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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:
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
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
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 firstname.lastname@example.org.
To learn more about CU National Mortgage, call Jill Peterson at (888) 900-1643,
ext. 1024 or send e-mail to email@example.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 firstname.lastname@example.org or 1-800-446-7453.
January 31, 2005
7/26/2012 04:12 PM
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.
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