SCOTTSDALE, AZ (March 17, 2014) -- Aiming to grow their mortgage portfolios, three credit unions have signed as new partners with CU Realty Services – another indicator of an improving purchase-mortgage market and credit unions’ interest in taking a bigger share of members’ mortgage business. The mortgage CUSO’s real estate services program, HomeAdvantage™, provides credit unions with an opportunity to engage with members early in the home buying process and stay engaged for financing.
The newest credit unions to offer the comprehensive real estate program are $1 billion Andrews Federal Credit Union, in Suitland, Md.; $564.7 million Kemba Credit Union in Cincinnati, Ohio; and $93.6 million Market USA Credit Union in Laurel, Md.
Their timing is spot on. According to the Mortgage Bankers Association, 63 percent of all first home loans in 2013 were purchase mortgages as opposed to refinances. And while earlier this year big banks reported a decrease in originations in fourth-quarter 2013, the MBA says the bulk of that drop is in refinance applications. MBA projects purchase originations to total $677 billion for 2014, lower than originally expected but nonetheless representing 3.8 percent growth over 2013.
Ohio’s Kemba CU has seen a “tremendous shift in the mortgage market,” according to Andrew Dunn, VP of CU Advantage, Inc., a CUSO owned by the credit union. “We’ve gone from 70 percent refinances to 70 percent purchase mortgages. And now, working with CU Realty Services, we’re able to capitalize on the buyer/Realtor relationship and increase our purchase mortgage levels – while also providing benefits to our members.”
Dunn adds that since the HomeAdvantage program went live in mid-December, Kemba CU is attracting members who appreciate its benefits, such as easy access to advice from experienced real estate and mortgage professionals. “Some members are surprised the program is offered free to them,” he said.
Accessing HomeAdvantage right from their credit union’s website allows members to search for properties; be notified when new listings are added in their favorite neighborhoods; connect with a knowledgeable, prescreened Realtor; and earn a rebate at closing equal to 20 percent of their agent’s commission. The average rebate given out in the HomeAdvantage program is more than $1,500 per transaction. When members rely on
“Connecting with members early in the buying process strengthens member relationships and, ultimately, earns the credit unions more mortgage business,” said Mike Corn, President/CEO of CU Realty Services.
In addition, Corn says the CUSO’s reporting system tracks members’ activity within the HomeAdvantage program, behavior clues that help credit unions know who may be looking for a mortgage and when they plan to buy.
“We receive high marks from our partner clients because the detailed reports allow them to see where their members are in the process,” Corn said. “Clients also say their members appreciate the wealth of information and assistance right at their fingertips.”
Combined, CU Realty Services’ Andrews FCU, Kemba CU and Market USA CU will provide easy-to-use real estate services to more than 200,000 members.
To learn more about CU Realty Services’ full package of real estate services, please visit www.curealty.com.
About CU Realty Services, LLC
CU Realty Services provides real estate services to credit unions across the nation, helping them increase their purchase mortgage business. Launched in 2001, the CUSO has worked with more than 100 credit unions and thousands of their members. CU Realty’s range of web-based tools helps homebuyers find homes, research neighborhoods, calculate costs, connect to experienced real estate agents, and earn a rebate. By offering this program to members, credit unions are able to achieve significant increases in their purchase mortgage business. For more information, call Tina Powers, (800) 203-9014 ext. 104, email tina@curealty.com or visit www.curealty.com.