An opportunity in CUs’ sweet spot

The mortgage market has moved right into credit unions’ sweet spot, according to one expert, who adds that if CUs are to capitalize on the shift they must begin offering new solutions.

To do just that, CU Direct has now officially introduced a new platform, Origence, aimed at helping credit unions not just capture mortgage loans, but do so in a market in which a number of name brand lenders have given the impression a home loan can be had in a matter of minutes.

Roger Hull, chief product officer at CU Direct, noted big banks have traditionally dominated the refinance market, which has been slowing, while credit unions have typically done better with first mortgage loans, which have been increasing.

“Credit unions have about an 8% share of the overall first mortgage market today, and that percentage has grown slightly over the last few years,” explained Hull. “That’s what you’d expect as we shift away from a predominately refi market to more of a purchase market. And while credit unions have always done better in a purchase market, quite frankly they could have a much bigger market share—but there are some things they need to offer to get that.”

 

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