The mortgage business is cyclical. When it rains, it pours. And when it dries up, it’s like a desert. With mortgage business being such a moving target, it’s a challenge to accurately plan for the future. This unpredictable pattern has a major impact on staffing and the overall revenue of a credit union.
With more than 65,000 members, Workers’ Credit Union ($740.1M, Fitchburg, MA) generated 500 mortgage loans worth $84 million in 2009. Its team of 10 lending experts had their hands full managing the increased business. They also were one year into their implementation of the mortgage solution developed by myCUmortgage®. Timing could not have been better.
“We were looking for a resource to help multiply our staff,” says Tom Gray, senior vice president of lending for Workers’ Credit Union. “We partnered with myCUmortgage to offload some of the more fundamental work so that our lending experts could focus on working with our members, the loans we wanted to portfolio, and high priority projects.”
Established in 2001, myCUmortgage is a credit unions service organization owned and operated by Wright-Patt Credit Union ($1.8B, Fairborn, OH) that offers a co-branded website for credit union partners to originate and process mortgage loans. The technology platform is powered by Prime Alliance Solutions, a leader in mortgage technology solutions.
The expense of implementing mortgage technology can be cost prohibitive for some credit unions. The technology investment and IT staff required to manage it is a major expense. In the case of Workers’ Credit Union, the partnership with myCUmortgage provided the lending department access to empowering technology without the expense of owning or maintaining it. As a result, Workers’ Credit Union benefited from the efficiency of the technology for its employees and, more importantly, its members.
“We’ve realized a significant savings since partnering with myCUmortgage,” says Gray. “We’re saving at least $200 per loan through myCUmortgage.”
The human capital also helped Workers’ Credit Union stretch its resources. “We’ve been through two refinance booms with myCUmortgage; thankfully, Workers’ Credit Union now maintains staff levels and manages the increased mortgage business by simply turning to myCUmortgage for support,” adds Gray.
Recently, Workers’ Credit Union began offering FHA loans for the first time in the credit union’s history. With myCUmortgage’s guidance on regulatory requirements associated with government-backed loans and Wright-Patt Credit Union’s underwriting expertise, Gray and his lending staff felt confident in providing FHA loan products to members.
“We rely on myCUmortgage for their expertise and close relationships with vendors such as Fannie Mae,” adds Gray. “With their strong ties to the secondary market, we’re able to provide our members different loan options designed to fit their specific needs.
Whether a credit union wants to expand its mortgage lending resources or start a mortgage program, partnering with a CUSO solution such as myCUmortgage gives them the flexibility to design a program that fits the credit union’s needs. Additionally, the cost savings helps the credit union’s bottom line and keeps members loyal to their credit union. For more information, visit myCUmortgage.com.