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
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
- 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
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.