Jan. 29, 2007


  • They key to gain market share is to understand the role of the secondary market in creating an innovative and sustainable mortgage operation. Portfolio lending is what makes Credit Unions Great however; it may also be the practice limiting Credit Union market growth when it comes to mortgage lending. Credit Unions can partner with the Secondary Market in a way beneficial to the Credit Union and the member. Smaller Credit Unions nervous about entering the mortgage market can balance interest rate and credit risk with great member service through these partnerships. Finding this kind of balance will be the key to continue serving the member while achieving growth. My Fathers Credit Union did not offer mortgages and up until a couple of years ago, neither did mine. When my children look for a home down the road I hope that without exception our Credit Union is the leader in the community when it comes to putting people first, by putting them in their first home. Across the country, this can only be achieved when the largest to the smallest Credit Unions are doing the same. Thank you Jay Johnson for an insightful article.
    David H. Kudrin
  • Collaboration is the key!!!!!! Almost two-thirds of our industry is missing out on the mortgage lending industry. But if more smaller credit unions could get together to pursue group solutions under the CUSO banner, that 1% growth figure might not seem so daunting.