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According to insights recently shared by Steve Brown, President-Elect of the National Association of Realtors and one of the principals at a large, independently-owned real estate brokerage, Realtors need a fresh take on how they can best move their industry forward.
“The worst of the housing crisis is behind us and in order to be successful going forward, Realtors need to hit the restart button and forget about how they did business in the past,” Brown says.
This same message applies to credit unions as well. For example, Callahan & Associates recently reported that credit unions originated in excess of $123 billion in loans throughout 2012 and captured a market share of 7.0% — both of which were an all-time high for the industry.
But according to the Mortgage Bankers Association, over 71% of all mortgage loans in 2012 were for refinances. By that logic, credit unions achieved almost $88 billion in refinances last year — which is great news for the monthly budgets of hard-working Americans — but only generated $35 million in purchases over the same time frame.
TOTAL MORTGAGE LOANS IN 2012
Source: Mortgage Bankers Association
One day in the not too distant future, the vast majority of borrowers capable of refinancing will have already done so and as a result, refinance volume will slow. When that day comes, will credit unions be able to thrive on an annual mortgage production of only $35 billion? Do we really want to find out?
There are a number of ways that credit unions can better anticipate and prepare for this shift in the real estate business. One strategy is to focus on creating relationships with the people who sell homes. Strategies to establish and grow these strategic Realtor partnerships include:
Individual credit unions may not be in the position to undertake all of these measures but it’s important to start building or strengthen relationships with these professionals any way you can. When the refinance boom finally goes away, the industry must be prepared. Otherwise, we will all be looking for a restart button and wishing we would have already pushed it.
For more information, please visit mycooportunity.com or call (877) 630-3399. Also, be sure to visit our blog at mortgagesarememberlicious.com.
Tim Mislansky is president of myCUmortgage, a wholly-owned subsidiary of Wright-Patt Credit Union. He also serves as senior vice president/chief lending officer for WPCU. He can be reached at tmislansky@myCUmortgage.com or 937-912-7853.
This sponsored content article is provided to the credit union community for shared insights and knowledge from a recognized solutions provider in the industry. Please note that the views and opinions offered here do not reflect those of Callahan & Associates, and Callahan does not endorse vendors or the solutions they offer.
If you are interested in contributing an article on CreditUnions.com, please contact our Callahan Media team at firstname.lastname@example.org or 1-800-446-7453.
May 6, 2013
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