Now's the Time to Upgrade Online Mortgage Lending Capabilities

As more credit unions understand the growing importance of the Internet as a delivery channel, a strategic evolution is occurring. Leading credit unions are gradually moving their websites from simply providing brochureware to becoming a full self-service portal for members.

 
 

As more credit unions understand the growing importance of the Internet as a delivery channel, a strategic evolution is occurring. Leading credit unions are gradually moving their websites from simply providing "brochureware" to becoming a full self-service portal for members.

Like other financial service providers, credit unions are drawn to web-based services because they are convenient for members to use and less expensive than paper. However, one of the challenges of introducing new online services is the time required to recoup the initial technology investment. The high demand for mortgage loans right now suggests a window of opportunity for online mortgage lending.

Last fall, Callahan & Associates surveyed U.S. credit unions to find out how many of their customers were participating in online lending. Across loan categories, responding credit unions said that about one-fifth of their loan applications are submitted online, and half of those online loans are funded. For mortgage loans in particular, an average 23% of them were submitted online, and 53% were funded. Therefore, past online success combined with the current high demand for mortgage products suggests that now is the time for credit unions to focus on upgrading this crucial lending area.

 

 

 

Jan. 13, 2003


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