Opportunity is Knocking for Successful Mortgage Lending

How do you make members turn to your credit union first for a mortgage? Through a combination of technology and broad product offerings.

 

By Mortgage Cadence

 

You missed it. The mortgage refinance boom came and went and your credit union never saw the action. Maybe you didn’t have a mortgage program in place at the time, or perhaps you had one, but it wasn’t effective. Don’t despair; you could still enjoy a highly successful mortgage program that will bring a steady stream of financial and service benefits to your credit union and your members.

Successful mortgage programs result in:

  • Members thinking of their credit union first when it’s time to finance a home;
  • Additional services utilized by your mortgage account holders; and
  • Additional revenue for your credit union.

Successful mortgage lending programs capture a significant portion of your members’ new home financing, as well as their subsequent refinancings. It will also meet the product needs of the members, while simultaneously achieving the goals of the credit union’s budget and strategic plan.

Treasury Department Federal Credit Union (TDFCU), Washington, DC, experienced phenomenal success in 2004 in their first mortgage program. With ambitious goals set for the year, they out-performed even their own expectations, closing nearly $45 million in first mortgages, for 181 members. 88% of those mortgages have adjustable rates, enabling the credit union to effectively manage its asset/liability strategy. According to CEO Mark Phillips, the members of TDFCU are accustomed to relying on their credit union for both their purchase money and refinance mortgages.

It’s easy to say that you want your members to think of the credit union first when they consider obtaining a home loan, but how do you actually make that happen? Technology is a key ingredient. Your members may want to apply on their own, in the comfort and privacy of their own home. A strong, easy-to-use, online mortgage system is necessary to meet their expectations. For those who prefer to apply through a loan officer, whether it is in person or over the phone, the same powerful technology could speed up the process and result in a quicker approval.

A broad range of products that meets the needs of many of your members is also essential. Those loan options should bear competitive rates and terms, as well as a fee structure that impresses your members in its fairness. Members may not always be conversant in the diverse range of loan options that are available to them, along with the advantages inherent in different choices. If the credit union takes the opportunity to structure unique portfolio products that address its own needs, while incorporating benefits to the member, a win-win situation is achieved (example: a credit union promotes a 3/1 ARM priced attractively for its members, but at an interest rate that is also superior to a comparable investment vehicle.)

How does a credit union of any size incorporate both the technology and product issues into their operations to achieve this goal? The Prime Alliance Online Mortgage Center offers the most advanced technology in the most user-friendly format. Any member could maximize their mortgage experience in terms of selecting the best product, convenience, accuracy and ease-of use, with the Prime Alliance system. CU National Mortgage brings Prime Alliance to all of its credit union partners, along with a wide breadth of mortgage options to meet the needs of your members. With a unique commitment to excellent member service and value, CU National provides a mortgage experience to your members that is exceptional.

To learn more about Prime Alliance Solutions, call Dan Green at (206) 439-5807 or send e-mail to dgreen@primealliancesolutions.com. To learn more about CU National Mortgage, call Jill Peterson at (888) 900-1643, ext. 1024 or send e-mail to jpeterson@usmtg.com.

 

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 ads@creditunions.com or 1-800-446-7453.

 

Jan. 31, 2005


Comments

 
 
 
  • What product they were successful with, how was it priced, how was it marketed, were employees incented to sell it, was it saleable or strictly portfolio, etc. I use PA and its a great tool - but members will not use it unless your have the products & marketing to lure them to it and the internal expertise to get the borrower to commit to your desired product - in this case ARM's. I'm with a $55 million CU and over the past 2 year we have closed 350 first mortgages loans for approx. $60 million and of those only about $5M illion have been ARM's - no matter how hard we try - in today's rate environment we find it extremely difficult to attract ARM's.
    Anonymous