Proactive Efforts Pay off For Mortgage Lending Leaders

The most successful credit unions in a new credit union mortgage lending survey just released by Callahan & Associates used a wide array of methods to stimulate mortgage lending growth last year and convince their members to think of their credit union first for their refinancing needs

 
 

The most successful credit unions in a new credit union mortgage lending survey just released by Callahan & Associates, Inc., used a wide array of methods to stimulate mortgage lending growth last year. Tools used included much greater use of technology, creative new marketing programs and expanded product offerings.

The credit unions that responded "are among the most dynamic credit unions in mortgage activity in the country," says Callahan President Charles A. "Chip" Filson. "They were especially proactive-exactly what is needed in even bigger doses for credit unions, which have a great opportunity this year to raise the industry's market share from its current 2% of the nation's growing $2 trillion mortgage market."

The credit unions responding to the survey were responsible for almost 40% of the industry's $46.6 billion booming first mortgage business last year. They snared a 154% increase in the average dollar amount in originations compared with the industry-wide increase of 128%, the survey shows. Survey results also indicate that 69% of credit union first mortgage activity in 2001 was related to refinancing, higher than that experienced in the mortgage industry as a whole.

The survey tracked the use of some of the industry's newer strategies in managing the increased opportunity for mortgage lending. For example:

  • Almost four in ten of the responding credit unions now pay some type of incentive commissions to originators.
  • Six in ten of the credit unions take applications from non-members (60%) and/or accept applications from out of state (58%)
  • And more than three quarters of respondents either currently offer (47%) or plan to offer (30%) online mortgage applications this year.

A variety of inventive approaches were used by credit unions to encourage refinancing activity among members. Some respondents even telephoned or sent postcards to members they knew would benefit from re-financings. One credit union, Forum, located in Indiana, initiated an extensive campaign which included marketing to SEG companies and prizes such as pizzas for branches which generated high levels of referrals.

Case studies of these and other innovative credit union efforts are included in the 2002 Credit Union Mortgage Lending Report. The report also provides credit union leader tables for the top 50 in such indicators as total value of real estate loan portfolio and total value of all mortgages originated. For more information about the report, call (800) 446-7453.


 

 

 

May 20, 2002


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