bankers & Loan Correspondents (6162)

akta.pro primary industry

Purchase Mortgage Origination (Homebuyer Focused) (FSALAAAD)

akta.pro secondary industries

First-Time Homebuyer (FTHB) Mortgage Origination (FSALAAAG), Consumer Direct / Online Mortgage Origination (FSALAAAB)

Keywords

• Mortgage origination services
• Mortgage loan servicing
• Credit union CUSO
• Residential mortgage lending
• Mortgage processing underwriting

Headquarters

HQ city

Feasterville Trevose

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure, Others

Revenue model

1. Mortgage Servicing: First Heritage services mortgage loans for partner credit unions, handling payments, escrows, and compliance. Servicing portfolio exceeds $2.1 billion in mortgage loans.
2. Loan Origination Services: Provides loan origination services including processing, underwriting, and closing services for credit union partners. All loan documents issued in the name of the credit union.
3. Secondary Market / Portfolio Programs: Offers opportunities for credit unions to sell newly closed or seasoned loans on the secondary market (Fannie Mae) or portfolio their loans with servicing-released options.
4. MortgageMatch Participations: Proprietary First Heritage MortgageMatch program allows buying and selling of mortgage loans and portfolios between partners.
5. Retail Lending: Direct mortgage lending services to individual consumers through retail mortgage team.

Go-to-market motion1 record

Distribution channels4 records

Marketing channels8 records

Core offering

First Heritage Financial provides turnkey first mortgage solutions to credit unions under a CUSO model, delivering end-to-end services including originations, processing, underwriting, closing, and loan servicing issued in the credit union's name. The company also operates a retail division offering conventional, FHA, VA, USDA, PHFA, construction, ARM, jumbo, and home improvement mortgage loans directly to consumers, supported by the proprietary First Heritage MortgageMatch™ program for loan and portfolio trading.

Product overview

First Heritage Financial (First Heritage Mortgage Services) is a credit union-owned mortgage service organization (CUSO) formed in 1996, offering a comprehensive, turnkey first mortgage partner program for credit unions and financial institutions. The company's core product is its full suite of mortgage loan products — including Conventional Loans, FHA Loans, VA Loans, USDA Loans, PHFA Loans, Construction to Permanent Loans, Adjustable Rate Mortgages, Home Improvement Loans, and Jumbo Loans — which are supported by a layered service infrastructure comprising origination, processing/underwriting/closing, servicing, portfolio programs, and retail distribution modules. The proprietary First Heritage MortgageMatch™ platform enables credit union partners to buy and sell mortgage loans and portfolios. Add-on modules include first-time homebuyer assistance programs with down payment grants, income generation tools, marketing support materials, and staff/member education and training resources. The company was licensed in 32 states as of the source data and serves over 100 partner credit unions.

Differentiator

Problem solved

Functional benefit

Products and services

• Conventional Loans Conventional mortgage loans for credit union members and retail consumers, conforming (Fannie Mae/Freddie Mac guidelines with down payments as low as 3%) and non-conforming, sold to credit union members under partner credit union branding.
• FHA Loans Federal Housing Administration-insured mortgage loans issued through FHA-approved lenders, available to credit union members and retail consumers with down payments as low as 3.5% and flexible credit guidelines.
• VA Loans U.S. Department of Veterans Affairs mortgage loans for eligible veterans, service members, and spouses featuring no required down payment and limited closing costs.
• USDA Loans USDA Rural Development fixed-rate residential financing for low and moderate-income households purchasing in eligible rural areas, featuring 100% financing and reduced mortgage insurance premiums.
• PHFA Loans Pennsylvania Housing Finance Agency residential financing providing competitive 30-year fixed rates, free homebuyer education, and limited lender fees for people of modest means in Pennsylvania.
• Construction to Permanent Loans Combination financing consisting of a short-term interim construction loan and a permanent residential mortgage with a single closing, converting from construction to permanent upon project completion.
• Adjustable Rate Mortgage (ARM) Variable-rate mortgage with rates adjusting at specified intervals based on an index such as the Prime Lending Rate or SOFR, including caps on rate increases to protect borrowers from payment shock.
• Home Improvement Loans Home improvement financing encompassing Home Equity Lines of Credit (HELOC), Home Equity Loans, FHA Section 203(k), Fannie Mae HomeStyle Renovation, and Freddie Mac CHOICERenovation programs.
• Jumbo Loans Non-conforming conventional mortgage loans originated above the loan amount limits set by Fannie Mae and Freddie Mac.
• First Heritage MortgageMatch™ Proprietary platform enabling credit union partners to buy or sell mortgage loans and portfolios for participations and secondary-market transactions.
• Retail Mortgage Services Direct-to-consumer mortgage lending services delivered by Pennsylvania retail loan officers (Gerald Parisi, David W. Eglin, Jackeline Mercado, Charles Werder), including mortgage loans, first-time homebuyer programs, and mortgage calculators.
• First-Time Homebuyer Programs First-time homebuyer assistance including the First Front Door (FFD) matching program ($3 for every $1 up to $5,000) and Down Payment Assistance (DPA) grants up to 5% of loan amount that never need to be repaid.

Quantifiable outcome

• $2.1 billion in servicing assets milestone achieved
• +3 more outcomes

Named customers7 records

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Partnerships

Eight partnerships are on record, tiered core and strategic.

• NACUSO (National Association of Credit Union Service Organizations)coreGTM or Marketing PartnerFirst Heritage Mortgage Services is proudly endorsed by NACUSO. The endorsement provides credibility within the credit union service organization industry and facilitates networking opportunities through NACUSO Network Conference attendance.
• Cross State Credit Union AssociationcoreGTM or Marketing PartnerFirst Heritage is endorsed by the Cross State Credit Union Association, facilitating partnerships with credit unions across multiple states in their service area.
• 100+ Partner Credit UnionscoreChannel Partner/ Reseller/ DistributorCredit union partners receiving First Heritage mortgage services. Combined assets exceed $10 billion. Partners include both owner credit unions and non-owner partners. Services include originations, underwriting, processing, and loan servicing.
• Fannie MaestrategicTechnology or IntegrationFirst Heritage offers partners the ability to sell loans directly to Fannie Mae. Conforming conventional loans follow Fannie Mae guidelines and are securitized by Fannie Mae.
• FHA (Federal Housing Administration)strategicTechnology or IntegrationFirst Heritage offers FHA loan programs backed by the Federal Housing Administration, allowing down payments as low as 3.5% with flexible credit guidelines.
• USDA (United States Department of Agriculture)strategicTechnology or IntegrationFirst Heritage offers USDA rural development loans for low and moderate-income households purchasing in eligible rural areas with 100% financing and reduced mortgage insurance.
• PHFA (Pennsylvania Housing Finance Agency)strategicTechnology or IntegrationFirst Heritage offers PHFA loans providing affordable residential financing for Pennsylvania residents with competitive fixed rates for 30 years and free homebuyer education.
• VA (U.S. Department of Veterans Affairs)strategicTechnology or IntegrationFirst Heritage offers VA loans for eligible veterans, service members, and spouses with no down payment requirements and limited closing costs.

Scale indicators5 records

Recent moves10 records

Expansion highlights5 records

Others

• Optimal Blue: Mortgage pricing and secondary-marketing technology provider used by lenders and credit unions; adjacent technology peer to First Heritage's MortgageMatch participation/secondary-market capabilities.
• ICE Mortgage Technology (formerly Ellie Mae / Black Knight): Provider of loan origination systems (Encompass) and mortgage technology infrastructure used by credit unions and lenders; an enabling platform that competes with First Heritage's proprietary origination tech stack.

Broad incumbents

• loanDepot: Large national retail and partner-channel mortgage originator; competes with First Heritage for credit-union partner relationships and retail mortgage share.
• United Wholesale Mortgage (UWM): Largest U.S. wholesale mortgage lender; competes indirectly for credit-union and broker-channel volume that First Heritage also serves through its partner network.
• Caliber Home Loans: National mortgage originator and servicer with partner-channel relationships; comparable to First Heritage in product breadth and servicing scale, though at materially larger scale.
• Planet Home Lending: National mortgage banker offering origination, servicing, and portfolio products across retail, wholesale, and credit-union channels; broader scale competitor in the same CU partnership segment.

Direct peers

• CU Members Mortgage: Credit-union-owned CUSO providing residential mortgage origination, processing, and servicing to partner credit unions across multiple states; closest structural and operational analog to First Heritage.
• Cardinal Financial Company: Credit-union-channel mortgage origination and servicing partner, comparable to First Heritage in providing turnkey residential mortgage programs to CU partners.
• LendKey: Cloud-based lending platform that originates and services loans on behalf of credit unions and community banks, overlapping with First Heritage's outsourced mortgage-infrastructure value proposition.
• Member Home Loans: Mortgage lender focused on serving credit unions and their members with origination and servicing, directly overlapping with First Heritage's B2B CU partnership model.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/FirstHeritageMortgageServices
• LinkedInlinkedin.com/company/first-heritage-mortgage-services

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about First Heritage Financial